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<TITLE>MITSUI & CO.,LTD.</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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<B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
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<B>Washington,&nbsp;D.C. 20549</B>
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FORM&nbsp;20-F
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    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="89%">&nbsp;</TD>
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<TR>
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    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT face="wingdings">&#111;</FONT></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>REGISTRATION STATEMENT PURSUANT TO SECTION&nbsp;12(b) OR (g)
    OF THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
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<TR>
    <TD colspan="3">&nbsp;</TD>
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    <TD colspan="3" align="center" valign="top">
    <B>OR</B></TD>
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    <TD colspan="3">&nbsp;</TD>
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<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT face="wingdings">&#254;</FONT></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>ANNUAL REPORT PURSUANT TO SECTION&nbsp;13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934</B></TD>
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<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>For the fiscal year ended March&nbsp;31, 2005</B></TD>
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    <TD colspan="3" align="center" valign="top">
    <B>OR</B></TD>
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    <TD colspan="3">&nbsp;</TD>
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    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT face="wingdings">&#111;</FONT></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>TRANSITION REPORT PURSUANT TO SECTION&nbsp;13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934</B></TD>
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    <TD colspan="3" align="center" valign="top">
    <B>OR</B></TD>
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    <TD colspan="3">&nbsp;</TD>
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<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT face="wingdings">&#111;</FONT></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>SHELL COMPANY REPORT PURSUANT TO SECTION&nbsp;13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
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<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>Date of event requiring this shell company report&nbsp;</B></TD>
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<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>For the transition period
    from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to</B></TD>
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<B>Commission file number 0-9929</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
MITSUI BUSSAN KABUSHIKI KAISHA
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Exact name of Registrant as specified in its charter)</I>
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<DIV align="center" style="font-size: 24pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
MITSUI&nbsp;&#38; CO., LTD.
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Translation of Registrant&#146;s name into English)</I>
</DIV>

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<B>JAPAN</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Jurisdiction of incorporation or organization)</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>2-1, OHTEMACHI 1-CHOME, CHIYODA-KU, TOKYO 100-0004, JAPAN</B>
</DIV>

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<I>(Address of principal executive offices)</I>
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<B>Securities registered or to be registered pursuant to
Section&nbsp;12(b) of the Act.</B>
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<B>None</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Securities registered or to be registered pursuant to
Section&nbsp;12(g) of the Act.</B>
</DIV>

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<B>Common Stock</B>
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<I>(Title of class)</I>
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<B>Securities for which there is a reporting obligation pursuant
to Section&nbsp;15(d) of the Act.</B>
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<B>None</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate the number of outstanding shares of each of the
issuer&#146;s classes of capital or common stock as of the close
of the period covered by the annual report.
</DIV>

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<B>As of March&nbsp;31, 2005, 1,582,210,630&nbsp;shares of
common stock were outstanding including</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>7,359,040&nbsp;shares represented by an aggregate of 367,952
American Depositary Shares.</B>
</DIV>

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Indicate by check mark whether the registrant (1)&nbsp;has filed
all reports required to be filed by Section&nbsp;13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding
12&nbsp;months (or for such shorter period that the registrant
was required to file such reports), and (2)&nbsp;has been
subject to such filing requirements for the past 90&nbsp;days.
</DIV>

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    Yes&nbsp;<FONT face="wingdings">&#254;
    </FONT></DIV>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No&nbsp;<FONT face="wingdings">&#111;
    </FONT></TD>
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Indicate by check mark which financial statement item the
registrant has elected to follow.
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    <DIV style="margin-left: 10px; text-indent: -10px">
    Item&nbsp;17&nbsp;<FONT face="wingdings">&#111;
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Item&nbsp;18&nbsp;<FONT face="wingdings">&#254;
    </FONT></TD>
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If this is an annual report, indicate by check mark whether the
registrant is a shell company (as defined in Rule&nbsp;12b-2 of
the Exchange Act).
</DIV>

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    Yes&nbsp;<FONT face="wingdings">&#111;
    </FONT></DIV>
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    No&nbsp;<FONT face="wingdings">&#254;
    </FONT></TD>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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<B>Certain References and Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As used in this report, &#147;Mitsui&#148; is used to refer to
Mitsui&nbsp;&#38; Co., Ltd. (Mitsui Bussan Kabushiki Kaisha),
&#147;we&#148;, &#147;us&#148;, and &#147;our&#148; are used to
indicate Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries, unless
otherwise indicated. &#147;Share&#148; means one share of
Mitsui&#146;s common stock, &#147;ADS&#148; means an American
Depositary Share representing 20&nbsp;shares, and
&#147;ADR&#148; means an American Depositary Receipt evidencing
one or more ADSs. Also, &#147;dollar&#148; or &#147;$&#148;
means the lawful currency of the United States of America, and
&#147;yen&#148; or &#147;&#165;&#148; means the lawful currency
of Japan.
</DIV>

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All financial statements and information contained in this
annual report have been prepared in accordance with accounting
principles generally accepted in the United States, or
U.S.&nbsp;GAAP, except where otherwise noted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>A Cautionary Note on Forward-Looking Statements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This annual report includes forward-looking statements based on
our current expectations, assumptions, estimates and projections
about our business, our industry and capital markets around the
world. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
&#147;may&#148;, &#147;expect&#148;, &#147;anticipate&#148;,
&#147;estimate&#148;, &#147;plan&#148; or similar words. The
forward-looking statements in this annual report are subject to
various risks, uncertainties and assumptions. These statements
discuss future expectations, identify strategies, contain
projections of results of operations or of our financial
position, or state other forward-looking information. Known and
unknown risks, uncertainties and other factors could cause our
actual operating results to differ materially from those
contained or implied in any forward-looking statement. Our
expectations expressed in these forward-looking statements may
not turn out to be correct, and our actual results could
materially differ from and be worse than our expectations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Important risks and factors that could cause our actual results
to differ materially from our expectations are discussed in this
&#147;Item&nbsp;3.D. Risk Factors&#148; or elsewhere in this
annual report and include, without limitation:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
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<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in economic conditions that may lead to unforeseen
    developments in markets for products handled by us;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    fluctuations in currency exchange rates that may cause
    unexpected deterioration in the value of transactions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    adverse political developments in the various jurisdictions
    where we operate, which among things, may create delays or
    postponements of transactions and projects;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in laws, regulations or policies in any of the countries
    where we conduct our operations;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    significant changes in the competitive environment.</TD>
</TR>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We do not assume, and specifically disclaim, any obligation to
update any forward-looking statements which speak only as of the
date made.
</DIV>

<P align="center" style="font-size: 10pt;">2

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<DIV align="left" style="font-size: 10pt;">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS</B>
</DIV>

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<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
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    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#101'>PART I</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#102'>Item&nbsp;1. Identity of Directors, Senior
    Management and Advisers</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#103'>Item&nbsp;2. Offer Statistics and Expected
    Timetable</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#104'>Item&nbsp;3. Key Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#105'>A. Selected Financial Data</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#106'>B. Capitalization and Indebtedness</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#107'>C. Reasons for the Offer and Use of
    Proceeds</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#108'>D. Risk Factors</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#109'>Item&nbsp;4. Information on the Company</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#110'>A. History and Development of the
    Company</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#111'>B. Business Overview</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#112'>C. Organizational Structure</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#113'>D. Property, Plants and Equipment</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>60</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#114'>Item&nbsp;5. Operating and Financial Review
    and Prospects</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#115'>A. Operating Results</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#116'>B. Liquidity and Capital Resources</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>120</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#117'>C. Research and Development</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>131</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#118'>D. Trend Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#119'>E. Off-balance Sheet Arrangements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#120'>F. Tabular Disclosure of Contractual
    Obligations</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#121'>Item&nbsp;6. Directors, Senior Management
    and Employees</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>134</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#122'>A. Directors and Senior Management</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>134</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#123'>B. Compensation</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>146</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#124'>C. Board Practices</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>147</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#125'>D. Employees</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>154</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#126'>E. Share Ownership</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>154</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#127'>Item&nbsp;7. Major Shareholders and Related
    Party Transactions</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>155</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#128'>A. Major Shareholders</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>155</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#129'>B. Related Party Transactions</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>156</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#130'>C. Interests of Experts and Counsel</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>157</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#131'>Item&nbsp;8. Financial Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>157</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#132'>A. Consolidated Statements and Other
    Financial Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>157</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#133'>B. Significant Changes</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>159</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#134'>Item&nbsp;9. The Offer and Listing</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>159</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#135'>A. Offer and Listing Details</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>159</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#136'>B. Plan of Distribution</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#137'>C. Markets</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#138'>D. Selling Shareholders</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#139'>E. Dilution</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#140'>F. Expenses of the Issue</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#141'>Item&nbsp;10. Additional Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#142'>A. Share Capital</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#143'>B. Memorandum and Articles of
    Association</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#144'>C. Material Contracts</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>169</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#145'>D. Exchange Controls</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>169</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#146'>E. Taxation</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>170</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#147'>F. Dividends and Paying Agents</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>173</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#148'>G. Statement by Experts</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>173</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#149'>H. Documents on Display</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>173</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#150'>I. Subsidiary Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>174</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#151'>Item&nbsp;11. Quantitative and Qualitative
    Disclosures about Market Risk</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>174</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#152'>Item&nbsp;12. Description of Securities
    Other Than Equity Securities</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>177</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#153'>PART II</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>177</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#154'>Item&nbsp;13. Defaults, Dividend Arrearages
    and Delinquencies</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>177</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#155'>Item&nbsp;14. Material Modifications to the
    Rights of Security Holders and Use of Proceeds</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>177</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#156'>Item&nbsp;15. Controls and Procedures</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>177</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#157'>Item&nbsp;16. [Reserved]</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>178</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#158'>Item&nbsp;16A. Audit Committee Financial
    Expert</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>178</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#159'>Item&nbsp;16B. Code of Ethics</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>178</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#160'>Item&nbsp;16C. Principal Accountant Fees
    and Services</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>178</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#161'>Item&nbsp;16D. Exemptions from the Listing
    Standards for Audit Committees</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#162'>Item&nbsp;16E. Purchases of Equity
    Securities by the Issuer and Affiliated Purchasers</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#163'>PART III</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#164'>Item&nbsp;17. Financial Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#165'>Item&nbsp;18. Financial Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#166'>Item&nbsp;19. Exhibits</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181</TD>
    <TD>&nbsp;</TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k00992exv1w1.htm">EX-1.1 THE ARTICLES OF INCORPORATION OF MITSUI & CO.,LTD.,AS OF JUNE 24, 2005(ENGLISH-LANGUAGE TRANSLATION).</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k00992exv1w4.htm">EX-1.4 THE RULES OF THE BOARD OF CORPORATE AUDITORS OF MITSUI & CO.,LTD.,AS AMENDED ON SEPTEMBER 8, 2004(ENGLISH-LANGUAGE TRANSLATION).</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k00992exv8w1.htm">EX-8.1 LIST OF SUBSIDIARIES OF MITSUI & CO.,LTD.</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k00992exv11w1.htm">EX-11.1 CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS AND PROFESSIONALS.</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k00992exv11w2.htm">EX-11.2 BUSINESS CONDUCT GUIDELINES FOR EMPLOYEES AND OFFICERS OF MITSUI & CO.,LTD.</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k00992exv12w1.htm">EX-12.1 CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER OF MITSUI & CO.,LTD. REQUIRED BY RULE 13A-14(A).</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k00992exv12w2.htm">EX-12.2 CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER OF MITSUI & CO.,LTD. REQUIRED BY RULE 13A-14(A).</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k00992exv13w1.htm">EX-13.1 CERTIFICATION REQUIRED BY RULE 13A-14(B) AND SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE.</A></FONT></TD></TR>
</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt;">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt;">3
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='101'></A>
</DIV>

<!-- link1 "PART I" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;I</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='102'></A>
</DIV>

<!-- link1 "Item 1. Identity of Directors, Senior Management and Advisers." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;1.</B></TD>
    <TD>
    <B>Identity of Directors, Senior Management and Advisers.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='103'></A>
</DIV>

<!-- link1 "Item 2. Offer Statistics and Expected Timetable." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;2.</B></TD>
    <TD>
    <B>Offer Statistics and Expected Timetable.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='104'></A>
</DIV>

<!-- link1 "Item 3. Key Information." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;3.</B></TD>
    <TD>
    <B>Key Information.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='105'></A>
</DIV>

<!-- link1 "A. Selected Financial Data." -->

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>A.</B></TD>
    <TD>
    <B>Selected Financial Data.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The selected consolidated income statement data for the years
ended March&nbsp;31, 2005, 2004 and 2003 and the selected
consolidated balance sheet data as of March&nbsp;31, 2005 and
2004 below are derived from our audited consolidated financial
statements prepared in accordance with U.S.&nbsp;GAAP, which are
included elsewhere in this annual report. The selected
consolidated income statement data for the years ended
March&nbsp;31, 2002 and 2001 and balance sheet data as of
March&nbsp;31, 2003, 2002 and 2001 are derived from our
previously published audited consolidated financial statements
prepared in accordance with U.S.&nbsp;GAAP, which are not
included in this annual report. The consolidated financial
statements as of March&nbsp;31, 2005 and 2004 and for the years
ended March&nbsp;31, 2005, 2004 and 2003 have been audited by
Deloitte Touche Tohmatsu, independent auditors, whose report is
filed as part of this annual report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The selected consolidated financial statements have been
prepared in accordance with U.S.&nbsp;GAAP and should be read in
conjunction with, and are qualified in their entirety by
reference to &#147;Item&nbsp;5. Operating and Financial Review
and Prospects,&#148; and our consolidated financial statements
and notes thereto included elsewhere in this annual report.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>In Billions of Yen, Except Amounts per Share and Common Stock Data</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>As of or for the Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="7" align="left" valign="top">
    <B>Consolidated Income Statement Data:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Results of Operations:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues<SUP style="font-size: 85%; vertical-align: text-top">(2)(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,366</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross
    Profit<SUP style="font-size: 85%; vertical-align: text-top">(2)(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>614</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>560</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in Earnings of Associated
    Companies<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income from Continuing Operations
    <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Free Cash
    Flows<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(24</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>141</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income from Continuing Operations per
    Share<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37.16</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34.88</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Income per Share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37.16</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30.63</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash Dividends Declared per Share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash Dividends Declared per Share in
    U.S.&nbsp;Dollars<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.07</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>In Billions of Yen, Except Amounts per Share and Common Stock Data</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>As of or for the Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Consolidated Balance Sheet Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financial Position at Year-End:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,668</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,710,</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Shareholders&#146; Equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>963</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>915</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>834</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term Debt, less Current Maturities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,709</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Return on Equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>192</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Information at Year-End:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common Stock:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Number of Shares Outstanding (in Thousands)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,582,211</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,581,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,581,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,583,180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,583,675</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Number of Shareholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>107,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>118,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>127,137</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    The U.S.&nbsp;dollar amounts represent translations of the
    Japanese yen amounts at the rates in effect on the respective
    dividend payment dates.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    For the year ended March&nbsp;31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as &#147;Interest expense, net of
    interest income.&#148; The prior year figures have been restated
    to conform to the current year presentation.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    In accordance with Statement of Financial Accounting Standards
    No.&nbsp;144, &#147;Accounting for the Impairment or Disposal of
    Long-Lived Assets,&#148; the prior year figures relating to
    discontinued operations have been reclassified.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Free Cash Flows represents the sum of net cash provided by
    operating activities and net cash used in investing activities.
    See Item&nbsp;5. B. &#147;Liquidity and Capital
    Resources&nbsp;&#151; Use of Non-GAAP Financial Measures.&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Exchange Rate Information</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information below with respect to exchange rates is based on
the official noon buying rates for Japanese yen of the Federal
Reserve Bank of New York. These rates are provided solely for
the convenience of the reader and are not the exchange rates
used by us in the preparation of our consolidated financial
statements included in this annual report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Federal Reserve Bank of New York official noon buying rate
for Japanese yen on September&nbsp;16, 2005 was
&#165;111.38&nbsp;= U.S.$1.00. The following table provides the
high and low official rates for each of the previous six months.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Yen per U.S.&nbsp;Dollar</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    August 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>112.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>109.37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>110.47</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    June 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>110.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>106.64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>108.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>104.41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    April 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>108.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>104.64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>107.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>103.87</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides the average exchange rate for each
of the last five fiscal years. We have calculated these average
rates by using the rate on the official noon buying rates for
Japanese yen of the Federal Reserve Bank of New York on the last
business day of each month during the relevant fiscal year.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Yen per U.S.&nbsp;Dollar</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Years Ended March&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Average Rate</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>107.28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>112.75</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121.10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>125.64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2001</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>111.65</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fluctuations in the exchange rate between the yen and the
U.S.&nbsp;dollar will affect the U.S.&nbsp;dollar equivalent of
the yen-denominated prices of our shares and, as a result, will
affect the market prices of our ADSs in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='106'></A>
</DIV>

<!-- link1 "B. Capitalization and Indebtedness." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>B.</B></TD>
    <TD>
    <B>Capitalization and Indebtedness.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not required.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='107'></A>
</DIV>

<!-- link1 "C. Reasons for the Offer and Use of Proceeds." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>C.</B></TD>
    <TD>
    <B>Reasons for the Offer and Use of Proceeds.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='108'></A>
</DIV>

<!-- link1 "D. Risk Factors." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>D.</B></TD>
    <TD>
    <B>Risk Factors.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>You should carefully consider the risks and uncertainties
described below and the other information in this annual report,
including the discussion in &#147;Item&nbsp;5. Operating and
Financial Review and Prospects,&#148; as well as our
consolidated financial statements and related notes included
elsewhere in this annual report.</I>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>The decrease in the volume of trade and the flow of goods
    and materials resulting from the worldwide economic downturn may
    adversely impact our business, results of operations and
    financial condition.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We provide global import and export services for our customers
in various countries in a wide range of business transactions.
We are also involved in the financing of and investing in
various business activities worldwide including, but not limited
to, the procurement of raw materials and industrial equipment,
manufacturing a wide range of commodities and providing
logistics services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our global business activities, including our trading
activities, are affected by the economic conditions both
globally and regionally. Among other locations, we are
vulnerable to downward economic trends in Japan and China. An
economic downturn may cause a reduction in the flow of goods and
materials, a decline in private consumption and fixed
investment, and subsequently a decrease in demand of our
customers for our products and services, which may have an
adverse impact on our business, results of operations and
financial condition.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Fluctuations in commodity prices can adversely affect our
    results of operations and financial condition.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are engaged in trade and, as the case may be, production of a
variety of commodities in the global commodities market
including metal, energy, chemical and agricultural products. Our
activities in these commodities in particular, have a
significant impact on our business operations. Commodity prices
are highly volatile and subject to cyclical fluctuations due to
factors beyond our control, including periods of excess supply
due to increased industrial production, decreased demand due to
weakening economic conditions, inventory cutbacks by customers,
and exchange rate movements. As a result, unexpected
</DIV>

<P align="center" style="font-size: 10pt;">6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
movements in commodity prices may adversely affect our business,
operating results and financial condition. For example:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    declines in commodity prices may result in a decrease in sales
    of those commodities in which we act as a principal or a
    decrease in sales of services in which we act as an agent. For
    instance, the operating results of the Energy Segment, which
    reflect annual production from our oil and gas activities, are
    sensitive to the price of crude oil. A decline of
    U.S.$1&nbsp;per barrel in the price of crude oil adversely
    affects the revenues and equity in earnings of associated
    companies of this segment and results in a decrease in the
    segment&#146;s annual net income of approximately
    &#165;1&nbsp;billion as of the year ended March&nbsp;31, 2005;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    because we are engaged in spot and derivative trading of
    commodities, unexpected changes in price may result in trading
    losses; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    as we invest a substantial amount of money in the production of
    commodities, a prolonged or cyclical decline in the price of
    commodities can have a long term adverse effect on our results
    of operations and financial condition and make it increasingly
    difficult for us to recover our capital investments or to divest
    our interests at prices acceptable to us, if at all.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For further information about the impact by commodity price
fluctuations on our business and results of operations for the
year ended March&nbsp;31, 2005 and in the future, see
&#147;Item&nbsp;5.A. Operating Results.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Exchange rate fluctuations may adversely affect our
    operating results.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are exposed to risks associated with foreign currency
exchange rate fluctuations. Although our reporting currency is
the Japanese yen, a significant portion of our business
operations, consolidated revenues and operating expenses is
denominated in currencies other than the Japanese yen. As a
result, appreciation or depreciation in the value of other
currencies as compared to the Japanese yen could result in
material transactional gains or losses. As most of revenues,
costs of revenues, and selling, general and administrative
expenses incurred from regular business activities at overseas
subsidiaries and associated companies are quoted in the
U.S.&nbsp;dollar, the Australian dollar, the Euro, or other
currencies, our net income may be affected by the fluctuations
of these currencies and we are exposed to translation risk in
our assets and liabilities denominated in foreign currencies. In
addition, exchange rate fluctuations may reduce the value of
investment in overseas subsidiaries and associated companies and
adversely affect our accumulated other comprehensive income. As
a result, exchange rate fluctuations may negatively affect our
operating results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;Item&nbsp;3.A. Selected Financial Data&nbsp;&#151;
Exchange Rate Information&#148;, &#147;Item&nbsp;5.A. Operating
Results&#148; and &#147;Item&nbsp;5. B. Liquidity and Capital
Resources.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We are subject to significant counterparty credit risk
    from various companies or projects with which we do business or
    to which we lend.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are exposed to significant counterparty credit risks. For
example:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We provide vendor financing services and also act as guarantors
    to banks that provide financing to our customers. In addition,
    many of our customers purchase products and services from us on
    credit. At March&nbsp;31, 2005, current trade receivable (less
    unearned interest and allowance for doubtful
    receivables&nbsp;&#151; current) were
    &#165;2,488.9&nbsp;billion, representing 32.8% of our total
    assets and the recognized losses for doubtful
    receivables&nbsp;&#151; current for the year ended
    March&nbsp;31, 2005 and the balance of the allowance for
    doubtful receivables&nbsp;&#151; current were
    &#165;6.3&nbsp;billion and &#165;22.5&nbsp;billion, respectively;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We engage in significant project financing activities as a
    lender or guarantor whereby we assume repayment risk;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We have counterparty payment risks from various derivative
    transactions we enter into as part of our hedging activities.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">7

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our management policy for credit exposure cannot eliminate
entirely the risks relating to the possibility of our customers
experiencing financial difficulties. Moreover, we may experience
difficulty in collecting payments from our counterparties if:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    liquidity crises arise in Japan or elsewhere in the world;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    real estate prices or stock prices in Japan or other markets
    decline sharply, thereby adversely affecting the liquidity of
    our counterparties;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the number of corporate bankruptcies in Japan increases.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Changes in interest rates could have an adverse effect on
    our operating results.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are exposed to risks associated with interest rate
fluctuations, which may affect our overall operational costs and
the value of our financial assets and liabilities, particularly,
our debt obligations, which are primarily debt raised in the
capital markets and bank loans. We utilize various financial and
derivative instruments which are sensitive to interest rate
changes. An increase in interest rates, especially in Japan and
the United States, may adversely affect our results of
operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See Item&nbsp;5.B. &#147;Liquidity and Capital
Resources&nbsp;&#151; Funding Sources.&#148;
</DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>If the value of assets for which we act as lessor, such as
    real property and equipment, aircraft, ocean transport vessels
    and rolling stock decline, we may be forced to write down the
    value of these assets.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Assets for which we act as lessor, such as real property,
aircraft, ocean transport vessels, rolling stock and equipment,
are exposed to potential significant impairment losses due to
the decline in the value of these assets. As of March&nbsp;31,
2005, the value of these assets in which we act as lessor,
presented on our Consolidated Balance Sheets as &#147;Property
leased to others&nbsp;&#151; at cost, less accumulated
depreciation,&#148; was &#165;183.2&nbsp;billion. The carrying
amounts of certain assets in which we act as lessor are affected
by certain factors which are beyond our control such as their
global supply and demand, prevailing interest rates, prices of
relevant products and services and regional and/or global
cyclical trends. There can be no assurance that adjustments for
impairment losses with respect to such assets will not be made.
Any adjustments may have an adverse effect on our financial
condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For information on our accounting policies and estimates with
respect to impairment on long-lived assets, see &#147;Critical
accounting policies and estimates&#148; of &#147;Item&nbsp;5.A.
Operating Results.&#148;
</DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Declines in the market value of equity and/or debt
    securities in Japan may decrease the value of our pension assets
    which in turn may increase the cost of satisfying our unfunded
    pension obligations.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Declines in the market value of Japanese government bonds, other
debt securities and marketable equity securities in Japan would
reduce the value of our pension plan assets. Decline in the
value of our pension plan assets or increase in our unfunded
pension obligations could adversely affect our results of
operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;Item&nbsp;5.A. Operating Results&#148; and
Note&nbsp;14, &#147;PENSION COSTS AND SEVERANCE
INDEMNITIES,&#148; to our consolidated financial statements.
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our liquidity could be adversely affected by a downgrade
    in our credit ratings, significant changes in the lending or
    investment policies of our creditors or investors.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A downgrade in our credit ratings or a significant change in the
lending or investment policies of our creditors or investors
could result in an increase in our interest expense and could
adversely impact our ability to access the debt markets, and
could have an adverse effect on our financial position and
liquidity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For information on our funding sources and credit ratings, see
&#147;Item&nbsp;5.B. Liquidity and Capital Resources.&#148;
</DIV>

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    <TD width="3%"></TD>
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    <TD></TD>
    <TD>
    <B><I>Due to our significant investments in marketable equity
    securities of Japanese issuers, a substantial decline in the
    Japanese stock market as experienced in the past could
    negatively affect our investment portfolio.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A significant portion of our investment portfolio consists of
marketable equity securities of Japanese issuers. At
March&nbsp;31, 2005, our marketable equity securities of
Japanese issuers were carried at a fair value of
&#165;292.5&nbsp;billion, representing 45.7% of the fair value
of our total available-for-sale securities and 3.9% of our total
assets. The Japanese equity securities market has experienced a
decline in recent years. Both for the year ended March&nbsp;31,
2005 and 2004, losses on available-for-sale securities were not
significant, but for the year ended March&nbsp;31, 2003 our
Statements of Consolidated Income reflected valuation losses on
available-for-sale securities of &#165;15.6&nbsp;billion,
principally on the stocks of banking institutions reflecting the
overall decline in stock prices in Japan. While we periodically
review our equity portfolio, volatility and decline in the
Japanese equity securities market could negatively impact the
value of our investment portfolio and our results of operations
and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For information on our accounting policies and estimates with
respect to impairment on marketable securities, see
&#147;Critical Accounting Policies and Estimates&#148; of
&#147;Item&nbsp;5.A. Operating Results.&#148;
</DIV>

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    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Some of our operations are concentrated in a limited
    number of regions or countries, which could harm our business
    and results of operations if activity levels in these regions or
    countries decline.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are engaged in various types of businesses worldwide which
expose us to risks associated with fluctuations in commodity
prices, the supply and demand of commodities, foreign exchange
rates and interest rates, in addition to risks associated with
regional political and economic instabilities. Furthermore, some
of our business activities may be exposed to concentration risk
in particular industries located in specific regions or
countries which international financial institutions, government
financing agencies and rating agencies assign or assigned in the
past the status of relatively high risk regions or countries.
For example:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In Russia and Brazil, our interests in the exploration,
    development and production of minerals and energy resources are
    increasing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In Indonesia, we actively participate in infrastructure projects
    including the operation of power plants.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result, declining levels of trading activities or asset
volumes in specific sectors in certain regions or countries
could have a disproportionately negative effect on our business,
financial condition and results of operations.
</DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We may not be able to successfully restructure or
    eliminate unprofitable or underperforming subsidiaries or
    associated companies in a timely manner and any efforts to do so
    may not lead to improved results of operations.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are continuously restructuring our underperforming
businesses. To implement this procedure, we have introduced a
quantitative monitoring system to assess the performance of our
subsidiaries and associated companies. If we fail to
successfully eliminate or restructure our underperforming
subsidiaries and associated companies in a timely manner or if
these efforts fail to improve our business operations as
contemplated, we may become less efficient compared to our
competitors who are mainly other major Japanese general trading
companies, and our results of operations may be adversely
affected.
</DIV>

