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Mitsui and Duskin enter Cleaning Equipment Rental Business in South Korea

Mar. 5, 2012


Mitsui & Co., Ltd.
Duskin Co., Ltd.


Main Contents

Mitsui & Co., Ltd. ("Mitsui," head office: Chiyoda-ku, Tokyo, President and CEO: Masami Iijima) and Duskin Co., Ltd. ("Duskin," head office: Suita City, Osaka Prefecture, President and CEO: Teruji Yamamura) will develop a cleaning equipment rental business ("dust control business") in South Korea in partnership with the South Korean company Pulmuone Holdings Co., Ltd. ("Pulmuone").

Mister Donut Korea Co., Ltd. ("MDK"), a joint venture established by Mitsui and Duskin, and Foodmerce Co., Ltd., a wholly owned subsidiary of Pulmuone, established a joint venture company, Pulmuone Duskin Co., Ltd., on March 2, 2012 under the terms of an agreement signed on February 1, 2012. The first directly owned store will open today in Songpa-gu, Seoul Special City.

Pulmuone Duskin will act as the headquarters for the dust control business. It will develop a franchise business by recruiting local companies to become franchisees (see scheme diagram).

Demand for Dust Control business is expected to be strong in South Korea, which has many similarities with Japan in terms of lifestyles and attitudes to hygiene. Furthermore, Pulmuone has already built a strong consumer support base in the natural food market, and by combining the Pulmuone and Duskin brands, the new business aims to attract 400,000 household customers and achieve customer-level sales (total sales at company-owned shops and sales at franchised shops) of ¥4,000 million by 2020. The business further aims to open 90 outlets and to popularize the household cleaning equipment rental business in South Korea.

Duskin has also established a dust control business in Taiwan and another in China (Shanghai) through a joint venture with Mitsui.
Mitsui is active in consumer service business in Japan and overseas and is involved in the Mister Donut business in South Korea with Duskin through MDK.

Mitsui and Duskin plan to use Mitsui's global network to expand their overseas business activities in Asia, and especially in China.

Profile of Pulmuone Duskin

Official name Pulmuone Duskin Co., Ltd.
Representative Hwan-Joo Je
Location Songpa-gu, Seoul Special City
Establishment date March 2012
Capital Approx. 6,000 million South Korean won (approx. ¥430 million)
Shareholders MDK (49%), Foodmerce (51%)
Business activities Dust control

Profile of MDK

Official name Mister Donut Korea Co., Ltd.
Representative Keiji Sunami
Location Jung-gu, Seoul Special City
Establishment date August 2006
Capital Approx. 8,000 million won (approx. ¥580 million)
Shareholders Duskin (60%), Mitsui (28%), Mitsui & Co. Korea Ltd. (12%)
Business activities Mister Donut area franchiser for South Korea, development of Dust Control business in South Korea

Profile of Pulmuone Holdings

Official name Pulmuone Holdings Co., Ltd.
Representative Seung-Woo Nam
Location Gangnam-gu, Seoul Special City
Establishment date May 1984
Capital 19,000 million won (approx. ¥1,370 million)
Business activities Group companies manufacture and sell natural foods and wholesale food ingredients. Pulmuone is also involved in delivery sales, including meal delivery services, and Internet marketing. It has direct contact with a customer base of approximately 400,000 people

Profile of Foodmerce

Official name Foodmerce Co., Ltd.
Representative Hwan-Joo Je
Location Songpa-gu, Seoul Special City
Establishment date April 2000
Capital Approx. 2,340 million won (approx. ¥170 million)
Shareholder Pulmuone(100%)
Business activities Manufacture, processing and distribution of commercial food ingredients

* Capital structure

Capital structure

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs 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, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement 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
Noriko Okamoto
Telephone: +81-3-3285-6645
Facsimile: +81-3-3285-9819
Duskin Co., Ltd.
Corporate Communications Department
Telephone: +81-6-6821-5006
Facsimile: +81-6-6821-5357