TKS REMAINS COMMITTED TO THE U.S. MARKET

On January 23, 2006, the United States Appellate Court for the Eighth Circuit
upheld the December 2003 determination by a jury in the Northern District of
Iowa that Tokyo Kikai Seisakusho, Ltd. and its U.S. subsidiary (collectively
“TKS”) had violated the Antidumping Act of 1916 by selling large newspaper print-
ing Tower Units to the Dallas Morning News in 1996 at a price below the price at
which it sold large newspaper presses in Japan. The jury also found that TKS had
violated the Act by causing Goss International Corp. (“Goss”) to lower its prices
on 1997 sales it made to the Newark Star Ledger and the Orlando Sentinel. The jury
rejected the majority of Goss’s damage claims and found that TKS had not violated
the Act with regard to sales TKS made to the Wall Street Journal and Greensburg
Tribune Review.

Subsequent to the jury’s finding and more than four years after a determination
by the World Trade Organization that the 1916 Act violated the United States
international obligations under WTO Antidumping Agreements, the Act was repealed
by Congress in 2004. Concerns about the anti-competitive effects of the 1916 Act
also led the European Union, on December 15, 2003, less than two weeks after the
jury’s verdict in TKS’s case, to pass legislation that would allow any European
company subjected to damages under the 1916 Act to bring an action for the repayment
of any damages assessed in a United States court. Legislation which was passed in
Japan in 2004 also provides that a Japanese company, such as TKS, can bring an action
to recover any damages and attorney fees that it incurred as a result of an action
brought under the 1916 Act.

TKS is disappointed with the 8th Circuit’s decision and disagrees with its failure,
among other things, to order a new trial based on the ground that Goss’s marketing
losses and manufacturing closure were not caused by TKS’s conduct but by Goss’s poor
reputation in the newspaper industry. TKS will file a motion with the 8th Circuit for
a rehearing en banc.

In a separate proceeding the Department of Commerce is conducting a changed circum-
stances review into whether the Department should reinstate the antidumping order
against Japanese producers of Large Newspaper Printing Presses, including TKS and
Mitsubishi Heavy Industries. The Department’s decision is expected on March 1, 2006.
The antidumping order in question was revoked with respect to TKS on January 16, 2002,
after a finding by the Department that TKS had not engaged in dumping for three
consecutive annual review periods, and the order was revoked with respect to all imports
of LNPPs from Japan on February 25, 2002, based on a finding that there were no longer
any U.S. producers of LNPPs. TKS has contested the authority of the Department of
Commerce to conduct a changed circumstances review of an antidumping duty order that has
been revoked. TKS will contest any reinstatement of the antidumping duty order should
the Department of Commerce decide to do so.

A final adverse decision either by the 8h Circuit Court or by the Department of Commerce
will not affect TKS’s commitment to provide world-class, cutting-edge press technologies
and services to the U.S. newspaper industry. TKS remains committed to provide the highest
level of service to existing U.S. customers for years to come and will compete vigorously
for new business and services in the U.S. This commitment reflects TKS’s over 130 year
history which includes working closely with a number of leading newspapers in the United
States for almost the last 30 years. TKS believes that competition is the lifeblood of
innovation, benefiting users, the newspaper industry and consumers alike.