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News Release

JRI Concludes Alliance Agreement with Battelle Memorial Institute

June 16, 2004

The Japan Research Institute, Limited
Battelle Memorial Institute

The Japan Research Institute, Ltd. (President: Shunichi Okuyama; Head Office: Chiyoda-ku, Tokyo; hereafter referred to as JRI) recently signed an alliance agreement with Battelle Memorial Institute (President: Dr. Carl F. Kohrt; Head Office: Columbus, Ohio, U.S.A.; hereafter referred to as Battelle). Based on this agreement, JRI and Battelle will work together to develop, evaluate and execute business opportunities in the fields of technology and business development in the future.

Under such circumstances as the market becoming mature and the economy facing deflationary pressure, many Japanese businesses have achieved a V-shaped recovery through restructuring and cost reduction and have finally entered a period of working toward growth in earnest. To many of them, it has become essential to "buy time" by introducing supplementary skills and technologies from outside in order to grasp the ever-increasing market changes in a timely manner and develop businesses. In this environment, businesses that have their own innovative technologies stand a greater chance of success by attracting cooperative partners and establishing new businesses.

According to the World Competitiveness Yearbook published by the International Institute for Management Development (IMD), Japan ranks first in the world in the ranking of research and development outlay per researcher. Private businesses and public research institutes boast of original and attractive technologies that are expected to drive the market in the next generation. The fact is, however, that such technologies are not effectively used for specific projects and remain untapped.

To date, JRI has made efforts to develop businesses using new technologies and at the same time put its energies into supporting technological development by customers and the creation of businesses by them. From this experience, JRI firmly believes that the key to optimizing technologies for business is to evaluate them from the users' viewpoint and find partners with which their value can be enhanced for more extensive applications.

Therefore, JRI will obtain cooperation from Battelle, one of the world's largest independent private research institutes that have top-notch researchers in all scientific fields, in terms of technical knowledge and skills, thus further bolstering its existing operations and providing services that satisfy customers. Specifically, when private business and public research institutes intend to develop technologies and create businesses, JRI will contribute to their value creation through the provision of services ranging from management-related outsourcing to consulting and support in a manner that meets all their needs. By doing so, JRI hopes that it will be able to contribute to the rebirth of "Japan built on technology."

All customer inquiries should be forwarded to:
Akihiko Suwa
Research & Consulting Division, the Japan Research Institute, Ltd.

Tel: 03-3288-4242

Kary Delaney
Battelle Memorial Institute

Tel: 614-424-5544

All press inquiries should be forwarded to:
Yoshihito Sato
Public Affairs Dept

Tel: 03-3288-5360

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