June 24, 2002
Yanmar Diesel Engine Co., Ltd.

Change of Company Name and Re-organization of Business Structures

Yanmar Diesel Engine Co., Ltd., as a part of consolidating the Yanmar group management as a whole, will change its company name and re-organize its business structures as follows:

1. Change of Company Name
   1. New Company Name: Yanmar Co., Ltd.
   2. Effective Date: July 1, 2002
   3. Background
      Yanmar Diesel Engine Co., Ltd. celebrates its 90th anniversary this year. Over the period, Yanmar group has developed variegated businesses including agricultural machinery, pleasure boats, cogeneration systems, construction machinery and transmissions and other component businesses while focusing on diesel engines as its core business. While these businesses have expanded, overlapping of functions or inappropriate decentralization of functions within Yanmar group and other inefficient factors has occurred.
      In order to streamline company operations, Yanmar has decided to re-organize its present business structure into several self-contained operating units with their own production, development and sales functions based on each clientele, and to inaugurate them as independent companies to allow for quick response to customers' needs and market changes.
      Under this group-wide business re-organization and to promote Yanmar group management afresh from the global perspective, we have decided to change the company name from Yanmar Diesel Engine Co., Ltd. to Yanmar Co., Ltd.
2. Re-organization of Business Systems and Establishment of New Business Companies:
   From the standpoint of optimizing the agricultural machinery business within the Yanmar group, we will integrate the production, development and sales function of agricultural machinery businesses into one new company.
   Same approach will be taken for other business sectors for inaugurating independent companies one by one.
   
   1. Agricultural Machinery Business
      1. Integration of Agricultural Machinery Businesses
         Yanmar Agricultural Equipment Co., Ltd., effective from July 21, 2002, will be re-organized into a 100% subsidiary of Yanmar.
         
         Up until now, Yanmar Agricultural Equipment Co., Ltd. has engaged exclusively in sales function of agricultural machinery for mainly the Japanese market. The overseas sales functions presently managed by Yanmar and the development and production functions presently shared by Yanmar and Kanzaki (Kanzaki Kokyukoki Co., Ltd., a 100% subsidiary of Yanmar) will be integrated under one company.
         The new subsidiary will oversee development, production and sales functions.
         
         In the development, too, the tractor development function of Yanmar Diesel and the tractor transmission development function of Kanzaki Kokyukoki will be gathered under one tractor development division of the new subsidiary. This will facilitate speedy development of tractors that fit precisely to customers needs.
         
      2. Establishment of Tractor Manufacturing Company
         The Kinomoto Plant, presently the tractor production division of Yanmar Diesel Engine Company and the Ibuki Plant of Kanzaki (manufacturing tractor transmissions and small tractors) will be integrated into a new tractor production company, (tractors and tractor transmissions), which will be controlled by the new agricultural machinery company.
         
   2. Marine Business
      In order to operate the pleasure boat engine business globally and further improving services in the domestic marine market, we will establish both the domestic and overseas marine business companies with the present clientele as the core .
      1. Establishment of Overseas Marine Business Company
         We will establish a marine business company in Europe, the advanced marine pleasure arena of the world. The new company will administer the marine businesses of Europe, North America and Asia. We aim to establish a system that is not vulnerable to exchange rate fluctuations for firmly positioning our brand as the first rated brand in the world marine pleasure market.
         
      2. Establishment of Domestic Marine Business Company
         In addition to the overseas marine business company above, we will establish a domestic marine business company, which will be engaged in the sales of fishing and work boat engines and boats.
         
   3. Energy System Business
      The operation of the energy system business this year will be controlled by the internal company within Yanmar Diesel Engine, (should be known as Yanmar Co., Ltd. after July 1, 2002), which will be inaugurated as an independent business company in 2003.
      
   4. Engine Business
      The excellence of engine quality and engine manufacturing technologies will decide the reputation of the products of Yanmar group as a whole and we must continue our R&D to comply with the stricter gas emission regulations in the future.

• Yanmar Agricultural Equipment Manufacturing Co., Ltd.
  • Establishment scheduled for July 1, 2002
  • Operation scheduled for Sep. 21, 2002
  • Capital: \300 million
  • Location: Santo-cho, Sakata-gun, Shiga Prefecture
  • President: Isao Hioki
  • Business Line: Manufacture of tractors and tractor transmissions
  • Sales: \40,000 million (projection for 2003)
  • Employees: 670
    
• Yanmar Marine International BV
  • Establishment scheduled for July 1, 2002
  • Operation scheduled for Oct.1, 2002
  • Capital: 3 million EURO
  • Location: Almere-de Vaart, the Netherlands
  • President: Geert Jan Mantel　
  • Business Line: Manufacture and sales of pleasure boat engines　　　
  • Sales: 69million EURO(projection for 2003)
  • Employees: 50
    
• Yanmar Marine System Co., Ltd.
  • Establishment scheduled for July 1, 2002
  • Operation scheduled for Sep. 21, 2002
  • Capital: \200 million
  • Location: Tsukaguchi-honmachi, Amagasaki, Hyogo Pref.
  • President: Osamu Hamada
  • Business Line: Sales of work boat engines and boats
  • Sales: \32,000 million (projection for 2003 on consolidated basis)
  • Employees: 430