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<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our alliances by forming joint ventures with, and
    strategic investments in, third parties may not result in
    successful operations.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We participate in various businesses directly or indirectly
through joint ventures or by making strategic investments in
other companies and business enterprises. The outcome of these
joint ventures and strategic investments is unpredictable
because:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the operational success is critically dependent on factors that
    are beyond our control such as the financial condition and
    performance of the partner companies or the strategic
    investees;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    with respect to certain associated companies, we may fail to
    exercise adequate control over the management, operations and
    assets of the companies in which we invested or may fail to make
    major decisions without the consent of other shareholders or
    participants due to lack of common business goals and strategic
    objectives with our alliance partners.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any occurrence of these events could have a material adverse
effect on our business, results of operations or financial
condition.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our businesses in exploration, development and production
    of mineral resources and oil and gas may not develop in line
    with assumed costs and schedules, and are subject to the risks
    associated with estimating reserves and the operating
    performance of third party operators.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Reflecting rising prices of mineral resources and oil and gas in
recent years, exploration, development and production of mineral
resources and oil and gas are gaining in importance to our
operating results. Mining and oil and gas projects involve
risks, for example:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    development of projects may face schedule delays or cost
    overruns due to difficulties in technical conditions,
    procurement of materials, financial conditions and government
    regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    reserves are estimated based on available geological, technical,
    contractual and economic information, therefore actual
    development and production may significantly differ from
    originally estimated reserves; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    reserve replacement, on which future production will depend, may
    not be successfully implemented due to uncertainties such as
    failures in exploration or negotiations for acquisitions of
    known reserves with their owners.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We participate as a non-operator in many of these projects.
Under these circumstances, we carefully consider the business
potential and profitability of projects based on the information
and data provided by third party operators, who substantially
control operations of such projects including decision-making in
the course of development and production. In addition to the
above-mentioned risks, third party operators&#146; failure in
managing those projects may adversely affect our operating
results and financial condition.
</DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Intense competition from other Japanese general trading
    companies could have an adverse effect on our results of
    operations.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The markets for many of the products and services we provide are
highly competitive. Our primary competition is with other
Japanese general trading companies which engage in similar
business activities in various fields. Our competitors may have:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    stronger business associations and relationships with our
    customers, suppliers and business partners in both domestic and
    global markets;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    stronger global network and regional expertise, diversified
    global customer bases, greater financial engineering skills and
    market insights.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless we can successfully continue to meet the changing needs
of our customers by providing them with innovative and
integrated services in a cost effective manner, we may lose our
market share or relationships with our existing customers in
certain of our operating segments. Failure to successfully
</DIV>

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<DIV align="left" style="font-size: 10pt;">
compete with our competitors may have an adverse effect on our
business, financial condition and results of operations.
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We may lose the opportunities of entry to new business
    areas because of the limitation of required human
    resources.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In response to the maturation of consumption in Japan and other
developed countries, we have been focusing on entering new
consumer oriented businesses. Additionally, we are undertaking a
reorganization of our traditional businesses in industrial
products and raw materials to better reflect the globalization
of the economy and the rapid progress of information technology
(&#147;IT&#148;). To meet these goals, we have been investing
human resources in these new business areas, who are capable of
carrying out business plans and managing other personnel.
However, in certain business areas, we may have a shortage of
required human resources, which can cause a loss of
opportunities to start new businesses, which may adversely
affect our future business, operating results and financial
condition.
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Restrictions under environmental laws and regulations and
    any accidents relating to our use of hazardous materials could
    negatively affect our business, results of operations and
    financial condition.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are involved in various projects and business transactions
worldwide that are subject to extensive environmental laws and
regulations. In particular, our Metal Products&nbsp;&#38;
Minerals Segment and Energy Segment may be adversely affected by
present or future environmental regulations or enforcements in
connection with our exploration, development and production
activities. For example, we are subject to complex sets of
environmental regulations in Australia, Brazil, Russia, and the
Middle East. These laws and regulations may:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    require us to perform site clean-ups;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    require us to curtail or cease certain operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    impose fines and payments for significant environmental damage;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    require us to install costly pollution control
    equipment;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    require us to modify our operations.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Newly enacted environmental laws and regulations or changes
therein and protests by environmental groups may materially
impact the progress of these projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui is a shareholder of Coronet Industries Inc.
(&#147;Coronet&#148;), a former manufacturer of animal feed
supplements. Coronet has been working with the
U.S.&nbsp;Environmental Protection Agency (&#147;EPA&#148;) and
the State of Florida on an investigation of environmental
conditions and former operations at its facility in Florida. In
addition, Coronet has been named as a defendant in two civil
actions initiated by residents living near the plant. Mitsui, as
well as its United States subsidiary, Mitsui&nbsp;&#38; Co.
(U.S.A.), Inc., have been named as defendants in one of these
actions. These actions are both at their early stages.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We are subject to extensive laws and regulations in Japan
    and other countries throughout the world. Changes in these laws
    and regulations could adversely affect our results of
    operations.</I></B></TD>
</TR>

</TABLE>

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Our business operations are subject to extensive laws and
regulations in Japan and other countries throughout the world.
Our operations are subject to laws and regulations governing,
among other things, tariffs, business and investment approvals,
import and export (including restrictions based on
national-security interests), antitrust, consumer and commercial
restrictions, currency exchange control, and environmental
protection. Moreover, many of our infrastructure projects in
developing countries are subject to less developed legal
systems. As a result, our costs may increase due to factors such
as the lack of a comprehensive set of laws and regulations, an
unpredictable judicial system based on inconsistent
</DIV>

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application and interpretation of laws and regulations, and
changing practices of regulatory and administrative bodies. For
example, we are subject to sudden and unpredictable changes to:
</DIV>

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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    tariffs for products and services that we provide;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    technical specifications with respect to environmental
    regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    income tax and duty rates;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    foreign exchange controls with respect to repatriation of
    investments and dividends.</TD>
</TR>

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Furthermore, many of our oil and gas and mining operations are
located in politically or economically unstable parts of the
world including the Middle East, Russia and India. Although we
are involved in the exploration, development and production
activities through various contractual arrangements in these
regions, there is no assurance that the contracts will be upheld
or extended when they expire. Moreover, there can be no
assurance that the regulatory bodies of these areas will not
unilaterally interfere and alter the contractual terms of our
oil and gas operations involving production rates, pricing
formulas, royalties, environmental protection cost and land
tenure. If these regulatory bodies unilaterally alter such
contractual terms or if we are unable to comply with any new
laws and regulations, our business, operating results and
financial condition could be adversely affected. Furthermore, we
could incur substantial additional costs to comply with any new
laws and regulations.
</DIV>

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See &#147;Item&nbsp;4.B. Business Overview&nbsp;&#151;
Government Regulations.&#148;
</DIV>

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    <TD></TD>
    <TD>
    <B><I>Employee misconduct could adversely affect our results of
    operations and reputation.</I></B></TD>
</TR>

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Due to our size, as well as the operational and geographic
breadth of our activities, our day-to-day operations are
necessarily de-centralized. As a result, we cannot fully ensure
that our employees comply with all applicable laws and
regulations as well as our internal policies. For example, our
employees may engage in unauthorized trading activities and
exceed the allotted market risk exposure for various commodities
or extend an unauthorized amount of credit to a client, which,
in either case, may result in unknown losses or unmanageable
risks. Moreover, our employees could engage in various
unauthorized activities prohibited under the laws of Japan or
other jurisdictions, to which we are subject, including export
regulations, anticorruption laws, antitrust laws and tax
regulations. There can be no assurance that the efforts we
undertake to ensure employees&#146; compliance with applicable
laws and regulations as well as our internal policies will
succeed in preventing misconduct by our employees. Depending on
its nature, employees&#146; misconduct could have negative
effects on our results of operations and reputation.
</DIV>

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See &#147;Compensation and other charges related to DPF
incident&#148; of &#147;Item&nbsp;5.A. Operating Results.&#148;
</DIV>

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    <TD width="97%"></TD>
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    <TD></TD>
    <TD>
    <B><I>Because of daily price range limitations under Japanese
    stock exchange rules, you may not be able to sell your shares of
    our common stock at a particular price on any particular trading
    day, or at all.</I></B></TD>
</TR>

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Stock prices on Japanese stock exchanges are determined on a
real-time basis by the equilibrium between bids and offers.
These exchanges are order-driven markets without specialists or
market makers to guide price formation. To prevent excessive
volatility, these exchanges set daily upward and downward price
range limitations for each stock, based on the previous
day&#146;s closing price. Although transactions may continue at
the upward or downward limit price if the limit price is reached
on a particular trading day, no transactions may take place
outside these limits on these exchanges. Consequently, an
investor wishing to sell at a price above or below the relevant
daily limit on these exchanges may not be able to effect a sale
at such price on a particular trading day, or at all.
</DIV>

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See &#147;Item&nbsp;10.B. Memorandum and Articles of
Association&nbsp;&#151; Daily Price Fluctuation Limits under
Japanese Stock Exchange Rules.&#148;
</DIV>

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    <TD></TD>
    <TD>
    <B><I>As a holder of ADSs, you will have fewer rights than a
    direct shareholder and you will have to act through the
    depositary to exercise those rights.</I></B></TD>
</TR>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The rights of shareholders under Japanese law to take actions,
including voting shares, receiving dividends and distributions,
bringing derivative actions, examining our accounting books and
records and exercising appraisal rights are available only to
holders recorded on our register of shareholders. Because the
depositary, through its custodian agents, is the recorded holder
of the shares underlying the ADSs, only the depositary can
exercise those rights in connection with the deposited shares.
The depositary will make efforts to vote the shares underlying
your ADSs as instructed by you and will pay to you the dividends
and distributions collected from us. However, as an ADS holder,
you will not be able to bring a derivative action, examine our
accounting books and records or exercise appraisal rights except
through and with the consent of the depositary.
</DIV>

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<A name='109'></A>
</DIV>

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    <TD><B>Item&nbsp;4.</B></TD>
    <TD>
    <B>Information on the Company.</B></TD>
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<A name='110'></A>
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    <TD><B>A.</B></TD>
    <TD>
    <B>History and Development of the Company.</B></TD>
</TR>

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    <I>History</I></TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui Bussan Kabushiki Kaisha (&#147;Mitsui&nbsp;&#38; Co.,
Ltd.&#148; in English) was incorporated on July&nbsp;25, 1947,
as Daiichi Bussan Kabushiki Kaisha, a corporation ( <I>Kabushiki
Kaisha </I>) under the Commercial Code of Japan with common
stock of &#165;195,000. We were originally listed on the Tokyo
Stock Exchange in May 1949.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our registered office is located at 2-1,&nbsp;Ohtemachi 1-chome,
Chiyoda-ku, Tokyo 100-0004, Japan. Mitsui&#146;s telephone
number is +81-3-3285-1111.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since our establishment, our business lines have involved
trading in a variety of commodities, including the import of raw
materials and the export of industrial products. As we grew in
tandem with the Japanese postwar economic recovery, we expanded
into overseas activities, such as the establishment of
Mitsui&nbsp;&#38; Co. (Australia) Ltd. in 1956. During the
1950s, Daiichi Bussan Kabushiki Kaisha was formed through the
merger of various trading companies. On February&nbsp;16, 1959,
that entity took our present name, after having attained the
status of being one of the largest general trading companies,
and a history closely connected to the development of foreign
trade in postwar Japan. An example of a business activity which
introduced innovative industrial systems to Japan in our early
days was the establishment of Nippon Remington Univac Kaisha
Ltd. (currently Nihon Unisys Ltd.), a domestic computer related
joint venture with Sperry Rand Corporation of the United States,
in 1958.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the 1960s, the Japanese government promoted trade with
foreign countries and deregulated Japanese capital markets,
which led to high growth of the Japanese economy. We played a
pivotal role in promoting the growth of certain basic industries
by supplying foods, industrial raw material and energy such as
oil and coal from abroad. This included the development of
mineral resources overseas, nurturing markets for Japanese
exports and introducing various new technologies. We established
Mitsui&nbsp;&#38; Co. (U.S.A.), Inc. in April 1966, and Mitsui
Knowledge Industry Co.,&nbsp;Ltd. in October 1967. In May 1963,
we issued American Depositary Shares which were subsequently
listed on The NASDAQ National Market in February 1971.
</DIV>

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In the 1970s, as the world economy weathered two oil crises, we
began to diversify the source of natural resources including
development of liquefied natural gas (&#147;LNG&#148;)
resources. During this time, the export of industrial plant from
Japan, mainly to oil producing countries, drastically increased
and we organized and supported projects by arranging finance and
on occasion establishing markets for products.
</DIV>

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During this period, we suffered losses with respect to a joint
venture project we entered into in connection with Iranian
petrochemicals. These losses were a result of the petrochemical
manufacturing complex being damaged by military attacks, causing
the project to finally be dissolved in 1991.
</DIV>

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Also during the 1970s, we entered into new industries. For
example, in 1971 we established Mitsui Leasing&nbsp;&#38;
Development, our associated company in the leasing industry, and
in 1972 we purchased an equity interest in Mikuni Coca-Cola
Bottling&nbsp;Co.,&nbsp;Ltd. in the beverage industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the 1980s, Japan&#146;s industrial structure moved
increasingly towards the production of high-value-added products
such as products related to information technology
(&#147;IT&#148;) and new materials used for high tech products.
Consequently, we began extending our business field to target
these new markets. Most notable were the semiconductor materials
and carbon fiber fields promoted mainly by our chemical related
divisions.
</DIV>

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In the late 1990s, the Asian economies experienced a financial
crisis. Although the appreciation in real estate and stocks
prior to the crisis created a temporary economic boom in Japan,
their eventual collapse resulted in a wide-ranging economic
slowdown. These conditions necessitated the reorganization of
our profit structures and the development of new businesses.
</DIV>

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At the same time, however, there was also a rapid development of
information infrastructure worldwide, reflecting the
deregulation of the communication sector proceeding from the
1980s in Japan and other countries, and the spread of new
technology such as the Internet accelerated communication among
market participants in real time and at reduced costs. From the
late 1980s, we made investments in IT and communication
businesses including in common carriers such as Tokyo
Telecommunication Network Co., Inc (currently POWEREDCOM, Inc.),
JSAT Corporation, a communications satellites company, and
broadcasting companies such as SKY Perfect Communications Inc.
</DIV>

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    <TD></TD>
    <TD>
    <I>Recent Developments</I></TD>
</TR>

</TABLE>

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We have had concerns that the above-mentioned innovations in
global communication might detract from the advantages we have
gained from having a global network with many business hubs in
the form of overseas offices, overseas subsidiaries and
associated companies. We also have additional concerns that our
traditional intermediary services as agent have been diminishing
in relevance reflecting global competition among our customers
and suppliers who are taking advantage of increasingly efficient
business methods. In this environment, in order to provide a
variety of solutions for our customers, we are increasing our
comprehensive strength by integrating the resources that we have
accumulated through our business history as follows:
</DIV>

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    <TD width="3%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We are establishing more diversified and stable supply sources
    of mineral and energy resources through our global alliances
    with worldwide partners represented by the acquisition of shares
    of Valepar S.A. (the controlling shareholder of Companhia Vale
    do Rio Doce (&#147;CVRD&#148;), a Brazilian mineral resource
    producer) in September 2003 and the final investment decision in
    the second phase of development of the crude oil and LNG
    producing Sakhalin&nbsp;II Project jointly promoted with Royal
    Dutch/ Shell Group and Mitsubishi Corporation in May 2003. See
    &#147;Item&nbsp;4.B. Business Overview&nbsp;&#151; Metal
    Products&nbsp;&#38; Minerals Segment&nbsp;&#151; Iron&nbsp;&#38;
    Steel Raw Materials Unit&#148; and &#147;Item&nbsp;4.B. Business
    Overview&nbsp;&#151; Energy Segment.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We are increasing our involvement in the power generation
    businesses. In December 2004, in partnership with International
    Power&nbsp;plc, a U.K. electric utility company, we completed
    the acquisition of international power generation portfolio of
    Edison Mission Energy in the United States pursuant to a share
    purchase agreement concluded by the three parties, which
    resulted in the acquisition of nine power plants by the
    partnership as of March 2005.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the food business, aiming to respond to changing demands of
    consumers in Japan by upgrading our logistics infrastructure, we
    made an equity infusion into MITSUI FOODS CO., LTD. (formerly
    Sanyu Koami&nbsp;Co., Ltd.), a nationwide wholesaler and the
    core of our domestic food distribution business. Additionally,
    in May 2003, we acquired a majority interest in Mitsui
    Norin&nbsp;Co., Ltd., a producer and seller of raw tea leaves in
    Japan. Furthermore, all the business units are establishing a
    supply chain management (&#147;SCM&#148;) system in order to
    integrate our information and logistics services with those of
    our customers. See &#147;Item&nbsp;4.B. Business Overview.&#148;</TD>
</TR>

</TABLE>

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    <TD width="1%"></TD>
    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In March 2004, we increased our equity ownership in the United
    Auto Group, an auto dealer in the United States, with the goal
    of developing our automobile retail operations worldwide.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We are also actively pursuing new technologies and materials.
    For example, we are promoting research and development such as
    carbon nanotubes and zeolite membrane. See &#147;Item&nbsp;5.C.
    Research and Development, Patents and Licenses, etc.&#148;</TD>
</TR>

</TABLE>

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    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Our Organizational Structure for the Year Ended
    March&nbsp;31, 2003</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April 2002, we implemented an introduction of five major
operating groups (the &#147;Five Major Operating Groups
Structure&#148;) which consisted of:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Metal Products&nbsp;&#38; Minerals Group;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Machinery, Electronics&nbsp;&#38; Information Group;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Chemical Group;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Energy Group;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Consumer Products&nbsp;&#38; Services Group</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
within the head corporate office of Mitsui (the &#147;Head
Office&#148;). This Five Major Operating Groups Structure
delegated greater authority to the chief of each of the five
operating groups for his or her business decisions, investments
and reorganizations with respect to his or her group.
</DIV>

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<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Our Organizational Structure for the Year Ended
    March&nbsp;31, 2004</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April 2003, the Five Major Operating Groups Structure was
abolished to further increase operational and organizational
efficiency. We simplified our overall operational structure
whereby the Chief Operating Officer of each of the 18 business
units reported directly to the Chief Executive Officer of Mitsui
without having to report to other management layers of the Head
Office. As a result of this reorganization, we increased our
operational efficiency with respect to, but not limited to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    company wide evaluation of business opportunities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    re-allocation of assets and human resources;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    analysis and selection of investment opportunities.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Despite this reorganization, there was no change in our product
and service focused business activities for the year ended
March&nbsp;31, 2004. That was, as a result of the aggregation of
our operating segments (i.e., business units) based on the
nature of each of the 18 business units&#146; products, services
and other criteria, our products and services based reportable
segments for the year ended March&nbsp;31, 2004 consisted of the
same five products and services based reportable segments as
those of the year ended March&nbsp;31, 2003. Moreover, for the
year ended March&nbsp;31, 2004, there was no reorganization with
respect to our four region-focused reportable operating
segments. Accordingly, for the year ended March&nbsp;31, 2004,
we had nine reportable operating segments which consisted of
five product and service focused reportable operating segments
and four region-focused reportable operating segments. See
&#147;Item&nbsp;4.B. Business Overview&nbsp;&#151; Products and
Services and Principal Activities by Reportable Operating
Segments.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Our Organizational Structure for the Year Ended
    March&nbsp;31, 2005</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of April&nbsp;1, 2004, we made further changes to our
operating structure by reorganizing business units in the Head
Office. See &#147;Item&nbsp;4.B. Business Overview&nbsp;&#151;
Products and Services and Principal Activities by Reportable
Operating Segments&nbsp;&#151; Reorganization of Business Units
in the Head Office and Change in the Reportable Segments for the
Year Ended March&nbsp;31, 2005.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since the year ended March&nbsp;31, 2004, we have conducted a
comprehensive review of the performance and viability of our all
subsidiaries and associated companies. They have been subject to
a company-wide
</DIV>

<P align="center" style="font-size: 10pt;">15

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
evaluation process held twice a year in which management have
screened them against nine metrics including profit after cost
of capital. As a result of these reviews, subject to definitive
plan for the companies from which we decided to exit, we have
withdrawn from approximately 60&nbsp;subsidiaries and associated
companies during the year ended March&nbsp;31, 2005 and 100 in
the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our global strategy focuses on Asia where the market is
expanding mainly around China and the Association of Southeast
Asian Nations (&#147;ASEAN&#148;) free trade region. Greater
China, which includes mainland China, Hong Kong and Taiwan, will
play an even more significant role in the world trade now that
China and Taiwan are members of the World Trade Organization
(&#147;WTO&#148;). We have been channeling human resources to
these regions, forging strategic alliances with leading
companies and creating a broad spectrum of new businesses. For
more information on our activities in these areas, see
&#147;B.&nbsp;Business Overview&nbsp;&#151; Products and
Services and Principal Activities by Reportable Operating
Segments&#148; below. For example, in order to develop new
business opportunities emerging with the development of network
economies based around China, ASEAN and India, we introduced an
Asian Managing Directorship system. Starting in April 2005, the
Regional Managing Director, Asia took full control with broad
authority and responsibility to manage our businesses throughout
Asia excluding Japan.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Capital Expenditures</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our capital expenditures including investments in debt
securities, property and equipment and leased assets amounted to
&#165;526&nbsp;billion, &#165;491&nbsp;billion and
&#165;396&nbsp;billion for the years ended March&nbsp;31, 2005,
2004 and 2003, respectively. A breakdown of our capital
expenditures is provided below.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investments in and advances to associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of available-for-sale securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>154</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of held-to-maturity debt securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of other investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additions to property leased to others and property and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>123</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of subsidiaries, net of cash acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;396</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;Item&nbsp;5.B. Liquidity and Capital Resources&#148;
for further information.
</DIV>

<P align="center" style="font-size: 10pt;">16

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Investments in and advances to associated companies and
acquisitions of subsidiaries include the following:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Investment</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Years Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>March&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Investee</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Country</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Billions of Yen)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Sakhalin Energy Investment Company Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Associated company</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Bermuda (United Kingdom)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    IPM Eagle LLC</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Associated company</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    United Kingdom</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Quintiles Transnational Japan&nbsp;K.K.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Associated company</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    CornerStone Research&nbsp;&#38; Development, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Subsidiary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Valepar S.A.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Associated company</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Brazil</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>97</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Sakhalin Energy Investment Company Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Associated company</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Bermuda (United Kingdom)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>2003</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Sakhalin Energy Investment Company Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Associated company</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Bermuda (United Kingdom)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    NextCom K.K.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Associated company
    <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Mitsui E&#38;P Middle East B.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Subsidiary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Netherlands</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Nextcom K.K. became a subsidiary as a result of the business
    combination which was taken place in the year ended
    March&nbsp;31, 2005. See Note&nbsp;3, &#147;BUSINESS
    COMBINATIONS,&#148; to our consolidated financial statements.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, additions to property
leased to others and property and equipment included rolling
stock leased to railway companies mainly in the Unites States
and European countries of &#165;9&nbsp;billion and ocean vessels
chartered to global shipping companies of &#165;7&nbsp;billion.
For the year ended March&nbsp;31, 2004, additions to property
leased to others and property and equipment included aircraft
leased to global airline companies of &#165;10&nbsp;billion and
ocean vessels chartered to global shipping companies of
&#165;7&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except for acquisitions of available-for-sale securities,
capital expenditures are usually financed by external sources,
such as commercial banking institutions. For the year ended
March&nbsp;31, 2005, acquisitions of available-for-sale
securities included acquisitions of debt securities amounting to
&#165;39&nbsp;billion by Mitsui and &#165;30&nbsp;billion mainly
by domestic financial subsidiaries Bussan Credit
Co.,&nbsp;Ltd.(*) whose principal business consists of providing
financial services to our subsidiaries and associated companies
and Bussan Capital Corp. whose principal business consists of
securities investment and commercial finance to the parties
other than our subsidiaries and associated companies,
respectively. For the year ended March&nbsp;31, 2004,
acquisitions of available-for-sale securities included
acquisitions of debt securities amounting to
&#165;65&nbsp;billion by Bussan Credit Co., Ltd.(*)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On July&nbsp;29, 2004, we announced that in partnership with
International Power plc, a United Kingdom electric utility
company, we entered into a share purchase agreement with Edison
Mission Energy in the United States to acquire its international
power generation portfolio. Mitsui and International Power plc
jointly established IPM Eagle LLC in December 2004 when the
closing of the above-mentioned purchase agreement was completed.
Mitsui&#146;s equity share in IPM Eagle LLC is 30% for which
Mitsui paid &#165;62&nbsp;billion. As of March&nbsp;31, 2005,
IPM Eagle LLC owned nine power plants acquired from Edison
Mission Energy&#146;s international power generation portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With respect to Sakhalin&nbsp;II Project, for the year ended
March&nbsp;31, 2005, we made additional investments of
&#165;82&nbsp;billion to Sakhalin Energy Investment Company Ltd.
leaving outstanding investments
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 0pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>(*)</TD>
    <TD align="left">
    Bussan Credit&nbsp;Co., Ltd. changed its corporate name to
    Mitsui&nbsp;&#38; Co. Financial Services&nbsp;Ltd. in April 2005.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">17

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
of &#165;172&nbsp;billion as of March&nbsp;31, 2005. See
&#147;Item&nbsp;4.B. Business Overview&nbsp;&#151; Energy
Segment.&#148; The &#165;172&nbsp;billion investments have been
financed by external banking sources.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;14, 2004, we executed a sales and purchase agreement
with Woodside Energy Ltd. in Australia to acquire a 40% interest
in each of the WA-28-L production license and WA-271-P
exploration permit areas in offshore Western Australia. The
total consideration for the acquisition was
U.S.$464.5&nbsp;million. Woodside Energy Ltd., which owns the
remaining 60% interest of these license and permit and acts as
the operator, announced the development of the Enfield oil
project on March&nbsp;19, 2004 and development activities are
already under way. The total development expenditure of the
Enfield oil project prior to the expected commencement of oil
production in 2006 is budgeted at approximately
U.S.$1&nbsp;billion, of which we will incur in proportion to our
40% interest. For the year ended March&nbsp;31, 2005, we paid
for &#165;64&nbsp;billion for the acquisition of mineral rights
and other fixed assets in relation to this project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On September&nbsp;2, 2003, we acquired 15% ownership interest
(or 18.24% in terms of voting share as of March&nbsp;31, 2005)
of Valepar S.A. in Brazil for U.S.$830&nbsp;million and sold our
shares in Caemi Minera&#231;&#227;o&nbsp;e Metalurgia S.A. in
Brazil for U.S.$426&nbsp;million. See &#147;Item&nbsp;4.B.
Business Overview&nbsp;&#151; Metal Products&nbsp;&#38; Minerals
Segment&nbsp;&#151; Iron&nbsp;&#38; Steel Raw Materials
Unit.&#148; The capital required for the acquisition of Valepar
S.A. has been financed by external banking sources.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Divestitures including that of the matured debt securities
amounted to &#165;287&nbsp;billion, &#165;333&nbsp;billion and
&#165;324&nbsp;billion for the years ended March&nbsp;31, 2005,
2004 and 2003, respectively. A breakdown of our divestitures is
provided below.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales of investments in and collection of advances to associated
    companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sales of available-for-sale securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from maturities of available-for-sale securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>145</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from maturities of held-to-maturity debt securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sales of other investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sales of property leased to others and property
    and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>324</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With respect to the sales of available-for-sale securities for
the years ended March&nbsp;31, 2005, 2004 and 2003, the table
below provides a list of some of our significant investees in
which we sold our equity interests.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="57%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Years Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>March&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Investee</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Country</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Billions of Yen)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vodafone K.K.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Japan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    SKY Perfect Communications Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Japan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>2003</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sumitomo Mitsui Banking Corporation</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Japan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    JSAT Corporation</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Japan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Trust Holdings, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Japan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, cash inflows of
&#165;15&nbsp;billion was provided from the sale of shares in
Vodafone K.K., a Japanese cell-phone carrier, in response to a
tender offer. For the year ended March&nbsp;31, 2004, we
obtained U.S.$426&nbsp;million from the sale of our investment
in Caemi Minera&#231;&#227;o e Metalurgia S.A., an associated
company.
</DIV>

