R&D Structure

-The Company developed products and researched both fundamental processing and evaluation technology at its development headquarters, the Design and Development Division. The Company worked on production engineering and manufacturing technology at its technology headquarters, the Production Engineering Division; and production engineering divisions at its subsidiaries. There are 22 employees in the entire group who are assigned to work in R&D.

-Total R&D expenses in FY2009 for the entire Group were 296 million yen.

-The Company formed a close partnership and alliance with NHK Spring Co., Ltd., a company which is a largest shareholder of Topura. Together, their efforts have been very effective in conducting R&D activities on cutting-edge technology.

R&D Activities

-In order to achieve the best structural design for fastening products, the Company is jointly developing smaller and lighter fasteners by coming up with proposals on bolts that have greater strength and rigidity, and are more anti-corrosive. The Company is also working on proposals for tapping screws to be used on high-tensile steel plants. In doing so, the Company is researching basic technology to develop applications for new materials, design screws, and develop processing technology; in addition to developing technology that improves the reliability of evaluations.

-The Company worked on improving its production efficiency from a design standpoint by reducing and standardizing the items its produces based on making assessments and integrating materials and product specifications in the course of developing new materials.

-The Company developed products which are designed to reduce total costs through simplifying the production processes used for fastening parts, streamlining operations, and adding functions that prevent assembly errors. This will lead to creating screws with improved fastening qualities and more functionality.

-The Company developed screws suitable for information and telecommunications devices and for digital consumer electronics. It also conducted R&D activities on fastening mechanisms.

-In working to improve the environment, the Company succeeded in developing products and manufacturing process that do not require the use of environmentally hazardous substances. It also worked to meet the needs calling for mass chromium-hexavalent-free processing and non-chrome surface processing, looking for new applications of its products to help manufacturers who are in the pursuit of preventing global warming by reducing exhaust emissions and making their cars lighter. The Company also focused on developing these kinds of technology further.

Licensing-out Technology (receiving royalty payments)

(As of Mar. 31, 2010)

Capital Investments

-The total capital investment the Company made in FY2009 was 328million JPY. The Company invested mainly to build an additional plant building and update and rationalize screw production machinery and equipment.

Plans for Construction of New Facilities

(As of Mar. 31, 2010)