The word “Teral” is an original word that consists of two parts: “terra”, meaning the Earth, and “rally”. “Teral”, therefore, renews the Earth with air and water.

We aim to reduce the burden on the global environment, contribute to a comfortable living environment, and realize a recycling society.

Creating the future with water and air,Up to and from this point onward.

Air and water are the basis of all life.

Teral hopes to maintain the quality of water and air, something which people do not often, or consciously,

notice, and create smiles on peoples' faces.

Since the inception of the company in 1918 we have developed technologies which allow for the provision

of air and water in the optimum forms, and provided products and systems which continually meet the new

demands of the industrial world.

Teral has pursued the creation of products which contribute to the realization of a recycling society, where

the earth's future is taken into consideration while developing an industrial society and where human can

live comfortably.

We have maintained this way of thinking from long in the past, even before the current cries of dangers to

the global environment began.

Our company started the new group brand "Teral" in 2008 during the 90th anniversary of the company.

We plan to increase synergy by having each group company focus on their operational resources of their

areas of expertise while cooperating with each other to drive cohesive group management.

Teral’s FieldsTeral-supporting lifelines

RESULTSA high market share supported by customer trust

QUALITYQuality maintained at a higher dimension

Product Line-upThe Teral Brand-alive in our society, broadening our lives

OverviewTo a new territory with all of our power

TECHNOLOGY / COOPERATION / DELIVERY / INSPECTIONSA fertile ground that fosters a spirit of challenge gives rise to ideas and refines technology

The flow of water, air and people accelerated by the birth of a new brand.

The word “Teral” is an original word that consists of two parts: “terra”, meaning the Earth, and “rally”. “Teral”, therefore, renews the Earth with air and water.

We aim to reduce the burden on the global environment, contribute to a comfortable living environment, and realize a recycling society.

Creating the future with water and air,Up to and from this point onward.

Air and water are the basis of all life.

Teral hopes to maintain the quality of water and air, something which people do not often, or consciously,

notice, and create smiles on peoples' faces.

Since the inception of the company in 1918 we have developed technologies which allow for the provision

of air and water in the optimum forms, and provided products and systems which continually meet the new

demands of the industrial world.

Teral has pursued the creation of products which contribute to the realization of a recycling society, where

the earth's future is taken into consideration while developing an industrial society and where human can

live comfortably.

We have maintained this way of thinking from long in the past, even before the current cries of dangers to

the global environment began.

Our company started the new group brand "Teral" in 2008 during the 90th anniversary of the company.

We plan to increase synergy by having each group company focus on their operational resources of their

areas of expertise while cooperating with each other to drive cohesive group management.

Teral’s FieldsTeral-supporting lifelines

RESULTSA high market share supported by customer trust

QUALITYQuality maintained at a higher dimension

Product Line-upThe Teral Brand-alive in our society, broadening our lives

OverviewTo a new territory with all of our power

TECHNOLOGY / COOPERATION / DELIVERY / INSPECTIONSA fertile ground that fosters a spirit of challenge gives rise to ideas and refines technology

The flow of water, air and people accelerated by the birth of a new brand.

Teral began by manufacturing and selling pump products in 1918. Since that time, we have been able to expand the scope of our products, including our first manufacturing and sales of fans and air blowers in 1955 and total heat exchangers in 1971. As a result, Teral products are currently flourishing in every area of society, from deep underground to the roofs of skyscrapers. Teral ideas are supporting lives in out - of - sight places you wouldn't expect.

POWER OF STREAMTeral – supporting lifelines

Beginning with water supply pumps, we've become bigger and more multifaceted

We're making compact products to fit in reduced spaces and combining various components to produce all - in - one, self - contained products while simultaneously providing high performance. These technologies are Teral's greatest pride. Our products resulting from such technology prove useful and inexpensive even in common households that demand reduced size and simple maintenance. Sales of Teral's pump, fan and air blower units now account for approximately 40% of our product sales.

Compact, self - contained products close to your life

We would like to be a company that puts nature's blessings of air and water to use while appreciating those blessings. We want to strive to create products that aren't wasteful from a cost perspective. To that end, we're focusing our energies on developing energy - saving products with such features as precise regulation through inverter technology and reduced running time through high efficiency.

More Earth - and people - friendly through new ideas for reduced energy 1 2 3

Pool Filtration System

Sprinklers

Automatic Water Supply

Pump Unit

Sewage Drainage

Pump

Exhaust Fan

Direct -coupled Booster

Pump Unit

Smoke Exhaust Fan

Parking Lot Mini Jet Fan

Household Pump Unit

Septic Tank

Cold/Hot Water

Circulation Pump for Air -Conditioning

Sewage Treatment Tank for Disposer

Disposer

Fire Pump Unit

3 4

Teral’s FieldsIf you look, you can see Teral technology at

work here, there, and everywhere.

We're supporting everybody's lives in areas

that are so close and important.

Abundant water, clean air, people's smiles --

when those three things come together,

something altogether new is born.

Teral technology and products are silently

working hard, usually in places where you

can't see them. But when a new house,

building, town, or city starts to go up,

our products powerfully expand the

indispensable "Stream of New Life" and

work with everyone involved to carefully

foster that area.

Teral began by manufacturing and selling pump products in 1918. Since that time, we have been able to expand the scope of our products, including our first manufacturing and sales of fans and air blowers in 1955 and total heat exchangers in 1971. As a result, Teral products are currently flourishing in every area of society, from deep underground to the roofs of skyscrapers. Teral ideas are supporting lives in out - of - sight places you wouldn't expect.

