Mitsui & Co., Ltd., together with Itochu Corporation (Itochu), Japan Bank for International Cooperation (JBIC) and Sumitomo Mitsui Banking Corporation (SMBC), signed agreements with Petróleo Brasileiro S.A. (Petrobras), a Brazilian international energy company, in New York, on May 23, 2006, for the modernization of the Henrique Lage Refinery (REVAP), which boasts Petrobras's third largest oil refining capacity at 250,000 barrels per day, and is locating in São José dos Campos, São Paulo State.

Petrobras decided to implement this modernization project with a view to upgrading the capacity for processing heavy Brazilian crude oil, as well as adjust diesel oil output to new Brazilian environmental specifications.

Mitsui & Co., Ltd. and Itochu are jointly establishing a special purpose company in Brazil, and will arrange financing for the modernization project in the amount of 900 million US dollars, under the support of JBIC and SMBC. Construction work is scheduled for completion by November 2009.

By implementing the modernization project, Petrobras will be able to supply more environmentally friendly oil products and to reduce importation of light oil products, thereby contributing to improving Brazil's balance of payments.

By participating in this important project, Mitsui & Co., Ltd. would like to strengthen its relationship with Petrobras, as well as the nation of Brazil.

Location map of REVAP