December 25, 2003

MOL Agrees on Long-Term Transport Contract
for Third Vessel with Baoshan of China

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President: Kunio Suzuki) today announced an agreement to conclude a long-term transport contract with Baoshan Iron and Steel Co., Ltd. (headquarters, Shanghai), China's largest iron and steel group, for a third newly built Cape-size bulk carrier. The new contract for the third vessel is in addition to the two-vessel contract announced on 17th November.

The new vessels will carry iron ore from Western Australia to Shanghai, and will sail under a 15-year consecutive voyage charter starting in April 2004.

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 the field of energy, which the company anticipates will show strong growth in the coming years, and strengthening its overseas operations.

With this contract, MOL will become the largest non-Chinese shipping company working with Baoshan. The three vessels will transport nearly 10 million tons of iron ore to Baoshan per year. MOL will further enhance its relationship with Baoshan, and continue its aggressive approach to securing new resource transport contracts in Asia, especially in China, where tremendous growth is expected.