POWER OF STREAMTeral – supporting lifelines

Beginning with water supply pumps, we've become bigger and more multifaceted

We're making compact products to fit in reduced spaces and combining various components to produce all - in - one, self - contained products while simultaneously providing high performance. These technologies are Teral's greatest pride. Our products resulting from such technology prove useful and inexpensive even in common households that demand reduced size and simple maintenance. Sales of Teral's pump, fan and air blower units now account for approximately 40% of our product sales.

Compact, self - contained products close to your life

We would like to be a company that puts nature's blessings of air and water to use while appreciating those blessings. We want to strive to create products that aren't wasteful from a cost perspective. To that end, we're focusing our energies on developing energy - saving products with such features as precise regulation through inverter technology and reduced running time through high efficiency.

More Earth - and people - friendly through new ideas for reduced energy 1 2 3

Pool Filtration System

Sprinklers

Automatic Water Supply

Pump Unit

Sewage Drainage

Pump

Exhaust Fan

Direct -coupled Booster

Pump Unit

Smoke Exhaust Fan

Parking Lot Mini Jet Fan

Household Pump Unit

Septic Tank

Cold/Hot Water

Circulation Pump for Air -Conditioning

Sewage Treatment Tank for Disposer

Disposer

Fire Pump Unit

3 4

Teral’s FieldsIf you look, you can see Teral technology at

work here, there, and everywhere.

We're supporting everybody's lives in areas

that are so close and important.

Abundant water, clean air, people's smiles --

when those three things come together,

something altogether new is born.

Teral technology and products are silently

working hard, usually in places where you

can't see them. But when a new house,

building, town, or city starts to go up,

our products powerfully expand the

indispensable "Stream of New Life" and

work with everyone involved to carefully

foster that area.

Over 1/3 of Japanese skyscrapers use Teral productsAmusement FacilitiesTeral products are also used in theme and amusement parks, shopping centers, and health centers like super resorts. We create environments that balance air and water, and expand comfort and excitement.

Government and Public FacilitiesThe selection for buildings and public facilities, such as the Tokyo Metropolitan Government offices, is proof of the trust our customers place in us. Teral technology is also at work in unexpected places, like the snow - melting equipment that draws up warm water from underground in the winter and prevents freezing on roads.

Manufacturing FacilitiesIn the industrial, agricultural, fishery and livestock fields as well as in energy and distribution, we're improving productivity and work environments, which in turn contribute to cost reduction. We provide a steady supply of fresh air and water for even large manufacturers.

Sports FacilitiesIf, for example, the grass on a soccer field is grown with a sprinkler system, we'll use fans to make the grass stand up. Besides being used in places such as Kobe Wing Stadium, this Teral technology is being put to use in various kinds of sports facilities.

A high market share supported by

customer trust Skyscrapers and Intelligent BuildingsTeral products are also performing successfully in intelligent buildings for which a high level of comfort is a must, such as skyscrapers that require high lift pumps and work and living environments. We're giving thorough consideration to operational control as well as night and emergency maintenance.

POWER OFSTREAM

5 6

RESULTSTeral's share of orders for water supply systems for Japanese skyscraper construction is over 30%. In a field with high demand for high - performance and complex system construction in addition to intelligence products, we are most proud of our proven ability to provide comprehensive recommendations and the trust our customers place in us.

Over 1/3 of Japanese skyscrapers use Teral productsAmusement FacilitiesTeral products are also used in theme and amusement parks, shopping centers, and health centers like super resorts. We create environments that balance air and water, and expand comfort and excitement.

Government and Public FacilitiesThe selection for buildings and public facilities, such as the Tokyo Metropolitan Government offices, is proof of the trust our customers place in us. Teral technology is also at work in unexpected places, like the snow - melting equipment that draws up warm water from underground in the winter and prevents freezing on roads.

Manufacturing FacilitiesIn the industrial, agricultural, fishery and livestock fields as well as in energy and distribution, we're improving productivity and work environments, which in turn contribute to cost reduction. We provide a steady supply of fresh air and water for even large manufacturers.

Sports FacilitiesIf, for example, the grass on a soccer field is grown with a sprinkler system, we'll use fans to make the grass stand up. Besides being used in places such as Kobe Wing Stadium, this Teral technology is being put to use in various kinds of sports facilities.

A high market share supported by

customer trust Skyscrapers and Intelligent BuildingsTeral products are also performing successfully in intelligent buildings for which a high level of comfort is a must, such as skyscrapers that require high lift pumps and work and living environments. We're giving thorough consideration to operational control as well as night and emergency maintenance.

POWER OFSTREAM

5 6

RESULTSTeral's share of orders for water supply systems for Japanese skyscraper construction is over 30%. In a field with high demand for high - performance and complex system construction in addition to intelligence products, we are most proud of our proven ability to provide comprehensive recommendations and the trust our customers place in us.

Large Water Supply Unit with Variable Speed Control

Filtration/Circulation Pump Rooftop Fire Pump

Fire Fighting PumpCirculation Pump UnitFiltration Equipment

Steady quality comes from total system construction through the unity of production and sales.

Quality maintained at a higher dimension

POWER OF STREAM

7 8

We communicate closely with our customers to assess on - site conditions and consistently take orders and provide solutions for design, construction, management, cost control, and after - sales services for the most suitable products in each respective location. Going beyond the mere selling of our manufactured goods to offer consulting and engineering services for the construction of total systems designed to meet individual cases. Our unified production and sales position is the reason why Teral is always able to provide consistently high quality.

QUALITY

All quality begins with this single question: "How can we

put our superior abilities to work in actual situations?"

Our goal and pride is having our new customers feel glad

to have chosen Teral. It goes without saying that we're at

our best when we have created a real flow.

