Trimmed Interest-Bearing Debt and Established Commitment Line to Improve Financial StructureApr. 8, 2002

Toyo Engineering Corporation (TEC; President, Toshihiko Hirose), in continued efforts to reduce the balance of interest-bearing debt as part of the Company's renovation plan formulated in January 2000, has reduced the balance of interest-bearing debt on a consolidated basis by approximately \17.0 billion yen, and on a non-consolidated basis by approximately \11.0 billion yen in fiscal 2002, ended March 31, 2002. As a result, the balance of interest-bearing debt stood at approximately \93.0 billion yen on a consolidated basis, and approximately \71.0 billion yen on a non-consolidated basis as of March 31, 2002. TEC continue the efforts to reduce the balance of interest-bearing debt by \10.0 billion annually on both a consolidated and non-consolidated basis until fiscal 2004, ended March 31, 2004, in order to further strengthen its financial structure.

At the same time, the Company and seven financial institutions, led by Sumitomo Mitsui Banking Corporation. have established a commitment line of \7 billion, to cope with the unexpected needs for funds. The main conditions are as follows:

Borrower: Toyo Engineering Corporation Lenders: Sumitomo Mitsui Banking Corporation, The Industrial Bank of Japan, Limited*, The Bank of Tokyo-Mitsubishi, Ltd., The Chiba Bank, Ltd., UFJ Bank Limited, The Chuo Mitsui Trust and Banking Company, Limited, The Dai-Ichi Kangyo Bank, Limited*
Amount (Contract limit): \7.0 billion
Effective date: March 20, 2002 (review annually)

*Note: The number of banks and their respective names, as mentioned above, remained in effect as of March 20, 2002, wherein The Industrial Bank of Japan, Limited and The Dai-Ichi Kangyo Bank, Limited have been subsequently reorganized into Mizuho Corporate Bank, Ltd.

This was the first time TEC has set a commitment line and is seen as one of the major steps towards improving its financial structure

Balance of Interest-Bearing Debt (Unit:Billions of Yen)
Mar. 1999
Mar. 2000
Mar. 2001
Mar. 2002
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