Notification concerning management-system reform through
introduction of the In-house companies system

03/29/2001

This is to announce that our company has decided to reform its management system through the introduction of an In-house companies system and an "executive officer "system, effective as of April 1, 2001. This reform shall be carried out for the purposes of providing better overall customer service, defining profit responsibilities, focusing on managerial strategies of each business unit, and reinforcing our system for developing new businesses and products.

1. In-house Companies System

(1) Seven in-house companies and two functional support centers will be organized as follows, with the objectives of managing the company strategically and defining profit responsibilities even more. This will be achieved through consolidation, in principle, of the strategies, sales, production, service, and development functions, for each product.

Name	Function
Fluid Technologies Unit	Manufacture and sale of fluid-control equipment for industrial processing, such as special pumps.
Particle Solutions Unit	Manufacture and sale of particle size analyzers, and related products.
Industrial Equipment Unit	Manufacture and sale of high pressure equipment, analytical instruments for high-tech industries, measuring instruments, and similar products.
Instrumentation & Power Systems Unit	Manufacture and sale of water-treatment equipment and boiler-control equipment for nuclear and thermal power stations, pumps for direct delivery to utility companies, and similar equipment.
Composite Technologies Unit	Manufacture and sales of moldings made of composite materials reinforced by carbon fiber, such as airplane components.
Medical Equipment Unit	Manufacture and sale of hemodialysis systems, dialyzers, artificial pancreas, centrifugal blood-pump systems, dry dialysate, and similar products.
Dental Equipment Unit	Sale of dental equipment and materials.
Research &Development Center	Medium and long-term research and development and management of intellectual property rights, following consolidation of the R & D Centers at the Higashimurayama and Shizuoka plants.
Corporate Support Center	Duties previously performed by the Administration Division, such as those relating to general affairs, personnel, accounting, and public relations.

(2) The head of each unit has the title of "President," and the head of each center has the title "General Manager". These positions will be held by Executive Officers.




(3) Each President and General Manager will work out medium- and long-term plans as well as business plans for each term (including management policies and targets, analyses of the market and management environment, sales and profit projections, investment and financing, employment and personnel changes, organization, R & D, marketing, production, and education), and, with the approval of the CEO, will make an effort to realize these plans. The business plans will be structured as "contracts" between the CEO and each President /General Manager.



2. Executive Officer System

(1) The executive officer system will be introduced to define management responsibilities by separating the decision-making and the operating divisions of the company. The CEO will delegate the authority to the executive officers to take charge of operations.




(2) Two types of Executive Officers -- Senior executive officers and executive officers-- will be instituted. The term of office is one year and reappointment is possible. Eight senior executive officers and seven executive officers will be appointed, as of April 1.




(3) With the introduction of the executive officer system, the Board of Directors will function as a streamlined organization focusing on management supervision and decision-making




(4) Any director of Board who is committed to the operating division will retire from the directorship at the end of the regular shareholders' meeting, to be held in June of this year.




(5) At the shareholders' meeting in June of this year, it will be resolved to reduce the quota for directors of the board and to reduce the total amount of remuneration for the directors.



3. Institution of the Management Meeting

(1) The Managing Directors' Meeting will be abolished and the Management Meeting will be instituted, as an organization to support the CEO, with strategy-forming functions.




(2) The Management Meeting will work out medium and long-term plans for the whole company, deliberate matters to be settled by the CEO, and examine management tasks and development themes from the point of view of the entire company.




(3) The members of the Management Meeting will be the CEO, managing directors and above, directors designated by the CEO, and the Presidents of the Fluid Technologies Unit, Instrumentation & Power Systems Unit, the Medical Equipment Unit (other Presidents will attend the meeting, depending on the items on the agenda), and General Managers of the Research &Development Center and the Corporate Support Center. The meeting will be observed by senior standing auditors. The Secretariat will be set up in the Corporate Planning Department.



4. Changes in Commissioned Duties

With the introduction of the new organization, the commissioned duties of the directors will be changed as follows, as of April 1:

Position and name	new duties and position	current duty and position
Executive Vice-President Atsumi Takeuchi	Assistant to the CEO	Assistant to the CEO and in charge of Medical Division
Managing Director Shuji Mizoguchi	general management	in charge of electric power, energy, the environment, and additional industrial marketing and production, and also in charge of the 2nd Industrial Division
Managing Director Shuichi Toyoda	general management	in charge of R & D and new overseas strategies (LNG project)
Managing Director Hiroaki Shimizu	general management	in charge of chemistry, petrochemistry, shipping, water and sewage works, and other industrial marketing and sales; also in charge of the 1st Industrial Division
Director Shun Kuroki	business promotion (coordination between in-house companies)	General Manager of the Tokyo Branch
Director Shigeru Kase	Senior Executive Officer and Director, general manager of Research & Development Center	General Manager of the 1st Industrial Division
Director Hajime Kawakita	Senior Executive Officer and Director, Medical Equipment Unit	General Manager of the Medical Division
Director Kazuya Nakai	Senior Executive Officer and Director, President of Dental Equipment Unit	business promotion for the Medical Division
Director Akihiro Nagao	Senior Executive Officer and Director, President of Instrumentation & Power Systems Un	General Manager of the Research and Development
Director Hiroshi Yajima	Senior Executive Officer and Director, Research & Development Center	promotion of marketing development for the 2nd Industrial Division
Director Mitsuyoshi Yamamot	Senior Executive Officer and Director, general Manager of Corporate Support Center	General Manager of the Administration Division
Director Hiroshi Kinoshita	Senior Executive Officer and Director, President of Medical Equipment Unit	General Manager of the Medical Devices Factory, Shizuoka Plant

5. Personnel Changes

With the introduction of the new organization, the following personnel changes will take effect as of April 1.

Name	new position	current position
Masayuki Tonomura	Senior Executive Officer and President of Fluid Technologies Unit	General Manager of the Osaka Branch
Hiroyuki Watanabe	Executive Officer and President of Industrial Equipment Unit	General Manager of the 2nd Industrial Division
Hiroshi Nogami	Executive Officer and President of Particle Solutions Unit	business promotion for the 2nd Industrial Division
Shuichi Shiraki	Executive Officer and President of Composite Technologies Unit	General Manager of the Advanced Materials Division
Michinori Ishibashi	Executive Officer, Fluid Technologies Unit	Manager of the Fluid Equipment Factory, Higashimurayama Plant
Kunio Hatano	Executive Officer, Instrumentation & Power Systems Unit	Manager of the Shikoku Block and Chugoku Branch
Toshihiko Kai	Executive Officer, Medical Equipment Unit	Manager of the General Affairs Department and the Public Relations Department, Administration Division
Terushige Nishimura	Executive Officer, Medical Equipment Unit	Manager of the Medical Department, Tokyo Branch