Large Water Supply Unit with Variable Speed Control

Filtration/Circulation Pump Rooftop Fire Pump

Fire Fighting PumpCirculation Pump UnitFiltration Equipment

Steady quality comes from total system construction through the unity of production and sales.

Quality maintained at a higher dimension

POWER OF STREAM

7 8

We communicate closely with our customers to assess on - site conditions and consistently take orders and provide solutions for design, construction, management, cost control, and after - sales services for the most suitable products in each respective location. Going beyond the mere selling of our manufactured goods to offer consulting and engineering services for the construction of total systems designed to meet individual cases. Our unified production and sales position is the reason why Teral is always able to provide consistently high quality.

QUALITY

All quality begins with this single question: "How can we

put our superior abilities to work in actual situations?"

Our goal and pride is having our new customers feel glad

to have chosen Teral. It goes without saying that we're at

our best when we have created a real flow.

The delivery date for products often changes depending on the progress of construction. Customers often place an order for a product that they "want the next day." At Teral, we're constructing a series of processes from ordering to shipping as a single speedy and efficient stream so that we can meet these demands to the best of our abilities. In addition, because we receive deliveries of major parts like motors from our partner companies four times a day, we're also able to build and ship products on the same day they're ordered. We're achieving our industry - leading short - term production with same - day shipping for 70% of our products.

We achieve quick production and same - day shipping for 70% of our products

At Teral, we thoroughly inspect all manufacturing processes so that our customers can safely select our products. We first carry out inspections of the parts we receive from our partner companies and perform detailed inspections on all processing and assembly lines. On the final assembly line, we do an operation inspection to check whether a product runs properly and at full capacity. In the quality control department, we also perform inspections with detailed data analysis. What's more, these inspections are for all items and not just sampling inspections of single items. In the event that we receive a customer complaint, we do a thorough follow - through in the quality control department until improvements are completed. These complaints also include "late delivery" because we believe that quality includes the delivery period.

Uniformly high quality with thorough inspections

1 2 3 4 5 7

A fertile ground that fosters a spirit of challenge gives rise to ideas and refines technology

Customized design of the most appropriate products for each location.Individual design using CAD and a manufacturing management system that deals with the status of orders serve as the foundation of our products that are customized to meet sophisticated and diverse needs. This is one of the big reasons why we receive orders for so many projects.

The reduction of manufacturing inefficiencies is reflected in our prices.The Teral Manufacturing SystemSince entering the NPS (New Production System) Research Group in January of 1999, we have been developing quality and productivity improvements and shorter response times through various activities, including securing quality, making improvements to our synchronized manufacturing system, and introducing our streamlined product line under the guidance of NPS advisers. These activities have all been undertaken in order to build customer trust and satisfaction. We strive to create a "refined stream" and completely eliminate all waste through a "stream connection" with customers and organic connections with every department.

24 - hour response to unexpected problems

After - sales ServicesTeral Technoservice Inc., part of the Teral Group, provides ideas for repairs, replacements, and system renovations, together with daily product and system maintenance and inspections. We also furnish our emergency response service "TECS," an automated remote monitoring system.* With our remote monitoring equipment, our

staff is on duty 24 hours a day to respond promptly even to unexpected problems.

* A TECS inspection contract with Teral Technoservice is necessary.

POWER OF STREAM

Teral's primary motivation is cooperation among people

Unified supervision of order informationWe collect order information in real - time and construct efficient production processes in order to meet the delivery deadlines requested by customers.

Individual design with CADWe refer to our saved customer data and use CAD to develop customized products equipped with the features demanded by our customers.

Processing through special facilitiesWe're realizing reductions in processing time as well as uniform quality in our special facilities through the standardization of parts and processing methods.

Processing (paint) in response to individual ordersIn order to achieve a short period of delivery, we perform a set processing of parts for every customer order.

Shipments matched to the arrival timeWe categorize our shipments by direction and delivery method to meet the customer's requested delivery date and time.

100% inspection of operationsWe add human eyes to mechanical eyes to carry out strict checks of compliance with prescribed quality standards for all operations, including the processing line and assembly line.

Assembly in response to individual ordersOur assembly line, which includes people, is flexible so that we are able to respond to individual needs. We are always developing our QC activities and pursuing a highly accurate and efficient manufacturing system with superior quality.

6

At Teral, we understand our mutual position and stress communication through the prompt sharing of information from customers and close cooperation with each department. We are creating an organically connected organization through various activities such as a set training period for employees to experience the work of other departments and "Wakamono Juku" to gather and educate younger employees.

Syst

em Te

chnology

Technology

Quality Assurance

Production

Sales

USERS

9 10

"Let me design a new business!" We have many employees who have been asking us this from the time they entered the company. Our products that surpass pre - existing needs and inspire new demand arise from this spirit. Our employees who are groomed for positions of leadership in our production centers move to the Production Department after spending three to five years accumulating sales experience. We believe that a person can work and lead from the customer's perspective by listening directly to customers, even when they return to the production side. We refine our technology with a spirit that never avoids challenges and we always create our products from the perspective of the user. Now and in the future, this attitude at Teral will never change.

TECHNOLOGY

QUICK DELIVERY 100% INSPECTIONS

COOPERATION

Pumps

Water supply

units

Filtration equipment

Septic tanks

Kitchen garbage disposal

Household pumps

Fans and

blowers

The delivery date for products often changes depending on the progress of construction. Customers often place an order for a product that they "want the next day." At Teral, we're constructing a series of processes from ordering to shipping as a single speedy and efficient stream so that we can meet these demands to the best of our abilities. In addition, because we receive deliveries of major parts like motors from our partner companies four times a day, we're also able to build and ship products on the same day they're ordered. We're achieving our industry - leading short - term production with same - day shipping for 70% of our products.

