November 17, 2003

MOL Concludes Long-Term Transport Contracts
with China's Largest Steelmaker

Newly Built Ships Will Serve Under Shanghai Baosteel Group Corporation's
First Contract with Non-Chinese Company for Multiple Vessels

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President: Kunio Suzuki) today announced the signing of a long-term transport contract for two newly built vessels with Shanghai Baosteel Group Corporation (Baosteel) (headquarters, Shanghai), China's largest iron and steel group. Shanghai Baosteel Group Corporation Chairman Xie Qihua and MOL President Kunio Suzuki were on hand for the signing of the contract at Baosteel headquarters on November 11.

Both new vessels will carry iron ore from Western Australia to Shanghai, the first vessel will sail under a 15-year consecutive voyage charter starting in 2004. The second ship will operate on a five-year consecutive voyage charter from second half of 2005.

MOL has ordered two of the world's most advanced 200,000 ton Cape-size bulk carriers to meet Baoshan's transport needs under the new contract.

As part of its mid-term management plan called MOL next, MOL is allocating a significant share of its management resources to the transport of natural resources and energy fields where the company anticipates strong growth in the coming years, and strengthening its overseas operations. The new contract is perfectly in line with the strategies of MOL next. MOL is the first non-Chinese shipping company to sign a contract for multiple vessels with Baosteel, and the 15-year agreement is the longest the steelmaker has ever signed. The new vessels will transport about 5 million tons of iron ore a year. MOL will continue its aggressive approach to securing new resource transport contracts in Asia, especially in China, where tremendous growth is expected.