Mitsui agreed to acquire 25% of the outstanding shares of Multigrain

Aug. 9, 2007

Main Contents

Mitsui & Co., Ltd agreed on August 02 to acquire 25% of the outstanding shares of Multigrain AG ("Multigrain" - head office: Switzerland) which owns the Brazilian grain handling and merchandising company named Multigrain S.A. from its major shareholders CHS Inc ("CHS" - head office: USA; listed on NASDAQ) and PMG Trading S.A. ("PMG" - head office: Brazil). The shares will be formally acquired once permission has been obtained from the Brazilian authority.

Multigrain is a holding company established in September 2006 by CHS, a leading energy and grain-based foods company in the United States, and the Brazilian agricultural commodity trading company PMG, and owns the 100% subsidiary Multigrain S.A. as its operating company in Brazil. Multigrain's core business is the origination and export of soybeans and it also engages in sugar exports, importing wheat, wheat milling and domestic sales of fertilizers. Multigrain operates soybean origination using storage facilities in 17 locations in Brazil, focussing on states in the central and northern regions such as Minas Gerais, Goiás, Mato Grosso, Bahia, Maranhão and Tocantins where there is the possibility of expanding agricultural land and where comparatively high quality soybeans are produced. It exports soybean to Japan, China and other countries in Asia and Europe from the ports of Tubarão, Ponta da Madeira and Santos.

Demand for soybean, corn and sugarcane crops has, against the background of the economic development of emerging nations, grown rapidly not only for use as foodstuffs but also for purposes of bio-energy and it is expected that securing food resources will become increasingly important in future. Japan's level of self-sufficiency in soybean is around 5% and the maintenance of a stable supply from overseas is imperative. By securing a supply base for grains in Brazil, which has the greatest potential in the world for expanding its agricultural land and increasing agricultural production, Mitsui intends to contribute to meeting demand for food not only in Japan but also in the rest of Asia.

CHS is a strategic partner of Mitsui's Foods & Retail Business Unit and jointly operates Ventura Foods LLC and United Harvest LLC with Mitsui in the US. This investment is Mitsui's first project with CHS outside the US and forms one element of Mitsui's global food strategy.

Outline of Investment Target

Multigrain AG

Established 2006 (under equal ownership of CHS and PMG)
Head office location Switzerland
Shareholders CHS/37.5%, PMG/37.5%, Mitsui/25%(Mitsui & Co., LTD/13%, Mitsui & Co.(U.S.A.), Inc./12%)
Business Holding company established under equal ownership of CHS and PMG owns the 100% subsidiary Multigrain S.A. as its operating company in Brazil. It is engaged in the international trade of agricultural commodities, with a special focus on soybean, sugar, and wheat exporting and importing operations.

Partner Outlines

CHS Inc.

Established 1998, as the result of the merger of Cenex and Harvest States
Head office location Inver Grove Heights, Minnesota (5 miles south of St Paul)
No. of Employees Approx 12,000
Business A leading energy and grain-based foods company in the US. It is a Fortune 500 company and listed on Nasdaq.
Outline of results Net Income for 2006 (ending August 31, 2006) was $490.3 million.
Net revenues for fiscal 2006 were $ 14.3 billion.
CHS and Mitsui are 50/50 partners of Ventura Foods, LLC and United Harvest, LLC.

PMG Trading S.A.

Established 1999
Head office location Sao Paolo, Sao Paolo State, Brazil
PMG transferred control of its soybean, wheat and milling businesses to Multigrain in 2006.
PMG's core business is now cotton.

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.


For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7566
Facsimile: +81-3-3285-9819