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	[latest news list]	June 19, 2007
Transfer of Corporate Officers, Organizational Reforms

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As of June 28, 2007, Daikin will reorganize the structure of the Malaysian company, OYL Group (acquisition completed this January), as well as implement structural and organizational reform of Daikin Industries' Head Office. In addition, based on requests by the current management of OYL, executives from Daikin Industries will be newly assigned to OYL to further strengthen competitiveness by providing engineering and managerial support, leading to further generation of synergy. Accompanying these moves, at the Board of Directors meeting held today the following executive personnel changes were decided (as of June 28, 2007).

Details

1.	Reorganization of OYL Group (as of June 28)
	Reorganization and restructuring of the OYL business is being undertaken to enhance competitiveness and the level of sophistication of consolidated management. The following organizations, comprising four main business areas, will be placed under OYL Industries, which oversees the Group. McQuay International (large-scale commercial HVAC), AAF International (HVAC and industrial filters), J&E Hall (Refrigeration), OYL Manufacturing (air conditioner manufacturing)
2.	Structural and Organizational Reform of Daikin Industries' Head Office (as of June 28)
	Reforms are being undertaken amid rapid global business development in order to powerfully assist the entire Group and solidly push forward with ambitious plans. In addition to reinforcing the functions of management support staff, the new organization will fulfill the role of enhancing corporate transparency, disclosure and dissemination of information on a global scale in this era of intense scrutiny of corporate credibility. Furthermore, the reforms are intended to achieve accelerated business operations by increasing the level of expertise of support staff as the Group unites to realize our ambitious goal of becoming the global no.1 HVAC manufacturer, which is stated in our strategic management plan Fusion 10. The new head office functions (corporate departments) include "Group strategic staff departments" to strategically and comprehensively support decisions taken by top management (5 departments), "management resource reform departments" responsible for raising the level of staff expertise and undertaking perpetual reform related to management resources (12 departments), and "companywide support departments" to implement proposals assisting business divisions (16 departments). The previous "companywide strategic staff departments (16 departments), "business development departments" (4 departments), and "companywide support departments" (19 departments) will be reorganized in order to enhance their functions and increase efficiency.

• Main functions of newly established organizations

1)	Corporate Communications Office
	The office will actively publicize management strategy and related information to media organizations and parties affiliated with capital markets. At the same time, the office will be responsible for proposal, development and implementation of IR and PR strategies on a global level, including a two-way feedback loop with management.
2)	Accounting & Financial Affairs Division
	The division will rapidly obtain data on management conditions and consolidated performance of business divisions as they expand globally, and provide management with this information in a more accurate and timely manner. In addition, internal controls and mutual supervision will be strengthened on a global Group basis to enable sustained company growth.
3)	Human Resources Division
	The Daikin Group's growth can be attributed to the cumulative strength of its "people-oriented management". The division will support the dramatic reinforcement of human resources through personnel recruitment and development on a global basis.
4)	Law, Compliance & Intellectual Property Center
	The center will be responsible for measures to strengthen risk management and compliance functions (corporate ethics and adherence to laws and regulations), which form the foundation for stable and sustained business activities, as well as measures to reinforce safe operations on a global basis. The overseas legal affairs function will be strengthened, assisting global business development, and preemptive legal action, rapid response to litigation and legal disputes, and the intellectual property management function will also be further enhanced.
5)	CSR & Global Environment Center
	The functions of the CSR Department and the Global Environmental Department will be integrated. CSR activities in response to present-day environmental problems will be given higher priority than in the past with the intention of becoming an industry leader in environmental progressiveness.
6)	Business Follow up & Reform Department
	The department will standardize work tasks at divisions and bases, and propose and develop measures to reform work processes on a global level from the perspective of optimizing the "visibility" of work processes companywide.

3. Organizational Changes (as of July 1)

1)	Global Operations Division
	As the division responsible for the overseas air conditioning business, Global Operations oversees regional bases, including OYL, from the perspective of optimizing Group resources to achieve maximum efficiency and effectiveness Group-wide. It will be reorganized into the three departments of planning, sales and sales development in order to enhance its strategy proposal function.
2)	Air Conditioning Manufacturing Division
	Aiming to strengthen global cost competition: (1) A "global parts locating project" will be newly established to enhance cost competitiveness. (2) The Primary Parts Development Group will be newly established to enhance concurrent development of primary parts. (3) Global manufacturing capacity will be enhanced and cost-cutting measures accelerated through reinforcement of overseas air conditioning bases and appointment of officers in charge of air conditioning manufacturing engineering (as of June 28, 2007).
3)	Oil Hydraulics Division
	The Global Sales Department will be newly established to enhance the strategic planning function and achieve further global business development.

4. Change in Directors (As of June 28, 2007)

Quittance of the Post as Executive Officer by Director, Promotion and Change in Specific Duties/Assigned Posts of Directors/Executive Officers

(As of June 28, 2007)

The underlined parts indicate the changes.

