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Sale of Nissan's Aerospace Division

14 February 2000

Sale of Nissan's Aerospace Division

    TOKYO, Feb. 14 -- Nissan Motor Co., Ltd. today reached
agreement on a memorandum of understanding with Ishikawajima-Harima Heavy
Industries Co., Ltd. (IHI) for the sale of its aerospace division to IHI.
Nissan and IHI will continue to finalize the details of the transaction which
is expected to be closed before August.
    As the automotive and aerospace industries require an increasingly global
focus, the deal will allow both companies to concentrate their technological
and engineering resources on their core businesses.
    Nissan's Aerospace Division started research on rockets in 1953.  As an
integrated rocket development and manufacturing division, the unit has
contributed to development of solid propellant rockets for scientific sounding
rockets and practical satellites.  The division reported net revenue of
51.2 billion yen in FY'98, and has 920 employees.
    Nissan has been working to spin off its non-core business lines to focus
its resources on core automotive operations as part of the Nissan Revival Plan
announced last October.  The sale of the aerospace division is one step in
Nissan's restructuring plan that is aimed at achieving growth, improving
profitability, and reducing debt.