May 9, 2002



MOL, Itochu, to Establish Joint Company with Algeria's State Oil Company

Agreement Includes Long-Term Charter of Newly Built LNG Carrier for Sonatrach

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL, President, Kunio Suzuki) and Itochu Corporation (President: Uichiro Niwa) today announced the establishment of a joint venture company with Sonatrach (Algeria's state petroleum company) and Sntm-Hyproc (Sonatrach's wholly owned shipping subsidiary). Each company holds a 25% share. The joint venture has also agreed on a long-term charter of a new liquefied natural gas (LNG) carrier for Sonatrach, and will order the 145,000m3 LNG carrier from Kawasaki Heavy Industries, Ltd.

Algeria is the world's second largest LNG exporting country, and has been involved in the trade to Europe and North America since 1961. Annual exports for 2000 totaled over 20 million tons. The new carrier will help Sonatrach continue to expand its sales, and will be jointly operated by Hyproc and MOL.

Itochu has worked with Sonotrach since 1969 on a broad range of projects. MOL, the worldwide leader in LNG transport, has expanded its global crosstrade operations. MOL is the first Japanese shipping company to involve in Algeria's LNG project.
Through this joint venture, Itochu and MOL will contribute to further development of the LNG business in Algeria.