(New) (Old) Director, Member of the Board (Non-resident) Chairman of the Board and CEO, O.Y.L Industries Bhd.CEO, McQuay International Inc. Director, Member of the Board and Senior Executive Officer Global airconditioning and commercial & industrial refrigeration (In charge) Katsuhiko Takagi Director, Member of the Board and Senior Executive Officer Japan airconditioning and commercial & industrial refrigeration (In charge) General Manager, Sakai Plant, Chairman of the Board, DAIKIN APPLIED SYSTEMS CO., LTD. (Non-resident) (Assigned) Director, Member of the Board and Senior Executive Officer Japan airconditioning and commercial & industrial refrigeration,Global SCM (In charge) General Manager, Sakai Plant, Chairman of the Board, DAIKIN APPLIED SYSTEMS CO., LTD. (Non-resident) (Assigned) Hiroshi Tanaka Director, Member of the Board and Senior Executive Officer Safety (In charge) Director, Member of the Board and Senior Executive Officer CSR and Safety (In charge) Yasushi Yamada Director, Member of the Board and Senior Executive Officer Human resource management, General affairs, Corporate communications (In charge) General Manager, Secretarial Office, General Manager, Human Resources Div. (Assigned) Director, Member of the Board and Senior Executive Officer Human resource management, General affairs, Public relations(In charge) General Manager, Secretarial Office (Assigned) Masanori Togawa Director, Member of the Board and Senior Executive Officer Concurrent development of airconditioning products (In charge) General Manager, Airconditioning Manufacturing Div., Chairman, MD Affiliation Alliance Promotion Committee (Assigned) Director, Member of the Board and Executive Officer Concurrent development of airconditioning products (In charge) General Manager, Airconditioning Manufacturing Div., Chairman, MD Affiliation Alliance Promotion Committee (Assigned) Shigeki Hagiwara Director, Member of the Board and Senior Executive Officer General Manager, Corporate Planning Dept. (In charge) Member, Technology and Innovation Center Development Dept. (Assigned) Director, Member of the Board and Executive Officer General Manager, Corporate Planning Dept. (In charge) Member, Technology and Innovation Center Development Dept. (Assigned) Takeshi Ebisu

Promotion and Change in Specific Duties/Assigned Posts of Executive Officers

(As of June 28, 2007)

The underlined parts indicate the changes.

(New) (Old) Senior Executive Officer Electronics business, Compliance, Corporate ethics, Legal affairs, Logistics (In charge) Senior Executive Officer Electronics business, Corporate ethics, Legal affairs, Logistics(In charge) General Manager, Facility Operations Auditing Dept. (Assigned) Osamu Okumura Senior Executive Officer Global airconditioning business (excl. Japan), Global sales strategies for commercial and industrial refrigeration (excl. Japan) (In charge) General Manager, Global Operations Div., Member, Global Airconditioning Committee, Leader, F.J. Project (Assigned) Senior Executive Officer General Manager, Global Operations Div., Member, Global Airconditioning Committee, Leader, F.J. Project (Assigned) Junichi Sato Senior Executive Officer [Resident of Tokyo] Technology fusion strategies, CSR & global environment, Technical alliance & cooperation, Mechanical patents, Daikin Air-conditioning and Environmental Laboratory, Ltd. (In charge) General Manager, Technology and Innovation Center Development Dept., General Manager, Tokyo Office (Assigned) Senior Executive Officer [Resident of Tokyo] Technology fusion strategies, Environment, Technical alliance & cooperation, Mechanical patents (In charge) General Manager, Technology and Innovation Center Development Dept., General Manager, Tokyo Office (Assigned) Kunikazu Torikoshi Senior Executive Officer General Manager, Airconditioning Sales Div. (Assigned) Senior Executive Officer General Manager, Airconditioning Sales Div. (Assigned) Yutaka Katou Senior Executive Officer [Resident of New York] General Manager, New York Office, President and Member of the Board, Daikin Holdings (USA), Inc., President and Member of the Board, Daikin U.S. Corporation, Member, Global Airconditioning Committee (Assigned) Executive Officer [Resident of New York] General Manager, New York Office, President and Member of the Board, Daikin Holdings (USA), Inc., President and Member of the Board, Daikin U.S. Corporation, Member, Global Airconditioning Committee (Assigned) Kosei Uematsu Executive Officer General Manager, Corporate Communication Dept., Leader, Corporate IR Group, Corporate Communication Dept. (Assigned) Executive Officer IR (In charge) Susumu Okano Executive Officer After sales services, Quality assurance of airconditioning and commercial & industrial refrigeration, Training, PL & QC (In charge) General Manager, Shiga Plant (Assigned) Executive Officer After sales services, Quality assurance of airconditioning and commercial & industrial refrigeration, Training (In charge) General Manager, Shiga Plant (Assigned) Minoru Soejima Executive Officer Oil hydraulics business (In charge) Executive Officer General Manager, Oil Hydraulics Div., Leader, Multilevel Parking Facility Customer Team (Assigned) Seiji Ideno Executive Officer Product R&D of airconditioning and commercial & industrial refrigeration (incl. applied systems), Defense systems (In charge) Deputy General Manager, Airconditioning Manufacturing Div., Member, Technology and Innovation Center Development Dept. (Assigned) Executive Officer Product R&D of airconditioning and commercial & industrial refrigeration (incl. applied systems) (In charge) Deputy General Manager, Airconditioning Manufacturing Div., Member, Technology and Innovation Center Development Dept. (Assigned) Takashi Matsuzaki Executive Officer Outsourcing, purchasing and procurement, Business flow innovation(In charge) General Manager, Business Flow Innovation Dept. (Assigned) Executive Officer Outsourcing, purchasing and procurement, IT development (In charge) Department Manager, Global SCM Promotion Dept. (Assigned) Masanori Fujikawa Executive Officer Finance, accounting and budget (In charge) General Manager, Finance and Accounting Div. (Assigned) Executive Officer Financial affairs (In charge) General Manager, Financial Affairs Dept. (Assigned) Koichi Takahashi