We achieve quick production and same - day shipping for 70% of our products

At Teral, we thoroughly inspect all manufacturing processes so that our customers can safely select our products. We first carry out inspections of the parts we receive from our partner companies and perform detailed inspections on all processing and assembly lines. On the final assembly line, we do an operation inspection to check whether a product runs properly and at full capacity. In the quality control department, we also perform inspections with detailed data analysis. What's more, these inspections are for all items and not just sampling inspections of single items. In the event that we receive a customer complaint, we do a thorough follow - through in the quality control department until improvements are completed. These complaints also include "late delivery" because we believe that quality includes the delivery period.

Uniformly high quality with thorough inspections

1 2 3 4 5 7

A fertile ground that fosters a spirit of challenge gives rise to ideas and refines technology

Customized design of the most appropriate products for each location.Individual design using CAD and a manufacturing management system that deals with the status of orders serve as the foundation of our products that are customized to meet sophisticated and diverse needs. This is one of the big reasons why we receive orders for so many projects.

The reduction of manufacturing inefficiencies is reflected in our prices.The Teral Manufacturing SystemSince entering the NPS (New Production System) Research Group in January of 1999, we have been developing quality and productivity improvements and shorter response times through various activities, including securing quality, making improvements to our synchronized manufacturing system, and introducing our streamlined product line under the guidance of NPS advisers. These activities have all been undertaken in order to build customer trust and satisfaction. We strive to create a "refined stream" and completely eliminate all waste through a "stream connection" with customers and organic connections with every department.

24 - hour response to unexpected problems

After - sales ServicesTeral Technoservice Inc., part of the Teral Group, provides ideas for repairs, replacements, and system renovations, together with daily product and system maintenance and inspections. We also furnish our emergency response service "TECS," an automated remote monitoring system.* With our remote monitoring equipment, our

staff is on duty 24 hours a day to respond promptly even to unexpected problems.

* A TECS inspection contract with Teral Technoservice is necessary.

POWER OF STREAM

Teral's primary motivation is cooperation among people

Unified supervision of order informationWe collect order information in real - time and construct efficient production processes in order to meet the delivery deadlines requested by customers.

Individual design with CADWe refer to our saved customer data and use CAD to develop customized products equipped with the features demanded by our customers.

Processing through special facilitiesWe're realizing reductions in processing time as well as uniform quality in our special facilities through the standardization of parts and processing methods.

Processing (paint) in response to individual ordersIn order to achieve a short period of delivery, we perform a set processing of parts for every customer order.

Shipments matched to the arrival timeWe categorize our shipments by direction and delivery method to meet the customer's requested delivery date and time.

100% inspection of operationsWe add human eyes to mechanical eyes to carry out strict checks of compliance with prescribed quality standards for all operations, including the processing line and assembly line.

Assembly in response to individual ordersOur assembly line, which includes people, is flexible so that we are able to respond to individual needs. We are always developing our QC activities and pursuing a highly accurate and efficient manufacturing system with superior quality.

6

At Teral, we understand our mutual position and stress communication through the prompt sharing of information from customers and close cooperation with each department. We are creating an organically connected organization through various activities such as a set training period for employees to experience the work of other departments and "Wakamono Juku" to gather and educate younger employees.

Syst

em Te

chnology

Technology

Quality Assurance

Production

Sales

USERS

9 10

"Let me design a new business!" We have many employees who have been asking us this from the time they entered the company. Our products that surpass pre - existing needs and inspire new demand arise from this spirit. Our employees who are groomed for positions of leadership in our production centers move to the Production Department after spending three to five years accumulating sales experience. We believe that a person can work and lead from the customer's perspective by listening directly to customers, even when they return to the production side. We refine our technology with a spirit that never avoids challenges and we always create our products from the perspective of the user. Now and in the future, this attitude at Teral will never change.

TECHNOLOGY

QUICK DELIVERY 100% INSPECTIONS

COOPERATION

Pumps

Water supply

units

Filtration equipment

Septic tanks

Kitchen garbage disposal

Household pumps

Fans and

blowers

Household Pump SeriesUsed in houses and housing complexes. We offer ideas for pressure pumps, deep well pumps, submersible pumps, etc. that are tailored to installation sites.

Various Type of Centrifugal PumpsWe have achieved high - performance small and lightweight pumps through the latest fluid designs. These are durable and powerful pumps that can be used outdoors as well as in humid or dusty conditions.

Kitchen Garbage Disposal SystemsA disposer grinds kitchen garbage and purifies it in a disposal tank before passing it to sewerage. These systems lead to sanitary living environments and environmental conservation.

Submersible PumpsThese submersible pumps are for use underwater. Our extensive product lineup meets various water drainage needs including rainwater at work sites, spring water, ditch water, and purification tanks.

Water Supply and Fire PumpsThese are powerful pumps that are compact and have energy - saving designs. These high - performance, highly durable pumps for stress - free construction give us a sense of safety in our lives.

Air - Conditioner FansFrom massive fans used to circulate air in large underground parking garages and subway stations to household kitchen Sirocco fans.

Industrial Pumps and FansThese pumps and fans are installed in buildings, factories, and every other kind of facility and move air and water to create a comfortable atmosphere. Our extremely safe and high - performance products maintain clean production facilities.

Products like our pumps and fans make use of the very air and water. Products such as ductless fans apply the power generated from moving air and water. We also have products that purify air and water for recycling or naturally returning them to nature. Our fields of activity are showing limitless expansion.

