September 5, 2003

MOL Entrusts 24,000dwt Handy Bulker Operation to
INUI STEAMSHIP CO., LTD.
- Now Japan's Largest Operator-


TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President: Kunio Suzuki) today announced plans to entrust operation of ten 24,000dwt handy bulk carriers to INUI STEAMSHIP CO., LTD.(INUI) The addition of those vessels brings the INUI fleet to 20 ships, making it Japan's largest operator of 24,000dwt handy bulkers. This service will start on October 1, 2003.

While ships have generally become larger in the interest of higher efficiency, the total number of 24,000dwt handy bulkers (less than 15 years old) operating worldwide is only 100. On the other hand, there is a strong need among customers for ships of this size due to restrictions at ports. Providing customers with a broad selection of services will enhance our service quality as well.

INUI will handle operations, but MOL will send its own experts to the company to help ensure top-quality customer service and a wider scope of operations. MOL will also continue to handle charter contracts for these ships.

Handy bulkers in the 24,000dwt range carry mainly wheat, wood products, and cement. Wheat and wood products are shipped mainly from North America and Oceania to Japan, South Korea, and China, while cement is transported mainly from Japan and China to Southeast Asia and North America.

MOL's approach to handy bulker operations:
MOL has organized three operational structures to meet customer needs:
- 24,000dwt size: Entrust to INUI, to serve mainly domestic clients. The fleet scale is 20 vessels.
- 26,000-35,000dwt size: MOL continues to operate these ships, serving mainly domestic customers. The fleet scale is about 20 vessels.
- 26,000-28,000 dwt size: MOL participated in the International Handlybulk Carriers (IHC) pool as senior partner, mainly to serve the Chinese market, which is expected to grow significantly. The fleet scale is about 40 vessels.

Profile of INUI STEAMSHIP CO., LTD.
Representative: CEO Shingo Inui
Head Office: 1-7-4 Nihonbashi-Honcho, Chuo-ku, Tokyo 103-0023, Japan
Established: April 1904
Paid-in Capital: \1,250 million (MOL's ownership: 17%)