Notice of Basic Agreement Concluded between Japan Post Holdings and Nippon Express

Japan Post Holdings Co., Ltd. (hereinafter, “Japan Post Holdings") and Nippon Express Co., Ltd. (hereinafter, “Nippon Express") today concluded a Basic Agreement on examining and constructing a comprehensive and strategic business partnership and on consolidating their parcel delivery services; the details of this Agreement are as follows.

The two companies will actively examine and pursue the construction of a comprehensive and strategic business partnership between the Japan Post Group and the Nippon Express Group, based on the fundamental aim of a prosperous co-existence of the two companies, in order to make maximum use of the brands, customer bases, networks, and know-how they have thus far cultivated and to develop and provide to their customers competitive products and services.

At the same time, the two companies have agreed to integrate the parcel delivery services of Japan Post Service Co., Ltd. (“Japan Post Service"), a subsidiary of Japan Post Holdings, and Nippon Express.

For business activities in areas other than parcel delivery, the two companies will pursue the relevant partnerships at the appropriate times when both companies deem such partnerships in accord with the fundamental aim of prosperous co-existence.

The current points of agreement and future schedule for the integration of the parcel delivery services of Japan Post Service and Nippon Express are given below. Details emerging from future deliberations will be announced as soon as they have been finalized.

1. A new company will be established around October 1, 2008 for the purpose of integrating the parcel delivery services.
2. The new company will be a subsidiary of either Japan Post Holdings or Japan Post Service; details such as voting right ratios in the new company and the size of the new company will be worked out in a separate agreement.
3. The two partners will provide the new company with equipment funding, customer bases, personnel, logistics functions, facilities and equipment, information systems, etc., for its parcel delivery services.

With the new company due to be established in October 2008, the two partners intend to utilize the opportunity presented by the conclusion of this Basic Agreement to actively strengthen and pursue cooperation in sales efforts and business management for the two companies' products as well as increased joint transport shipments and other forms of operational cooperation.

(1) Name:	Japan Post Holdings Co., Ltd.
(2) Principal business operations:	[1] Underwriting and holding the shares issued by Japan Post Service Co., Ltd., and Japan Post Co., Ltd. [2] Ensuring that basic management guidelines are drafted and implemented for Japan Post Service Co., Ltd., and Japan Post Co., Ltd. [3] Exercising other rights as a shareholder in Japan Post Service Co., Ltd., and Japan Post Co., Ltd. [4] Disposing of the shares of Japan Post Bank Co., Ltd., and Japan Post Insurance Co., Ltd., holding the shares in question until disposition has been concluded, and exercising rights as a shareholder
(3) Date of establishment:	January 23, 2006
(4) Head Office:	Kasumigaseki 1-3-2, Chiyoda-ku, Tokyo
(5) Representative:	YoshifumiNishikawa,PresidentandCEO
(6) Capital:	3,500,000millionyen

(1) Name:	Nippon Express Co., Ltd.
(2) Principal business operations:	motor cargo transport, railway cargo forwarding, marine cargo transport, marine cargo forwarding, air cargo forwarding, warehousing, travel services, customs clearance, transport/assembly of heavy machinery and plants, special transport, information processing/analysis, and other general logistics and incidental operations
(3) Date of establishment:	October 1, 1937
(4) Head Office:	Higashi-shimbashi 1-9-3, Minato-ku, Tokyo
(5) Representative:	Masanori Kawai, President
(6) Capital:	70,175 million yen

October 5, 2007	Conclusion of Basic Agreement
April 2008 (tentative)	Conclusion of final agreement on integration of parcel delivery service
October 1, 2008 (tentative)	Establishment of new parcel delivery company

As the specific details of the partnership are still under consideration by the two companies, the impact that this new agreement will have on future business performance remains uncertain.