Quittance of the post as Executive Officers

(New post) (Old post) Slated to assume post as Member of the Board, AAF-McQuay Inc. as of July 1, 2007 Assumed post as COO, AAF International Inc. Senior Executive Officer Oil hydraulics business, Defense systems, Chemical manufacturing engineering, PL & QC (In charge) Toshinari Oka Slated to assume post as Member of the Board, AAF-McQuay Inc. as of July 1, 2007 Assumed posts as Vice President, McQuay International Inc. (In charge of Applied Development Center) and General Manager, Applied Development Center, McQuay International Inc. Senior Executive Officer Cost reduction in Central products (In charge) Takenori Miyamoto

Newly-appointed Executive Officers

(As of June 28, 2007)

The underlined parts indicate the changes.

(New) (Old) Senior Executive Officer Airconditioning applied business, Member of the Board and Vice President, OYL Industries Bhd.,Executive Vice President, McQuay International Inc. (In charge of development and solutions), Leader, A.S. Project (Assigned) Senior Associate Officer Airconditioning applied business, Daikin Air-conditioning and Environmental Laboratory, Ltd. (In charge) Leader, A.S. Project (Assigned) Yoshibumi Katayama

Promotion and Change in Specific Duties/Assigned Posts of Associate Officers

(As of June 28, 2007)

The underlined parts indicate the changes.

(New post) (Old post) Senior Associate Officer[Resident in Tokyo] Special mission sales of Japan airconditioning and commercial & industrial refrigeration (In charge) Senior Associate Officer[Resident in Tokyo] Airconditioning and commercial & industrial refrigeration(incl. transportation & refrigeration system) (In charge) Minoru Yoshino Senior Associate Officer Logistics cost reduction (In charge) Senior Associate Officer Deputy General Manager, Airconditioning Manufacturing Div. (Assigned) Kenji Ogura Senior Associate Officer Business strategies for the European and Middle Eastern markets, Liaison, CSR, Strategies for alliance, cooperation, and merger and acquisition (In charge) Chairman of the Board, Daikin Europe N.V. (Assigned) Senior Associate Officer Business strategies for the European and Middle Eastern markets, Liaison, CSR, Strategies for alliance, cooperation, and merger and acquisition (In charge) Chairman of the Board, Daikin Europe N.V. (Assigned) France Hoorelbeke Associate Officer Product R&D in North America (In charge) Chief Engineer, Airconditioning Manufacturing Div. (Assigned) Associate Officer Chief Engineer, Airconditioning Manufacturing Div., Executive Leader, Product R&D, Member, Technology and Innovation Center Development Dept.(Assigned) Hideki Tsujii Associate Officer General Manager, Oil Hydraulics Div., Leader, Multilevel Parking Facility Customer Team, Member, Technology and Innovation Center Development Dept.(Assigned) Associate Officer Deputy General Manager, Oil Hydraulics Div., Leader, Technology Planning Group, Oil Hydraulics Div., Member, Technology and Innovation Center Development Dept.(Assigned) Shigetoshi Shimoo Associate Officer Enhancement of overseas airconditioning bases, Airconditioning production engineering, Chemical manufacturing engineering (In charge) Deputy General Manager, Airconditioning Manufacturing Div., Member, Global Airconditioning Committee (Assigned) Associate Officer Enhancement of overseas airconditioning bases, Airconditioning production engineering (In charge) Member, Global Airconditioning Committee (Assigned) Hiroo Yoshioka

Newly-appointed Associate Officers (As of June 28, 2007)

(New post) (Old post) Associate Officer General Manager in charge of airconditioning in Europe, Middle East and Africa, Global Operation Div., General Manager, Dusseldorf Office, Member of the Board and President, Daikin Europe N.V. (Assigned) General Manager in charge of airconditioning in Europe, Middle East and Africa, Global Operation Div., General Manager, Dusseldorf Office, Member of the Board and President, Daikin Europe N.V. Masatsugu Minaka Associate Officer Member of the Board and Vice President, Daikin U.S. Corporation Member of the Board, Daikin Holdings (USA), Inc (Assigned) Member of the Board, Daikin U.S. Corporation Member of the Board, Daikin Holdings (USA), Inc Senior Manager, New York Office Yoshiyuki Uemura

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