<P align="center" style="font-size: 10pt;">18

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, sales of property leased
to others and property and equipment included sales of aircraft
leased to global airline companies, ocean vessels chartered to
worldwide shipping companies and rolling stock leased to the
railway companies mainly in the United States amounted to
&#165;17&nbsp;billion. For the year ended March&nbsp;31, 2004,
sales of property leased to others and property and equipment
included sales of aircraft leased to global airline companies of
&#165;21&nbsp;billion and ocean vessels chartered to worldwide
shipping companies of &#165;6&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Furthermore, for the year ended March&nbsp;31, 2005, we sold
property and equipment and obtained proceeds of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#165;10.8&nbsp;billion from the sale of our office building in
    the United Kingdom;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#165;12.8&nbsp;billion from the sale of Mitsui&#146;s corporate
    residences and dormitories in Japan.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With the exception of the proceeds from maturities of
(i)&nbsp;available-for-sale securities and
(ii)&nbsp;held-to-maturity debt securities, proceeds were mainly
used for repayment of outstanding debts. The proceeds from
maturities of (i)&nbsp;available-for-sale securities and
(ii)&nbsp;held-to-maturity debt securities amounted to
&#165;60&nbsp;billion and &#165;125&nbsp;billion for the years
ended March&nbsp;31, 2005 and 2004 were used for general
corporate purposes. See &#147;Item&nbsp;5.B. Liquidity and
Capital Resources&#148; for further discussion.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='111'></A>
</DIV>

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    <TD>
    <B>Business Overview.</B></TD>
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Throughout this &#147;B. Business Overview,&#148; we describe
the domicile of our subsidiaries and associated companies, in
parentheses following names of those companies. For example,
Arcadia Petroleum Ltd. (United Kingdom) means that the
company&#146;s name is Arcadia Petroleum Ltd. and that it is
domiciled in the United Kingdom.
</DIV>

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    <I>Nature of Our Operations and Principal Activities</I></TD>
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We are a general trading company engaged in a range of global
business activities including general worldwide trading of
various commodities, arranging financing for customers and
suppliers in connection with our trading activities, organizing
and coordinating industrial projects, participating in financing
and investing arrangements, assisting in the procurement of raw
materials and equipment, providing new technologies and
processes for manufacturing, and coordinating transportation and
marketing of finished goods. Our trading activities include the
sale, distribution, purchase, marketing and supply of wide
variety of products including iron and steel, non-ferrous
metals, machinery, electronics, chemicals, energy-related
commodity and products, food products, textiles, general
merchandise and real estate. We also participate in the
development of natural resources such as oil, gas, iron and
steel raw materials. In addition, we engage in strategic
business investments whereby we invest our own capital and
provide management expertise in the development of joint
ventures and new enterprises in certain industries such as
information technology (&#147;IT&#148;) and biotechnology. We
also provide financial services whereby we assist our customers
in minimizing their risk exposures associated with their
businesses through the use of derivatives and other hedging
instruments.
</DIV>

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While we continue to diversify our activities, our core activity
remains the provision of transaction services. Specifically, we
act as an intermediary between buyers and sellers engaging in
import, export, offshore and domestic trading activities. For
example, we develop markets overseas for exporters and locate
raw materials or product sources that meet the needs of
importers. To facilitate smooth customer transactions, we draw
upon our various capabilities such as market information
analysis, credit supervision, financing and transportation
logistics.
</DIV>

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In addition to our Head Office, Mitsui had 19 branches and
offices located in Japan and 155 branches, offices and trading
subsidiaries located in other parts of the world as of
July&nbsp;1, 2005. They provide market information to each other
and cooperate in developing various business opportunities. Each
of our subsidiaries has its own marketing strategy based on its
particular business activities and customer relationships.
</DIV>

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    <I>Seasonality of Our Business Activities</I></TD>
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The trading of individual products such as heating oil, foods
and textiles is influenced by seasonal factors. For example,
heating oil is traded more frequently in winter than in summer
months. In addition, revenues of MITSUI FOODS CO, LTD., our food
wholesale subsidiary, increases from October to December and
decreases from January to March, reflecting seasonal demand in
Japan. However, the seasonality of any product either
individually or in the aggregate does not significantly affect
our consolidated financial position and results of operations.
</DIV>

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    <I>Dependence on Patents and Licenses and Industrial, Commercial
    or Financial Contracts</I></TD>
</TR>

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We have various patents and licenses as well as industrial,
commercial and financial contracts (including contracts with
customers or suppliers) to conduct our business. These patents,
licenses or contracts either individually or in the aggregate
are not material to our business operations or results of
operations.
</DIV>

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    <I>Marketing Channels</I></TD>
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Marketing channels vary by commodity, customer and region. We
have established subsidiaries and associated companies for
promotion and distribution in response to individual business
environment.
</DIV>

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See &#147;Products and Services and Principal Activities by
Reportable Operating Segments&#148; below. Special sales methods
including financial arrangement provided by our Machinery,
Electronics&nbsp;&#38; Information Segment and development of
SCM system conducted by various operating segments are also
described therein.
</DIV>

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    <I>Competitive Position</I></TD>
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Our main competitors are other Japanese general trading
companies. Moreover, all of our potential business partners
could also be competitors. To ensure our competitiveness, we
strive to continue to successfully meet the changing needs of
our customers worldwide. Analysis of competitive position by
operating segment is provided in &#147;Products and Services and
Principal Activities by Reportable Operating Segments&#148;
below and also see &#147;Item&nbsp;3.D. Risk Factors.&#148;
</DIV>

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    <I>Government Regulations</I></TD>
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Our business activities are subject to various governmental
regulations in the countries in which we operate. These
regulations generally relate to obtaining business and
investment approvals, and meeting the requirements of export
regulations including those related to national security
considerations, tariffs, antitrust, consumer and business
taxation, exchange controls and environmental laws and
regulations. Certain of our business transactions such as our
activities in the energy, mining, telecommunications, financing,
food, consumer products, machinery, chemicals, etc. are
regulated and subject to the relevant laws and regulations. See
&#147;Item&nbsp;3.D. Risk Factors.&#148;
</DIV>

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<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulations
with Respect to the Exploration and Production of Oil, Gas, and
Mineral Resources</I>
</DIV>

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We are involved in various projects involving exploration for
and production of crude oil, natural gas, iron raw material and
non-ferrous metals in many different countries in which we
participate as a minority stakeholder and non-operator. These
exploration and production activities are subject to a broad
range of local laws and regulations, which affect virtually all
aspects of these activities. Contractual arrangements in
connection with our oil, gas and mining activities, such as
leases, licenses and production agreements are generally entered
into with a government entity or a government owned company. See
&#147;Item&nbsp;4.B. Business Overview&nbsp;&#151; Metal
Products&nbsp;&#38; Minerals Segment and Energy Segment.&#148;
</DIV>

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To date, changes in governmental laws and regulations have not
had a material adverse effect on our oil, gas and mining
projects. Some of our oil, gas and mineral projects are located
in politically and economically stable regions, such as
Australia, where the legal systems are relatively developed.
However,
</DIV>

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we also hold interests in oil, gas and mineral resources in
regions where legal systems are less developed. These
investments may be adversely impacted by factors such as a lack
of comprehensive sets of laws and regulations, an unpredictable
judicial system based on inconsistent application and
interpretation of laws and regulations, and constantly changing
practices of regulatory and administrative bodies.
</DIV>

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<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governmental
Regulations with Respect to Infrastructure Projects</I>
</DIV>

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We are engaged in various infrastructure projects worldwide.
These include construction of power plants, oil and gas
pipelines, telecommunications and broadcasting systems, cargo
transportation systems, and public transit systems in developing
countries. In these projects, we are subject to extensive laws
and regulations with respect to technical specifications,
environmental protection, pricing, labor, taxation, foreign
exchange and other matters. We commonly enter into contractual
arrangements with government owned companies that are subject to
their own sets of laws and regulations. Changes in laws and
regulations after the commencement of projects may result in
lengthy delays which can negatively impact our cash flows and
hinder the repatriation of capital from such projects.
</DIV>

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<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governmental
Regulations with Respect to Human Health and Environment</I>
</DIV>

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We are subject to extensive laws and regulations worldwide with
respect to human health and the environment. Regulations
governing food products for human consumption are complex,
detailed and stringent. For instance, in Japan, our food related
operations are under the supervision of the Ministry of
Agriculture, Forestry and Fisheries, and the Ministry of Health,
Labor and Welfare. We are subject to the Food Safety Basic Law,
which codifies the safety standard for food products. For
example, it determines the threshold amount at which harmful
substances such as pesticide residues are considered to be
unacceptable. We must expend significant resources to comply
with these regulations not only in Japan but in all
jurisdictions where we engage in food-related operations.
</DIV>

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We are also subject to complex environmental laws and
regulations worldwide. For example, in Japan, when trading,
storing or transporting chemical products or disposing of wastes
and by-products from our industrial plants, we are required to
notify the local regulators and/or obtain approvals or licenses.
Any violation of laws and regulations may not only result in
severe fines and penalties, but the regulators may require us to
curtail or even cease operations, install expensive pollution
control systems, and comply with enhanced notification
obligations.
</DIV>

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    <I>Products and Services and Principal Activities by Reportable
    Operating Segments</I></TD>
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    <TD>
    <I>The Establishment of the Five Major Operating Groups
    Structure for the Year Ended March&nbsp;31, 2003</I></TD>
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We had undertaken a management reorganization in our Head Office
that included introduction of the Five Major Operating Groups
Structure in April 2002. The five operating groups, which were
organized based on our &#147;products and services,&#148;
planned overall and worldwide strategies for their products and
services and conducted their worldwide operations. A discrete
set of financial information was available for each of the five
operating groups and each of the five operating results were
regularly reviewed by the Chief Executive Officer. As such, each
of the five operating group was determined to be an
&#147;operating segment&#148; for financial reporting purposes
for the year ended March&nbsp;31, 2003. The five operating
groups also collaborated with branches and offices that are
located in Japan and overseas countries and with overseas
trading subsidiaries in planning and executing their strategies
for products or regions.
</DIV>

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For the year ended March&nbsp;31, 2003, the branches, offices
and overseas trading subsidiaries were separate operating units,
which were delegated the responsibilities of managing the
businesses of their regions as the centers of each particular
regional strategy and operate diversified businesses together
with their subsidiaries and associated companies in
collaboration with the five operating groups. Therefore, a
discrete set of financial information was also available for
each of the regional operating units without any overlap with
the financial information of each of the five products and
services based operating groups. The operating results of each
of our regional operating units were regularly reviewed by the
Chief
</DIV>

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Executive Officer independent of the operating results of each
of the five products and services based operating groups, and
accordingly, each regional operating unit was also determined to
be an &#147;operating segment&#148; for financial reporting
purposes. Thus, for the year ended March&nbsp;31, 2003, our
operating segments were comprised of products and services
focused operating segments and region-focused operating
segments. Our reportable operating segments as of March&nbsp;31,
2003 were comprised of those listed below:
</DIV>

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    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our five products and services focused operating segments were
    Metal Products&nbsp;&#38; Minerals; Machinery,
    Electronics&nbsp;&#38; Information; Chemical; Energy; and
    Consumer Products&nbsp;&#38; Services;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our four region-focused operating segments were Domestic
    Branches and Offices; Americas; Europe; and Other Overseas Areas.</TD>
</TR>

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Each of the five products and services based operating groups in
our Head Office have business units. The business units, which
are further divided into specialized divisions, provide more
focused products and services.
</DIV>

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    <TD>
    <I>Abolishment of the Five Major Operating Groups Structure for
    the Year Ended March&nbsp;31, 2004</I></TD>
</TR>

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We abolished the Five Major Operating Groups Structure on
April&nbsp;1, 2003, to further increase operational efficiency
with a system in which the Chief Operating Officer of each of
the 18 business units directly reports the unit&#146;s operating
results to the Chief Executive Officer based on the unit&#146;s
discrete set of financial information. Therefore, for the year
ended March&nbsp;31, 2004, each of the 18 business units was
determined to be an &#147;operating segment&#148; for financial
reporting purposes. Despite this reorganization, there was no
change in our product and service focused business activities
for the year ended March&nbsp;31, 2004. Accordingly, as a result
of the aggregation of our operating segments (i.e., the 18
business units) based on the nature of each of the 18 business
units&#146; products, services and other criteria, our products
and services based reportable segments consisted of the same
five reportable segments as for the year ended March&nbsp;31,
2003.
</DIV>

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There was no reorganization with respect to our four
region-focused reportable operating segments for the year ended
March&nbsp;31, 2004. Each of our region-focused reportable
operating segments still consisted of region-specific branches,
offices and overseas trading subsidiaries, that remain
independent from the five product and service focused reportable
operating segments in the Head Office. As such, despite the
restructuring, for the year ended March&nbsp;31, 2004, we had
the same nine reportable operating segments which consisted of
five products and services focused reportable operating segments
and four region-focused reportable operating segments as was the
case for the year ended March&nbsp;31, 2003.
</DIV>

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    <TD>
    <I>Reorganization of Business Units in the Head Office and
    Change in the Reportable Segments for the Year Ended
    March&nbsp;31, 2005</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, with the aim of improving
operating efficiency and further facilitating our exploration of
global business opportunities, the business units in the Head
Office were reorganized as below:
</DIV>

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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Domestic Branches and Offices Segment was abolished. As a
    result, the operating results previously reported by the
    Domestic Branches and Offices Segment are now reviewed by each
    of Chief Operating Officers of the related business units in the
    Head Office based on the categories of their products and
    services.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Reorganizations of the 18 business units were implemented
    whereby we integrated business units within the same five
    products and services focused reportable operating segments. For
    example, we combined the former Iron&nbsp;&#38; Steel Raw
    Materials Unit and the former Non-Ferrous Metals Unit into the
    Iron&nbsp;&#38; Steel Raw Materials and Non-Ferrous Metals
    Business Unit. Additionally, media related businesses such as
    broadcasting and content businesses previously included in the
    Machinery, Electronics&nbsp;&#38; Information Segment were
    transferred to the Consumer Products&nbsp;&#38; Services
    Segment. Furthermore, we introduced two new business units whose
    business activities</TD>
</TR>

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    <TD align="left">
    were in most cases previously reported in &#147;All Other&#148;
    as businesses handled outside the five products and services
    based reportable segments. The first is the Transportation
    Logistics Business Unit which engages in logistics services. The
    other is the Financial Markets Business Unit which engages in
    financial services, including businesses previously handled in
    the Metal Products&nbsp;&#38; Minerals Segment, such as
    commodity trading. As a result, the Transportation Logistics
    Business Unit and the Financial Markets Business Unit have
    comprised a new reportable segment, the Logistics&nbsp;&#38;
    Financial Markets Segment.</TD>
</TR>

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Thus, for the year ended March&nbsp;31, 2005, we had nine
reportable operating segments which consisted of six products
and services focused reportable operating segments and three
region-focused reportable operating segments listed as below:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our six products and services focused operating segments were:</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Metal
Products&nbsp;&#38; Minerals;
</DIV>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery,
Electronics&nbsp;&#38; Information;
</DIV>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chemical;
</DIV>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Energy;
</DIV>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer
Products&nbsp;&#38; Services; and
</DIV>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Logistics&nbsp;&#38;
Financial Markets.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our three region-focused operating segments were:</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Americas;
</DIV>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe; and
</DIV>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Overseas Areas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross Profit, Operating Income (Loss) and Net Income (Loss) by
reportable operating segment for the years ended March&nbsp;31,
2005, 2004 and 2003 were as
follows<SUP style="font-size: 85%; vertical-align: text-top">(1)(2)(3)(4)(5)</SUP>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Gross Profit:</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>In Billions, Except Percentages</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Metal Products&nbsp;&#38; Minerals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16.7</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>77.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>71.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery, Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>87.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consumer Products&nbsp;&#38; Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>152.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>135.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Logistics&nbsp;&#38; Financial Markets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Americas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Europe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Overseas Areas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments and Eliminations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>725.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>613.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>569.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">23

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Operating Income (Loss)*:</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>In Billions, Except Percentages</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Metal Products&nbsp;&#38; Minerals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>28.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery, Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consumer Products&nbsp;&#38; Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Logistics&nbsp;&#38; Financial Markets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Americas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Europe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Overseas Areas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments and Eliminations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(36.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(27.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(32.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(31.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>198.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>126.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>101.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Operating income (loss) reflects our (a)&nbsp;Gross Profit,
    (b)&nbsp;Selling, general and administrative expenses,
    (c)&nbsp;Provision for doubtful receivables and
    (d)&nbsp;Government grant for transfer of substitutional portion
    of EPF, as presented in the Statements of Consolidated Income.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Net Income (Loss):</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="47%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>In Billions, Except Percentages</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Metal Products&nbsp;&#38; Minerals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>47.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery, Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(29.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5.7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>74.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consumer Products&nbsp;&#38; Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Logistics&nbsp;&#38; Financial Markets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Americas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Europe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Overseas Areas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments and Eliminations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(41.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34.4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(31.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(100.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">24

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Notes:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    The figures of &#147;Consolidated Total&#148; for the years
    ended March&nbsp;31, 2004 and 2003 have been reclassified to
    conform to the change in current year presentation for
    discontinued operations in accordance with Statement of
    Financial Accounting Standards (&#147;SFAS&#148;) No.&nbsp;144,
    &#147;Accounting for the Impairment or Disposal of Long-Lived
    Assets.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    &#147;All Other&#148; includes business activities which
    primarily provide services, such as development and sales of
    systems, financing services, and operations services to external
    customers, and/or to us and associated companies.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Net loss of &#147;Adjustments and Eliminations&#148; includes
    income and expense items that are not allocated to specific
    reportable operating segments, such as certain expenses of the
    corporate departments, and eliminations of intersegment
    transactions.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Transfers between operating segments are made at cost plus a
    markup.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    Starting from the year ended March&nbsp;31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as interest expense, net of
    interest income. In relation to this change, the figures of
    gross profit and operating income (loss) for the years ended
    March&nbsp;31, 2004 and 2003 have been restated to conform to
    the current year presentation.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">25

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Metal Products&nbsp;&#38; Minerals Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Metal Products&nbsp;&#38; Minerals Segment is engaged in the
overseas development and raw material trading of iron, steel and
non-ferrous metals, and in the domestic and global
manufacturing, sale and trading of iron, steel and non-ferrous
metal products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net income for this segment for the year ended
March&nbsp;31, 2005 were &#165;121.4&nbsp;billion or 16.7% and
&#165;47.0&nbsp;billion or 38.8% of our consolidated total,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment is composed of the Iron&nbsp;&#38; Steel Products
Business Unit and the Iron&nbsp;&#38; Steel Raw Materials and
Non-Ferrous Metals Business Unit, and has 45 subsidiaries
including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    in the Iron&nbsp;&#38; Steel Products Business Unit, Mitsui
    Bussan Construction Materials Co., Ltd. (Japan), Tsuda
    Corporation (Japan), Regency Steel Asia Pte Ltd.
    (Singapore);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    in the Iron&nbsp;&#38; Steel Raw Materials and Non-Ferrous
    Metals Business Unit, Mitsui Bussan Raw Materials Development
    Corp. (Japan), Mitsui Iron Ore Development Pty. Ltd.
    (Australia), Mitsui Itochu Iron Pty. Ltd. (Australia), Sesa Goa
    Limited (India), Mitsui Coal Holdings Pty. Ltd. (Australia),
    Japan Collahuasi Resources B.V. (Netherlands) and Mitalco Inc.
    (the Unites States).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment has 48 associated companies including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    in the Iron&nbsp;&#38; Steel Products Business Unit, Nippon
    Steel Trading Co., Ltd. (Japan), Shanghai Bao-Mit Steel
    Distribution Co., Ltd. (China) and Thai Tinplate Manufacturing
    Co., Ltd. (Thailand);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    in the Iron&nbsp;&#38; Steel Raw Materials and Non-Ferrous
    Metals Business Unit, Valepar S.A. (Brazil) and BHP Mitsui Coal
    Pty., Ltd. (Australia).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An overview of each business unit within the segment is provided
as follows:
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Iron&nbsp;&#38; Steel Products Business Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Iron and steel products are used in a wide range of industries
including the automobile, electronics, transportation,
construction and energy sectors. We have served our customers in
these industries worldwide and provided support services for
Japanese steel mills. Through the collaboration with 24
subsidiaries and 26 associated companies owned by this business
unit, the Iron&nbsp;&#38; Steel Products Business Unit conducts
manufacturing, trading, marketing, processing and distribution
of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    steel sheet for automobile and electric appliances, steel plates
    for shipbuilding and heavy electric machinery, galvanized steel
    products and tin material and products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    steel products for oil and gas projects including oil well tube
    and line pipe;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    wire rod, specialty steel and bearing;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    steel bars and other steel construction materials;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    semi-finished items including steel slabs to be processed into
    steel plates and steel billets to be processed into steel bars
    and wire rods.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To extend the above-mentioned activities, this business unit has
also made investments in subsidiaries and associated companies
including coil centers as bases for processing and distribution,
electrical furnace steel makers as manufacturing bases and steel
product trading companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the steel products business, both manufacturers and users are
large-scale and sophisticated organizations. As simple
intermediation between these entities no longer serves their
needs, the business unit has developed its services based on
supply chain management (&#147;SCM&#148;) by making use of IT and
</DIV>

<P align="center" style="font-size: 10pt;">26

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
logistics expertise. Through working closely with manufacturers
and users, we optimize distribution and inventory control, thus
sharing with customers the benefit of associated cost
reductions. For example:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We have recently established steel service centers, galvanized
    steel plants and tin-plating facilities at our subsidiaries
    and/or joint ventures with Japanese and overseas business
    partners in order to meet the rising demand from manufacturers
    of automobiles, electric appliances and heavy electric machinery
    that have transplanted their production centers to the United
    States, Southeast Asia and China. In 2002, we participated in
    Shanghai Bao-Mit Steel Distribution Co., Ltd. (China), a joint
    venture with Shanghai Baosteel Group Corporation, a Chinese iron
    and steel manufacturing company, in order to build a network of
    steel products service centers in China. Through this associated
    company, we have been promoting the integration of service
    centers within China in order to improve operational efficiency,
    and we are actively pursuing additional investments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We frequently draw upon the unit&#146;s logistics expertise in
    delivering a wide range materials and products in large volume
    under optimized schedule along with expertise in project
    financing. We also take advantage of the business relationships
    and marketing channels of other business units in the fields of
    energy, industrial plants, shipping and machinery. This enabled
    us to be involved in various industrial projects including the
    construction of oil and gas pipeline projects such as the
    West-East Natural Gas Pipeline project in China and the steel
    structure for the Bangkok Second International Airport Terminal.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2004, we acquired Regency
Steel Asia Pte Ltd. (Singapore), a wholesaler of steel products.
This acquisition was made with the aim to expand global
wholesale operations in the rapidly growing steel products
markets in Asia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As mentioned above, the businesses of the Iron&nbsp;&#38; Steel
Products Business Unit are highly sensitive to worldwide demand
of steel products, especially in Asia including China. At the
same time, this business unit concentrates on achieving low-cost
operations in domestic market which is already mature through
spin-off and other business reorganizations. In addition, we
have been strengthening our ties with domestic electrical
furnace steel makers and wholesalers through collaboration in
sales of products, procurement of raw materials and equity
investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our major competitors in Japan and overseas are other Japanese
trading companies. In their efforts to achieve low-cost
operations through economy of scale, some of our competitors
have consolidated and established joint ventures, such as
Marubeni-Itochu Steel Inc. and Metal One Corporation. In order
to remain competitive as well as pursue our strategic goals, we
utilize the Iron&nbsp;&#38; Steel Products Business Promotion
Division which specializes in making investments in
steel-related enterprises in response to the need for joint
investment amongst steel users and steel manufacturers in Japan
and overseas and with the aim of participating in the
development of new products.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Iron&nbsp;&#38; Steel Raw Materials and Non-Ferrous Metals
    Business Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the former Iron&nbsp;&#38; Steel
Raw Materials Unit and the former Non-Ferrous Metals Unit were
combined to begin operations as the Iron&nbsp;&#38; Steel Raw
Materials and Non-Ferrous Metals Business Unit. This combination
has allowed us to pursue our strategic goals to both integrate
and expand our overseas acquisition network of iron and steel
raw materials and non-ferrous mineral interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Through collaboration with the 21 subsidiaries and 22 associated
companies owned by this business unit, the Iron&nbsp;&#38; Steel
Raw Materials and Non-Ferrous Metals Business Unit is engaged in
various business activities including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    trading, investment, logistics management and transportation
    services related to iron and steel raw materials, such as iron
    ore, coal, steel scrap, ferro-alloys and other minerals;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    trading, investment, transportation and processing of
    non-ferrous metal ores and ingots such as: copper, lead, zinc,
    tin, nickel, aluminum, magnesium, cobalt, titanium, other
    non-ferrous metals; sales and marketing of semi-fabricated
    non-ferrous products such as construction materials; and agent
    activities in the nuclear fuel import business.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">27

