March 31, 2003

MOL Reaches Basic Agreement with Tokyo Gas on New LNG Carrier

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President: Kunio Suzuki) today announced that the company had reached a basic agreement with Tokyo LNG Tanker Co., Ltd., (TLT;) a wholly-owned subsidiary of Tokyo Gas Co., Ltd., on a long-term charter for a newly built MOSS-type 145,000m3 liquefied natural gas (LNG) carrier. MOL and TLT have just started detailed discussions on a time charter contract for the vessel. And at the same time, MOL reached a basic agreement with Kawasaki Shipbuilding Corporation on construction of this vessel, slated to begin chartering in 2006 or 2007. MOL's wide-ranging expertise and decades of experience in LNG transport were the key factors in determining the awarding of the basic agreement with TLT. MOL has already been appointed as the manager and operator of two new LNG carriers owned by TLT, which will be delivered in September 2003 and March 2005.

MOL has aggressively promoted its LNG transport services since the company started in the trade in 1983 by transporting LNG from Indonesia to Japan. In the ensuing years, MOL steadily increased its involvement in the LNG trade. MOL is currently involved in more than 20 LNG transportation projects, and owns or operates more than 50 vessels, including those under construction.

The company forecasts increasing demand for LNG, which produces less carbon dioxide than other fossil fuels, and will continue to seek new opportunities as the world leader in LNG transport.