Nidec and Fuji Electric Sign a Memorandum of Understanding to Createa Joint Venture for Industrial Compact Motors

KYOTO, Japan, Oct. 1, 2008 (GLOBE NEWSWIRE) -- Nidec Corporation
("Nidec") (NYSE:NJ), together with Fuji Electric Holdings ("FHC")
(Tokyo Stock Exchange First Section: 6504) and one of its
subsidiaries, Fuji Electric Systems ("FES") (or "Parties"), announced
today that the Parties have agreed to a capital alliance arrangement
with regards to the industrial compact motor business of Fuji
Electric Motor ("FDM"), a subsidiary of FES, and FDM's three overseas
subsidiaries ("FDM Group"). The parties have signed, on September 30,
2008, a non-binding memorandum of understanding ("MOU") wherein it
was agreed that the ratio of capital contribution of Nidec and FES to
the FDM Group shall be 60 percent and 40 percent, respectively.
Consequently, FDM Group will cease to be a subsidiary of FHC and will
become a new subsidiary of Nidec.
 
The Parties will continue to negotiate in good faith with a view to
transferring all remaining shares of FDM held by FES to Nidec, while
carefully considering the interests of all stakeholders as well as
continuous growth of the joint venture.
 
Purpose and Background of the Capital Alliance
 
Nidec, as the world's leading manufacturer of various small and
mid-sized brushless motors for IT, OA, and automotive applications,
has been coordinating its business efforts to interactively manage
internal and external growth to maximize corporate values and
shareholder returns, especially through seeking advantages of scale
by expanding in the small and mid-sized motor segments.
 
The Nidec Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=1734
 
FHC Group, with a view to building public and industrial
infrastructure on a global basis, bases its strength on its power
electronics technology applied to various inverter and motor
applications ("Drive Business"). The Drive Business is such that it
is essential to maintain a competitive edge in all motor segments,
from compact to large motors, to sustain growth.
 
Market conditions for industrial compact motors have become
increasingly cost-competitive due to rising raw material costs and
rapid commoditization. Under this environment, it was determined to
be in the best interest of FHC Group and its Drive Business to seek
to strengthen the industrial compact motor business of FDM.
 
A full copy of this press release is available at:
http://www.nidec.co.jp/english/ir/indexdata_e/2008/1001.pdf
 
This is not an offer to purchase securities in the U.S. The company
does not intend to conduct the offer in the U.S. or to persons
residing in the U.S.
 
CONTACT:
Nidec Corporation
Investor Relations
Masahiro Nagayasu, General Manager
+81-75-935-6140
ir@jp.nidec.com