POWER OF STREAMThe Teral Brand -- alive in our society, broadening our lives

2

5

7 9

4

6

11 12

1 3

Filtration EquipmentFor cooling water, process water, and various other kinds of industrial water drainage. These systems can also be used for the effective utilization of rainwater and help to create a society that recycles its resources.

Coolant Filtration Device3 dimensional flow analysis allows for optimal tank design. Allows for purification of coolant.8

Household Pump SeriesUsed in houses and housing complexes. We offer ideas for pressure pumps, deep well pumps, submersible pumps, etc. that are tailored to installation sites.

Various Type of Centrifugal PumpsWe have achieved high - performance small and lightweight pumps through the latest fluid designs. These are durable and powerful pumps that can be used outdoors as well as in humid or dusty conditions.

Kitchen Garbage Disposal SystemsA disposer grinds kitchen garbage and purifies it in a disposal tank before passing it to sewerage. These systems lead to sanitary living environments and environmental conservation.

Submersible PumpsThese submersible pumps are for use underwater. Our extensive product lineup meets various water drainage needs including rainwater at work sites, spring water, ditch water, and purification tanks.

Water Supply and Fire PumpsThese are powerful pumps that are compact and have energy - saving designs. These high - performance, highly durable pumps for stress - free construction give us a sense of safety in our lives.

Air - Conditioner FansFrom massive fans used to circulate air in large underground parking garages and subway stations to household kitchen Sirocco fans.

Industrial Pumps and FansThese pumps and fans are installed in buildings, factories, and every other kind of facility and move air and water to create a comfortable atmosphere. Our extremely safe and high - performance products maintain clean production facilities.

Products like our pumps and fans make use of the very air and water. Products such as ductless fans apply the power generated from moving air and water. We also have products that purify air and water for recycling or naturally returning them to nature. Our fields of activity are showing limitless expansion.

POWER OF STREAMThe Teral Brand -- alive in our society, broadening our lives

2

5

7 9

4

6

11 12

1 3

Filtration EquipmentFor cooling water, process water, and various other kinds of industrial water drainage. These systems can also be used for the effective utilization of rainwater and help to create a society that recycles its resources.

Coolant Filtration Device3 dimensional flow analysis allows for optimal tank design. Allows for purification of coolant.8

Executives President Hirofumi Sugata Chief Director Minoru Arai Executive Director Tadanori Hamai Executive Director Taichi Sawai Director of General Affairs Hironobu Sugihara Director of Production Taiji Monden Director of Sales Hiroshi Watanabe Executive Adviser Tetsuya Fujii Director Kazue Sugata Director Yoshiko Takemoto Auditor Yoshio Morioka Auditor Keiji Aoyama Auditor Koichi Aki

Affiliated Company Teral Techno Service Inc. Teral Taku Co., Ltd. Teral Kurita Inc. Teral Asia Limited Teral Thai Co., Ltd. Teral General Machine (Shanghai) Co., Ltd. Anhui Taiwei Electric Machine Co., Ltd. (T&W) Anhui Wannan Electric Machine Co., Ltd.

Contractor Licenses Ministry of Land, Infrastructure, Transport and Tourism Licenses Installation and Construction of Machinery and Equipment Contractor General-19 No.10446 General Civil Engineering Contractor Special-19 No.10446 Plumbing Construction Contractor Special-19 No.10446 Electrical Construction Contractor General-22 No.10446 Water Well Drilling Construction Contractor General-22 No.10446Home page: http://www.teral.co.jp

To a new territory with all of our power.To a new territory with all of our power.

POWER OF STREAMMay Teral's influence spread all over Japan and throughout the world.

Our Japanese affiliates Our Overseas Bases

OverviewISO9001 and ISO14001We acquired ISO9001 international quality standard certification as proof of our strict quality control system in 1998. In addition we acquired certification of the 2000 revision in 2001 in order to further improve customer satisfaction. Then in addition, in June of 2008, we also acquired ISO14001 certification.

A balance of customer demand and optimized business practiceThe compounded effects of being able to acquire rapid and accurate information during daily work allows for the just-in-time delivery of product which meets customer needs. This system also aims towards the optimization of our company's management including leveling and cost management of production as a result of the above.

Immediate confirmation of ever-changing informationAll basic information connected to work is arranged in units by part, and process information from a series of customer needs, commercial production and delivery is synchronized according to time changes. This allows for various information and data to be available for confirmation by all departments on demand.

Dynamic work improvement through centralization of information And introduction of a company-wide integration systemTeral began operation of a company-wide integration system in February of 2003. A system was created for drastically improving our just-in-time production system by concentrating and centralizing business, technology, production, accounting and all other basic information on computer.

Services ranging from air conditioning / facility construction to reform proposals and water processing system engineering.

Teral Techno Service.Inc.Provides total supervision from our emergency dispatch system with 24 hour monitoring to maintenance and reform proposals and construction. Also provides high-level water processing facility and plant system engineering.

Provides a wide variety of successful products from household pumps to equipment embedded pumps.

Teral Taku Co., Ltd.In addition to the Kegon series, which is a continuation of the pumps from Mitsubishi Electric which have 30 odd years of proven performance as household pumps, the company also produces the N series through a business transfer from Matsushita Electric Works. The company has an established reputation for its technological capabilities and manufacture of compact pumps including coolant pumps. The company contributes to the creation of comfortable environments.

Responds to the needs of a wide variety of fields including industrial, equipment and agricultural

Teral Kurita Co., Ltd.Wind production technologies led to the development of ventilation systems, and from there into other applications of this technology, such as frost prevention, dehumidification and drying systems used in agriculture. The company also carries out manufacturing for orders of custom devices to suit specific needs.

