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August 29, 2005
NACHI-FUJIKOSHI CORP.

Release of a "Hydraulic Valve with a Monitoring Switch"
which Pursued Safety

NACHI-FUJIKOSHI CORP. developed a "Hydraulic Valve with a Monitoring Switch" which substantially enhanced safety of machines, as well as enabling high pressure and highly accurate control, energy saving, and downsizing, and we will bring it into market in September. As the consciousness for safety has been increasing, we are going to bring a product that contributes to creating a safety confirming system of mother machines ahead of other companies, for the first time in Japan. By this release, we are aiming to establish a stable position in the market and to expand hydraulic business

*A hydraulic valve: Equipment to control motions by controlling directions of pressure oil created by a hydraulic pump and by feeding it into hydraulic actuator such as a cylinder or a motor.

1.Trends of need for hydraulic equipment
(1) Performance better than carbide mills
  • Hydraulic equipment is widely used in the field of industrial machines such as civil engineering and construction machines, machine tools, injection molding machines, and pressing machines, which need strong and movable power. As industrial machines are becoming increasingly sophisticated, need for its element part, hydraulic equipment, is also becoming sophisticated and diversified.

    1. High power 2. Highly accurate control 3. Energy saving and space saving 4.High safety

    *In addition to the primary functions such as power and control precision, need for lower cost and safe work environment without troubles or disasters is increasing year by year.
  • Especially in the aspect of safety, efforts for the safety of work operation began in full scale. ISO12100, an international standard for machine safety was instituted in November 2003, and in Japan, JIS B9700 was also instituted in November 2004.
  • In future, in pursue of safety and in response to the standards, the attitude for safety will change from conventional "danger detection type" which stops operation by detecting abnormality to "a safety confirming type system" which only permits operation when safety is confirmed.
2.Efforts of hydraulic business in our company
  • Hydraulic equipment business in our company was started in 1958 when hydraulic equipment for in-house machine tools was manufactured. Since then, we have established a certain position in the market for industrial machines with the selling points of "high power, energy saving and compact" which were nurtured in the company. Above all, hydraulic pumps and motors for mini shovels developed into competitive products with number one global market share of 40%.
  • In the field of machine tools and pressing machines, we are developing energy-saving, space-saving, safety-conscious and environment-conscious products, with the concept of "environment-friendly and people-friendly hydraulic technology." In 2000, we developed energy-saving and compact type standard hydraulic unit series, and in 2003, we developed "POWER Meister" series with AC servomotor, enabling ultra energy saving which reduced power consumption to one tenth and achieving highly accurate control in micron unit, and we brought them into market.
  • At the same time, ahead of other companies, we obtained certification of three major safety standards in overseas, CE in Europe, UL in United States and CSA in Canada. We also worked on lead free, in order to meet the need for safe use without anxiety in the global market.
  • Moreover, as the international standard for machine safety (ISO12100) was instituted and attention for safety is increasing, we developed a product that contributes to creating a safety confirming system of mother machines for the first time in Japan, and we will put it into market in September.
    First Series
    SAW-G01 Series
    (Spool type, max flow 100L/min, max pressure 35MPa)
    SCW-G03 Series
    (Poppet type, max flow 50L/min, max pressure 21MPa)
  • We will position hydraulic equipment for industrial machines (energy-saving, safe, compact, and high function type) including a "Hydraulic Valve with a Monitoring Switch" as new brand series "Legato." From September, we will actively set them forth, appealing the technical superiority of our company. (We will present it to the International Fluid Power Exhibition 2005 to be held on August 30.)
3.Features of a hydraulic valve with a monitoring switch
  1. It can be used to create "a safety confirming system" for mother machines. It adopted a structure in which a switch will turn ON only at normal halt condition when the spool is neutral and safe. It enables creation of a safety confirming system in which operation will not be permitted until a mother machine confirms the signal.
  2. A spool to control the direction of the flow of pressure oil becomes the switch itself, and it automatically changes over, so the motion of the spool is certainly detected.
  3. In the switch part, electric parts or magnet element are not used, so there are very few accident errors by the influence of temperature or magnetism. Therefore, highly accurate switch signals can be obtained.
  4. It can be easily replaced with existing machines because other than the switch part, its specifications are equal to those of conventional standard hydraulic valves.

The monitoring switch (electric contact) is the oil immersion type. Therefore, petroleum-derived operating oil is only used as hydraulic operating oil.

4.Target market and sales amount
  • The need for "a safety confirming system" is increasing in the field of industrial machines including pressing machines and machine tools, and future demand expansion is expected. Other than safety confirming, a switch signal of valves can be utilized for sequence control.
  • Present sales targets are as follows:
    For the fiscal year 2006, annually 200 million yen
    For the fiscal year 2010, annually 1 billion yen