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PRESS RELEASE: No.18
January 6, 2006

Sumitomo Wiring Systems, Ltd.
Summary of New Year speech of 2006 (for employees)


Tadashi Shimokawa, President
Toward the achievement of The Global 20 (G-20), our goal to win 20% of the world's market share by 2010, we started the QCD No. 1 Activity in 2005 as a three-year activity plan for the entire company and Group. To achieve G-20, it is an essential requirement for us, as a comprehensive manufacturer of wiring harnesses, to become the world's top manufacturer for technical capabilities, including the capability to maintain the best quality (Q), to achieve low cost (C), and to provide excellent delivery (D). The three years of 2005, 2006, and 2007 are definitely important in that sense. I believe that we will never fail in achieving QCD No. 1 through the ongoing, challenging efforts of all employees for accomplishment.

This year will be the second year of this period. I would like to strongly encourage you to implement the following three points:
I. Fundamentally reform quality structure
Each of us needs to strongly reaffirm that we must fundamentally reform ourselves to build a foundation of not generating and not delivering any defective quality.

The measures and strategies that have been implemented for quality improvement in each division are not wrong. Our individual efforts are still insufficient in implementing them honestly, soberly, and completely. Implement the fundamental reform with the conviction that working on quality improvement honestly, soberly, and completely is the ticket for achieving G-20.


II. Enhance our human resource development
Manufacturing is based on the development of human resources. Quality assurance is also based on the development of human resources. It is essential for the global growth of our business to enhance and secure professionals in each field who possess a global spirit. Under the conditions that quality, costs, and globalization are significantly more important than ever before, enhancing and developing human resources has become particularly important. Selected workshops that are now active in each division are human resource development in and of themselves. Through these activities, it has become clear that mutual exchange makes a person better and speeds up progress. Begin the full-scale process for development of an education system and establishment of educational programs to be undertaken in each division, and make great progress.


III. Promote manufacturing reforms and significantly reduce costs
The automotive components industry is facing fierce competition. To survive such competition, we are required to implement fundamental quality improvements and annual cost reductions. It is tremendously significant to reform manufacturing, while maintaining good quality during the manufacturing process and conducting activities to dramatically improve our productivity and production lead time. Specific activities are currently promoted in each division. Make this the year that these activities bear fruit and we can obtain a significant accomplishment.

Lastly, I would like to mention our corporate social responsibility. Corporate misdeeds, for example, environmental pollution and dishonest transactions, are frequently occurring. I expect that the SWS Group, as a contributing member of society, not only complies with regulations, but also maintains high ethics and seeks the development of fair business practices. I would like to request each division to promote reviews and verifications of operations from such a point of view.


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