Established in March of 2011 in order to act as the holding company for the Teral Group companies in Thailand and China.

Teral Asia LimitedThe company handles worldwide marketing, sales strategy and planning of appropriate production bases based on these operations.

Production and sales focused on next generation new markets as a base for Southeast Asia.

Teral Thai Co., Ltd.Southeast Asia has a great deal of potential as a manufacturing hub and new business field. This company carries out production and sales of mainly pumps and fans as a strategic base. In 1995, the company completed its factory in Ayutthaya.

Production and sales of stainless steel pumps as a base for the Chinese market.

Teral General Machine (Shanghai) Co., Ltd.The company was established in 2002 to take advantage of and expand the Chinese market, and to provide greater cost competitiveness in the Japanese market. The company's new factory was completed in 2006. The company is primarily engaged in the design and production of stainless steel pumps, water supply devices and air blowers, as well as the sale of Teral products.

Production and sales of high quality motors.

Anhui Taiwei Electric Machine Co., Ltd. (T&W)The company manufactures high quality motors in China and carries out sales in Japan and China in addition to other Southeast Asian countries.

High quality casting and production and sale of cast parts.

Anhui Wannan Electric Machine Co., Ltd.The company possesses a factory with casting and machining facilities and provides high quality machining of motors and pumps for Anhui Taiwei Electric Machine Co., Ltd. (T&W) and Teral General Machine (Shanghai) Co., Ltd.

History of Teral.13 14

Company name TERAL INC.Head Office 230 Moriwake, Miyuki-cho, Fukuyama-city, Hiroshima 720-0003, JapanDate Founded August 1918Date Established 14th April 1950President and Hirofumi SugataRepresentative DirectorCapital 78,000,000 yenMain business Activities Manufacturing and sales of pumps, fans, water supply equipment, filtration equipment, garbage processing, energy recovery ventilators, disaster prevention devices, environmental devices, and other related equipment Environment related facility and equipment constructionFactories Main Factory (230 Moriwake, Miyuki-cho, Fukuyama City, Hiroshima 720-0003, Japan) Ekiya Factory (375 Kamiyamamori, Ekiya-cho, Fukuyama City, Hiroshima 720-1142 Japan) Taku Factory (3898 Nagao, Minamitaku-cho, Taku City, Saga 846-0023 Japan) Kurita-Kitamoto Factory (2-101 Arai, Kitamoto-City, Saitama 364-0026 Japan) Teral General Machine (Shanghai) Co., Ltd. (No.285, Yuan Qu Road(N), Bei Qiao,Min Hang District,Shanghai 201109, China) Thai Factory (150 Moo 16 Udomsorayuth Rd., T.Bangkrasan A.Bangpa-in Ayutthaya 13160 Thailand)Branch Offices Tokyo offices, Osaka offices, 9 branches, 44 sales officesNumber of Employees 756, 1000 for the entire groupBanks The Hiroshima Bank, Ltd., Mizuho Bank, Ltd., The Chugoku Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, The Yamaguchi Bank, Ltd., The Sumitomo Trust & Banking Co., Ltd.Sales 22.3 billion yen (Fiscal 2010)Consolidated Sales 29.3 billion yen (Fiscal 2010)Reserves 7.0 billion yen

’18 ’38 ’55 ’65 ’67 ’75 ’81 ’86 ’97 ’08’98’881986Kyokuto releases "ARLS Series", which causes a revolution in pump's materials.

1987Kyokuto establishes Laboratory.Kyokuto releases "Econo S".

1988New factory begins production in Kazo-city, Saitama.Kyokuto begins suopproting The Kansai Hydrosphere Interest Research Organization."Kyokuto Machine Manufacturing Co.,Ltd (KMM)" is renamed to "Teral Kyokuto Inc".

1989Teral Kyokuto wins The Small and Medium Enterprise Research Center Award.

1991Teral Kyokuto establishes Teral Thai Co.,Ltd.

1995Bangpa-In and Nakorn Luang factory begin production in Ayutthaya, Thailand.Teral Kyokuto establishes Teral Hong-Kong Ltd. Sheung Wan, Hong-Kong.

1997Teral Kyokuto purchases a building in Bunkyo-ku, Tokyo.

1998Teral Kyokuto achieves 700,000 hours of accident-free production. Teral Kyokuto receives ISO 9001 certification.Teral Techno Service Inc. (TTS) begins its own services.

2002Teral General Machine Co.,Ltd begins production in Shanghai.

2003Teral Kyokuto launches "BaaN ERP".Teral Kyokuto integrates with Taku Electric Corp., Japan.

2004Teral creates ties-up with Kurita Electoric Co., Ltd.

2005Teral inherits Disposer business from Sekisui Aqua System Co., Ltd.

2006Teral inherits all shares of Shinto Co., Ltd. from Panasonic Co., Ltd.Teral General Machine (Shanghai) Co., Ltd. begins production in Shanghai.Ekiya factory begins production of a large-size fan in Fukuyama-city, Hiroshima

2008Teral inherits "N series" pumps from Panasonic Electoric Works Co., Ltd."Teral Kyokuto" is renamed to "Teral"."Teral" brand launches at 90th anniversary

2010Established Anhui Taiwei Electric Machine Co., Ltd. (T&W) in China through merger.Acquired coolant pump and ring blower business from Fuji Electric Systems Co., Ltd.

1918Our founder, Gisaburo Sugata, establishes "Sugahei shokai" in Kasaoka-cho, Fukuyama-city, Hiroshima Japan. Sugahei shokai starts producing and selling pumps while selling industrial machines that manufactures both domestically and overseas.

