February 25, 2004

MOL Upgrades Product Tanker Fleet
-- Plans 10 LR1 type tankers by 2007 --


TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President: Kunio Suzuki) today announced their decision to expand its product tanker fleet with the most advanced double-hull LR1 type*1 vessels. The company will become top operator of oil product tankers meeting customer needs in Asia and around the world, together with MR type*1 product tankers whose fleet will be 30 vessels by 2006. This is a part of MOL's mid-term management Plan which focuses on growth and expansion of the company's energy and resource transport business.

The Tanker Division management strategy aims at further stabilizing and increasing profits with a larger fleet of product tankers as well as crude oil tankers (mainly VLCCs) and methanol carriers, in which MOL holds the world's largest share.

Summary of fleet expansion
Currently the company owns three LR1 type product tankers, and has decided to expand the fleet with 10 new tankers to be delivered by 2007. Seven of the tankers have been ordered with remaining three will be added shortly. MOL may also consider decommissioning the current three vessels.

Those three LR1 type product tankers serve LR1 Pool*2 , the world's largest product tanker group. 10 new tankers will also serve in the LR1 Pool..

All 10 tankers are in the 75,000 DWT/85,000 CBM class, and feature the most advanced double-hull design. Those tankers not only meet the requirements of the customers, but also have specifications which ensure environmental protection. Those tankers are designed to meet the strict standards backed by long and rich experience on product tanker operation and ship management of MOL.

Background and MOL's approach
MOL forecasts steady growth in the trade of oil products - the cargo transported by LR1 type product tankers - such as gasoline, naphtha, kerosene, diesel oil, and jet fuel. In addition to 45,000 DWT MR-type*3 product tanker fleet that will grow to 30 vessels by mid-2006, MOL offers top-quality transport services with flexibility to meet increasing demand and diversifying customer needs in Japan and overseas, as the world largest operator in product tankers.

*1 LR1 type: Large Range 1 (LR1) product tankers. in the 55,000-85,000 DWT range. These versatile ships are in high demand around the world, transporting gasoline, jet fuel, and other oil products between the Middle East and Europe. They are also used to supplement the Large Range 2 (LR 2, over 85,000 DWT class) fleet to transport naphtha between the Middle East and Far East.
*2 The LR1 pool: The world largest LR1 product tanker pool is operated mainly by Denmark-based TORM. It operates 24 LR 1 product tankers of about 60 in service around the world.
*3 MR-type: Middle Range (MR) product tankers in the 25,000-55,000 DWT range.