Parker Acquires Majority Stake In Taiyo Ltd.

Posted on June 27, 2006

In a move intended to strengthen its global capabilities in mobile and stationary hydraulic markets, Parker Hannifin Corp. has acquired a majority stake in in Taiyo Ltd., Osaka, Japan. Parker increased its equity stake in Taiyo to approximately 60% by purchasing all Taiyo voting stock previously held by Kyoei Steel Ltd. Terms of the deal were not disclosed.

Taiyo posted revenues of approximately $208 million for its fiscal year ended March 2006. The company develops and manufactures a

broad range of products, including hydraulic and pneumatic

actuators, cylinders and specialized pneumatic products. Included in its portfolio are double and single-acting two stage cylinders for mobile equipment applications.

Taiyo has 875 employees and four facilities in Japan, one in China, and one in the U.S. The companies have collaborated since the March 2002 establishment of a Parker-Taiyo business alliance.

“This transaction dramatically strengthens our hydraulics business with a platform for growth serving Japan and the entire Asian region," said Don Washkewicz, Parker Chairman and CEO.