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In iron and steel raw materials field, this business unit acts
as an agent for various major Japanese steel makers for their
procurement of iron ore, coal, steel scrap and ferro-alloys. For
example, we provide Japanese steel makers with various services
in their negotiation and execution of iron and steel raw
material procurement contracts as well as information related to
worldwide suppliers of iron and steel raw materials obtained
through our overseas network. In response to the global trend of
eliminating intermediaries with respect to trading activities,
we are expanding and promoting our investment and participation
in mining projects in alliances with mining companies worldwide.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We participate in joint ventures with various iron ore and coal
mining companies located in Australia, Brazil and India in order
to secure stable supplies of those materials. For example:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In August 2002, we completed the construction of the West
    Angelas iron ore mine in Australia (as a part of the Robe River
    Joint Venture with Rio Tinto), which began shipments of iron ore
    to customers worldwide. In Australia, we also have a
    participating interest in Mount Newman Joint Venture and other
    joint ventures with BHP Billiton.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In September 2003, we purchased a 15% ownership interest (or
    18.24% in terms of voting shares as of March&nbsp;31, 2005), of
    Valepar S.A. (Brazil), the controlling shareholder of Companhia
    Vale do Rio Doce (&#147;CVRD&#148;) in Brazil. CVRD is a mining
    enterprise with operations that include mining of iron ore and
    other raw non-ferrous metals.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We own a 51% interest in Sesa Goa Limited (India), which
    produces iron ore and coke in India.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In April 2002, we entered into a strategic alliance with Anglo
    American Plc to develop the Moura and German Creek coalmines in
    Australia, which provides us with a solid foundation for future
    growth in the coal business. We also have participating
    interests in other coal mining joint ventures including South
    Walker Creek Joint Venture and Bengalla Joint Venture with BHP
    Billiton and Rio Tinto, respectively.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are also engaged in steel scrap stock inventory operations in
the West Coast of the United States. Reflecting the demand
growth, especially from Asia, this steel scrap export terminal
has been getting increasingly important, which is owned and
operated by Pacific Coast Recycling, LLC. Pacific Coast
Recycling, LLC is wholly owned by our subsidiary Raw Materials
Development Co. (the United States).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The revenues from mineral producing activities accounts for a
significant portion of this business unit. The table below sets
forth the break down of revenues of the Iron&nbsp;&#38; Steel
Raw Materials and Non-Ferrous Metals Business Unit.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Revenues</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenues from Sales</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Revenues from Sales of Products</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Services</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Commissions and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenues from Mineral</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenues from Sales of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Trading Margins on</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Years Ended March&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Producing Activities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Products(*)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Intermediary Services</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total Revenues</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>88.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>134.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>240.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>136.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>203.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>164.0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(*)&nbsp;</TD>
    <TD align="left">
    Revenues from sales of other products mainly consist of sales of
    scrap metals and non-ferrous metals such as copper and aluminum.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have entered into new joint venture projects to meet the
increasing demand for iron and steel raw materials in Japan and
abroad. For example, in January 2003, we established POSCO
Terminal Co., Ltd., a joint venture with POSCO (a steel maker in
Republic of Korea), whereby providing logistics services related
to transactions involving iron and steel raw materials for our
various customers in Asia. We are also enhancing our involvement
in the recycling business and the greenhouse gas emission
reduction trading business.
</DIV>

<P align="center" style="font-size: 10pt;">28

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following tables provide information on our investments in
iron ore and coal resource projects. In September 2003, we sold
our interest in Caemi Minera&#231;&#227;o e Metalurgia S.A.,
which had been our associated company until the year ended
March&nbsp;31, 2003. Accordingly, in the table below, we did not
include mining information attributable to Caemi
Minera&#231;&#227;o e Metalurgia S.A. For information on our
production and reserve amounts in connection with our mining
activities, See &#147;Item&nbsp;4.D. Property, Plants and
Equipment&nbsp;&#151; Mining Activities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>IRON ORE</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Other Major Participants</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2" align="left" nowrap><B>Joint Venture or</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mitsui&#146;s Subsidiary or</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Name of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>and Their Percentages of</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2" align="left" nowrap><B>Investee<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Associated Company<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mines<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ownership</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Ownership</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Robe River Iron</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Associates</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Iron Ore</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pannawonica</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>33.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Rio Tinto</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    53.00%</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 8pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;Development Pty. Ltd.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    West Angelas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Nippon Steel</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    10.50%</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 8pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sumitomo Metal Industries</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    3.50%</TD>
</TR>

<TR>
    <TD colspan="16">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Mount Newman Joint</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Venture</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Itochu Iron Pty. Ltd.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mount<BR>&nbsp;Whaleback</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region,<BR>
    Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>7.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    BHP Billiton<BR>
    Itochu</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    85.00%<BR>
    8.00%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Yandi Joint Venture</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Iron Ore Development Pty. Ltd.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Marillana<BR>&nbsp;Creek</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region,<BR>
    Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>7.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    BHP Billiton<BR>
    Itochu</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    85.00%<BR>
    8.00%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Mount Goldsworthy</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Joint Venture</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Iron Ore Development Pty. Ltd.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    North Area<BR>&nbsp;(Yarrie)<BR>&nbsp;(Nimingarra)<BR>
    Area&nbsp;C</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region,<BR>
    Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>7.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    BHP Billiton<BR>
    Itochu</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    85.00%<BR>
    8.00%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Sesa Goa Limited</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sesa Goa Limited</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Codli<BR>
    Sonshi</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Goa, India</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>51.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    (publicly listed company)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 8pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chitrandurga</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 8pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Hopset</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Karnataka, India</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>COAL</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Other Major Participants</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2" align="left" nowrap><B>Joint Venture or</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mitsui&#146;s Subsidiary or</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Name of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>and Their Percentages of</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2" align="left" nowrap><B>Investee<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Associated Company<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mines<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ownership</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Ownership</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>BHP Mitsui Coal</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Pty. Ltd.&nbsp;</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    BHP Mitsui Coal Pty.<BR>
    Ltd.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Riverside<BR>
    South Walker &nbsp;Creek</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>20.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    BHP Billiton</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    80.00%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Bengalla Joint Venture</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Coal Holdings<BR>
    Pty. Ltd.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Bengalla</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    New South Wales, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Rio Tinto<BR>
    Wesfarmers<BR>
    Taiwan Power</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    40.00%<BR>
    40.00%<BR>
    10.00%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Kestrel Joint Venture</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Coal Holdings<BR>
    Pty. Ltd.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Kestrel</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>20.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Rio Tinto</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    80.00%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Moura Joint Venture</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Coal Holdings<BR>
    Pty. Ltd.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Moura</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>49.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Anglo American</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    51.00%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>German Creek Joint</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Venture</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Coal Holdings<BR>
    Pty. Ltd.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    German Creek</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>30.00%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Anglo American</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    70.00%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    The term &#147;Investee&#148; refers only to Sesa Goa Limited
    and BHP Mitsui Coal Pty. Ltd.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    &#147;Mitsui&#146;s Subsidiary or Associated Company&#148;
    indicates names of the companies through which we own our
    interests in the joint ventures or the investee. Sesa Goa
    Limited is a Mitsui&#146;s subsidiary in which it directly owns
    a 51% voting share. BHP Mitsui Coal Pty. Ltd. is a Mitsui&#146;s
    associated company in which it directly owns a 20% voting share.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">29

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<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    &#147;Name of Mines&#148; indicates the names of principal
    producing mines.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    In addition to the above-mentioned coal mining projects, through
    Mitsui Coal Holdings Pty. Ltd., we have small interests in two
    projects in Australia mainly promoted by Anglo American, namely,
    Moranbah North Joint Venture in Queensland and Drayton Joint
    Venture in New South Wales. Our percentage of ownership and
    annual production capacity of Moranbah North Joint Venture and
    Drayton Joint Venture are 4.75%, 3.9&nbsp;million tons and
    3.83%, 5.1&nbsp;million tons, respectively.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
In non-ferrous metals field, we have been engaged in trading of
copper, nickel, cobalt, aluminum ingots and other non-ferrous
metal materials. We are also expanding and promoting our
investments and participation in various non-ferrous metals
mining and smelting projects to secure stable sources of supply.
For example:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We participate in Compania Minera Dona Ines de Collahuasi SCM
    (Chile), a copper mine development company, in which we hold a
    7.43% interest. The project, which commenced its commercial
    production in 1998, has been developed jointly with Anglo
    American Plc and Falconbridge Ltd. and has annual production
    capacity of about 500,000 tons of copper per annum. In addition,
    we have a 1.25% interest in Minera Los Pelambres in Chile whose
    production capacity is about 360,000 tons of copper per annum.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We own an undivided interest in both Eastalco and Intalco,
    aluminum smelting companies in the United States, providing
    access to 147,000 tons of aluminum ingots annually. Combining
    the metal taken from these companies with other sources, we have
    the capability to supply 220,000 tons of aluminum ingots
    annually. Those primary aluminum ingots are sold to the
    customers in Japan and the United States.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We participated in a nickel-cobalt mining and refining project
    at Rio Tuba area in the Republic of Philippines which has been
    developed jointly with Sumitomo Metal Mining Co., Ltd., Sojitz
    Corporation (formerly Nissho Iwai Corporation) and a local
    partner. This project is expected to produce nickel-cobalt mixed
    sulfide through a high-pressure acid leaching process, an
    advanced processing technology for nickel production. In
    addition, in April 2005, we, jointly with Sumitomo Metal Mining
    Co., Ltd., concluded an agreement for participation in the Goro
    Nickel Development Project in New Caledonia, which had been
    promoted by Inco Limited.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">30

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Machinery, Electronics&nbsp;&#38; Information
    Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Machinery, Electronics&nbsp;&#38; Information Segment
consists of three business units as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Power, Transportation&nbsp;&#38; Plant Projects Business Unit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Machinery Business Unit;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Information, Electronics and Telecommunication Business Unit.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net income for this segment for the year ended
March&nbsp;31, 2005 were &#165;137.3&nbsp;billion or 18.9% and
&#165;26.4&nbsp;billion or 21.8% of our consolidated total,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the consumer-oriented and
media-related businesses which had been included in the former
Information Business Unit were transferred to a newly
established Consumer Service Business Unit in the Consumer
Products&nbsp;&#38; Services Segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Machinery, Electronics&nbsp;&#38; Information Segment are
engaged in, among other things, the following businesses:
manufacturing, global marketing and sales, financing, leasing
and services involving electric machinery, industrial plants and
systems, transportation equipment and systems, construction
equipment, telecommunication systems, motor vehicles, marine and
aerospace systems. This segment is also involved in IT and
electronics related solutions business, marketing and sales of
IT and electronics related products, components and materials,
software and various services. Services provided by each of our
business units are sold primarily to industrial customers,
including original equipment manufacturers, industrial end
users, utility companies, construction companies and
distributors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
While traditional trading and sales activities continue to be
important to the Machinery, Electronics&nbsp;&#38; Information
Segment, the business units in this segment are also
diversifying their business operations in response to changing
global market demands. In infrastructure projects, for example,
not only are we engaged in the sale of equipment used for such
projects, but we are now beginning to participate in potential
projects from the early stages whereby we:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    assess the commercial and technical feasibility of the projects;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    design projects utilizing our financial, legal and industrial
    skills;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    select and invite capable partners;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    arrange and/or assist the syndication of financing.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Moreover, we have also been increasing our equity investments in
some projects, especially in power generation projects in the
Power, Transportation&nbsp;&#38; Plant Projects Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With respect to our IT business, rapid innovations in technology
and corresponding changes in the technology market have resulted
in new business opportunities. As such, we are concentrating on
value-added services to our customers and satisfying emerging
market needs in the business domains such as network integration
and systems integration services; and mobile communication
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Machinery, Electronics&nbsp;&#38; Information Segment holds
90 subsidiaries such as Mitsui Bussan Plant&nbsp;&#38; Project
Corp. (Japan), Mitsui Rail Capital Holdings, Inc. (the United
States) in the Power, Transportation&nbsp;&#38; Plant Projects
Business Unit; Lepta Shipping Co., Ltd. (Liberia), Toyota Chile
S.A. (Chile), Mitsui Automotive Europe B.V. (Netherlands), Tombo
Aviation Inc. (the United States) in the Machinery Business
Unit: and Telepark Corp. (Japan), NextCom K.K. (Japan), TOYO
Officemation, Inc. (Japan) and Xion Electronics, Inc. (Japan) in
the Information, Electronics and Telecommunication Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally it has 77 associated companies such as
P.T.&nbsp;Paiton Energy (Indonesia), Shin Nippon Air
Technologies Co., Ltd. (Japan) in the Power,
Transportation&nbsp;&#38; Plant Projects Business Unit; Komatsu
Australia Pty. Ltd. (Australia), Kioritz Corporation (Japan) and
Toyota Canada Inc. (Canada) in the Machinery Business Unit; and
Nihon Unisys, Ltd. (Japan), Moshi Moshi Hotline, Inc. (Japan) in
the Information, Electronics and Telecommunication Business Unit.
</DIV>

<P align="center" style="font-size: 10pt;">31

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Power, Transportation&nbsp;&#38; Plant Projects Business
    Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the former Telecommunications,
Transportation&nbsp;&#38; Industrial Systems Business Unit was
abolished and the transportation businesses which had been
included in the unit were transferred to the Power,
Transportation&nbsp;&#38; Plant Projects Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The business activities of the Power, Transportation&nbsp;&#38;
Plant Projects Business Unit together with 30 subsidiaries and
24 associated companies cover a wide range of involvement in
project implementation and related services, including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    energy related projects such as oil and gas development
    projects, oil refineries, LNG manufacturing facilities, and
    pipelines;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    electric power projects such as power plants, power transmission
    and substation facilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    water supply projects such as desalination plant, wastewater
    processing facilities and water supply and sewerage facilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    transportation related business such as railway rolling stock
    and railway facilities and systems;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    social infrastructure projects such as construction of airport,
    port facilities, road and other public facilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    basic industry projects such as iron, non-ferrous metals,
    chemical plants; and.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    environment-related projects such as waste disposal and
    recycling plants.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are undertaking a number of projects that may stimulate
economic growth mainly in developing countries and countries
rich in natural resources. We focus on the needs of those
countries and apply our project engineering capabilities and
expert knowledge in financing, logistics, taxation and legal
affairs, so as to devise optimal solutions that address complex
and multifaceted issues that those nations are facing. This
business unit often arranges financing for projects by
international financial institutions and export credit agencies
worldwide. Moreover, it sometimes provides loans or issues
guarantees on behalf of the project owners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following are examples of the types of projects and our
activities where this unit renders services mainly as an agent
in securing the contract, arranging financing and executing the
contract:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Commonwealth of Independent States (&#147;CIS&#148;) and
    the Middle East, we were engaged in the structuring and the
    arrangement of debt and equity project financing for various
    natural gas energy projects. Together with export credit
    agencies and commercial banks, we also extended loans to project
    participants.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We acted as the Engineering, Procurement and Construction
    (&#147;EPC&#148;) contractor for various oil and gas production
    projects and for the construction of infrastructure facilities
    including power plants and petrochemical plants whereby we
    procured manufacturing equipment from Japanese and overseas
    subcontractors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For gas pipeline projects such as Cabiunas and Malhas which were
    promoted by Petrobras in Brazil, we were engaged in the
    structuring and the arrangement of debt, equity and lease
    financing. We also extended loans to the project participants.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In a lead-free gasoline production project in Indonesia known as
    the Blue Sky Project, we were engaged in the structuring and the
    arrangement of debt and equity project financings. We also
    extended loans to the project participants.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    As the primary EPC contractor, we are constructing the 790
    megawatt Council Bluffs Energy Center Unit 4 coal fired power
    plant in Iowa, the United States, whereby we have subcontracted
    to Japanese and the United States subcontractors.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">32

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the Taiwan High Speed Rail project, we are a commercial
    leader of a consortium consisting of Japanese railway car
    manufacturers and general trading companies, which supplied
    rolling stock and transportation facilities.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Power, Transportation&nbsp;&#38; Plant Projects Business
Unit is increasing activities which facilitate the
implementation of projects. These activities go beyond the
conventional EPC approach of acting as an intermediary between
project owners and sub-contractors on a back-to-back base.
Instead, these activities often involve arrangement of
sophisticated financing schemes, risk sharing through equity
participation and operation and maintenance of plant and
facilities after their construction completion. Based on this
concept, the unit is promoting investments in certain related
infrastructure projects including the acquisition of independent
power producer (&#147;IPP&#148;) overseas. For example:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In December 2004, we, together with International Power plc,
    completed the acquisition of the international power generation
    portfolio (nine power plants in total 4,514 megawatt as of
    March&nbsp;2005) of MEC International BV, a Dutch holding
    company owned by Edison Mission Energy, and in July 2005
    acquired additionally the Saltend 1,200 megawatt combined cycle
    power plant from Calpine Corporation. We established IPM Eagle
    LLP (United Kingdom) jointly with International Power plc to
    hold and manage these power generation businesses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We have formed a joint venture with Calpine Corporation to
    construct, own and operate the 1,005&nbsp;megawatt combined
    cycle power plants called Greenfield Energy Center which has
    secured a 20&nbsp;year Clean Energy Supply contract with Ontario
    Power Authority of Ontario, Canada;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We own a 36.324% interest in P.T.&nbsp;Paiton Energy
    (Indonesia), an Indonesian power producer, which owns a 1,230
    megawatt coal fired power plant in East Java, Indonesia.
    P.T.&nbsp;Paiton Energy sells electricity to
    P.T.&nbsp;Perusahaan Listrik Negara, an electric utility company
    owned by the Indonesian government, under a power purchase
    agreement. In December 2002, an amendment to the original power
    purchase agreement became effective, thereby resolving a series
    of disputes between P.T.&nbsp;Paiton Energy and
    P.T.&nbsp;Perusahaan Listrik Negara, which were caused in large
    part by the regional financial crisis in Asia, particularly, in
    Indonesia in 1997.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Reflecting these developments, the combined power generation
capacities for Mitsui&#146;s equity share in various power
projects as of the end of August 2005 in operation and under
construction were 2,515&nbsp;megawatt and 801 megawatt,
respectively. As well as the above-mentioned projects, these
power generation capacities included those of Umm Al Nar in the
United Arab Emirates, Loy Yang A and Tarong North Power Station
in Australia and Valladolid&nbsp;III in Mexico.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In other types of projects, in January 2005, Mitsui acquired a
25% interest in the LNG terminal in Altamira, Mexico, which had
been owned by Royal Dutch Shell (75%) and Total (25%). The
facility is expected to start operations in late 2006, supplying
up to 5&nbsp;billion cubic meters per annum of natural gas for
15&nbsp;years under a contract with Comisi&#243;n Federal de
Electricidad, a state power company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Environmental issues are world concerns. Our initiatives in this
field include creating and implementing recycling systems for
automobiles, electric appliances and plastic bottles made from
polyethylene terephthalate. In our overseas markets, we are
engaged in the construction of waste processing facilities and
other environment-related projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our major competitors include other Japanese general trading
companies, international financial institutions, global
engineering companies and construction companies.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Machinery Business Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, industrial system businesses
formerly included in the former Telecommunications,
Transportation&nbsp;&#38; Industrial Systems Business Unit were
transferred to the Machinery Business Unit.
</DIV>

<P align="center" style="font-size: 10pt;">33

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Machinery Business Unit, together with 42 subsidiaries and
41 associated companies, is engaged in the following business
activities:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    import and export, assembly and manufacturing, distribution and
    dealership of motor vehicles, motor cycles and their parts;
    retail finance and automobile auction business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    sales and trading of tanker, LNG carrier, container vessel,
    cargo vessel; operation of own vessel; chartering vessel; and
    ocean vessel related finance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    trading of aircraft and helicopter, leasing of aircraft, and
    trading of other products such as defense related equipment,
    aerospace system and aircraft engine;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    trading of industrial machinery including mining and
    construction equipment, production equipment and machining tool.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Motor vehicles business is a major part of operations in this
business unit. This business unit has a long track record of
exporting and marketing Japanese automobiles and has developed
networks of our subsidiaries and associated companies as import
wholesalers, dealers and assembler for Japanese vehicles in many
regions of the world. For example, we have been exporting
Toyota, Subaru and motor vehicles of other Japanese
manufacturers to various countries worldwide including Canada
(Toyota), Chile (Toyota), Peru (Toyota), Italy (Subaru), Germany
(Subaru and Yamaha), Thailand (Hino) and Malaysia (Daihatsu).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In recent years, the relocation of Japan&#146;s automobile
production centers from the domestic market to other countries
has been accelerated, and we have diversified our activities
with the strategic allocation of our financial and human
resources to prioritized areas of our motor vehicles business
worldwide, such as logistics service of manufacturing
components, retail operations, retail finance and auction
businesses. For example:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We have operated a subsidiary P.T.&nbsp;Bussan Auto Finance
    (Indonesia), a retail finance company for Yamaha motorcycles
    since 1997;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We have been handling the logistics operations of automobile
    parts for Toyota&#146;s manufacturing operations in North
    America and Europe;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We have increased our ownership in United Auto Group, Inc.
    (&#147;UAG&#148;), an automobile dealership group in the United
    States, to about 15.5% and by combining what we learned from our
    involvement in UAG with our knowledge of the global market, we
    continue to explore other opportunities to expand into retail
    dealership operations in developing market such as Russia, China
    and India;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We have also invested in an auction business for used cars as a
    business partner of Japan Automobile Auction, Inc.
    (&#147;J.A.A.&#148;), an auction trader in Japan. In order to
    establish ourselves in the automobile auction business, together
    with J.A.A., we established an automobile auction joint venture
    company in Germany.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our vessel and marine project related activities include
marketing newly built commercial vessels to ship owners and
operators in Japan and overseas, operating vessels, acting as a
broker for the sale and purchase of second hand vessels and for
chartering vessels, and marketing equipment for vessels to
shipbuilding companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Along with these operations, we are engaged in energy-related
marine projects, including the joint ownership and operation of
Floating Storage and Offloading (&#147;FSO&#148;) and Floating
Production Storage and Offloading (&#147;FPSO&#148;) facilities,
and LNG vessels. In addition, we arrange various types of
financing for our customers such as syndicated loans involving
international financial institutions, export credit agencies and
other financial institutions for large scale transactions. We
also provide direct loans to some of our clients.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with our other business activities, we own and
operate commercial vessels.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our aerospace systems related activities, we provide and
arrange operating leases and finance leases to various airlines
worldwide and are engaged in the sale and purchase of aircraft
through our subsidiaries Tombo Aviation Inc. (the United States)
and Tombo Capital Corporation (Japan). As an agent in Japan for
Airbus, we are engaged in marketing Airbus aircraft, including
the A380 super jumbo, to Japanese airlines. Along with these
activities, our subsidiary Mitsui Bussan
Aerospace&nbsp;Co.,&nbsp;Ltd. (Japan) represents Bell Helicopter
and, to date, has sold a total of 1,400&nbsp;units in Japan. We
are actively introducing and marketing new types of aircraft,
including tiltrotor types.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With respect to distribution activities in our industrial system
business, we are engaged in the distribution of construction
machinery and mining equipment such as dump trucks and hydraulic
shovels through Komatsu Australia Pty Ltd. (Australia), our
associated company acquired in 2001, is one of important
operation in this field. Furthermore, we are also pursuing
construction machinery and mining equipment distribution in
other regions such as North and South America. We are also
actively engaged in export of high-precision machine tools and
manufacturing equipment as well as control systems. The other
important business is distribution of outdoor power equipment
and utility equipment in North America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The business sectors in which the above divisions are engaged
are highly competitive. Competitors include, but are not limited
to, other Japanese general trading companies, international
financial institutions and manufacturers.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Information, Electronics and Telecommunication Business
    Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the former Information Business
Unit and the former Electronics Business Unit were combined to
begin operations as the Information, Electronics and
Telecommunication Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Information, Electronics and Telecommunication Business Unit
is involved in information technology services and solutions.
These are delivered through the unit&#146;s 18&nbsp;subsidiaries
and 12&nbsp;associated companies established by products and
services in the following five major fields:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    network and systems integration (&#147;NI/ SI&#148;) businesses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    business process outsourcing services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    mobile communication businesses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    semiconductors related businesses; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    display related businesses.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The major activities in the above-mentioned business areas of
this unit are as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We provide integrated hardware and software solutions such as
    system building, network infrastructure devices, enterprise
    applications and network security service. These solutions are
    provided through subsidiaries and associated companies such as
    NextCom&nbsp;K.K. (Japan) and Nihon Unisys,&nbsp;Ltd. (Japan).
    In December 2004, NextCom&nbsp;K.K., a formerly associated
    company, BSI&nbsp;Co.,&nbsp;Ltd., a software development and
    marketing subsidiary, and ADAM NET&nbsp;Ltd., a data
    telecommunications equipment marketing subsidiary, merged to
    seek synergies of comprehensive information technology services.
    NextCom K.K. remains as the surviving company among them and
    became a subsidiary. For more information, see Note&nbsp;3,
    &#147;BUSINESS COMBINATIONS,&#148; to our consolidated financial
    statements. Nihon Unisys, Ltd. is a publicly listed company in
    Japan in which Mitsui and Unisys Corporation in the United
    States hold a 28.91% each of voting stocks as of March&nbsp;31,
    2005;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We are focusing on business process outsourcing services as the
    crucial business fields, through our subsidiary TOYO
    Officemation, Inc. (Japan). While it has been engaged in
    distribution of information processing devices such as optical
    character reader (&#147;OCR&#148;) and information input device.
    Recently, it has focused on enterprise information management
    such as customer information input, management and operation;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">35
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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We are promoting various mobile communication businesses through
    alliances with domestic cell phone service providers and
    manufacturers. In 1990s we had established three regional
    companies in Japan that were engaged in sales agency of
    telecommunications line and related businesses. They were
    consolidated in one company as Mitsui&nbsp;&#38; Associates
    Telepark Corporation (Japan) in April 2001 that changed
    corporate name as Telepark Corp. (Japan) in October 2004.
    Telepark Corp. is one of the major distributors of cell phones
    in Japan and sold 3.1&nbsp;million cell phones for the year
    ended March&nbsp;31, 2005. Telepark Corp. went public in Japan
    in April 2004;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    While Bussan Microelectronics Corp. had been our core
    semiconductor trading subsidiary, we acquired another trading
    company, TEKSEL Co., Ltd., to broaden our customer base and
    product portfolio in 2002. To maximize synergies of the combined
    operations, in 2002 we established Xion Holdings,&nbsp;Inc.(*)
    (Japan) as a holding company for these two subsidiaries. And in
    2004 in partnership with World Peace Group, a large scale
    distributor of electronic components and computer products who
    has its headquarter in Taipei and has various marketing channels
    in Asian countries, we established TEKSEL WPG Ltd. (Hong Kong)
    in order to provide semiconductor related products and services
    mainly for Japanese customers who are shifting their production
    to China;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The shift of electronic device production to China has
    intensified since 2002, prompting our Information, Electronics
    and Telecommunication Business Unit to allocate additional human
    and capital resources to bolster our Chinese business. We
    concluded a broad strategic partnership agreement with SVA
    (GROUP)&nbsp;CO.,&nbsp;LTD., a Chinese electronics manufacturer,
    and set up a joint venture company in Shanghai to market the
    strategic products of SVA (GROUP)&nbsp;CO.,&nbsp;LTD. in China
    and worldwide.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our unit is dependent on the operating results of our
subsidiaries and associated companies, most of which are located
in Japan, where technological development is rapid and
competition is fierce. We also rely on our investments in
overseas technology, business models and business partners,
which enable us to provide competitive services and solutions in
the domestic market. Thus, considerable part of this business
unit&#146;s function involves business incubation for of IT
related products and services.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Chemical Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The operations of our Chemical Segment include production,
trading and development of chemical products both in Japan and
overseas. We also promote development of new technologies in the
fields of nanotechnology and biotechnology.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net loss for this segment for the year ended
March&nbsp;31, 2005 were &#165;87.1&nbsp;billion or 12.0% of our
consolidated total gross profit and &#165;6.9&nbsp;billion loss,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Chemical Segment consists of Organic Chemicals Business Unit
and Plastics&nbsp;&#38; Inorganic Chemicals Business Unit. The
Chemical Segment has 49 subsidiaries including Novus
International, Inc. (the United States), P.T. Kaltim Pasifik
Amoniak (Indonesia), Mitsui Bussan Solvent&nbsp;&#38;
Coating&nbsp;Co., Ltd. (Japan) in Organic Chemicals Business
Unit and Nippon Trading&nbsp;Co., Ltd.(Japan), Daito Chemical
Co.,&nbsp;Ltd. (Japan) at Plastics&nbsp;&#38; Inorganic
Chemicals Business Unit, and 52&nbsp;associated companies such
as Honshu Chemical Industry Co.,&nbsp;Ltd. (Japan) and Agro
Kanesho Co.,&nbsp;Ltd. (Japan) at Organic Chemicals Business
Unit and Advanced Composites Inc. (the United States) in
Plastics&nbsp;&#38; Inorganic Chemicals Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the business units in this segment
were reorganized, and these changes are referred to in the
following discussion of each business unit.
</DIV>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 0pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(*)&nbsp;</TD>
    <TD align="left">
    Xion Holdings, Inc. changed its corporate name to Xion
    Electronics, Inc. in January 2005.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">36

