26th December, 2005

MOL News Highlights for 2005

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President Akimitsu Ashida) today announced the company's top news stories for 2005:

■New all-time record Income for FY2004, ended March 2005 (May).
・Consolidated financial results for FY2004, the first year of the MOL STEP three-year mid-term management plan, marked an all-time high in income: 171.7 billion yen in operating income, 174.9 billion yen in ordinary income, and 98.2 billion yen in net income. Ordinary income almost doubled compared to the previous year. MOL's results exceeded the goals of its mid-term plan by a significant margin. The results marked the sixth consecutive year of record revenue, the second year in a row of record ordinary income, and the third straight year of record net income. In addition, the company paid total dividends for the fiscal year 2004 of 16 yen per share - interim dividend of 7.5 yen and year-end dividend of 8.5 yen.
・The results for the first half of FY2005, ended September 30, 2005, showed the company on a pace to break last year's records, with revenue up 13% and ordinary income up 33% from the same period of the previous year. The company paid an interim dividend of 9 yen per common share.

■Announcement of revised mid-term management Plan MOL STEP Review (May)
・The company announced the MOL STEP Review (the revised mid-term management Plan for FY2005 and 2006 and the revised target for FY2009), reflecting MOL Group fleet expansion and the latest ocean shipping market trends and based on the financial achievements for FY2004, ended March 2005.
・MOL pressed ahead with its fleet expansion plans, which call for the construction of 145 vessels from FY2004 to FY2006 (including 10 containerships and 22 Cape-size bulkers) and 142 new ships between FY2007 and FY2009 (including 20 containerships and 17 Cape-size bulkers). This totals 287ships over the coming six years.

■MOL share price, aggregate market value increase (December)
・The MOL stock price on the Tokyo Stock Exchange on December 13 reached 1,000 yen per share. On the next day, December 14, the company's stock closed at 1,015 yen, the first time since February 1990 that it closed over 1.000 yen.
・The aggregate market value (number of issued shares x stock price) reached 1 trillion 223.5 billion yen, surpassing the previous high of 1 trillion 215.5 billion yen set in January 1990.

■New strategic alliance with KWE (May)
・MOL and Kintetsu World Express Inc.(KWE) reached an agreement to launch a strategic alliance in　their air forwarding, sea forwarding, and logistics businesses. The move is aimed at enhancing both companies' business through mutual, complementary operations.

■Announcement of plans for major new container terminal in Jacksonville, Florida (July)
・The company decided to build a new independent container terminal in Jacksonville, Florida, a key port on the U.S. East Coast. The new facility, slated for completion in late 2007 or early 2008, will be operated by Trapac, a wholly owned MOL subsidiary.

■Expansion of product tanker fleet (September)
・The company aims to expand its fleet of MR-type product tankers, from 26 vessels in service by Group companies as of December 2005, to 40 by 2009, and operate about 50 after 2010.

■MOL's Expansion of LNG transport business
・Concluded a long-term charter contract for a new LNG carrier with Hiroshima Gas Co., Ltd. (March)
・Concluded a basic agreement for joint ownership of a new LNG carrier for Tokyo Gas Co., Ltd. (May)
・Reached agreement with Gazprom of Russia on a joint study of LNG transport from the Shtokman gas field. (September)
・Signed a long-term charter contract for eight new LNG carriers with Ras Laffan Liquefied Natural Gas Company Limited (3) (RasGas 3) (25 years starting in 2008) (November)
・Signed an agreement with Suez LNG Trading S.A. for a long-term charter of a new LNG carrier, and the consortium concluded a charter agreement for the vessel with a subsidiary of the Imabari Shipbuilding Co., Ltd. (November)

■Enhanced safe operation and seafarer training system
・Held a bridge resource management (BRM) training seminar with MOL Group crew training centers in seven nations around the world. (February)
・Upgraded Maritime Training Centers in Philippines. (April)
・Opened the MOL Training Center (MSU - Russia) in Vladivostok, a key source of seafarers for today's merchant fleet. (September)
・Enhanced the seafarer training structure in India with increased training capacity and doubled floor space of a wholly owned manning company. (September)
・Expanded scope of BRM training program from very large crude carriers (VLCCs) to a total of 182 vessels including containerships and car carriers. (October)

■Enhanced MOL's approaches to CSR and Environmental Protections
・Became the first Japanese shipping company to participate in the UN Global Compact. Participating companies, as good corporate citizens, help create a global framework to realize sustainable growth. (March)
・Announced the MOL Kids Cruise, in which school children will board the Nippon Maru for a one-night stay in March 2006. The program is intended to promote school children's interest in the sea and shipping. (April)
・Participated in the Japanese government's "Team Minus 6%" program, which is aimed at achieving a 6% reduction in greenhouse gas emissions. (August)
・Invested in Chilean afforestation company Volterra S.A. in a move to help protect forest resources and reduce global warming through reforestation. (December)

■Results of aggressive IR activities
・Earned top rating for corporate disclosure among transport companies in a survey by the Security Analysts Association of Japan. (September)
・Received the 2005 Special IR Prime Business Award from the Japan Investor Relations Association (JIRA). This award is presented to companies that have received the IR Prime Business Award three times. (MOL also won the award in 2001 and 2004). (November)

■Upgraded ratings
・The company's long-term debt rating from Rating and Investment Information, Inc. (R&I) has been upgraded from A− to A. (January)
・Standard & Poor's raised its long-term credit rating on MOL by one notch from　BBB− to BBB (stable). (June) 　
・The company's unsecured and issuer ratings from Moody's were upgraded from Baa2 to Baa1 (stable). (November)