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Establishment of a distribution company in Brazil to market audio visual consumer electronics products and office appliances

Aug. 8, 2007


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Mitsui Co., Ltd. (head office: Chiyoda-Ku , Tokyo, Japan, President: Shoei Utsuda) and Mitsui Brasileira Importacao e Exportacao S.A. (head office: Sao Paulo, Brazil, President: Takao Omae) - collectively called "Mitsui" -, announced that they will start operations of a distribution company in Brazil called MBK Distribuidora de Produtos Eletronicos Ltda. ("MDE") to market audio visual consumer electronics (AV-CE) products and office appliances.

MDE is a distribution company and will start its operations by handling the distribution of AV-CE products and office appliances of Sharp brand in Brazil.

As Mitsui's one of the core business in the information industrial business field is LCD (liquid crystal display) - related business, it is Mitsui's aim to cultivate new business model in the emerging market, by entering into local distribution business in AV-CE field, establishing its local distribution channel and utilizing its local business management skill.

The terrestrial digital broadcasting service is to be launched from this December starting with a pilot broadcasting in Sao Paulo city, hence it is Mitsui's anticipation that introduction of such service would become a trigger to enhance penetration of AV-CE products including LCD TV in Brazil, booming Brazilian digital TV consumption.  This Mitsui's foray into consumer market in Brazil is somewhat unique approach as a Japanese trading company, since it would build and provide a total platform of international/local logistics and after service system in collaboration with reputed AV-CE manufacturers .

With the total capital of MDE being 30 Million Brazilian Reals, Mitsui has planned the company registration in July as 100% subsidiary company of Mitsui group.

As for the Brazilian consumer electronics market, it is reported that total sales quantity of the television will reach approximately 10 Million units/year, including Flat TV sales approximately 900 Thousand units/year in 2007.

In the future, Mitsui intends to expand its sales network nationwide, and plans the sales capacity approximately of 600,000 sets of LCD TV at 2010.  Annual turnover of MDE is planned as high as approximately 50 Bil. Yen in 2010.

Mitsui is so far focusing on LCD -related business. In the future, Mitsui would aggressively make a strategic approach which could enhance sales & distribution network for AV-CE product and office appliances in the foreign country positively.

Summary of New Company

Company Name MBK Distribuidora de Produtos Eletronicos Ltda.
Establishment 2007 July (start of sale: 2007 October)
Address Sao Paulo, Brazil
Capital 30 Million Brazilian Reals
Shareholder Mitsui & Co., Ltd. (80%)
Mitsui Brasileira Importacao e Exportacao S.A. (20%)
Line of Business Wholesale distribution of AV-CE products and Office Appliances

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: +81-3-3285-7562
Facsimile: +81-3-3285-9819