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Organic Chemicals Business Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the former Performance Chemicals
Unit and the former Petrochemicals Unit were integrated into a
single business unit named the Organic Chemical Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Together with 25&nbsp;subsidiaries and 24&nbsp;associated
companies, the Organic Chemicals Business Unit is engaged in
sales, trade and production of following commodities and related
activities:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    petrochemical products such as Olefins, Aromatics, Styrene
    Monomer, Vinyl Chloride Monomer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    synthetic fiber intermediates such as Para-Xylene, Terephthalic
    Acid, Ethylene Glycol, Acrylonitrile;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    industrial chemicals such as Phenol, Bis-Phenols, Acetone,
    Acetic Acid;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Methanol and Ammonia;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    specialty chemicals such as polyurethane raw materials,
    detergent intermediates, oleo chemicals, functional dyes and
    natural chemicals;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    life science products such as pharmaceutical products and
    intermediates, feed additives, food ingredients and development
    of biotechnology business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    agriscience products such as agricultural chemicals and
    intermediates, natural agricultural chemicals and biological
    agricultural chemicals;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    fertilizer and its raw materials including phosphate and
    promotion of greenery, agriculture and environmental business.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In petrochemical products areas, the unit&#146;s main activities
involve trading of the above-mentioned products in Japan and
worldwide through business relationships with manufacturers and
customers such as Mitsui Chemicals, Inc., Toray Industries,
Inc., Tosoh Corporation, The Dow Chemical Company,
BP&nbsp;p.l.c., and Bayer Aktiengesellschaft.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have invested in manufacturing facilities and logistic
facilities such as tank terminals in Houston, the United States;
Ningbo, China; Bangkok, Thailand; Johor, Malaysia; and Merak,
Indonesia. In addition, we have about 20% equity share in the
joint venture of International Methanol Company in Saudi Arabia
which commenced commercial operation with a production capacity
of 1&nbsp;million ton per annum of methanol at the end of 2004
and have an ammonia producing subsidiary P.T.&nbsp;Kaltim
Pasifik Amoniak (Indonesia) which has a production capacity of
0.7&nbsp;million ton per annum of Ammonia. We have also invested
in shipping companies in Japan, primarily in our subsidiary,
Daiichi Tanker Co., Ltd. (Japan) which has special type chemical
tanker fleets. For several years, the petrochemical industry has
seen fierce international competition, and major Japanese
petrochemical manufacturers have shifted their production to
Asian countries to expand their activities in growing Asian
market. This unit provides global and integrated logistics
services to such Japanese and overseas petrochemical companies
including operations by our own chemical tankers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This business unit has been successful in earning revenues by
increasing market shares in certain products such as Olefins and
Styrene Monomer. Moreover, the steady growth of demand for
petrochemicals in the world, especially in China and other Asian
countries is driving earnings for this unit. On the other hand,
for the year ended March&nbsp;31, 2003, the unit discontinued
operations at North American petrochemical manufacturing
subsidiaries Trans Pacific Glycols Inc. and Pacific Ammonia
Inc., which suffered from weak market conditions and high
natural gas costs in North America. For more information, see
Note&nbsp;4, &#147;DISCONTINUED OPERATIONS,&#148; to our
consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the past several years, most worldwide petrochemical
companies have been struggling to survive through drastic
restructurings which include the reorganization of their sales
structures and mergers and acquisitions. However, despite the
difficult environment for participants in the petrochemical
market, we believe that we remain competitive with other
Japanese general trading companies and plan to strengthen our
market position by expanding our trade volume and market share.
Our sales channels to
</DIV>

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various customers in diverse geographic areas enable us to make
geographical and/or time swap arrangements. Our global logistics
services network, which we consider to be better organized than
those of other Japanese general trading companies, function as a
competitive advantages in gaining more business transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the field of life science, we handle pharmaceutical products,
pharmaceutical intermediate and raw materials, food and feed
additives such as amino acids and enzymes. Novus International,
Inc. (the United States), a feed additive manufacturing
subsidiary, produces and sells amino acids. In addition, we
focus on pharmaceutical manufacturing processes as represented
by Beta-Chem, Inc. (Japan), a subsidiary in which we increased
our investment to expand the scope of that company&#146;s
operations. We are also involved in research, development and
marketing in the field of biotechnology and agricultural
chemicals. In Singapore, we established Pharma Logicals Research
Pte. Ltd., an operation to research antibodies, as a joint
venture with Chugai Pharmaceutical Co., Ltd. and the Central
Institute for Experimental Animals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the field of agricultural chemicals, we have been
concentrating our effort on the distribution of agricultural
chemical products through our subsidiary, Certis
Europe&nbsp;B.V. (Netherlands), which operates mainly in
Benelux, France and the UK. In 2002, in order to bolster our
global sales network to Germany which is the second biggest
agricultural chemical market in Europe, we acquired
Spiess-Urania Chemicals GmbH (Germany) in January 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the field of fertilizer, we are engaged in import, export and
offshore transactions involving various types of fertilizers and
phosphoric acid derivatives such as Di&nbsp;Ammonium Phosphate.
In addition, we are actively involved in procurement of basic
raw materials for fertilizer, which are produced in certain
limited areas of the world, in order to secure stable supply of
those materials to our customers, mainly Japanese chemical
companies. For example, we import basic raw material phosphate
rock from China and South Africa for a Japanese manufacturer,
Toyo Phosphoric Acid,&nbsp;Inc. (Japan), a subsidiary of Mitsui
Chemicals, Inc., in which we have minor equity share of 17%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We look to expand our operations in China, which is
strategically important for the future of this business unit.
For example, in the Life Science Division, we invested in a
local amino acid manufacturer in China. In the field of sorbitol
food additives, we concluded a memorandum of understanding for
the creation of a joint venture with Hong Kong&#146;s Global
Bio-chem Technology Group Co.,&nbsp;Ltd. The production plant
started operations in July 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the growing biochemical market, while we are strengthening
ties with chemical companies worldwide, other Japanese general
trading companies could also be potential competitors. To
maintain our competitiveness, specialized knowledge for each
market and the capability to find the best technological and
logistical solution is essential.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Plastics&nbsp;&#38; Inorganic Chemicals Business
    Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the former Inorganic Chemicals
Unit and the former Plastics Unit were integrated into a single
business unit named the Plastics&nbsp;&#38; Inorganic Chemicals
Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This business unit has 24 subsidiaries and 28 associated
companies and is engaged in sales, trade and production of the
following commodities and related activities:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    basic inorganic materials such as sulfur, sulfuric acid, salt,
    titanium ore and iodine;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    inorganic products such as soda ash, caustic soda, catalyst,
    industrial gas and titanium oxide;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    electronic materials such as electrolytic copper foil, optical
    fiber, and high-purity chemicals employed in semiconductor
    production;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    plastic materials and products such as polyvinyl chloride,
    elastomers, polyolefin, ABS resin, engineering plastics,
    polystyrene, plastic food containers, wrapping materials,
    industrial films and carbon fiber;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    additives of plastic such as elasticizer, stabilizer and
    pigment;&nbsp;and</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">38

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    SCM related businesses for production and distribution of office
    automation equipment, cell phone and electric appliances.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In inorganic raw materials field, this business unit operates
logistics systems and SCM systems for various industries in
Japan and overseas. For example, we export sulfur, a byproduct
of petroleum refining, to Asian countries, by operating
specialized tankers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to overcome various unfavorable economic conditions
such as depletion in the supply of mineral resources or an
increase in acquisition cost of raw materials from our existing
suppliers, we have been seeking opportunities to participate in
new supply sources. We reallocated resources by restructuring
logistics operations, and built up our capabilities in sulfur,
soda ash, and fiberglass materials in Asia, primarily in China.
In China, we expanded operations at our salt farm, which
complements our existing sea salt joint venture in Shark Bay,
Australia which supplies industrial salt to Japan and other
Asian markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Among new technologies, we anticipate that nanotechnology in
particular could be applicable to many fields as below.
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A subsidiary, Bussan Nanotech Research Institute Inc.
    (Japan)(*), succeeded in developing technology to produce
    high-quality carbon nanotubes, and completed construction of its
    prototype facility. It has drawn attention and generated
    expectations for the creation of new business opportunities,
    which include use in development of new and high performance
    plastic materials by compounding nanotubes with plastics and in
    semiconductors to take advantage of their high degree of
    conductivity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We have been developing and promoting the commercialization of
    ethanol separation technology by using zeolite membranes, which
    will improve the energy efficiency of biomass ethanol production.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This business unit produced and sold proprietary diesel
particulate filters (&#147;DPF&#148;s) for buses and trucks,
which were later found out to be non-conforming to regulatory
standards of the Tokyo Metropolitan Government and seven other
municipal governments. With regard to DPF data falsification
discovered during the year ended March&nbsp;31, 2005 and
Mitsui&#146;s responsive measures, see Item&nbsp;5.A.
&#147;Operating Results- Compensation and other charges related
to DPF incident.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In Plastics field, this business unit traditionally handles
various kinds of raw plastic materials and plastic products in
domestic and overseas markets. This business unit also handles
newly developed electronic materials and products as well as SCM
services. We expanded SCM services for printers and liquid
crystal display panels as well as reinforced our resin compound
operations in China, Southeast Asia, the United States and
Europe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With the focus of economic activity shifting to Asia, this
business unit enhanced its business in China. In 2003, we
established Mitsui Plastics Trading (Shanghai) Co.,&nbsp;Ltd.,
an engineering plastics sales company and Mitsui e-Film (Suzhou)
Mfg. Co.,&nbsp;Ltd., a manufacturing company engaged in
processing films for liquid crystal display applications in
Suzhou. In 2004, we established Mitsui International Logistics
and Trade (Suzhou) Co.,&nbsp;Ltd., which provides logistics
services as an export/import trading company in the Suzhou
Industrial Zone, one of China&#146;s national development
regions. It handles specialty chemicals, gases, parts, and other
materials used in semiconductors and liquid crystal displays.
This unit also set up a chemical etching company in Singapore,
Mitsui Electronics Asia Pte.&nbsp;Ltd., for a liquid crystal
display panel project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the plastic materials and products market where the scope of
their usage is expanding, other Japanese general trading
companies are our competitors. To maintain our competitiveness,
specialized
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 0pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(*)&nbsp;</TD>
    <TD align="left">
    Carbon Nanotech Research Institute Inc. was merged with
    Bio&nbsp;Nanotec Research Institute Inc. and Device Nanotech
    Research Institute Inc. to form the newly established Bussan
    Nanotech Research Institute&nbsp;Inc. in April 2004.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">39

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<DIV align="left" style="font-size: 10pt;">
knowledge for each market and the capability to find the best
technological and logistical solutions is essential.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Energy Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Energy Segment is engaged in trading, manufacturing,
development and distribution of various energy-related products
including: crude oil and petroleum products such as gasoline,
naphtha, jet fuel, kerosene, diesel oil, fuel oil, asphalt,
petroleum coke, lubricants and liquefied petroleum gas
(&#147;LPG&#148;), as well as natural gas and LNG.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment consists of one business unit, the Energy Business
Unit, which has 7&nbsp;business divisions as well as
23&nbsp;subsidiaries such as Mitsui Oil Co., Ltd. (Japan),
Mitsui Liquefied Gas Co., Ltd. (Japan), Kokusai Oil&nbsp;&#38;
Chemical Co., Ltd. (Japan) and Mitsui Oil (Asia) Pte. Ltd.
(Singapore), Arcadia Petroleum Ltd. (United Kingdom), Mitsui
E&#38;P Middle East B.V. (Netherlands) and Mittwell Energy
Resources&nbsp;Pty.,&nbsp;Ltd (Australia), and
12&nbsp;associated companies such as Mitsui Oil Exploration
Co.,&nbsp;Ltd. (Japan), Kyokuto Petroleum Industries,&nbsp;Ltd.
(Japan), Japan Australia LNG (MIMI)&nbsp;PTY.&nbsp;Ltd.
(Australia) and Sakhalin Energy Investment Company&nbsp;Ltd.
(Bermuda).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net income for this segment for the year ended
March&nbsp;31, 2005 were &#165;72.6&nbsp;billion or 10.0% and
&#165;42.8&nbsp;billion or 35.3% of our consolidated total,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are one of the world&#146;s major oil traders based on our
total trading volume of crude oil and petroleum products
(excluding derivative products) which for the year ended
March&nbsp;31, 2005 amounted to approximately one third of
Japan&#146;s total imports of 5.1&nbsp;million barrels per day
on a consolidated basis. We are also engaged in domestic
marketing and refining of oil and gas related products through
Kyokuto Petroleum Industries, Ltd., a refinery jointly owned
(50:50) by a subsidiary of ExxonMobil Corp. and Mitsui
Oil&nbsp;&#38; Gas Co.,&nbsp;Ltd, our subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Energy Business Unit is engaged in numerous LNG, natural gas
and oil development projects that require long lead-times for
their development and implementation. We are involved in four
LNG projects that are in operation:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Abu Dhabi Gas Liquefaction Limited in Abu Dhabi, in which we
    hold a 15% interest in LNG production and exporting activities,
    and which has some 5&nbsp;million tonnes per annum LNG
    production capacity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Northwest Shelf JV (&#147;NWS JV&#148;) in Australia, in which
    we hold an 8.33% interest in LNG production and exporting
    activities, and which has some 11.7&nbsp;million tonnes per
    annum production capacity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Qatar Liquefied Gas Company Ltd. in Qatar, in which we hold a
    7.5% interest in LNG production and exporting activities, and
    which has some 9.6&nbsp;million tonnes per annum production
    capacity;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Oman LNG L.L.C. in Oman, in which we hold a 2.77% interest in
    LNG production and exporting activities, and which has some
    6.6&nbsp;million tonnes per annum production capacity.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equatorial Guinea LNG is the most recent project that we have
decided to participate in. Mitsui holds an 8.5% interest in the
project company, which is constructing a liquefaction plant with
over 3.4&nbsp;million tonnes per annum capacity. Production is
expected to start in the forth quarter of 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We participate in oil and gas related joint venture activities
typically as a &#147;non-operator&#148; minority equity holder.
We have yet to accumulate sufficient technical knowledge and
expertise to act as an operator of oil and gas projects.
Operators are generally responsible for the entire operational
aspects which include the exploration, development and
production of oil and gas resources. Therefore, given our
non-operator status, we have limited or no control over the
manner in which operations are conducted including the timing
and scheduling of the development, the capital expenditures,
production of the reserves, and the safety and environmental
standards used in connection with these joint ventures.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
However, it is our strategy as a general trading company to seek
to diversify our investments in various countries and broad
range of projects rather than acting as operators on few
specific projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 2002, the NWS JV was awarded the supply contract for the
first LNG terminal in China, to be located in the Guangdong
province in southeast China. The contract volume is
3.3&nbsp;million tonnes per annum and first deliveries are
scheduled for 2006. Also in the NWS JV, the fourth LNG producing
train began production in August 2004 and we made a final
investment decision for the fifth LNG producing train in June
2005, which has a capacity of 4.2&nbsp;million tonnes per year
and is scheduled to begin in the latter half of 2008. In Qatar,
the debottlenecking work on the existing LNG facilities has been
completed since May 2005 and production capacities shall be
9.6&nbsp;million tonnes per annum from 2006. These new LNG
producing capacities will supply both existing and new
customers. An &#147;LNG producing train&#148; is a set of
facilities in a liquefaction plant to produce LNG from natural
gas. &#147;Debottlenecking&#148; refers to additional investment
and modification work on the existing LNG producing plants or
trains to increase their production capacity through eliminating
the bottleneck in existing plants or trains that restrict
production capacity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the Sakhalin&nbsp;II project, we hold a 25% interest in
Sakhalin Energy Investment Company Ltd. (Bermuda). Since 1999,
seasonal oil production continued from the Molikpaq facility on
the Astokhskoye field, offshore Sakhalin Island. In addition,
Sakhalin Energy Investment Co., Ltd. announced on May&nbsp;15,
2003, that it would begin the second phase of development of the
Sakhalin&nbsp;II Project. This announcement marked the beginning
of the full-scale development of the Piltun-Astokhskoye oil
field aimed at year-round crude oil production, and the Lunskoye
gas field, including construction of a two-train LNG plant in
the south of Sakhalin Island for export to the Asia Pacific LNG
markets based on long-term contracts. At its peak, the facility
is expected to produce 60&nbsp;million barrels per annum of
crude oil and 9.6&nbsp;million tonnes per annum of LNG. On
July&nbsp;14, 2005, we announced that it received an interim
report from Sakhalin Energy Investment Co., Ltd. which was
addressed to shareholders of the Sakhalin&nbsp;II project,
namely, Royal Dutch/ Shell Group, Mitsui and Mitsubishi
Corporation, relating to the possibility of changes in the total
budget of the development plan for Phase&nbsp;2 of the
Sakhalin&nbsp;II Project, as well as the scheduled timing for
the first delivery of LNG. The report indicates, as provisional
estimates, that there would be the possibility that the total
budget for the project could be of the order of
U.S.$20&nbsp;billion and the first delivery of LNG would take
place in mid 2008. Originally, the total budget for the
Phase&nbsp;2 development was expected to be approximately
U.S.$10&nbsp;billion with the first delivery of LNG expected to
take place in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We continue putting high priority on expanding our oil and gas
equity reserves together with our associated company Mitsui Oil
Exploration Co., Ltd. (Japan). Identifying, exploring and
developing oil and gas reserve prospects are key factors to
success in this area. Our principal strategic region for this
business remained Australia, South East Asia and the Middle East.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2005, continuous near field
exploration activities together with water-flood operation
resulted in higher than budgeted oil production at Block&nbsp;9
oil fields in Oman and final investment decisions to develop
Casino Gas&nbsp;&#38; Condensate Field offshore South Australia
and Cliff Head Oil Field offshore Western Australia were made by
the respective joint ventures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result, our oil and gas reserves increased to
592&nbsp;million barrels of oil equivalent (boe)&nbsp;at the end
of March 2005, after offsetting the decrease through production
of 30&nbsp;million boe of equity barrels during the year ended
March&nbsp;31, 2005. As of March&nbsp;31, 2005, the proportion
of proved developed reserves to proved developed and undeveloped
reserves is about 25&nbsp;percent and relatively low. See
&#147;Item&nbsp;4.D. Property, Plants and Equipment&nbsp;&#151;
Oil and Gas Producing Activities&#148; and &#147;Supplemental
Information on Oil and Gas Producing Activities&#148; to the
consolidated financial statements included elsewhere in this
annual report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The development of Enfield Oil Field located in the North West
Shelf area in Australia has progressed as per the schedule and
the budget and we expect the field comes on stream later in
2006. A study to select the optimum development concept for
Vincent Oil Field located in the same block as
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Enfield is under way with a view to expediting a final
investment decision and start up of oil production from the
field.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On June&nbsp;17, 2005, Mitsui Oil Exploration Co., Ltd. entered
into a Stock Purchase Agreement with Pogo Producing Company of
the United States of America and their affiliate Pogo Overseas
Production B.V. (&#147;Pogo&#148;) to purchase Pogo&#146;s
Thailand assets jointly with PTTEP Offshore Investment Company
Limited(PTTEPO), a wholly-owned subsidiary of PTT Exploration
and Production Public Company Limited of Thailand. Pogo&#146;s
Thailand assets consist of a 46.34% interest in the B8/32
Concession and the adjacent Block&nbsp;9A Concession located in
the Gulf of Thailand. The purchase price is
U.S.$820&nbsp;million in cash, of which Mitsui Oil Exploration
Co., Ltd. will contribute approximately 40% and PTTEPO
approximately 60% with Mitsui Oil Exploration Co., Ltd. and
PTTEPO each acquiring interests in the assets in the same
proportions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are also exploring various emerging business opportunities in
the energy industry, including electricity, retailing,
environment-related businesses, gas to liquids (&#147;GTL&#148;)
and di-methyl ether (&#147;DME&#148;). We are involved in the
electricity retail business through our associated company, GTF
Institute Co., Ltd. (Japan), in which we hold a 40% interest.
Following growth in the electricity sales since its commencement
in 2002, GTF Institute Co., Ltd. decided to expand its capacity
to 110 megawatt from the existing 45&nbsp;megawatt and the
construction will be completed in June 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The international markets for crude oil and petroleum products
are highly competitive and volatile, as these commodities are
traded on exchanges such as NYMEX in New&nbsp;York, IPE in
London, and TOCOM in Tokyo. In the worldwide trading business,
we compete with international oil companies, national oil
companies in oil producing countries and oil trading companies,
including Japanese trading companies. In maintaining our
competitive edge under these circumstances, it is critical for
us to maintain good relationships with suppliers and customers
as well as to mitigate price risks by utilizing hedging tools
such as the futures markets. We are also active in seeking to
secure long-term offtake contracts of petroleum and gas products
such as fuel oil and condensate to be sold to Japanese utility
and refining companies. Long-term offtake contracts are sales
and purchase contracts for various commodities, such as
petroleum products, entered into by suppliers and buyers, or
&#147;offtakers&#148;, of such products for one or more years.
Concurrent with the offtake contracts, the sellers of such
products usually enter into financing arrangements whereby the
sales proceeds from such products are used to finance a related
project. For example, on March&nbsp;25, 2003, the Energy Segment
entered into an offtake contract with PERUSAHAAN PERTAMBANGAN
MINYAK DAN GAS BUMINEGRA (&#147;PERTAMINA&#148;), the national
oil and gas company of Indonesia, and committed itself to
&#147;lift and pay&#148; for petroleum products for a period of
time. Concurrently, our Electric Machinery, Plant&nbsp;&#38;
Project Business Unit was engaged in the structuring and the
arrangement of debt financing with various lenders to provide a
U.S.$200&nbsp;million loan to PERTAMINA which would be utilized
to build a facility at its existing Balongan Refinery to produce
about 50,000&nbsp;barrels per day of unleaded gasoline.
PERTAMINA will supply us with the petroleum products from its
existing refineries and the proceeds from the sales of these
products will be used as the source of debt service for the
U.S.$200&nbsp;million loan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the domestic refining and marketing business for oil and gas
related products, we face severe competition from domestic oil
refining and distributing companies due to the structural
surplus situation of refining capacities in Japan. Kyokuto
Petroleum Industries,&nbsp;Ltd. and Mitsui Oil Co.,&nbsp;Ltd.,
Mitsui Liquefied Gas Co.,&nbsp;Ltd., our core associated company
and subsidiaries, respectively, for domestic oil and gas
refining and marketing business activities, are in relatively
sound financial situations owing to the extensive restructuring
of inefficient assets and work force, and are pursuing efficient
and competitive operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Japanese Government regulations stipulate that sulfur content
must be reduced to 10&nbsp;parts per million (&#147;ppm&#148;)
for environmental control from 2007 for gas oil and 2008 for
gasoline. Major Japanese oil refineries and distributors
voluntarily started to supply the 10 ppm standard products from
January 2005 before the restriction is introduced. To keep a
competitive position in the market, Kyokuto Petroleum
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Industries, Ltd. has determined to invest in new equipment to
strengthen the removal of sulfur and is proceeding for the
completion of gas oil equipment in April 2005 and gasoline in
March 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With respect to the oil and gas exploration and production
(&#147;E&#38;P&#148;) business, the key to success is to
constantly increase or at least maintain certain volumes of oil
and gas reserve prospects as is the common practice with
international oil and gas companies. However, despite our
management&#146;s intensive focus on expanding our E&#38;P
business activities, our oil and gas reserves are still far less
than that of national oil companies of oil producing countries
and major oil and gas companies. Other Japanese companies that
participate in E&#38;P activities do not commonly disclose their
proved oil and gas reserves. Based on the limited proved oil and
gas reserves information of other Japanese E&#38;P companies
that are publicly available, we believe that we have higher
amounts of proved oil and gas reserves in general compared to
most of the Japanese E&#38;P companies. Accordingly, we believe
that we are competitive with other Japanese E&#38;P companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With respect to our LNG related operations, we have entered into
various long term sales contracts, based on take or pay
conditions, with customers such as Japanese utility companies.
We believe the LNG business has been undergoing gradual but
structural changes since the late 1990s&#146;s as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Exploration and development of natural gas and production of LNG
    require significant capital and financial commitments. Moreover,
    this involves a broad range of logistical and technological
    expertise ranging from linking suppliers to distributors and
    consumers while developing plants in order to efficiently
    extract and liquefy the natural gas for transportation and then
    re-gasifying the LNG. Up until the mid-1990&#146;s, purchase
    commitments by buyers with full &#147;take or pay&#148;
    obligations for a period of 20&nbsp;years or more had been an
    essential element for equity holders, distributors and sellers
    of LNG projects to make the capital and financial commitment to
    build LNG production facilities. These equity investors had
    resisted making a capital and financial commitment without being
    able to fully securing stable long-term purchase commitments. In
    recent years, however, equity holders of several LNG projects
    have been making investments without fully securing long-term
    purchase commitments from buyers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Due to technological innovations in the last decade, LNG
    producers have successfully reduced capital costs with respect
    to the construction of LNG production plants and LNG vessels.
    Technological innovation has also enabled the producers to
    increase the design capacities of LNG production plants and LNG
    vessels allowing them to benefit from economies of scale. These
    technological developments allow LNG to be more competitive with
    other types of energy sources.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In response to the needs of LNG buyers to adjust the supply and
    demand balance for LNG, the spot LNG market has been expanding,
    whereby the percentage of spot trades in the worldwide LNG
    contracts rose to 11.6% in 2004 from 1.3% in 1992.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In addition to traditional core LNG markets in Japan, Republic
    of Korea and Taiwan, the market is rapidly expanding in Europe
    and the United States. At the same time, new markets have been
    emerging in countries such as China and India due to an
    increasing demand for electricity. Considering the sizable
    economies of these countries and the increasing popularity of
    LNG as &#147;clean energy&#148;, the LNG market has been
    developing rapidly worldwide.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The recent structural changes in the LNG industry, including
those mentioned above, continue to have a mixed effect on our
business operations. For example, due to the reduction in
capital costs from technological innovations, the emergence of
the spot LNG market and other factors, not only has the LNG
industry become more competitive among the existing
energy-related companies, but it has also seen an increase of
new entrants.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Consumer Products&nbsp;&#38; Services Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Consumer Products&nbsp;&#38; Services Segment is engaged in
trading activities of and related investments in various types
of consumer-related products such as foods, textile and fashion
and general merchandise as well as real estate development and
provision of services for supporting retailers such as
</DIV>

