Reference is made to our announcements dated November 22, 2004, December 1, 2004, and December 24, 2004 regarding the Diesel Particulate Filter ("DPF") incident. Since the identification of the incident, Mitsui has been earnestly taking the following actions:

In our announcement on December 24, 2004 regarding the result of the internal investigation on the DPF incident together with actions based on such result, Mitsui stated that we recognized the responsibility of our management team which was unable to prevent the occurrence of these grave incidents, and would report on further actions in this respect at the earliest appropriate opportunity.

Subsequently, Mitsui established an Independent Committee for the DPF incident which was chaired by Mr. Yasutaka Okamura, Corporate Auditor, and was made up of the following five individuals, all of whom are independent from Mitsui.

The Independent Committee was asked to report on the following three points:

Mitsui received the report from the Independent Committee yesterday, and has given full consideration of the evaluations and recommendations. Taking into account other relevant factors including the grave social impact of the DPF incident and the losses and damages incurred by Mitsui, we resolved to implement disciplinary reductions of directors' remuneration at the extraordinary meeting of the Board of Directors held today. The remuneration reductions will be for three months beginning this March, as detailed below.

We also took relevant disciplinary actions today on officers and managers who were responsible for supervising those individuals directly involved in the incident. In the meantime, we will seriously consider and implement the recommendations for further actions on preventive measures.

Mitsui again expresses our utmost regret to our DPF users and all the parties concerned as well as the citizens and the local communities for the occurrence of the incident.