March 18, 2004

MOL, Nippon Steel Sign Long-Term Contract
for New Huge Ore Carrier

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President: Kunio Suzuki) today announced an agreement with Nippon Steel Corp., one of the world's largest steel companies, to develop the Japan's and one of the world's largest iron ore carrier. The new carrier will serve under a long-term contract, transporting iron ore from Brazil to Japan.

Carrier specifications:
Shipbuilder: Mitsui Engineering & Shipbuilding Co., Ltd.
DWT: 323,000 MT
LOA/Beam/Draft: 340m/60m/21m

Illustration of completion

Contract:
Start: Second half of 2007 after the carrier is launched
Type: Consecutive voyage charter
Cargo: Iron ore
Loading ports: Major ports in Brazil
Discharging ports: Major ports serving Nippon Steel Corp. plants such as Oita Works and Kimitsu Works

The worldwide iron ore trade is showing remarkable growth. Since 2003, MOL and Nippon Steel have held several discussions about the most efficient way to transport iron ore from Brazil, the world's largest exporter, to ports serving Nippon Steel works. The companies concluded that this type of vessel not only fits Nippon Steel's fleet deployment plan, but it also will enable competitive freight rates even for the long-distance shuttle between Brazil and Japan because it can fully utilize the capabilities of ports serving their Oita and Kimitsu Works.

MOL is moving aggressively to win transport contracts from the world's rapidly growing steel companies. The company has secured contracts from all major Japanese steelmakers as well as others in Asia and Europe, as well as with major ore producers. MOL is the first Japanese carrier to operate this kind of vessel. Construction of the new vessel brings MOL into a new era of huge (over 300,000 tons) iron ore carriers. This contract is the latest result of MOL's management strategies aimed at expansion and growth. MOL is committed to winning new transport contracts that serve an ever wider range of customers and to fulfilling its goals for continued expansion.