1938The factory moves to Okinogami-cho, Fukuyama-city, Hiroshima.

1955"Sugahei Shokai" is renamed to "Kyokuto Machine Manufacturing Co.,Ltd (KMM)", then KMM begins production of air blowers.

1958Small and Medium Enterprise Agency designates the factory as a model of streamlined.

1965’65, Kyokuto creates technology tie-up with Franklin Inc. (USA).’66, Kyokuto creates technology tie-up with Deming Inc. (USA).

1967Moved head office and main factory to Miyuki-cho in Fukuyama City. Completed construction of a modern factory that boasted the greatest scale and latest equipment in the industry.

1971Kyokuto begins selling Total Heat Exchangers.

1974Kyokuto develops Fire Pump Units, which is a model of Units today.

1975Kyokuto develops the first Water Supply Units in Japan.

1976Kyokuto establishes Kyokuto Services Co., Ltd.

1981Kyokuto creates tie-up with Flygt Inc. (Sweden).

1985Kyokuto carries out "Improving Water Quality Through Destratification" with Shiga Prefecture's Lake Biwa Research Institute.

1966

Executives President Hirofumi Sugata Chief Director Minoru Arai Executive Director Tadanori Hamai Executive Director Taichi Sawai Director of General Affairs Hironobu Sugihara Director of Production Taiji Monden Director of Sales Hiroshi Watanabe Executive Adviser Tetsuya Fujii Director Kazue Sugata Director Yoshiko Takemoto Auditor Yoshio Morioka Auditor Keiji Aoyama Auditor Koichi Aki

Affiliated Company Teral Techno Service Inc. Teral Taku Co., Ltd. Teral Kurita Inc. Teral Asia Limited Teral Thai Co., Ltd. Teral General Machine (Shanghai) Co., Ltd. Anhui Taiwei Electric Machine Co., Ltd. (T&W) Anhui Wannan Electric Machine Co., Ltd.

Contractor Licenses Ministry of Land, Infrastructure, Transport and Tourism Licenses Installation and Construction of Machinery and Equipment Contractor General-19 No.10446 General Civil Engineering Contractor Special-19 No.10446 Plumbing Construction Contractor Special-19 No.10446 Electrical Construction Contractor General-22 No.10446 Water Well Drilling Construction Contractor General-22 No.10446Home page: http://www.teral.co.jp

To a new territory with all of our power.To a new territory with all of our power.

POWER OF STREAMMay Teral's influence spread all over Japan and throughout the world.

Our Japanese affiliates Our Overseas Bases

OverviewISO9001 and ISO14001We acquired ISO9001 international quality standard certification as proof of our strict quality control system in 1998. In addition we acquired certification of the 2000 revision in 2001 in order to further improve customer satisfaction. Then in addition, in June of 2008, we also acquired ISO14001 certification.

A balance of customer demand and optimized business practiceThe compounded effects of being able to acquire rapid and accurate information during daily work allows for the just-in-time delivery of product which meets customer needs. This system also aims towards the optimization of our company's management including leveling and cost management of production as a result of the above.

Immediate confirmation of ever-changing informationAll basic information connected to work is arranged in units by part, and process information from a series of customer needs, commercial production and delivery is synchronized according to time changes. This allows for various information and data to be available for confirmation by all departments on demand.

Dynamic work improvement through centralization of information And introduction of a company-wide integration systemTeral began operation of a company-wide integration system in February of 2003. A system was created for drastically improving our just-in-time production system by concentrating and centralizing business, technology, production, accounting and all other basic information on computer.

Services ranging from air conditioning / facility construction to reform proposals and water processing system engineering.

Teral Techno Service.Inc.Provides total supervision from our emergency dispatch system with 24 hour monitoring to maintenance and reform proposals and construction. Also provides high-level water processing facility and plant system engineering.

Provides a wide variety of successful products from household pumps to equipment embedded pumps.

Teral Taku Co., Ltd.In addition to the Kegon series, which is a continuation of the pumps from Mitsubishi Electric which have 30 odd years of proven performance as household pumps, the company also produces the N series through a business transfer from Matsushita Electric Works. The company has an established reputation for its technological capabilities and manufacture of compact pumps including coolant pumps. The company contributes to the creation of comfortable environments.

Responds to the needs of a wide variety of fields including industrial, equipment and agricultural

Teral Kurita Co., Ltd.Wind production technologies led to the development of ventilation systems, and from there into other applications of this technology, such as frost prevention, dehumidification and drying systems used in agriculture. The company also carries out manufacturing for orders of custom devices to suit specific needs.

Established in March of 2011 in order to act as the holding company for the Teral Group companies in Thailand and China.

Teral Asia LimitedThe company handles worldwide marketing, sales strategy and planning of appropriate production bases based on these operations.

Production and sales focused on next generation new markets as a base for Southeast Asia.

Teral Thai Co., Ltd.Southeast Asia has a great deal of potential as a manufacturing hub and new business field. This company carries out production and sales of mainly pumps and fans as a strategic base. In 1995, the company completed its factory in Ayutthaya.

Production and sales of stainless steel pumps as a base for the Chinese market.

Teral General Machine (Shanghai) Co., Ltd.The company was established in 2002 to take advantage of and expand the Chinese market, and to provide greater cost competitiveness in the Japanese market. The company's new factory was completed in 2006. The company is primarily engaged in the design and production of stainless steel pumps, water supply devices and air blowers, as well as the sale of Teral products.

Production and sales of high quality motors.

Anhui Taiwei Electric Machine Co., Ltd. (T&W)The company manufactures high quality motors in China and carries out sales in Japan and China in addition to other Southeast Asian countries.