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<DIV align="left" style="font-size: 10pt;">
merchandising, logistics and inventory management in Japan and
various other overseas markets all over the world.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net income for this segment for the year ended
March&nbsp;31, 2005 were &#165;152.6&nbsp;billion or 21.0% and
&#165;16.9&nbsp;billion or 14.0% of our consolidated total,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment is comprised of the Foods&nbsp;&#38; Retail
Business Unit, the Lifestyle Business Unit and the Consumer
Service Business Unit, and owns 77&nbsp;subsidiaries including
MITSUI FOODS CO.,&nbsp;LTD. (Japan), Wilsey Foods&nbsp;Inc. (the
United States), Mitsui Norin Co.,&nbsp;Ltd. (Japan), DAI-ICHI
BROILER CO.,&nbsp;LTD. (Japan), Retail System Service
Co.,&nbsp;Ltd. (Japan) in the Foods&nbsp;&#38; Retail Business
Unit, Mitsui Bussan Inter-fashion&nbsp;Ltd. (Japan) in the
Lifestyle Business Unit, Bussan Real Estate Development
Co.,&nbsp;Ltd. (Japan) and Mitsui Bussan House-Techno,&nbsp;Inc.
(Japan) in the Consumer Service Business Unit, and
77&nbsp;associated companies including Mikuni Coca-Cola
Bottling&nbsp;Co.,&nbsp;Ltd. (Japan), Shin Mitsui Sugar Co.,
Ltd. (Japan)(*), KADOYA SESAME MILLS INCORPORATED (Japan) in the
Foods&nbsp;&#38; Retail Business Unit,, ALCANTARA S.p.A.
(Italy), Nippon Brunswick Co.,&nbsp;Ltd. (Japan) in the
Lifestyle Business Unit, AIM Services Co.,&nbsp;Ltd. (Japan) and
Sumisho&nbsp;&#38; Mitsuibussan Kenzai Co.,&nbsp;Ltd. (Japan) in
the Consumer Service Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the business units in this segment
were reorganized, and these changes are referred to in the
following discussion of each business unit.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Foods&nbsp;&#38; Retail Business Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the Retail Unit and the Foods Unit
were integrated into a single business unit and renamed the
Foods&nbsp;&#38; Retail Business Unit. Some of the business
affairs were transferred to the newly established Consumer
Service Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Together with 38&nbsp;subsidiaries and 32&nbsp;associated
companies, the Foods&nbsp;&#38; Retail Business Unit engages in:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Import and domestic/offshore trade of wheat, barley, soybeans,
    corn, fats and oils, raw sugar, and rice;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Import and domestic/offshore trade of processed foods such as
    canned products, frozen foods and condiments, liquor, beverages
    such as coffee, tea and juice, dairy products, and foodstuffs
    such as marine products, animal products and vegetables;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Import and domestic trade of packaging, wrapping materials, and
    miscellaneous daily goods;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Manufacturer of beverages, beverage ingredients, boilers, and
    sugar-based products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Domestic distribution and sales through the nationwide
    wholesaler subsidiary MITSUI FOODS CO., LTD. (Japan);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Support services, such as supply chain management, for example
    logistics management, and product planning and development for
    retailers.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Foods&nbsp;&#38; Retail Unit is involved in a wide range of
fields comprising a value chain of foods, from the global
procurement of foodstuffs and the production of food products to
the traffic and wholesale of foods, packaging materials, and
sundry goods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We purchase grain, oilseeds, and raw sugar from the United
States, Canada, Brazil, and Australia and sell them in Japan and
other Asian countries to secure a source of foodstuffs and a
stable supply. We sell coffee to Japan and the United States
from production areas primarily in Brazil. We purchase raw
materials for beverages, such as tea leaves and juice, marine
products, animal products, and dairy products from major supply
sources around the world and deliver them primarily to Japan. We
are also engaged in
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 0pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(*)&nbsp;</TD>
    <TD align="left">
    Shin Mitsui Sugar Co., Ltd. (Japan) changed its corporate name
    to Mitsui Sugar&nbsp;Co.,&nbsp;Ltd. (Japan) in April 2005.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt;">
domestic broiler chicken raising, processing, and sales through
a subsidiary DAI-ICHI BROILER CO.,&nbsp;LTD. (Japan).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui has positioned the United States as its main base of
operations and the core of its global food supply strategy.
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the cereals and grains area, we have formed a joint venture,
    United Harvest, LLC, with CHS&nbsp;Inc., an agricultural
    cooperative in the United States. Our exports of wheat from the
    United States are among the best, amounting to approximately
    four million tons per annum.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Ventura Foods, LLC, another joint venture formed with
    CHS&nbsp;Inc., is one of the largest suppliers of cooking oils
    for the institutional market in the United States. We invest in
    this company through WILSEY FOODS,&nbsp;INC.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Outside the United States, we are working to strengthen our
positions primarily in Brazil and China. In Brazil, we sell
coffee beans domestically through our subsidiary Mitsui
Alimentos Ltda, a coffee exporting and roasting company, which
provides stable supplies to our worldwide customers. We have
also begun to purchase soybeans in a joint venture with
CHS&nbsp;Inc. in the same region. In China, we began to purchase
juice and tea leaves as well as broiler chicken raising,
processing, and sales activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In food-manufacturing operations, during the year ended
March&nbsp;31, 2004, we increased our equity stake in Mitsui
Norin&nbsp;Co., Ltd. (Japan), which is one of the major
manufacturers of tea leaves in Japan, and made it our subsidiary
with the intention of positioning it as a core company in our
beverage business, realizing synergies with our existing network
for procurement of raw materials and domestic distribution. For
more information, see Note&nbsp;3, BUSINESS COMBINATIONS, to our
consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our strength in the foodstuffs field lies in overseas
procurement of food products. For example, our import of grain,
oilseeds, and tea leaves to Japan maintains a large share in
Japan due to our long relationships with overseas suppliers and
major buyers in Japan. Moreover, as demonstrated by our alliance
with CHS Inc. in the United States, we constantly endeavor to
form alliances with reliable partners in other regions,
strengthen overseas product procurement capabilities and expand
our position in major overseas production areas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Competition varies depending on products in the upstream areas,
but is generally based on price or quality of products. Many
Japanese general trading companies, international producers, and
traders are competitors to varying degrees with respect to most
of the food products we handle.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
MITSUI FOODS CO., LTD. plays a vital role in this unit&#146;s
wholesale operations. It is expanding its business activities to
include general merchandise stores, supermarkets, convenience
stores, and catering and restaurant chains throughout Japan,
focusing on processed food and liquor transactions. The
Foods&nbsp;&#38; Retail Business Unit is developing and
strengthening its nationwide distribution chain focused on
MITSUI FOODS CO.,&nbsp;LTD., including investments and business
tie-ups from the parent company with regional wholesalers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the foodstuffs distribution field, the needs for reduced
distribution costs, secure temperature-controlled supply, and
faster delivery are becoming more sophisticated and diverse. To
meet these changes, the Foods&nbsp;&#38; Retail Business Unit is
engaging in wholesale transactions with and providing support
services to retailers. This includes:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    inventory management and procurement of foodstuffs, processed
    foods, and packaging based on sales information obtained from
    retailers, which enables more efficient and less expensive
    distribution from manufacturers to retailer stores and cost
    reductions;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    proposals for developing new products and services, and support
    in the form of traceability for securing food safety.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui maintains and strengthens a comprehensive alliance with
the Ito-Yokado Group, one of Japan&#146;s leading diversified
retailers. The Ito-Yokado Group operates shopping malls, general
merchandise
</DIV>

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<DIV align="left" style="font-size: 10pt;">
stores, supermarkets, convenience stores such as 7-Eleven,
restaurant chains such as Denny&#146;s, and financial service
companies such as the IYBank, and has recently opened a
SEVEN-ELEVEN (BEIJING)&nbsp;in April 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui offers the following supply services to the Ito-Yokado
Group through our domestic subsidiaries, such as MITSUI
FOODS&nbsp;CO., LTD., Retail System Service&nbsp;Co., Ltd. and
VENDOR SERVICE&nbsp;CO., LTD.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    supply sundry goods and consumables, such as processed food,
    liquor, fast food, toys, and games, to more than ten thousand
    7-Eleven stores in Japan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    supply food materials, containers, and packaging materials to
    vendors who supply boxed lunches, pre-cooked meals, and
    processed food to 7-Eleven stores in Japan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    supply various temperature-controlled products to 7-Eleven
    stores in Japan; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    supply cold products through the affiliate company Beijing
    Sanxin Refrigeration Logistics&nbsp;Co., Ltd. to 7-Eleven stores
    in Beijing.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To strengthen our business ties with the Ito-Yokado Group, the
Foods&nbsp;&#38; Retail Business Unit began purchasing
Ito-Yokado shares in April 2005. As of the end of August 2005,
we have purchased &#165;10&nbsp;billion of Ito-Yokado&nbsp;Co.,
Ltd. shares and &#165;40&nbsp;billion of Seven-Eleven Japan Co.,
Ltd. shares. The Ito-Yokado Group will establish a new holding
company (Seven&nbsp;&#38; I&nbsp;Holdings Co., Ltd) on
September&nbsp;1, 2005, and the shares that we acquired are
equal to roughly 1.2% of Seven&nbsp;&#38; I&nbsp;Holdings Co.,
Ltd. outstanding shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our competitors in the wholesale and retail businesses are
mainly general trading companies in Japan. In the traffic area,
our competitors are also traffic companies that operate
third-party logistics. In domestic wholesaling, there is fierce
competition among suppliers, and we are making efforts to
increase revenues and reduce logistics costs by achieving better
economies of scale through mergers and acquisitions on occasion.
Our success depends on the following critical factors:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    IT and logistics technology (&#147;LT&#148;) know-how for
    providing high-quality and low-cost services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    capital strength to withstand the acquisition of fixed assets
    and the purchases of businesses required for distribution and
    otherwise demonstrating our business capabilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    quick decision-making and execution in marketing and
    investing;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the ability to procure a wide variety of products in all regions
    by maintaining our credibility and a good reputation in the
    market.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Lifestyle Business Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the former Textile&nbsp;&#38;
Fashion Unit and the former General Merchandise Unit were
integrated into a single business unit named the Lifestyle
Business Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Together with 17&nbsp;subsidiaries and 29&nbsp;associated
companies, the Lifestyle Business Unit is engaged in domestic,
import, export and offshore trading and manufacturing of the
following materials and products, as well as related services
and investments:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    apparel and non-apparel textile materials such as fibers, yarns
    and fabrics; and technical collaboration in these products field;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    apparel products, related product development and manufacturing
    of those products; and brand merchandise-related businesses
    including equity participation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    non-apparel products such as interior and furniture, general
    merchandise and consumer goods; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    industrial materials such as paper and pulp.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the fashion product field, including apparel products, we
actively provide innovative services to accommodate new
developments in the fashion and apparel markets. Our main
business activities are divided into two categories:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    original equipment manufacturing (&#147;OEM&#148;) business for
    domestic apparel manufacturers;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    business transactions involving branded luxury and accessible
    luxury products from Europe and the United States for the
    Japanese market.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the field of apparel and OEM, we play active roles at various
stages in the value chain including design, planning and
procurement of materials as well as sewing and processing. To
meet our goals of minimizing costs and enhancing quality, we
work with apparel makers and related companies on an ongoing
basis to select the optimal materials and processing centers
from the wide variety of choices available in Japan Europe, the
Americas, Asia and other areas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We regard China as an important manufacturing base and also a
significant consumer market as well. To further strengthen our
OEM business capabilities and our provision of support services
such as manufacturing or exhibition management, we utilize our
subsidiaries and associated companies such as Mitsui Bussan
Inter-Fashion&nbsp;Ltd. (Japan) and Alta Moda
International&nbsp;Ltd. (Hong Kong).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the OEM business for domestic apparel manufacturers, we have
alliance partners with respect to various goods. In this line of
business, our competitors include other apparel traders, because
apparel manufacturers tend to form partnerships with several
apparel traders in parallel. As such, we strive to provide a
higher quality of support services for OEM than those of our
competitors to attract apparel manufacturer customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With respect to brand merchandise-related businesses in Japan,
we are engaged in both license and import business transactions
involving internationally well-known branded merchandise from
Europe and the United States such as Burberry, Paul Stuart,
Pierre Cardin, Trussardi, Valentino, Max Mara, Mango, Etro and
Juicy Couture. In the case of license agreements, we enter into
with the respective European and American licensors, we
sublicense certain rights including, but not limited to,
marketing and manufacturing rights to apparel makers and
wholesalers, while we retain the exclusive distributorship
rights. We, if necessary, establish joint venture subsidiaries
with such European and American brand owners to control license
arrangements or to distribute imported products in order to
establish well controlled nationwide sales network composed of
wholesalers, department stores, specialty-stores or our own
retail outlets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In brand merchandise-related businesses, our competitors are
other general trading companies and apparel specialty traders
including Itochu Corporation and Mitsubishi Corporation. The
keys to maintain our competitiveness are to raise the value of
the brand which we promote in the market and to increase the
number of valuable brands we deal with.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general merchandise and consumer goods fields, this business
unit is engaged in the trading, production, processing and
distribution of various merchandise goods such as general
household and consumer goods, light industrial machinery and
supplies, medical equipment and office automation systems as set
forth below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We supply a wide range of top-quality consumer goods imported
    from around the world, which include high-quality Sonicare
    ultrasonic toothbrushes, Brunswick bowling equipment and
    systems, MAGLITE handy flashlights, and top-of-the-line Lladro
    porcelain;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We trade woodchip and pulp, furthermore, we develop several
    afforestation projects in Australia, some of which are jointly
    promoted with several Japanese partners including paper
    manufacturing companies;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    As for paper and ceramic products, we closely partner with
    Japanese manufacturers and participate in joint venture
    production operations in China to sell products there and export
    them from China, as well as handling products in and from Japan.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the business area of consumer-related goods such as sporting
and leisure goods, continuous changes in lifestyles worldwide
require new business models which reflect such changes.
Accordingly, we seek to locate new materials and new suppliers,
arrange effective distribution methods and develop attractive
brand names. Such efforts are realized through a combination of
our human and organizational network and industrial expertise.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Consumer Service Business Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, the former Service Business Unit
was integrated into the Consumer Service Business Unit along
with other consumer oriented businesses which had previously
been included in the Information Business Unit and the Foods
Unit. The former Service Business Unit was established for the
year ended March&nbsp;31, 2003 to build new business models that
extend beyond our traditional strengths in trading and
distribution and to focus on services to consumers as earnings
sources. Major business areas of this unit including
22&nbsp;subsidiaries and 16 associated companies consist of the
following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    real estate development including construction, sale and leasing
    of houses, condominiums and office buildings and related
    construction material businesses and development of commercial
    facilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    media-related service business including broadcasting, content
    service, television shopping channels, software service,
    amusement business and Internet-based marketing service;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    outsourcing services including catering, uniform rental,
    building maintenance, and temporary personnel service, child
    care service;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    medical service and health care related businesses such as
    nursing care-related services, clinic facilities and medical
    related information service.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In real estate development businesses, our core area is
development of condominium and commercial property in the Tokyo
metropolitan area and construction and marketing of high-end
home units, which are sold by Mitsui Bussan House-Techno, Inc.
(Japan) under the Mitsui House brand. MBK Real Estate Ltd. (the
United States) handles the sale of unit houses in the southern
California market, as well as commercial property on the west
coast of the United States. In the related business activities,
our associated company Sumisho&nbsp;&#38; Mitsuibussan Kenzai
Co., Ltd. (Japan) supplies construction materials in the
domestic market. In March 2005 we jointly established
Mall&nbsp;&#38; SC Development, Inc. (Japan) with Ito-Yokado
Co., Ltd. to pursue the development and management of shopping
malls and shopping centers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In media-related service business, as a consumer service and
content provider, we provide television shopping services
operated by QVC Japan, Inc. (Japan), a joint venture with
QVC&nbsp;Inc., and an entertainment and educational channel for
children and parents operated by Kid&#146;s Station Inc.
(Japan), our wholly-owned subsidiary, both of which are
delivered over cable or digital satellite broadcast networks
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the outsourcing businesses, our catering service business is
active through AIM Services&nbsp;Co., Ltd. (Japan), a joint
venture with ARAMARK Corporation in the United States, which
provides food and catering services in Japan. In July 2002, AIM
Services acquired Atlas Corporation, which has a majority stake
in MEFOS&nbsp;Co., Ltd., a provider of hospital cafeteria food
services in Japan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are also in the process of cultivating new opportunities in
medical services through our subsidiary, Medivance Co. (Japan),
Ltd. And this segment made 5% equity participation in and formed
an alliance with Duskin Co., Ltd., which is engaged in cleaning
services, food services and nursing care services nationwide.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Logistics&nbsp;&#38; Financial Markets Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Logistics&nbsp;&#38; Financial Markets Segment is engaged in
transportation and logistics services, insurance and financial
business in Japan and abroad. Effective from April&nbsp;1, 2004
the Logistics&nbsp;&#38; Financial Markets Segment was
established by reallocating relevant businesses which had
formerly been included in the Metal Products&nbsp;&#38; Minerals
Segment and the All Other Segment, with the aim to providing
high-quality, specialized logistics and financial capabilities
to customers across all product areas.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net income for this segment for the year ended
March&nbsp;31, 2005 were &#165;46.7&nbsp;billion or 6.4% and
&#165;11.8&nbsp;billion or 9.7% of our consolidated total,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment is composed of the Financial Markets Business Unit
and the Transportation Logistics Business Unit, and has
30&nbsp;subsidiaries including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    in the Financial Markets Business Unit, Mitsui&nbsp;&#38; Co.
    Energy Risk Management Ltd. (United Kingdom), Mitsui&nbsp;&#38;
    Co. Precious Metals, Inc. (United States), Mitsui Bussan Futures
    Ltd. (Japan);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    in the Transportation Logistics Business Unit, Nitto Logistics
    Co., Ltd. (Japan), Mitsuibussan Insurance and
    Consulting&nbsp;Co., Ltd. (Japan), Tri-Net (Japan) Inc. (Japan).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment has 7&nbsp;associated companies including Mitsui
Leasing&nbsp;&#38; Development, Ltd. (Japan) and Quintiles
Transnational Japan K.K. (Japan) in the Financial Markets
Business Unit.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Financial Markets Business Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Financial Markets Business Unit was established by
integrating the relevant divisions such as the Commodity
Trading&nbsp;&#38; Risk Management Division, the Treasury
Division and the Corporate Development Division, which had been
included in the Metal Products&nbsp;&#38; Minerals Segment and
the All Other Segment. This business unit has
18&nbsp;subsidiaries and 3 associated companies and is engaged
in following business activities:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    dealing in derivative financial instruments such as foreign
    exchange and financial futures; and trading of and investment in
    debt and equity securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    trading in precious metals, non-ferrous metals listed on the
    London Metal Exchange and derivative commodity instruments for
    energy, agricultural foods and other commodities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    financial equity investments including principal investment and
    venture capital operation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    real estate investment trusts (&#147;REIT&#148;) related business</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    development, origination and sales of financial products;
    investment in and portfolio management of financial
    products;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    leasing business</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui and its subsidiaries such as Mitsui&nbsp;&#38;&nbsp;Co.
Precious Metals, Inc. (United States) are engaged in trading and
brokerage in precious metals, non-ferrous metals listed on the
London Metal Exchange and derivative commodity instruments for
energy, agricultural foods and other commodities. We are also
engaged in sales and marketing of various derivative and
financial instruments of our own development to investors and
market participants. Mitsui&nbsp;&#38;&nbsp;Co., Energy Risk
Management Ltd. (United Kingdom), which we established in March
2002, enjoyed growth in derivative trading operations, mainly of
crude oil and natural gas related commodities. Japan Alternative
Investment&nbsp;Co., Ltd. (Japan) began operations in April
2002, acting as a placement agent for alternative investment
products, such as hedge funds, private equity funds and
commodity funds. Mitsui Bussan Futures Ltd. (Japan) is a
domestic subsidiary engaged in the future commodities brokering
including precious metals and other commodities such as foods
and oil products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In June 2004, Mitsui and Quintiles Transnational&nbsp;Corp.
agreed on Mitsui taking a 20% shareholding in Quintiles
Transnational Japan&nbsp;K.K. (Japan), in a transaction designed
to accelerate the growth of Quintiles Transnational
Japan&nbsp;K.K.. Quintiles Transnational Corp. is a major
worldwide company in the outsourcing service business in the
pharmaceutical industry. This transaction fits well with our
goal of investing in first-class international companies in the
healthcare and outsourcing service industries and, in
particular, enhancing those companies&#146; Japanese operations.
This business unit is also engaged in venture capital business
through subsidiaries such as MVC Corporation (Japan).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In July 2004, this business unit formed
Mitsui&nbsp;&#38;&nbsp;Co., Logistics Partners Ltd. (Japan), as
an asset management company for real estate investment trusts
that are specialized in the management of investments in
warehouses and distribution centers. In May 2005, we completed
listing of Japan&#146;s first logistics facilities related REIT,
Japan Logistics Fund&nbsp;Inc., with the asset size of
approximately &#165;26&nbsp;billion on the Tokyo Stock Exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This business unit has 40.63% participating interest in Mitsui
Leasing&nbsp;&#38; Development, Ltd. (Japan), a leasing company
with its strengths in leasing of information-processing
equipments and large scale equipments, as well as industrial
machinery, aircrafts and ocean vessels.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Transportation Logistics Business Unit</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Transportation Logistics Business Unit, which had formerly
been included in the All Other Segment, was established and
included in the Logistics&nbsp;&#38; Financial Markets Segment
as a profit center in April 2004 with the aim to providing
sophisticated, high value added logistics services to customers
leveraging its longstanding experiences in offering such
services groupwide. This business unit also seeks for the
development of new business domain through integrating
logistics, financial and information technology.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Together with 12&nbsp;subsidiaries and 4&nbsp;associated
companies, this business unit is engaged in the following
business activities:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    international and domestic transport services including
    transportation of plants and other special cargos, tramper
    shipping, and airfreight;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    warehousing and port services; operation, construction and
    management of warehouses and harbor facilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    insurance agency and consultation for insurance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    solution providing service on logistics including SCM;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    REIT and other liquidating businesses related to logistics
    related facilities.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In international and domestic transport services field, we have
established 5 core subsidiaries including Tri-Net (Japan) Inc.,
which cover our operations in Japan, Americas, Europe, South
East Asia, and China, respectively. Each of those subsidiaries
collaborates with the Head Office and trading subsidiaries
worldwide of Mitsui, and provides international transportation
services mainly using marine containers. They also provide
international combined transportation services by integrating
different modes of transportation such as land, sea and air. In
tramper business, they provide transportation services for power
and chemical plant projects and bulky cargoes such as coal,
grain and fertilizers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the field of warehousing and port service related business
within Japan, Nitto Logistics&nbsp;Co., Ltd. (Japan) plays a
core role. For example, it conducts joint operation with a
domestic specialty store retailer of private label apparel for
outsourced production and inventory management, it provides
information processing function so that its customers optimize
their logistics transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This business has a subsidiary Mitsuibussan Insurance and
Consulting&nbsp;Co., Ltd. (Japan) as an insurance agency. In
addition, the business unit has acquired insurance companies for
captive insurance and operates subsidiaries which are engaged in
this business field, including Insurance Company of Trinet
(USA), Inc. This business unit also maintains consultation
service on a variety range of insurance issues, by taking
advantage of experience and know-how in risk management of this
business unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In collaboration with the Financial Markets Business Unit, this
business unit promotes business of REIT for logistics-related
real estate properties. This unit intends to increase the assets
for such REIT program, seeking opportunities of development of
facilities, brokerage in properties and tenant.
</DIV>

<P align="center" style="font-size: 10pt;">50
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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Americas Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Americas Segment trades in various commodities and conducts
related business led by overseas trading subsidiaries in North,
Central and South America. Mitsui&nbsp;&#38;&nbsp;Co. (U.S.A.),
Inc., or Mitsui U.S.A., manages the business of the segment as
the center of the regional strategy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net income for this segment for the year ended
March&nbsp;31, 2005 were &#165;49.9&nbsp;billion or 6.9% and
&#165;12.3&nbsp;billion or 10.2% of our consolidated total,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment consists of 10&nbsp;trading subsidiaries including
Mitsui U.S.A., Mitsui&nbsp;&#38; Co. (Canada) Ltd., Mitsui
Brasileira Importacao e&nbsp;Exportacao S.A., Mitsui Chile
Ltda., and other 35&nbsp;subsidiaries owned by mainly Mitsui
U.S.A. including Mitsui Steel Development&nbsp;Co., Inc., Portac
Inc., Channel Terminal&nbsp;Corp., Westport Petroleum Inc.,
Mitsui Tubular Products, Inc. and Mitsui Comtek&nbsp;Corp. and
3&nbsp;associated companies including TAMCO.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui U.S.A. is our largest overseas subsidiary, and carries
out many diversified business activities together with our
subsidiaries and associated companies in collaboration with the
operating segments of the Head Office in Japan. Mitsui U.S.A.
has been leading our entry in the U.S.&nbsp;market, and we
believe that Mitsui U.S.A. is one of the major exporters of
American products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui U.S.A. has its corporate head office in New York City.
Other offices are located in Chicago, Cleveland, Detroit,
Houston, Los Angeles, Nashville, Portland, San&nbsp;Francisco,
Seattle and Washington,&nbsp;D.C. Business activities of Mitsui
U.S.A.&#146;s major operating divisions are as below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Iron&nbsp;&#38; Steel Products Division maintains alliances
    with steel mills, steel processors, and customers in the U.S.
    and other countries. Working closely with solution providers, it
    specializes in SCM of steel products, manages inventory and
    process arrangements. This division has been focusing on
    business activities through subsidiaries and associated
    companies such as Mitsui Steel, Inc. for steel products sales
    and demand chain management (&#147;DCM&#148;) services, Mitsui
    Steel Development Co., Inc. which holds Mi-Tech Steel&nbsp;Inc.
    (steel service center), PK U.S.A., Inc. (automotive steel
    stamping), Hannibal Industries, Inc. (steel tube and pallet rack
    manufacturing); Mitsui Tubular Products, Inc. (steel pipe
    sales), and TAMCO (steel bar manufacturing and sales).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Iron&nbsp;&#38; Raw Materials and Non-Ferrous Metals
    Division specializes in iron and steel raw materials, coal,
    primary aluminum, aluminum alloy, copper cathode, and
    non-ferrous materials. The division is supported by
    relationships with subsidiaries jointly held with the Head
    Office, for example, Raw Materials Development Co., Ltd. and
    Mitalco Inc. both in which the division has equity share of 20%.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Power, Transportation&nbsp;&#38; Plant Projects Division
    deals in power, energy, transportation, and industrial and
    infrastructure projects in the Americas through close
    coordination with the Head Office. In addition, subsidiaries
    such as Hydro Capital&nbsp;Corp. for waste water treatment
    projects in Mexico and MIT Wind Power, Inc. for wind power
    generation in Texas are engaged in this business field.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Machinery Division deals in motor vehicles, ship and marine
    projects, aircraft and construction and industrial machinery.
    The Division works closely with United Auto Group, Hino Motors,
    Chevron, Modec International, Embraer, JetBlue and Komatsu.
    Particularly, its activities are seen in investment to
    distribution&nbsp;&#38; retails of automobile/construction
    machinery/outdoor power equipment, newbuilding ship tonnage
    provider to oil major/shipping companies, aircraft leasing for
    the growing regional airlines.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Organic Chemicals Division and the Plastics&nbsp;&#38;
    Inorganic Chemicals Division are engaged in the domestic and
    international trade of various organic and inorganic chemicals
    and chemical intermediates, plastic resins, compounds and final
    products, pharmaceutical intermediates, food additives,
    fertilizer and crop protection chemicals, and petrochemicals.
    This division has extended business activities thorough
    subsidiaries such as Bioproducts, Inc. Recent development of this</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">51
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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    division toward a new business is an acquisition of CornerStone
    Research&nbsp;&#38; Development&nbsp;Inc., which focuses on
    processing and packaging of healthcare foods and chemicals.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Energy Division specializes in global trading of petroleum
    products, including crude oil, heavy oil and petroleum coke, as
    well as importation of LNG. This division has a subsidiary
    Westport Petroleum, Inc. in which Mitsui U.S.A. has 65.0% equity
    share and the remaining share is owned by the Head office.
    Westport Petroleum, Inc. is engaged in sales, trading and
    commercial and operational services to the energy industry with
    respect to pipeline and cargo trading of gasoline, jet fuel,
    diesel, refinery feedstocks, cutterstocks, bunker fuel, and fuel
    oils throughout the United States and major international energy
    markets. These transactions by Westport Petroleum, Inc. account
    for one of major part of our revenues from sales of products
    groupwide.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The food division deals in grain, coffee, meats, vegetables,
    eggs, juices, dairy products, frozen foods, feedstuff, edible
    oils and canned foods. Notably, this division has a subsidiary
    United Grain Corp, which is engaged in export facility operation
    for wheat and barley.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Life commerce division focuses on consumer-oriented business
    development. This division has a subsidiary Portac, Inc. a
    lumber mill, which produces dimension lumber and specialty items
    for U.S consumption and export. In other area, the division has
    an equity share in MBK Real Estate Ltd., a real estate
    subsidiary jointly held with the Head Office and engaged in
    development and homebuilding services</TD>
</TR>

