A decision was made in January of last year to integrate the management of OKUMA Group companies, and since last October we have continued to strengthen operations by restructuring and integrating functions within the Group under a holding company system.
We have concluded that the best means to ensure good results from the integration are to continue with the deliberation process that moves us toward a merger (1 July 2006) of the four companies to make use of the areas cultivated under group management in the preparatory stage and under the holding company system. Through this four-company merger we will pursue a strengthened operating foundation for the provision of "only one" technology and the best service, which will not be affected by demand fluctuations. This will enable us to move forward on surer footing as a leading company in the global machine tool industry to raise our corporate value.