High quality casting and production and sale of cast parts.

Anhui Wannan Electric Machine Co., Ltd.The company possesses a factory with casting and machining facilities and provides high quality machining of motors and pumps for Anhui Taiwei Electric Machine Co., Ltd. (T&W) and Teral General Machine (Shanghai) Co., Ltd.

History of Teral.13 14

Company name TERAL INC.Head Office 230 Moriwake, Miyuki-cho, Fukuyama-city, Hiroshima 720-0003, JapanDate Founded August 1918Date Established 14th April 1950President and Hirofumi SugataRepresentative DirectorCapital 78,000,000 yenMain business Activities Manufacturing and sales of pumps, fans, water supply equipment, filtration equipment, garbage processing, energy recovery ventilators, disaster prevention devices, environmental devices, and other related equipment Environment related facility and equipment constructionFactories Main Factory (230 Moriwake, Miyuki-cho, Fukuyama City, Hiroshima 720-0003, Japan) Ekiya Factory (375 Kamiyamamori, Ekiya-cho, Fukuyama City, Hiroshima 720-1142 Japan) Taku Factory (3898 Nagao, Minamitaku-cho, Taku City, Saga 846-0023 Japan) Kurita-Kitamoto Factory (2-101 Arai, Kitamoto-City, Saitama 364-0026 Japan) Teral General Machine (Shanghai) Co., Ltd. (No.285, Yuan Qu Road(N), Bei Qiao,Min Hang District,Shanghai 201109, China) Thai Factory (150 Moo 16 Udomsorayuth Rd., T.Bangkrasan A.Bangpa-in Ayutthaya 13160 Thailand)Branch Offices Tokyo offices, Osaka offices, 9 branches, 44 sales officesNumber of Employees 756, 1000 for the entire groupBanks The Hiroshima Bank, Ltd., Mizuho Bank, Ltd., The Chugoku Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, The Yamaguchi Bank, Ltd., The Sumitomo Trust & Banking Co., Ltd.Sales 22.3 billion yen (Fiscal 2010)Consolidated Sales 29.3 billion yen (Fiscal 2010)Reserves 7.0 billion yen

’18 ’38 ’55 ’65 ’67 ’75 ’81 ’86 ’97 ’08’98’881986Kyokuto releases "ARLS Series", which causes a revolution in pump's materials.

1987Kyokuto establishes Laboratory.Kyokuto releases "Econo S".

1988New factory begins production in Kazo-city, Saitama.Kyokuto begins suopproting The Kansai Hydrosphere Interest Research Organization."Kyokuto Machine Manufacturing Co.,Ltd (KMM)" is renamed to "Teral Kyokuto Inc".

1989Teral Kyokuto wins The Small and Medium Enterprise Research Center Award.

1991Teral Kyokuto establishes Teral Thai Co.,Ltd.

1995Bangpa-In and Nakorn Luang factory begin production in Ayutthaya, Thailand.Teral Kyokuto establishes Teral Hong-Kong Ltd. Sheung Wan, Hong-Kong.

1997Teral Kyokuto purchases a building in Bunkyo-ku, Tokyo.

1998Teral Kyokuto achieves 700,000 hours of accident-free production. Teral Kyokuto receives ISO 9001 certification.Teral Techno Service Inc. (TTS) begins its own services.

2002Teral General Machine Co.,Ltd begins production in Shanghai.

2003Teral Kyokuto launches "BaaN ERP".Teral Kyokuto integrates with Taku Electric Corp., Japan.

2004Teral creates ties-up with Kurita Electoric Co., Ltd.

2005Teral inherits Disposer business from Sekisui Aqua System Co., Ltd.

2006Teral inherits all shares of Shinto Co., Ltd. from Panasonic Co., Ltd.Teral General Machine (Shanghai) Co., Ltd. begins production in Shanghai.Ekiya factory begins production of a large-size fan in Fukuyama-city, Hiroshima

2008Teral inherits "N series" pumps from Panasonic Electoric Works Co., Ltd."Teral Kyokuto" is renamed to "Teral"."Teral" brand launches at 90th anniversary

2010Established Anhui Taiwei Electric Machine Co., Ltd. (T&W) in China through merger.Acquired coolant pump and ring blower business from Fuji Electric Systems Co., Ltd.

1918Our founder, Gisaburo Sugata, establishes "Sugahei shokai" in Kasaoka-cho, Fukuyama-city, Hiroshima Japan. Sugahei shokai starts producing and selling pumps while selling industrial machines that manufactures both domestically and overseas.

1938The factory moves to Okinogami-cho, Fukuyama-city, Hiroshima.

1955"Sugahei Shokai" is renamed to "Kyokuto Machine Manufacturing Co.,Ltd (KMM)", then KMM begins production of air blowers.

1958Small and Medium Enterprise Agency designates the factory as a model of streamlined.

1965’65, Kyokuto creates technology tie-up with Franklin Inc. (USA).’66, Kyokuto creates technology tie-up with Deming Inc. (USA).

1967Moved head office and main factory to Miyuki-cho in Fukuyama City. Completed construction of a modern factory that boasted the greatest scale and latest equipment in the industry.

1971Kyokuto begins selling Total Heat Exchangers.

1974Kyokuto develops Fire Pump Units, which is a model of Units today.

1975Kyokuto develops the first Water Supply Units in Japan.

1976Kyokuto establishes Kyokuto Services Co., Ltd.

1981Kyokuto creates tie-up with Flygt Inc. (Sweden).

1985Kyokuto carries out "Improving Water Quality Through Destratification" with Shiga Prefecture's Lake Biwa Research Institute.

1966