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Nippon Express and Mitsubishi Launch Regular Consolidated Truck Service Covering 80 Chinese Cities

22 February 2006

Nippon Express Co., Ltd. (head office: Minato Ward, Tokyo; president: Masanori Kawai), and Mitsubishi Corporation (head office: Chiyoda Ward, Tokyo; president: Yorihiko Kojima) last September established Nittsu MC China Holdings Co., Ltd., a holding company for domestic logistics operations in China, and this joint venture has since made preparations to expand its transport network and improve the quality and scope of its services. As part of these efforts, Shanghai Puling Transportation & Warehouse Co., Ltd. (head office: Shanghai, China; president: Kamikazu Hatano), in which Nittsu MC China Holdings is an active shareholder, will launch a regular consolidated truck service from March 1 that will serve a network of 80 cities in China.

This regular consolidated truck service will feature primary transport service every weekday - including round-trip trunk line service connecting Guangzhou and Beijing with rapidly growing Shanghai and other cities, six inland trunk line routes, and two routes from Guangzhou to Beijing and Xiamen - as well as secondary transport from these transfer points to end customers.

Secondary transport will cover 80 cities (e.g., 21 cities from Shanghai, 11 cities from Beijing, and 20 cities from Guangzhou), allowing the company to meet the needs of a broader range of customers expanding their production and sales bases in China.

Since its capitalization and establishment by Mitsubishi Corporation in 1996, Shanghai Puling Transportation & Warehousing has handled product transport throughout China for Japanese electrical equipment, office automation equipment, and general merchandise manufacturers over the past 10 years. The latest tie-up between Nippon Express and Mitsubishi will allow the company as a specialist in logistics to utilize the know-how of Nippon Express, embodied in its personnel and track record, in providing tailored small-lot high-frequency transport service to a greater number of cities.

Sales efforts for the new consolidated truck service will be undertaken by Nippon Express Group companies engaged in business throughout China and by Mitsubishi logistics subsidiaries. The new service is expected to handle around 10,000 tons annually, encompassing conventional shipments of OA equipment, general merchandise and consumer goods such as televisions and digital cameras as well as targeting interfactory logistics from Japanese electronic component manufacturers to set manufacturers.