Mitsui & Co., Ltd. ("Mitsui") announced today that Mitsui and The Dow Chemical Company ("Dow") entered into an agreement to form a new joint venture company at 50:50 share for constructing, owning and operating a new Chlor-Alkali facility in Freeport, Texas, USA, on July 1, 2010 (New York time). Mitsui's investment in this project is expected to be approximately USD 140 million. Mitsui is also discussing to arrange project finance separately for additional funds with related financial institutions.

Outline of Joint Venture Agreement

* LLC(Limited Liability Company) : A form of business entity allowed by many jurisdictions in the United States, which allows for a company to be formed with limited liability and receive partnership tax treatment.

The joint venture agreement is conditional upon regulatory approval by the relevant governmental authorities. Mitsui and Dow are targeting to complete the deal by the end of August 2010.

Caustic Soda and Chlorine, which are basic raw materials of various chemical products and processes, are produced through electrolysis of brine. The highly-advanced and world-scale membrane chlor-alkali facility in the new joint venture will fulfill stable and competitive production of Caustic Soda and Chlorine.

Currently Mitsui operates the sales and marketing business of Chlorine derivatives around the world including Ethylene Dichloride ("EDC") which Mitsui is among those with the largest share of merchant market. The Chlorine produced by the new joint venture will be converted to EDC by Dow through a tolling conversion arrangement and will enhance Mitsui's stable supply of Caustic Soda and EDC to the marketplace.

This strategic partnership forming the new joint venture between Mitsui and Dow brings Mitsui an opportunity not only to enter into a significant manufacturing venture in the field of strategic importance but also to enhance the strategic business relationship with Dow.

In April 2009, Mitsui newly established the Chlor-Alkali Division consolidating all of its chlor-alkali related businesses such as Salt, Alkali products, EDC and Vinyl Chloride Monomer, Polyvinyl Chloride Resin, and Polyurethanes raw material in order to create synergy among them and deliver further value to our customers.

1. Details of Project

2. Profile of Dow

** As of December, 2009

3. Project Scheme

4. Chlor-Alkali Product Flow Chart

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