Nidec Tosok Revises Financial Forecasts Downward for the Year Ending M

    Business Editors/Technology Writers

    KYOTO, Japan--(BUSINESS WIRE)--Feb. 22, 2005--Nidec Corporation (NYSE: NJ; TSE: 6594) announced today that Nidec Tosok Corporation ("the Company"), one of its consolidated subsidiaries whose shares are listed on the First Section of the Tokyo Stock Exchange (Code:7728), has revised downward its consolidated and non-consolidated financial forecasts for the year ending March 31, 2005 as follows.

1. Revised consolidated financial forecasts (Japanese GAAP) for the year ending March 31, 2005.

(Yen in millions) ---------------------------------------------------------------------- For the year ending March 31, 2005 Results ---------------------------------- for the Previous year forecast Revised Change Change ended (Feb. 1, forecast (amount) (percent) March 31, 2005) 2004 -------------------------------------------------------------------- Net sales 31,000 29,200 1,800 5.8% 26,860 -------------------------------------------------------------------- Recurring income 3,800 3,200 600 15.8% 2,914 -------------------------------------------------------------------- Net income 2,100 1,800 300 14.3% 1,709 ----------------------------------------------------------------------

2. Revised non-consolidated financial forecasts (Japanese GAAP) for the year ending March 31, 2005.

(Yen in millions) ---------------------------------------------------------------------- For the year ending March 31, 2005 Results ---------------------------------- for the Previous year forecast Revised Change Change ended (Feb. 1, forecast (amount) (percent) March 31, 2005) 2004 -------------------------------------------------------------------- Net sales 26,500 25,100 1,400 5.3% 21,876 -------------------------------------------------------------------- Recurring income 2,000 1,500 500 25.0% 1,269 -------------------------------------------------------------------- Net income 1,000 700 300 30.0% 738 ----------------------------------------------------------------------

    3. Reasons for revision

    The downward revision reflects the adverse market environment surrounding the Company (primarily) resulting from materials shortages in the automobile industry and its customers' corresponding inventory adjustments.

    Since last fall, the Company's automobile parts business has been experiencing the impact of its customers' production cutbacks attributable to the globally tight steel supply. This trend has continued into the current fiscal quarter, and customer demand has yet to recover to the previously forecasted level. Also, soaring steel prices have increased the Company's purchasing expenses, raising its overall cost percentage. Meanwhile, the Company has undergone a string of cancellations and postponements of semiconductor manufacturing equipment shipments due to its customers' inventory adjustments and expects to incur costs related to the disposal of excess inventory. The Company also allows for possible inventory adjustments in the digital consumer electronics market and expects decreases in its fan motor shipments for the current fiscal year.

    4. Impact on the consolidated financial results of Nidec Corporation

    The Company's downward revision will have no material impact on the consolidated financial results of Nidec Corporation.

    Disclaimer Regarding Forward-Looking Statements This press release contains forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) about Nidec and its group companies (the Nidec Group). These forward-statements are based on the current expectations, assumptions, estimates and projections of the Nidec Group in light of the information currently available to them. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "expect," "anticipate," "estimate," "plan" or similar words. These statements discuss future expectations, identify strategies, contain projections of results of operations or of the Nidec Group's financial condition, or state other forward-looking information. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contained in any forward-looking statement. We cannot promise that our expectations expressed in these forward-looking statements will turn out to be correct. Our actual results could be materially different from and worse than our expectations as a result of certain factors, including, but not limited to (i) the Nidec Group's ability to design, develop, mass produce and win acceptance of their products, (ii) general economic conditions in the computer, information technology and related product markets, particularly levels of consumer spending, (iii) exchange rate fluctuations, particularly between the Japanese Yen and the U.S. Dollar and other currencies in which we make significant sales or in which the Nidec Group's assets and liabilities are denominated, (iv) the Nidec Group's ability to acquire and successfully integrate companies with complementary technologies and product lines, and (v) adverse changes in laws, regulations or economic policies in any of the countries where the Nidec Group has manufacturing operations, especially China.

    About Nidec Corporation

    Nidec Corporation (NYSE: NJ; TSE: 6594) is the global leader in drive-technology products, focusing on brushless DC motors. One of 19 Japanese companies listed on the New York Stock Exchange, Nidec is among the top 5% listed Japanese companies by market capitalization. Nidec manufactures small precision motors and mid-size motors which comprise 64% of its total sales; machinery and other products comprise the remainder. Nidec has 110 group companies in 14 countries employing 80,000 people. The Company was founded in Kyoto, Japan in 1973 by Shigenobu Nagamori, its current President and CEO.

CORPORATE OFFICE: 338 TONOSHIRO-CHO, KUZE, MINAMI-KU, KYOTO 601-8205 JAPAN PHONE: KYOTO +81-75-935-6140 FAX: +81-75-935-6141 URL: http://www.nidec.co.jp/english/index.html

--30--SM/ny*

CONTACT: Nidec Corporation Hiroshi Toriba, 81-75-935-6140 HIROSHI_TORIBA@notes.nidec.co.jp

KEYWORD: NEW YORK JAPAN INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: HARDWARE SOFTWARE BANKING NETWORKING EARNINGS SOURCE: Nidec Corporation

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