I went to Bangkok in Thailand after a long interval.
Talking about Asia, the Chinese market has attracted a great deal of public attention,
although the Thai economy is also in good condition.
The Thai Ministry of Finance announced that the economic growth rate for this year
was revised downward from 7.9% (Feb., 2004 forecasts) to 7.1%.

The reasons of this decrease were the bird-flu epidemic, disturbing public order mostly 
in the southern part of Thailand, and the soaring oil prices.
Though they reduced the rate, Thai economy is still expanding that the rate of this year 
is more than the actual result of last year's 6.7%. 

In the field of construction machinery industry, Caterpillar Inc.(USA) has more than 30% 
of the world market share. 
Komatsu (Japan) had only 20 % of this share.
Though there are big differences in the world market share, in the Asian market, Komatsu 
leads CAT having a 27-28% market share compared to CAT's 20% . 
The world leading Caterpillar company that prides itself with the top market share in the
West, is not able to take the top spot anywhere in Asia.
This may show that there is a distinctively large difference between the grounds of creating
business between the West and Asia by its culture and customs. Western style business 
practice may not be very well accepted in Asia.

Starting with China, the expansion of every country in the Asian market may have the hidden
potential of influencing greatly on repainting the industry's market trends.
With the widening scale of the Asian market, Komatsu may overtake CAT soon.
Furthermore, the future growth and development of the rising market of largely populated
countries like Russia, India, and the Middle East, are unfolding advantageously for Asian firms.

Of course, CAT is not idly standing by on this.
For instance, Shin-Caterpillar Mitsubishi(SCM) was requested capital participation for the
policy of expanding the Chinese market proposed since the beginning of this year.
From now on, I think there would be a very keen competition spreading among major construction 
machinery makers in Asia.

Since before, our company has its production base in Asia, in the Philippines(Cebu), and
in Thailand(Ayutthaya). This year, we have opened dealership and offices in South Korea
(Seoul) and in China(Shanghai). Yamashin Filters will strive not to fall behind the growth
of greater Asia, to develop the best service, may it be for Komatsu or Caterpillar, and
to all who requires the best filters.

I hope for your continued patronage and support for the Yamashin Filter Group.
Thank you.

Atsuhiko Yamazaki
President 
Yamashin Filter Mfg.,Corp