July 21, 2006
                                                    NGK Insulators, Ltd.
                                          Tokyo Electric Power Co., Inc.

NGK Insulators, Ltd. delivered a Sodium-Sulfur (NAS) battery system to a 
substation operated by American Electric Power (AEP), a major U.S. electric
company.  This 1,000-kW storage equipment, the first commercial-scale 
application of the NAS battery system outside Japan, began operation on 
July 20, 2006, local time.  The second NAS battery system for AEP, with 
a 2,000-kW output, is scheduled to become operative in spring 2007.  The 
Nagoya-based NGK (President and CEO, Shun Matsushita) and the Tokyo-based
Tokyo Electric Power Co., Inc. (President, Tsunehisa Katsumata) have been
jointly developing the system since 1984.
NGK plans to use this project as a stepping stone to expanding sales of 
the NAS battery in overseas markets, while TEPCO plans to support 
popularization and sales of the battery both in Japan and overseas.

<Background of NAS battery installation>
Stable supply of electricity has been a major issue in the United States 
as demand continues to rise.  However, power companies experience 
difficulties in securing a stable supply of electricity as the rapid 
upgrading of electric transmission and distribution system is difficult.
Since 2002, AEP, NGK, and TEPCO have conducted a joint demonstrative 
experiment of a NAS battery, which has a peak control function.  
Because the experiment was successful, AEP made the decision to use the
system. 
An official commemorative ceremony for the start of NAS system operation
was held at a substation in Charleston, West Virginia, on July 20, local
time. The ceremony was attended by AEP Vice President Holly Koeppel, 
U.S. Department of Energy director Patricia Hoffman, NGK managing director
Tsurayuki Okamoto, director of NGK's Power Business Group, and TEPCO 
managing director Akio Nakamura, director of the company's Engineering
R&D Division.

<Advantages of AEP's NAS deployment>
♦ By storing power during off-peak in nighttime and supply it during 
  high-demand in daytime, AEP is able to avoid power shortages in the
  applicable area without upgrading facilities for the time being.  
  This in turn enables AEP to supply stable electricity and  implement
  efficient facility development plans at the same time.  In this way, 
  the NAS system enables AEP to provide cost competitive service, and
  also meet customer expectations.
♦ The NAS system deployment is supported and funded in part by the U.S.
  Department of Energy as a model project for power storage.


Appendix