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KOKUBU & CO., LTD. and MITSUI & CO., LTD. agree to enter into an equity alliance

Apr. 3, 2007


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KOKUBU & CO., LTD. ("Kokubu"), a leading Japanese food wholesaler, and Mitsui & Co., Ltd. ("Mitsui") have agreed in principle to enter into an equity alliance in wholesale businesses of foods and liquor in Hokkaido area, Japan. Detailed information is as follows.

1. Background

Kokubu, MITSUI FOODS CO., LTD. ("MITSUI FOODS"), and Mitsui have been continuing discussions seeking for the optimum business alliance formation among the three companies based on a strategic alliance agreement signed in last April. Parties have reached an agreement where Mitsui shall consolidate its food and liquor wholesale subsidiaries in the Hokkaido area, and then Kokubu shall make an equity participation into such consolidated organization.
Through this equity participation Kokubu and its wholesale subsidiaries ("Kokubu Group"), who will have the largest wholesale market share of foods and liquor in Hokkaido, will seek to offer various functions and competitive pricing to customers.

2. Outline and schedule of the equity alliance

1) Hokushuren Co., Ltd. ("Hokushuren"), a foods and liquor wholesale subsidiary of Mitsui, will restructure its capital structure by combining capital reduction and allocation of new shares to Mitsui.
2) MITSUI FOODS will transfer major part of its businesses of its Hokkaido Branch to Hokushuren by the end of September 2007.
3) Kokubu will purchase 70 percent of Hokushuren shares from Mitsui on October 1, 2007, with the purchase price to be determined later.

Kokubu and Mitsui will make every effort to implement this reorganization, together with these two subsidiaries of Mitsui.
Kokubu and Mitsui will also seek for further effort to improve the quality of service provided to customers, including business combinations or integration of distribution bases and IT system among Hokushuren and other Kokubu Group companies in Hokkaido area.

3. Outline of Mitsui's food and liquor wholesale subsidiaries in Hokkaido area

Company Name Hokushuen, Co., Ltd MITSUI FOODS CO., LTD
Address of Head Office Sapporo, Hokkaido, Japan Chuo-ku, Tokyo, Japan
(Hokkaido Branch: Sapporo, Hokkaido, Japan)
Representative Yasuyuki Inamura Shinichi Mizutani
Paid-in Capital 1,639 million yen 12,031 million yen
Sales (Year ended March 2006) 69.7 billion yen 542.3 billion yen
(Hokkaido Branch: 51.8 billion yen)
Business Wholesale of liquor and foods Wholesale of foods and beverages
Major Shareholders (As of September 2006) Mitsui 67.1%
Other 32.9%
Mitsui 99.9%
Other 0.1%

4. Impact on Mitsui's consolidated financial results

The impact of this integration and capital affiliation on Mitsui's consolidated financial results is insignificant.

Notice:
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7566
Facsimile: +81-3-3285-9819
Mitsui & Co., Ltd.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9819
infoTKADZ@mitsui.com