Nippon Express and Mitsubishi Establish Holding Company

In accordance with an agreement reached in March 2005 on a capital/business alliance for domestic logistics operations in China, Nippon Express Co., Ltd. (head office: Minato Ward, Tokyo; Masanori Kawai, President), and Mitsubishi Corporation (head office: Chiyoda Ward, Tokyo; Yorihiko Kojima, President) have this day established a new holding company - MC Nittsu China Holdings Co., Ltd. - to support their joint efforts.

The two partners concluded a joint venture agreement on June 30 of this year. Nippon Express subsequently assigned an operating officer (president) to Shanghai Puling Transportation & Warehouse Co., Ltd., a truck transport company capitalized and established by Mitsubishi, and preparations to expand operations are now underway.

Specific collaboration has also been pursued in those areas of business handled by Mitsubishi, as exemplified by logistics operations utilizing the bonded logistics zone functions (see note) of Nippon Express Global Logistics (Shanghai) Co., Ltd., a warehousing company capitalized and established by Nippon Express and based in Shanghai's Waigaoqiao Bonded Logistics Zone (WBLZ).

In future, the two companies will be steadily investing, via the new holding company, in the six local companies (see "Profile of Holding Company" below) they have separately capitalized and established to expand their logistics operations. To meet surging logistics demand in China, Nippon Express will utilize its logistics expertise and highly-trained personnel, and Mitsubishi its capabilities as a general trading company to respond to broad-ranging customer needs, in a complementary fashion to enhance their transport network and further improve quality and service levels.

(Note) In general, value-added tax refund requests cannot be processed by bonded zones until products or materials are exported abroad, but the bonded logistics zone in which Nippon Express Global Logistics (Shanghai) Co., Ltd., is located is a special zone that regards conveyance of products or materials into the zone as export, thus enabling prompt processing of value-added tax refund requests. Since 2004 China has authorized eight such zones (Dalian, Tianjin, Qingdao, Zhangjiagang, Shanghai, Ningbo, Xiamen, and Shenzhen), and zone operations have begun in Shanghai.

Trade name:	MC Nittsu China Holdings Co., Ltd.
Representatives:	Toshihiko Ikeda, President and Representative Director (Nippon Express Co., Ltd.) Michio Izumi, Vice President and Representative Director (Mitsubishi Corporation)
Address:	Higashi-shimbashi 1-9-3, Minato-ku, Tokyo 105-8322 (located in Nippon Express' Head Office Building)
Date established:	September 29, 2005
Capital:	10 million yen (*)
Capital ratio:	Nippon Express - 51% (5.1 million yen), Mitsubishi - 49% (4.9 million yen)
Business scope:	Investing in companies engaged in logistics or related businesses in China, acquiring and holding stocks/shares in these companies, and participating in the management of these companies
Companies to be capitalized:	Nippon Express Global Logistics (Shanghai) Co., Ltd., Nippon Express (Shenzhen) Co., Ltd., Nippon Express (Suzhou) Co., Ltd., Nippon Express (Zhuhai) Co., Ltd. (all warehouse companies capitalized/established by Nippon Express) Shanghai Puling Transportation & Warehouse Co., Ltd., and Beijing Global Express Co., Ltd. (both companies capitalized/established by Mitsubishi).

• The capital of the companies targeted for investment will be increased over time to around 1.2 billion yen.