</TABLE>

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<TR>
    <TD width="1%"></TD>
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    <TD></TD>
    <TD>
    <B><I>Europe Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Europe Segment trades in various commodities and conducts
related businesses led by overseas trading subsidiaries in
Europe and Africa. Mitsui&nbsp;&#38;&nbsp;Co. Europe PLC
(&#147;Mitsui Europe&#148;) is authorized to manage the business
of this segment as the center of its regional strategy. Also,
this segment is responsible for carrying out diversified
business activities together with its affiliated companies in
collaboration with the operating segments of the Head Office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net income for this segment for the year ended
March&nbsp;31, 2005 were &#165;20.7&nbsp;billion or 2.9% and
&#165;2.9&nbsp;billion or 2.4% of our consolidated total,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2005, this segment consists of 12 trading
subsidiaries including Mitsui Europe, Mitsui&nbsp;&#38; Co. UK
PLC, Mitsui&nbsp;&#38;&nbsp;Co. Deutschland GmbH,
7&nbsp;subsidiaries including Cohen&nbsp;&#38; Wilks
International Ltd. (United Kingdom) and
Plalloy&nbsp;MTD&nbsp;B.V. (Netherlands) and 8&nbsp;associated
companies including Companhia Industrial De Resinas Sinteticas
(Portugal).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui Europe, our wholly-owned subsidiary with its head office
in London, manages the overall business activities in Western
Europe, Africa, Central and Eastern Europe through its
8&nbsp;operating subsidiaries, 13&nbsp;branch offices and
liaison offices. Mitsui Europe collaborates with our
subsidiaries and associated companies of other operating
segments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April 2005, this segment reorganized its internal structure.
Before the change, each of those operating subsidiaries had
independently reported to the Managing Director of Mitsui
Europe, whereby their business plans and operations had been
inclined to be narrowed by limitation of borders of countries.
In order to accelerate business development based on a product
strategy that encompasses the whole of Europe, this segment
introduced a Business Division System within Europe, in which
Divisional Operating Officers oversee the operations by products
and services in the region and directly report to Managing
Director of Mitsui Europe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Recently, the major parts of business in this segment have been
sales and trading in steel products, chemicals and machinery.
For example, this segment has provided assistance services for
SCM of steel products procured by Norsk Hydro ASA. In chemical
business, this segment has been engaged in sales and trade in
various chemical products and materials supported by our global
network and relationship with large scale manufactures including
Bayer Aktiengesellschaft. In machinery business, for
Mitsui&#146;s
</DIV>

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<DIV align="left" style="font-size: 10pt;">
worldwide power plant and industrial plant and transportation
projects, this segment has provided assistance service in
collaboration with European manufacturers such as Siemens
Aktiengesellschaft.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Over the years, in Central and Eastern Europe, we have
established trading subsidiaries and representative offices to
expand business opportunities in the region, and continuously
participated in joint ventures, mainly with Japanese
manufactures. Along with enlargement of European Union, Japanese
automobile, electric and chemical manufactures are rushing to
set up operations in the region. We are also collaborating with
them by taking advantage of our business bases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are starting joint operation with Arcelor S.A., a European
steel maker, to supply steel sheet to the Japanese automobile
and automobile parts manufacturers.
</DIV>

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    <TD></TD>
    <TD>
    <B><I>Other Overseas Areas Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment includes all of our region-based subsidiaries,
liaison offices and affiliated companies excluding those in our
Americas and Europe Segments. The subsidiaries, liaison offices
and affiliated companies in this segment are located primarily
in China, the member countries of ASEAN, Oceania, the Middle
East, Southwest Asia and CIS. The Overseas Areas Segment is
engaged in business activities that are essentially similar to
that of Mitsui. We conduct business activities in all industry
sectors based on our specialized knowledge particular to that
region.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to develop new business opportunities emerging with the
development of network economies based around China, ASEAN and
India, we introduced an Asian Managing Directorship system.
Thus, since April 2005, the Regional Managing Director, Asia has
had full control with broad authority and responsibility to
manage our businesses throughout Asia excluding Japan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net income for this segment for the year ended
March&nbsp;31, 2005 were &#165;25.8&nbsp;billion or 3.6% and
&#165;13.8&nbsp;billion or 11.4% of consolidated total,
respectively.
</DIV>

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    <TD width="3%"></TD>
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    <TD></TD>
    <TD>
    <I>China</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
China has been a focus of recent global attention as an
attractive market, with 9.5% and 9.3% growth in gross domestic
product in 2004 and 2003, respectively, as a result of accession
to the WTO and a growing reputation as an efficient and cost
effective manufacturer of goods. Based on our assessment that
there is a tremendous potential in Greater China which includes
mainland China, Hong Kong and Taiwan, we have considerably
increased our presence in the market there. We have been
increasing our operations in, and shifting management resources
to, Greater China in order to expand and strengthen our business
operations involving products such as automobiles, consumer
products, IT, electronics, energy, and metals, while reinforcing
our transportation and logistics services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our presence in China is comprised of eight local subsidiaries,
including Mitsui&nbsp;&#38;&nbsp;Co., (China) Ltd., an investing
company in Beijing and six subsidiaries in China&#146;s bonded
areas including Mitsui&nbsp;&#38;&nbsp;Co. (Shanghai) Ltd. as
well as Mitsui&nbsp;&#38;&nbsp;Co. (Hong Kong) Ltd. In addition,
we have established representative offices in 12&nbsp;cities in
China as of March 2005. In accordance with agreements made when
joining the WTO, the Chinese government has pledged to ease
restrictions on trading and domestic sales by foreign companies,
and the relevant laws and regulations are being revised.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April 2003, we realigned our operations in China with the aim
of creating a streamlined system to manage our business in
China, including Hong Kong. The realignment included
establishing three operating units in Beijing, Shanghai and Hong
Kong, each reporting to our single General Representative in
China. By centralizing decision-making authority for our Chinese
operations, we expect the new structure to be better equipped to
respond to and effectively address new business opportunities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For information on business in China promoted by the business
units of the Head Office or joint ventures in China, see the
above-mentioned activities of each business unit.
Mitsui&nbsp;&#38; Co., (China) Ltd.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
has made investment jointly with the business units of the Head
Office in critical joint ventures in China. Among others, we
place a high priority on establishment of logistic network
within China. For example:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In March 2003, we entered into a comprehensive strategic
    alliance with China Postal Logistics Co., Ltd. Through this
    alliance, we are now in a position to utilize the facilities and
    distribution networks of China&#146;s postal service, the China
    State Post Bureau.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Through Mitsui International Logistics and Trade (Suzhou) Co.,
    Ltd., which is referred in the business activities of the
    Plastics&nbsp;&#38; Inorganic Chemicals Business Unit, we also
    became the first trading company to gain the right to conduct
    imports and exports under our own name outside a bonded area. We
    plan to use this subsidiary to handle merchandise flows to and
    from China, mainly to serve the Chinese bases of Japanese
    companies. Mitsui&nbsp;&#38; Co., (China) Ltd. has minority
    share in this subsidiary.</TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>ASEAN Region</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the ASEAN region, overseas offices including Singapore
Branch, Kuala Lumpur Branch and Manila Branch, trading
subsidiaries including Mitsui&nbsp;&#38; Co., (Thailand) Ltd.,
Mitsiam International Ltd. (Thailand), PT Mitsui Indonesia
(Indonesia) and associated companies jointly collaborate with
the Head Office and engage in various business activities
involving, amongst other things, chemical and metal products and
industrial type projects. Such industrial projects are referred
in the business activities of the Power,
Transportation&nbsp;&#38; Plant Project Business Unit above.
With the Head Office, these branches and trading subsidiaries
jointly establish various subsidiaries and participate in joint
ventures formed with the third parties.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Oceania</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In Australia, Mitsui&nbsp;&#38; Co. (Australia) Ltd. is active
in the development of minerals such as iron ore and coal, energy
and agricultural exports in collaboration with corresponding
operating segments mainly in the Head Office. As described in
the Metal Products&nbsp;&#38; Minerals Segment and the Energy
Segment above, Australia is a critical geographic area in our
corporate strategy. Mitsui&nbsp;&#38; Co. (Australia) Ltd.
participates in Mitsui Iron Ore Development Pty. Ltd.
(Australia) and Mitsui Coal Holdings Pty. Ltd. (Australia) with
equity share of 20% and 30%, respectively.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>The Middle East</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the Middle East we have established trading subsidiaries of
Mitsui&nbsp;&#38;&nbsp;Co., Middle East Ltd. (United Arab
Emirates), Mitsui and Co.(Middle East) B.S.C.(c) (Bahrain),
Mitsui and Co., Iran Ltd. (Iran) and Mitsui and Co. Kuwait
W.L.L.(Kuwait). Mitsui&nbsp;&#38; Co., Middle East Ltd. owns
offices in United Arab Emirates, Qatar and Oman. Mitsui has 10
representative offices in the Middle East countries including
Saudi Arabia. These trading subsidiaries and offices in the
Middle East are collaborating with the Head Office primarily in
the field energy development and production and projects of
petrochemical plants and power plants.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Southwest Asia</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our operations in India were traditionally handled by branch
offices in New Delhi, Calcutta, Madras and Bombay and were
concentrated primarily in exporting commodities, such as iron
ore, finished iron and steel products, textiles, and marine
products, to Japan and other areas of the world. However, with
the increasing deregulation of the Indian economy, in March 2003
we established Mitsui&nbsp;&#38; Co., India Pvt. Ltd. Through
Mitsui&nbsp;&#38; Co., India Pvt. Ltd, we expect not only to
engage in import and export-related transactions but also to
pursue investment opportunities in domestic distribution
channels.
</DIV>

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<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>All Other Segment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The operations of the All Other Segment include development and
marketing of systems, financing services, office services and
other services to external customers, and/or to us, and
associated companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and net income for this segment for the year ended
March&nbsp;31, 2005 were &#165;12.3&nbsp;billion or 1.7% and
&#165;4.4&nbsp;billion or 3.7% of our consolidated total,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The All Other Segment has 16 subsidiaries and 1 associated
company. The activities of major subsidiaries in this segment
are as the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Bussan Credit Co., Ltd. (Japan)(*) is engaged in financial
    services such as commercial loan and cash management service,
    mainly provided to domestic subsidiaries and associated companies</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mitsui Knowledge Industry Co., Ltd. (Japan) is engaged in
    planning, development, maintenance and operation of computer
    systems</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mitsui&nbsp;&#38; Co., Asia Investment Ltd. (Singapore) is
    engaged in-house financial services in the South East Asian
    region.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(*)&nbsp;</TD>
    <TD align="left">
    Bussan Credit Co., Ltd. (Japan) changed its corporate name to
    Mitsui&nbsp;&#38; Co. Financial Services Ltd. in April 2005.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Principal Markets</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are involved in the worldwide trading of various commodities.
The following table provides a breakdown of our revenues by
commodity type for the years ended March&nbsp;31, 2005, 2004 and
2003.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>In Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As Restated)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As Restated)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues<SUP style="font-size: 85%; vertical-align: text-top">(1),(2)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Distribution by Commodity:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Iron and Steel</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>407.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>312.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>281.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-Ferrous Metals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>157.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>152.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>269.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>305.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>304.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>144.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>119.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>108.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemicals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>729.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>520.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>463.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,048.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>954.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>831.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foods</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>473.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>389.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>393.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Textiles</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    General Merchandise</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>96.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>88.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and Service Business</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>106.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>123.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,525.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,982.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,784.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Notes:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Starting from the year ended March&nbsp;31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as interest expense, net of
    interest income. In relation to this change, the figures of
    revenues for the years ended March&nbsp;31, 2004 and 2003 have
    been restated to conform to the current year presentation.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">55

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    In accordance with SFAS&nbsp;No.&nbsp;144, revenues from
    discontinued operations are eliminated from each product amount
    and &#147;Consolidated Total.&#148; The figures the years ended
    March&nbsp;31, 2004 and 2003 have been reclassified to conform
    to the current year presentation.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows our total trading transactions in each
of our major markets for the years ended March&nbsp;31, 2005,
2004 and
2003.<SUP style="font-size: 85%; vertical-align: text-top">(1)(2)(3)</SUP>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="56%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>In Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As Restated)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As Restated)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Japan</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,736.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,189.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,102.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    United States</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,096.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>831.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>808.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    United Kingdom</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>200.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>159.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>154.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    China</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>608.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>421.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>350.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,973.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,682.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,058.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>13,615.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,284.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,474.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Notes:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Total trading transactions is a voluntary disclosure and
    represents the gross transaction volume or the nominal aggregate
    value of the sales contracts in which we act as principal and
    transactions in which we serve as agent. Total trading
    transactions is not meant to represent sales or revenues in
    accordance with U.S.&nbsp;GAAP. Total trading transactions
    should not be construed as equivalent to, or a substitute or
    proxy for, revenues, or as an indicator of our operating
    performance, liquidity or cash flows generated by operating,
    investing or financing activities. A substantial part of total
    trading transactions represents transactions in which title to
    and payment for the goods pass through us without physical
    acquisition and delivery through our inventories. We have
    included the information concerning total trading transactions
    because it is used by similar Japanese trading companies as an
    industry benchmark, and we believe it is a useful supplement to
    results of operations data as a measure of our performance
    compared to other similar Japanese trading companies. Total
    trading transactions is included in the measure of segment
    profit and loss reviewed by the chief operating decision maker.
    See Notes&nbsp;2, &#147;BASIS OF FINANCIAL STATEMENTS AND
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES&#148; and&nbsp;17,
    &#147;SEGMENT INFORMATION&#148; accompanying the consolidated
    financial statements for further discussion.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Starting from the year ended March&nbsp;31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as interest expense, net of
    interest income. In relation to this change, the figures of
    total trading transactions for the years ended March&nbsp;31,
    2004 and 2003 have been restated to conform to the current year
    presentation.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Total trading transactions are attributed to countries based on
    the location of customers.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    In accordance with SFAS&nbsp;No.&nbsp;144, total trading
    transactions to external customers from discontinued operations
    are eliminated from each geographic area amount and
    &#147;Consolidated Total.&#148; The figures for the years ended
    March&nbsp;31, 2004 and 2003 have been reclassified to conform
    to the current year presentation.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    Total trading transactions to the customers located in China,
    which were previously included in &#147;All Other,&#148; were
    separately presented in consideration of the importance of the
    amount for the year ended March&nbsp;31, 2005. The figures for
    the years ended March&nbsp;31, 2004 and 2003 have been restated
    to conform to the current year presentation.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">56

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='112'></A>
</DIV>

<!-- link1 "C. Organizational Structure." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>C.</B></TD>
    <TD>
    <B>Organizational Structure.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are a global general trading company and we conduct our
business with our subsidiaries and associated companies. As of
March&nbsp;31, 2005, we had 427 subsidiaries and 296 associated
companies that are accounted for by the equity method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The table below provides information on our significant
subsidiaries as of March&nbsp;31, 2005. We have supplementarily
provided voting power where it differs from ownership interest.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ownership</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Voting</B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Country of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Interest</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Power</B></TD>
</TR>

<TR>
    <TD align="left" nowrap><B>Operating Segment</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Company</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Incorporation</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Business</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(%)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(%)</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Metal Products &#38; Minerals</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Iron Ore Development Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mining and sales of Australian iron ore</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sesa Goa Limited</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    India</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mining and sales of Indian iron ore and processing and sales of
    coke</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>51.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Itochu Iron Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mining and sales of Australian iron ore</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>70.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Coal Holdings Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in Australian coal business</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan Collahuasi Resources B.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Netherlands</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in a copper mine in Chile</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>61.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Raw Materials Development Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in ferrous raw materials business</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan Raw Materials Development Corp.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Wholesale of ferrous and non- ferrous scrap and ferroalloys</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitalco Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Aluminum smelting</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. Metals Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Copper and aluminum metals marketing</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan Construction Materials Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of construction materials and semi-assembled steel products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tsuda
    Corporation<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Wholesale of steel products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Regency Steel Asia Pte Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Singapore</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Wholesale and retail sale of steel products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>85.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Machinery, Electronics&nbsp;&#38; Information</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    MBK Project Holdings Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in manufacturers of plant-related materials and
    equipment</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Rail Capital Holdings, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Freightcar leasing and management</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Power Ventures Limited</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United Kingdom</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in power generation business</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan Plant&nbsp;&#38; Project Corp.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of chemical plants and heavy machinery equipment</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Clio Marine Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Liberia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Shipping business</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan Transportation System Co.,
    Ltd.<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Monorail, new transportation systems and railway-related
    machinery</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Toyota Chile S.A.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chile</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Import and sales of automobiles and auto parts in Chile</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    P.T. Bussan Auto Finance</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indonesia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Motorcycle retail finance</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>90.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    CM Pacific Maritime Corporation</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Liberia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Shipping business</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Automotive Europe B.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Netherlands</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in automotive related companies and trades of
    automobiles</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Lepta Shipping Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Liberia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Shipping business</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tombo Aviation Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Purchase, sales and leasing of aircraft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan Aerospace Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of helicopters and defence related systems</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">57

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ownership</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Voting</B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Country of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Interest</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Power</B></TD>
</TR>

<TR>
    <TD align="left" nowrap><B>Operating Segment</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Company</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Incorporation</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Business</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(%)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(%)</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tombo Capital Corporation</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Purchase, sales and leasing of aircraft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Telepark
    Corp.<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of mobile phones and related telecommunication services</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>65.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Xion Electronics,
    Inc.<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in semiconductor device sales companies</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Toyo Officemation, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Design, operation and maintenance of information systems</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    NextCom K.K.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Network integrator focused on multi-vendor and in-house
    developed solutions</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>47.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    47.46</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Chemical</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    P.T. Kaltim Pasifik Amoniak</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indonesia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Production and sales of anhydrous ammonia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>55.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Novus International, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Production, marketing and sales of various feed supplements</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>65.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Fertilizantes Mitsui S.A. Industria e Comercio</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Brazil</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Production and sales of fertilizers</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Nikken Fine Chemicals Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Production and sales of sorbitol and related organic chemical
    products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan Agro Business Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Development and sales of fertilizers and agricultural products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    MITSUI BUSSAN SOLVENT&nbsp;&#38; COATING CO., LTD.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Domestic sales, export and import, off-shore trade of solvents
    and coating materials</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Daito Chemical Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Production and sales of industrial chemicals</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>70.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan Plastics Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Wholesale of raw materials and products of plastics</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Nippon Trading Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of plastics and chemicals</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>48.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    48.82</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Bussan Nanotech Research Institute
    Inc.<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Research and development of nano- products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Energy</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mittwell Energy Resources Pty., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of crude oil and condensate, development of Casino gas
    field in Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Wandoo Petroleum Pty Ltd</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Exploration, development and production of oil and natural gas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>70.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    100.00</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui E&#38;P Australia Pty Limited</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Exploration and development of oil and natural gas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui E&#38;P Middle East B.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Netherlands</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Exploration, development and production of oil and natural gas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>77.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    60.00</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Gas Development Qatar B.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Netherlands</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Development and production of natural gas and condensate</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui LNG Nederland B.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Netherlands</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in Qatar LNG project</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. (E&#38;P) B.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Netherlands</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Exploration, development, production and investments in oil and
    natural gas resources</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Arcadia Petroleum Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United Kingdom</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Physical and future trading of crude oil</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Oil Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of petroleum products in Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>89.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Endeavour Resources Limited</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United Kingdom</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in Japan Australia LNG (MIMI) Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Sakhalin Holdings B.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Netherlands</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in Sakhalin Energy Investment</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">58

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ownership</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Voting</B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Country of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Interest</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Power</B></TD>
</TR>

<TR>
    <TD align="left" nowrap><B>Operating Segment</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Company</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Incorporation</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Business</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(%)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(%)</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Oil (Asia) Pte. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Singapore</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Physical and future trading of crude oil and petroleum products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Liquefied Gas Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of liquefied petroleum gas in Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>89.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Overseas Petroleum Corporation</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Exploration, development and investments in oil and gas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>96.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Consumer Products&nbsp;&#38; Services</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Norin Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Manufacture and sales of food products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>51.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    87.63</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    MITSUI FOODS CO., LTD.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Wholesale of foods and beverages</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>99.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    WILSEY FOODS, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in processed oil food company</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>90.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    DAI-ICHI BROILER CO., LTD.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Production, processing, and sales of broilers</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>72.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Retail System Service Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of sundries and foodstuff to retailers</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan Inter-fashion Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Planning and management of production and distribution of apparel</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Bussan Real Estate Development Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Real estate sales, leasing and management</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    MBK Laguna Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in real estate-related businesses</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan House-Techno, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Housing business</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Logistics&nbsp;&#38; Financial Markets</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. Energy Risk Management Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United Kingdom</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Energy derivatives dealing</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. Precious Metals, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trading of precious metals</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Bussan Futures Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Future commodities brokering</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Nitto Logistics Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Warehousing, customs clearance and real estate leasing</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Bussan Capital Corp.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Securities investment, commercial finance and related activities</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsuibussan Insurance and Consulting Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Property and casualty insurance consignment and agency services</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tri-Net (Japan) Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    International integrated transportation services</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tri-Net Logistics (Asia) Pte. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Singapore</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    International integrated transportation services</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Americas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. (U.S.A.), Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. (Canada) Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Canada</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Brasileira Importa&#231;&#227;o e Exporta&#231;&#227;o
    S.A.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Brazil</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Steel Development Co., Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in steel-related businesses</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Steel, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Wholesale and SCM service of steel products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Channel Terminal Corp.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments in tank leasing business</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Champions Pipe&nbsp;&#38; Supply, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of steel pipes</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>94.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Tubular Products, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sales of steel pipes</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Auto Steel Canada Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Canada</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Warehouse services for storage and handling of auto steel</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Comtek Corp.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Electronics and IT-related business</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">59

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ownership</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Voting</B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Country of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Interest</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Power</B></TD>
</TR>

<TR>
    <TD align="left" nowrap><B>Operating Segment</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Company</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Incorporation</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Business</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(%)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(%)</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    CornerStone Research&nbsp;&#38; Development, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Processing and packaging of healthcare foods and supplements</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Westport Petroleum, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    International trading of petroleum products and crude oil</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Portac, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Manufacture of lumber and lumber products</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Europe</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. Europe PLC</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United Kingdom</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management of business in Europe and Africa</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. UK PLC</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    United Kingdom</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. International (Europe) B.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Netherlands</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investments and financial services</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. Deutschland GmbH</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Germany</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. Benelux S.A./N.V.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Belgium</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. France S.A.S.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    France</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. Italia S.p.A.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Italy</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Other Overseas Areas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. (Hong Kong) Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Hong Kong, China</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. (Shanghai) Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    China</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. (Taiwan) Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Taiwan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. (Thailand) Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Thailand</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsiam International Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Thailand</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>52.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    55.00</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. (Australia) Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co. (Middle East) E.C.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Bahrain</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trade</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    All Other</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Bussan Credit Co.,
    Ltd.<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Financial services</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Knowledge Industry Co., Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Japan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Planning, development, maintenance and operation of computer
    systems</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>67.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    67.37</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui&nbsp;&#38; Co., Asia Investment Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Singapore</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Financial services</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Changed its corporate name to SINTSUDA CORPORATION in April 2005</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Changed its corporate name from Bussan Transportation System
    Co., Ltd. in July 2004</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Changed its corporate name from Mitsui&nbsp;&#38; Associates
    Telepark Corporation in October 2004</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Changed its corporate name from Xion Holdings, Inc. in January
    2005</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    Changed its corporate name from Carbon Nanotech Research
    Institute Inc. in April 2004</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    Changed its corporate name to Mitsui&nbsp;&#38; Co. Financial
    Services Ltd. in April 2005</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='113'></A>
</DIV>

<!-- link1 "D. Property, Plants and Equipment." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>D.</B></TD>
    <TD>
    <B>Property, Plants and Equipment.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides a list of our principal property,
plants and equipment as of March&nbsp;31, 2005.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Property, Plants and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Equipment Description</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Size or Annual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>(Holder or Lessee Other than Mitsui)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Production Capacity</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>User of Property</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(Sft: Square feet,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mt: Metric Ton)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>In Japan:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsuibussan Building</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Tokyo</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    1,321,572&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Office use (Corporate Headquarters)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Osaka Mitsuibussan Building</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Osaka</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    463,404&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Office use</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">60

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Property, Plants and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Equipment Description</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Size or Annual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>(Holder or Lessee Other than Mitsui)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Production Capacity</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>User of Property</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(Sft: Square feet,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mt: Metric Ton)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Nagoya Mitsuibussann Building</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Nagoya</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    152,471&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Office use</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hibiya Central Building</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Tokyo</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    509,841&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Office building for lease</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Bussan Building Annex</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Tokyo</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    210,705&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Office building for lease</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Company Housing&nbsp;&#38; Dormitory</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Chiba</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    39,331&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Employees&#146; residential facility</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Human Resource Development Center</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Shizuoka</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    25,372&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Training facility</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land and equipment (Mitsui Liquefied Gas Co., Ltd.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Ishikawa</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    852,072&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Liquefied petroleum gas terminal</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Wakamatsu Building&nbsp;&#38; Shinsuna Bayside Building (Bussan
    Real Estate Development Co., Ltd.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Tokyo</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    172,406&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Office building for lease</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land (MITSUI FOODS Co., LTD)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Saitama</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    71,171&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Distribution center</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land and equipment (DAI-ICHI BROILER CO., LTD.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Aomori</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    46,102&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Broiler processing factory</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land and equipment (Mitsui Norin Co., Ltd.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Yamanashi</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    339,871&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Tea leaf processing factory</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sun East Shinonome Building&nbsp;&#38; Sun East Tatsumi Building
    (Nitto Logistics Co., Ltd.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Tokyo</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    129,221&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Office use and office building for lease</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tojin Building (TOSHIN SOKO KAISHA, LTD.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Tokyo</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    26,759&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Office use and office building for lease</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Overseas:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Office Space (Mitsui&nbsp;&#38; Co. (U.S.A.), Inc.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    199,524&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Office space leased from others</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equipment (Mitsui Coal Holdings Pty. Ltd.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    7,760,000&nbsp;Mt</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Mining equipment for coal</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land and plants (Mitalco Inc.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    465,098&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Aluminium smelting factory</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equipment (Mitsui Iron Ore Development Pty. Ltd.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    21,099,000&nbsp;Mt</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Mining equipment for iron ore</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equipment (Mitsui-Itochu Iron Pty. Ltd.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2,449,000&nbsp;Mt</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Mining equipment for iron ore</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equipment (Sesa Goa Limited)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    India</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2,573,000&nbsp;Mt</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Mining equipment for iron ore</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land and plants (P.T.&nbsp;Kaltim Pasifik Amoniak)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Indonesia</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    579,397&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Ammonia manufacturing plant</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land and plants (Novus International, Inc.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    636,826&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Methionine production facility</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shopping centers (MBK Newport Inc.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    186,237&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Leasing asset</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical tank yard (Mitsui&nbsp;&#38; Co. (U.S.A.), Inc.)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    United States</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    11,495,355&nbsp;Sft</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Chemical tank</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Information on our mining activities related to Mitsui Coal
    Holdings Pty. Ltd., Mitsui Iron Ore Development Pty. Ltd., and
    Mitsui Itochu Iron Pty. Ltd. that are located in Australia is
    shown in &#147;Iron and Steel Raw Materials Unit&#148; of
    &#147;B.&nbsp;Business Overview&#148; in this Item and
    &#147;Mining Activities&#148; below.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">61

