March 29, 2004

NACHI-FUJIKOSHI CORP.

Sumitomo Electric Hardmetal Corp.
Release of a Global Standard Carbide End Mill,

"GS MILL Hard"

NACHI-FUJIKOSHI CORP. in Toyama City, Toyama Prefecture (president: Kensuke Imura) and Sumitomo Electric Hardmetal Corp. in Itami City, Hyogo Prefecture (president: Yuichiro Kono) will expand the lineup of the common brand "GS MILL Series," a global standard end mill which reduced the running cost half and below compared to the conventional products and which was released as a cooperatively developed product in June 2002. We are going to release "GS MILL Hard," an end mill for high efficient milling of hardened material on April 1 of this year.

NACHI-FUJIKOSHI CORP. and Sumitomo Electric Industries, Ltd., a parent company of Sumitomo Electric Hardmetal Corp. in Chuo-ku, Osaka City, (president: Norio Okayama), formed an all-inclusive business alliance for cutting tool business in 1999, and have deepened the partnership in wide areas even after hardmetal division and powder metal products division of Sumitomo Electric Industries, Ltd. spun off into Sumitomo Electric Hardmetal Corp. in April, 2003. The tie-up produced good results especially in product development, and there are 15 items of cooperatively developed products including "GS MILL Hard" which we are now going to release.

The features of "GS MILL Hard" are as follows:

Features of "GS MILL Hard"
The global standard carbide end mill "GS MILL Series" The global standard carbide end mill "GS MILL Series" which fused the skills of the two companies in development and manufacturing achieved the high efficient milling of dies and machinery parts, and acquired high reputation in Japan and overseas as a global standard brand of carbide end mills especially for milling of dies. Features of "GS MILL Hard" In the field of die machining, the need for high efficient milling of hardened material is recently increasing. "GS MILL Hard" uses the "GS Hard Coating," a newly developed aluminum-rich Al-Ti-Cr-related laminated coating, and oxidation resistance at 1,100 degrees C is enhanced more than three times compared to conventional products. In addition, heat resistance and abrasion resistance are substantially improved in ultrahigh-speed machining. The surface has excellent smoothness which reduces friction resistance during milling. Development of micro grain low cobalt carbide alloy for hardened material enhanced the strength of base material, and it prevents plastic deformation in micro level which occurs during milling, thus improving the durability. Ultrahigh-speed milling of hardened material is possible.

( Milling speed: up to 800 m / min ) The special shape of the cutting edge substantially reduced the abrasion at the corner. Applicable work materials and sales target