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the above, our major assets leased to others as
of March&nbsp;31, 2005 were as below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Clio Marine Inc. (Liberia), Lepta Shipping Co., Ltd. (Liberia)
    and LPG Transport Service Ltd. (Bermuda) own ocean vessels
    leased to foreign and domestic shipping companies whose combined
    book value amounting to &#165;26&nbsp;billion;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mitsui Rail Capital Holdings, Inc. (the United States) owns
    rolling stock mainly leased to railway companies in the Unites
    States amounting to &#165;8&nbsp;billion as book value;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Tombo Aviation Inc. (the United States) and Tombo Capital
    Corporation (Japan) own aircraft leased to foreign and domestic
    airline companies amounting to &#165;25&nbsp;billion as book
    value of the total of two companies.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For information on our oil and gas producing activities, see
&#147;Supplementary Information on Oil and Gas Producing
Activities (Unaudited)&#148; to the consolidated financial
statements included elsewhere in this annual report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A portion of the land, buildings and equipment owned by us is
subject to mortgages or other liens. As of March&nbsp;31, 2005,
the aggregate amount of such mortgages or other liens was
&#165;31.5&nbsp;billion. We know of no material defect in our
title to neither of any of the properties nor of any material
adverse claim with respect to them, either pending or
contemplated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We consider our offices and other facilities to be well
maintained and believe that our plant capacity is adequate for
our current requirements. For the information on plans to
construct, expand or improve facilities, in particular those
related to mineral resource projects and oil and gas projects,
see relevant descriptions in &#147;Item&nbsp;4.A. History and
Development of the Company&nbsp;&#151; Capital
Expenditure,&#148; &#147;Metal Products&nbsp;&#38; Minerals
Segment&#148; and &#147;Energy Segment&#148; of
&#147;Item&nbsp;4.B. Business Overview&#148; and &#147;Mining
activities&#148; below in this section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We do not believe there are any material environmental issues
that would affect the utilization of our assets.
</DIV>

<P align="center" style="font-size: 10pt;">62

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Mining Activities</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information regarding our mining activities are provided
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>IRON ORE</B>
</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Name of Joint Venture or
Investee<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></I></B>
</DIV>

<DIV align="left" style="font-size: 7pt;">
<B><I>Entity by which Mitsui Participates in the Mining Activity
and its Ownership&nbsp;Interest</I></B>
</DIV>

<DIV align="left" style="font-size: 7pt;">
<B><I>Area of Mining Operation (Region, State, Country)</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Type of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="6" align="left" nowrap><B>Name of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mineral</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fe Basis</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Means of Access to the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Type of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2" align="left" nowrap><B>Mines<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Location</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Resources<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(%)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Property</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title/Lease</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mine</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Power Source</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Robe River Iron Associates</I></TD>
</TR>

<TR>
    <TD colspan="9" align="left" valign="top">
    <I>Mitsui Iron Ore Development Pty. Ltd. (33%)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9" align="left" valign="top">
    <I>Pilbara Region, Western Australia, Australia</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>Mesa J</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">Near Pannawonica, 200 km southwest of Cape Lambert</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pisolite</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>57.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway and port in Cape Lambert (owned by Robe River Iron
    Associates and operated by Pilbara Iron Pty Ltd.)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Agreements for life of mine with Government of Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplied by Pilbara Iron Pty Ltd.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>West Angelas</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">West Angelas, 330&nbsp;km southeast of Cape Lambert</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Marra<BR>&nbsp;Mamba</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>62.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Same as above</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Same as above</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Same as above</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Mount Newman Joint Venture</I></TD>
</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Mitsui Itochu Iron Pty. Ltd. (10%) (Mitsui share of Mitsui
    Itochu Iron Pty. Ltd. is 70%)</I></TD>
</TR>

<TR>
    <TD colspan="9" align="left" valign="top">
    <I>Pilbara Region, Western Australia, Australia</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>Mt. Whaleback</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">Near the town of Newman, 426&nbsp;km south of Port Headland</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Brockman<BR>
    <BR>
    <BR>
    <BR>
    Marra<BR>&nbsp;Mamba</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>62.2<BR><BR><BR><BR>62.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway (owned and operated by Mount Newman Joint Venture) and
    port in Port Headland (owned and operated by Mount Newman Joint
    Venture)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mineral lease granted in 1967 under the Iron Ore (Mount Newman)
    Agreement Act 1964 scheduled to expire in 2009 with rights for
    successive renewals for 21&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplied by Alinta Ltd. (partially owned by the state)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Yandi Joint Venture</I></TD>
</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Mitsui Iron Ore Development Pty. Ltd. (7%)</I></TD>
</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Pilbara Region, Western Australia, Australia</I></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>Marillana Creek</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">92&nbsp;km north of Newman, 310&nbsp;km south of Port Headland</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Channel Iron &nbsp;Deposit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>57.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Rail spur (owned by Yandi Joint Venture) connected to the main
    Newman/ Hedland line (owned and operated by Mount Newmani Joint
    Venture) and port inn Port Hedland (ownd and operated by Mount
    Newman Joint Venture)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mining lease granted in 1991 under the Iron Ore (Marillana
    Creek) Agreement Act 1991 scheduled to expire in 2012 with the
    right to extend for additional 42&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplied by Alinta Ltd. (partially owned by state)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">63

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; ">

<TR style="font-size: 1pt;">
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Type of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="6" align="left" nowrap><B>Name of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mineral</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fe Basis</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Means of Access to the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Type of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2" align="left" nowrap><B>Mines<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Location</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Resources<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(%)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Property</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title/Lease</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mine</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Power Source</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Mount Goldsworthy Joint Venture</I></TD>
</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Mitsui Iron Ore Development Pty. Ltd. (7%)</I></TD>
</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Pilbara Region, Western Australia, Australia</I></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top"><B>North Area<BR>(Yarrie)<BR>(Nimingarra)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">210 km east of Port Headland</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Nimingarra</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>61.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway (owned and operated by Mount Goldsworthy Joint Venture)
    and port in Port Headland (owned and operated by Mount
    Goldsworthy Joint Venture)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Multiple mineral leases under the Iron Ore (Mount Goldsworthy)
    Agreement Act 1964 and the Iron Ore (Goldsworthy&#151;
    Nimingarra) Agreement Act 1972. The last one expires in 2014,
    with rights of renewal over these leases for successive 21-year
    periods.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplied by Alinta Ltd. (partially owned by state)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>Area C</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">120 km northwest of Newman, 37&nbsp; km southwest of Yandi</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Marra<BR>&nbsp;Mamba</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>62.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Rail spur (owned by Goldsworthy Joint Venture) connecting to the
    Yandi spur line (owned by Yandi Joint Venture) and then onto the
    main Newman/ Hedland line (owned and operated by Mount Newman
    Joint Venture) and port in Port Hedland (owned and operated by
    Goldsworthy Joint Venture)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Same as above</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplied by Alinta Ltd. (partially owned by state)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Sesa Goa Limited</I></TD>
</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Sesa Goa Limited (51%)</I></TD>
</TR>

<TR>
    <TD colspan="21" align="left" valign="top">
    <I>Goa and Karnataka, India</I></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><B>Codli</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Goa, India</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Fines/Lumps</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>54.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Barge and port in Mormugao</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Combination of own lease and sub lease</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplied by state</TD>
</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><B>Sonshi</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Goa, India</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Fines/Lumps</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>54.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Barge and port in Mormugao</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Combination of own lease and sub lease</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplied by state</TD>
</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><B>Chitradurga</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Karnataka, India</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Fines/Lumps</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>60.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway, truck and shipping facility at Mormugao and Chennai</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Combination of own lease and sub lease</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplied by state</TD>
</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><B>Hospet</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Karnataka, India</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Fines/Lumps</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>60.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway, truck and shipping facility at Mormugao and Chennai</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Combination of own lease and sub lease</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplied by state</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    The term &#147;Investee&#148; refers only to Sesa Goa Limited.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    &#147;Name of Mines&#148; indicates the names of principal
    producing mines.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    &#147;Pisolite&#148;, &#147;Marra Mamba&#148;,
    &#147;Brockman&#148;, &#147;Channel Iron Deposit&#148; and
    &#147;Nimingarra&#148; refer to the types of iron ore that are
    found in the Pilbara region of Western Australia.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">64

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>COAL</B>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Name of Joint Venture or Investee</I></B>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<B><I>Entity by which Mitsui Participates in the Mining Activity
and its
Ownership&nbsp;Interest<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></I></B>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<B><I>Area of Mining Operation (Region, State, Country)</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="6" align="left" nowrap><B>Name of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Type of</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Means of Access to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Type of</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Power</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="center" nowrap><B>Mines<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Location</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Resources</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>the Property</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title/Lease</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Mine</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Source</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>BHP Mitsui Coal Pty. Ltd.</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>BHP Mitsui Coal Pty.
    Ltd.<SUP style="font-size: 85%; vertical-align: text-top">(1)
    </SUP>(20%)</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Queensland, Australia</I></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><B>Riverside</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">In the Bowen Basin, 145&nbsp;km west of Mackay</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Metallurgical coal</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway (Queensland Rail) and port in Mackay</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Leases granted by State and renewable subject to State&#146;s
    discretion</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    State owned grid</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>South Walker Creek</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">In the Bowen Basin, 145 km west of Mackay</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Metallurgical coal</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Same as above</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Same as above</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    State owned grid</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Bengalla Joint Venture</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Mitsui Coal Holdings Pty. Ltd. (10%)</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>New South Wales, Australia</I></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><B>Bengalla</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">West of Muswellbrook in the Upper Hunter Valley</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Metallurgical coal and thermal coal</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway and port at Newcastle</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Leases granted by State</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    State owned grid</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Kestrel Joint Venture</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Mitsui Coal Holdings Pty. Ltd. (20%)</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Queensland, Australia</I></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><B>Kestrel</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">In the Bowen Basin, 300 km west of Rockhampton</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Metallurgical coal and thermal coal</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway and port at Gladstone</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Leases granted by State</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Underground</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    State owned grid</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Moura Joint Venture</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Mitsui Coal Holdings Pty. Ltd. (49%)</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Queensland, Australia</I></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><B>Moura</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">In the Bowen Basin 185 km southwest of Gladstone</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Metallurgical coal and thermal coal</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway and port at Gladstone</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Leases granted by State</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    State owned grid</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>German Creek Joint Venture</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Mitsui Coal Holdings Pty. Ltd. (30%)</I></TD>
</TR>

<TR>
    <TD colspan="17" align="left" valign="top">
    <I>Queensland, Australia</I></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>German Creek</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">In the Bowen Basin, 250 km southwest of Mackay</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Metallurgical coal</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Railway and port at Gladstone</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Leases granted by State</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Underground</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    State owned grid</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    &#147;BHP Mitsui Coal Pty. Ltd.&#148; indicates the name of the
    company established by BHP Billiton plc and Mitsui.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    BHP Mitsui Coal Pty. Ltd. is our associated company in which
    Mitsui has 20% interest. Mitsui Coal Holdings Pty. Ltd. is our
    subsidiary which owns interests in Bengalla Joint Venture,
    Kestrel Joint Venture, Moura Joint Venture and German Creek
    Joint Venture.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    &#147;Name of mines&#148; indicates the names of principal
    producing mines.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">65
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
A brief history and the present condition of each of the
above-mentioned mines, including the current state of
development, if applicable, are provided below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>IRON ORE</B>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Name of Joint Venture or Investee</I></B>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<B><I>Entity by which Mitsui Participates in the Mining Activity
and its Ownership&nbsp;Interest</I></B>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<B><I>Area of Mining Operation (Region, State, Country)</I></B>
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Robe River Iron Associates</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Mitsui Iron Ore Development Pty. Ltd. (33%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Pilbara Region, Western Australia, Australia</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>Mesa J</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The development of Robe River project began in 1962(*) near
    Pannawonica. The Robe River project was commissioned and the
    first shipment was made in 1972. Iron ore reserves at the
    Mesa&nbsp;J production Base provide the cornerstone of
    Pannawonica&#146;s sinter fines and lump output. Development of
    Mesa&nbsp;J began in 1992, and all mine administration,
    workshops, warehousing and other support facilities were
    integrated there in 1994. Process Plant 1 was commissioned in
    1999 and Process Plant&nbsp;2 in 2001. The plant processes
    clay-contaminated pisolite, sub-grade material which was once
    discarded, to reduce contaminants and retain on-specification
    ore. Total material hauled at Mesa&nbsp;J is between 65 and
    75&nbsp;million tonnes per year. From this production base, the
    joint venture produces approximately 32&nbsp;million tonnes of
    iron ore each year.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>West Angelas</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The development of West Angelas began in 1998. Mining of ore
    commenced in March 2002. The West Angelas deposits contain Marra
    Mamba type iron ore with higher iron content than Robe
    River&#146;s Mesa&nbsp;J mine. The West Angelas operation is
    comprised of an open pit mine; a crushing and screening ore
    processing plant producing lump and sinter fines iron ore, as
    well as stockpiling, reclaiming and train-loading facilities.
    Expansion of West Angelas mine is well advanced to increase its
    capacity from its current 20&nbsp;million tonnes per year to
    25&nbsp;million tonnes per year by the third quarter of 2005.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(*)&nbsp;</TD>
    <TD align="left">
    The Robe River project was originally started by Cleveland
    Cliffs Iron Company, an iron and steel producer in the United
    States. Since then, there were major changes in ownership before
    Rio Tinto took a 53% stake in Robe River Iron Associates in 2000.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 8pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Mount Newman Joint Venture</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Mitsui Itochu Iron Pty. Ltd. (10%) (Mitsui share of Mitsui
Itochu Iron Pty. Ltd. is 70%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Pilbara Region, Western Australia, Australia</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>Mount &nbsp;Whaleback</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The joint venture began production in 1969 at the Mount
    Whaleback ore body. Today, production continues to be sourced
    from the major Mount Whaleback ore body and is complemented by
    production from other ore bodies. The facilities at Mount
    Whaleback include primary and secondary crushing plants with a
    nominal capacity of 35&nbsp;million tonnes of product per year,
    a heavy media beneficiation plant with an annual capacity of
    8&nbsp;million tonnes and a train-loading facility. The mining
    plant and port facilities were originally built in the late
    1960&#146;s and have been maintained and enhanced many times
    since then. The Rapid Growth Project 2 (&#147;RGP2&#148;) was
    approved in October 2004. The project comprises increases in
    mine, rail and port capacity through the development of Ore
    Body&nbsp;18, purchases of additional rolling stock and a new
    car dumper at Finucane Island. Engineering activities are well
    advanced, tendering procurement processes are underway and
    initial site activities have commenced. The project will
    increase installed capacity at Western Australian Iron Ore to
    118&nbsp;million tonnes per annum by the second half of 2006.
    Development costs are estimated at U.S.$575&nbsp;million.
    (Mitsui share U.S.$40&nbsp;million).</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Yandi Joint Venture</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Mitsui Iron Ore Development Pty. Ltd. (7%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Pilbara Region, Western Australia, Australia</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>Marillana Creek</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Development of the ore body began in 1991. This included
    construction of a rail connection to the existing Newman/
    Headland rail line, crushing and screening facilities with an
    annual capacity of 10&nbsp;million tonnes, ore stacker, mine
    load-out tunnel, and on-site administration infrastructure. The
    mine&#146;s first shipment of iron ore was in March 1992.
    Following a number of modifications between 1994 and 2003,
    Yandi&#146;s capacity has been increased to 42&nbsp;million
    tonnes per year, including both fine and lump ores.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">66

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 8pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Mount Goldsworthy Joint Venture</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Mitsui Iron Ore Development Pty. Ltd. (7%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Pilbara Region, Western Australia, Australia</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>North Area<BR>&nbsp;(Yarrie)<BR>&nbsp;(Nimingarra)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mount Goldsworthy was commissioned in 1966 in North Area. The
    original Goldsworthy mine was closed in 1982 and mining
    operations ceased at Shay Bay in 1993. Since then, mining has
    continued from the adjacent Nimingarra mine and Yarrie mine.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <B>Area C</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Area C Mine is operated by the Mount Goldsworthy Joint
    Venture under the POSMAC JV arrangement. Area&nbsp;C Mine is
    located near the mines operated by the Yandi Joint Venture and
    it was officially opened in October 2003. First ore was railed
    from Area&nbsp;C to Port Headland in August 2003, with the first
    shipment of ore departing the port in September 2003.
    Area&nbsp;C represents the largest undeveloped Marra Mamba
    resource in the Pilbara region. The project involves developing
    mine infrastructure and a rail spur link to the existing Yandi/
    Newman railway.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 8pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Sesa Goa Limited</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Sesa Goa Limited (51%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Goa and Karnataka, India</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>Codli<BR>&nbsp;Sonshi</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sesa Goa Limited commenced operations in 1954 in North Goa,
    India. Sesa Goa&#146;s main mining operations are at the Codli
    and Sonshi mines. Goan ore tends to be relatively high in
    alumina content, and most Goan ore is beneficiated to raise the
    iron content. We acquired 51% interest in Sesa Goa in 1996.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <B>Chitradurga<BR>&nbsp;Hospet</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The main operation in Karnataka is at Chitradurga mine. A second
    mine is located at Hospet. These mines are equidistant from the
    part of Mormugao and Chennai and ore can be shipped from either
    port.</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 8pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>COAL</B>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Name of Joint Venture or Investee</I></B>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<B><I>Entity by which Mitsui Participates in the Mining Activity
and its Ownership&nbsp;Interest</I></B>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<B><I>Area of Mining Operation (Region, State, Country)</I></B>
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>BHP Mitsui Coal Pty. Ltd.</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>BHP Mitsui Coal Pty. Ltd. (20%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Queensland, Australia</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>Riverside</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    In 1983, the joint venture commissioned the Riverside mine.
    Riverside mine produces metallurgical coal and has a production
    capacity of three million tonnes per year. Reserves from
    Riverside were depleted in March 2005.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>South Walker Creek</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    South Walker Creek became operational in 1998. It produces
    pulverized coal injection fuel and minor quantities of by-
    product energy coal. South Walker Creek has a production
    capacity of four million tonnes per year. Exploration has
    increased the reserve base in the past year. BHP Mitsui Coal
    holds undeveloped leases in the Bowen Basin (principally, the
    areas of Wards Well, Poitrel, Kemmis-Walker and Nebo West).</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 8pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Bengalla Joint Venture</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Mitsui Coal Holdings Pty. Ltd. (10%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>New South Wales, Australia</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>Bengalla</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Development consent was granted in 1996 and production commenced
    in 1999. Coal&nbsp;&#38; Allied, Rio Tinto&#146;s subsidiary in
    Australia, acquired its interest in Bengalla in 2001. Its coal
    preparation plant has a washing capacity of 8&nbsp;million
    tonnes per year giving nominal product of 6.6&nbsp;million
    tonnes per year. Its plant equipment consists of three stage
    double roll crushers, dense medium cyclones, spirals, a froth
    flotation unit, screen bowl centrifuges and automatic
    stackers/reclaimers.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">67

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 8pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Kestrel Joint Venture</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Mitsui Coal Holdings Pty. Ltd. (20%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Queensland, Australia</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>Kestrel</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Kestrel Coal mine, previously known as Gordonstone Mine
    commenced operation in 1992. Coal is extracted by underground
    mining. The mine has two longwall units that are operated
    alternately to minimize downtime and ensure seamless production
    and reliability. The Kestrel Preparation Plant has been designed
    to allow the mine to produce low ash coking coal and high energy
    thermal coal. Production in 2004 was 3.3&nbsp;million tonnes
    saleable high quality coking coal and export thermal coal, and
    the production is expected to rise to 5.5&nbsp;million tonnes in
    a few years.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 8pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Moura Joint Venture</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Mitsui Coal Holdings Pty. Ltd. (49%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Queensland, Australia</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>Moura</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Moura Mine commenced operation in 1961. Since 1994, all
    production at Moura has been from its surface operation.
    Production tonnage has been increasing steadily throughout the
    years. Originally the mine was operated by BHP Mitsui Coal Pty
    Ltd, and after a few changes of ownership, Anglo Coal acquired a
    51% share in 2002. In September 2003, the adjacent Theodore
    deposit was developed which further expanded its capacity. Anglo
    Coal Australia and Mitsui Coal Holdings intend to recapitalise
    their existing operations at the Moura mine and to establish two
    additional operations on adjacent tenures. The new and expanded
    operations will be known as the Dawson Complex. Joint
    venture&#146;s capital expenditure is estimated in excess of
    U.S.$600&nbsp;million and will include a new coal preparation
    plant, additional mining equipment, a coal conveying system for
    transporting coal, rail load out facilities and administration
    buildings. The additional coal will be made available for the
    market in 2007, and consequently annual production will increase
    from existing 7.0&nbsp;million tonnes to 12.7&nbsp;million
    tonnes of metallurgical and thermal coals.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 8pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>German Creek Joint Venture</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Mitsui Coal Holdings Pty. Ltd. (30%)</I>
</DIV>

<DIV align="left" style="font-size: 8pt;">
<I>Queensland, Australia</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <B>German Creek</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Open pit mining commenced in 1981. Underground mining in the
    Central Colliery area started in 1984, while underground mining
    in the Southern Colliery area began in 1988. Grasstree is a new
    underground mine being developed within our existing German
    Creek operations lease area. This mine will produce hard coking
    coal for our export markets. The mine construction commenced in
    2001, underground development work is now underway and the
    project is on schedule to commence full production in 2006. Lake
    Lindsay is a potential new open cut mine adjacent to German
    Creek. Exploration and feasibility studies are currently
    underway to bring this new mine to production in 2006, gradually
    increasing up to full production in 2009.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">68

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Production Tonnage</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>IRON ORE</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 7pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>In Thousands of Tonnes</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Joint Venture or Investee and</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>Mitsui&#146;s Subsidiary or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Name of Mines</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>Associated Company</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Production</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Production</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Production</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>Robe River Iron Associates</I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Iron Ore Development Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region, Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Pannawonica</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>31,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>30,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>9,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>31,155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10,281</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>West Angelas</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>19,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>6,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>14,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>7,342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,423</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Mount Newman Joint Venture</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Itochu Iron Pty.&nbsp;Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region, Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Mt. Whaleback</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>34,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>36,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>30,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,124</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Yandi Joint Venture</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Iron Ore Development Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region, Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Marillana Creek</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>40,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>40,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>35,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,479</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <B><I>Mount Goldsworthy Joint Venture</I></B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Iron Ore Development Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region, Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>North Area<BR>
    (Yarrie)<BR>
    (Nimingarra)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>7,006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>8,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>567</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Area C</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>16,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Sesa Goa Limited</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sesa Goa Limited</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    India</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Codli, Sonshi</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Goa</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,225</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Chitradurga, Hospet</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Karnataka</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>640</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>TOTAL</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>153,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>26,121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>136,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23,086</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>116,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>19,739</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Production Tonnage</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>COAL</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 7pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>In Thousands of Tonnes</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Joint Venture or Investee and</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>Mitsui&#146;s Subsidiary or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Name of Mines</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>Associated Company</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Production</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Production</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Production</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>BHP Mitsui Coal Pty. Ltd.&nbsp;</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Iron Ore Development Pty.&nbsp;Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Riverside</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>680</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>South Walker Creek</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>668</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Bengalla Joint Venture</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Coal Holdings Pty.&nbsp;Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    New South Wales, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>6,203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>539</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Kestrel Joint Venture</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Coal Holdings Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>664</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>818</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Moura Joint Venture</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Coal Holdings Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>7,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,922</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>German Creek Joint Venture
    <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Coal Holdings Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,735</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5,422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>872</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>TOTAL</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>28,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>7,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>27,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>7,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>24,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>6,363</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 7pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Reflects production tonnage from our participation since July
    2002.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">69

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Reserve Tonnage</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>IRON
ORE<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 7pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>In Millions of Tonnes</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Joint Venture or Investee and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Name of Mines</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>Mitsui&#146;s Subsidiary or Associated Company</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reserve</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reserve</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reserve</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Robe River Iron Associates
    <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Iron Ore Development Pty.&nbsp;Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region, Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Pannawonica</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>76</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>West Angelas</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>150</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <B><I>Mount Newman Joint Venture
    <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></I></B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Itochu Iron Pty.&nbsp;Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region, Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Mt. Whaleback</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>84</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Yandi Joint
    Venture<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Iron Ore Development Pty.&nbsp;Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region, Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Marillana Creek</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <B><I>Mount Goldsworthy Joint
    Venture<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></I></B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Iron Ore Development Pty.&nbsp;Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pilbara Region, Western Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>North Area</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>(Yarrie)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>(Nimingarra)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Area C</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>499</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Sesa Goa Limited</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Sesa Goa Limited</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    India</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Codli, Sonshi</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Goa</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Chitradurga, Hospet</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Karnataka</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>TOTAL</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>412</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 7pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Reserve of Robe River Iron Associates is proved + probable
    marketable reserve. (&#147;Marketable reserve&#148; is tonnage
    after accounting for extraction and beneficiation losses.)
    Reserve amounts of Mt.&nbsp;Newman, Yandi, Mt.&nbsp;Goldsworthy
    and Sesa Goa consist of proved&nbsp;+ probable recoverable
    reserve. (&#147;Recoverable reserve&#148; is tonnage after
    accounting for extraction losses.)</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Reserves of Robe River Iron Associates indicate reserves as of
    the end of December 2004, 2003 and 2002, respectively. 2005
    reserves mean reserves as of the end of December 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Reserves of Mount Newman Joint Venture, Yandi Joint Venture and
    Mount Goldsworthy Joint Venture indicate reserves as of the end
    of June 2004, 2003 and 2002, respectively. 2005 reserves means
    reserves as of the end of June 2004.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>COAL<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 7pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>In Millions of Tonnes</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Joint Venture or Investee and</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>Mitsui&#146;s Subsidiary or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Name of Mines</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><B>Associated Company</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reserve</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reserve</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reserve</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>BHP Mitsui Coal Pty. Ltd.&nbsp;</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Iron Ore Development Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Riverside</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>South Walker Creek</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Bengalla Joint Venture</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Coal Holdings Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    New South Wales, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>19</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Kestrel Joint Venture</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Coal Holdings Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>25</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Moura Joint Venture</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Coal Holdings Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>German Creek Joint Venture
    <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Mitsui Coal Holdings Pty. Ltd.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Queensland, Australia</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>111</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>33</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>TOTAL</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>662</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>138</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">70
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 7pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Proved + Probable Marketable Reserve (&#147;Marketable
    Reserve&#148; is tonnage after accounting for extraction and
    processing and preparation losses.)</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Reflects production tonnage from our participation since July
    2002 onwards.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;
We own 15% profit share of Valepar S.A., which owns 34% of
profit share of the common stock and preferred stock of
Companhia Vale do Rio Doce (&#147;CVRD&#148;). Accordingly,
CVRD&#146;s 5.1% (34%&nbsp;&#215; 15%) of its production and
reserve amounts are indirectly attributable to us. The following
table provides iron ore production and reserve amounts of CVRD
and Mitsui&#146;s share of the production and reserve amounts of
CVRD.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Production Tonnage (for the year ended December&nbsp;31)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="22" align="center" nowrap><B>Millions of Tonnes</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="center" nowrap><B>Production</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Production</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Production</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>211.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>188.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>168.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Proven and Probable Reserves (as of December&nbsp;31)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="22" align="center" nowrap><B>Millions of Tonnes</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Mitsui&#146;s</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="center" nowrap><B>Reserve</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reserve</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reserve</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>6,869.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>350.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,926.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>251.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,458.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>227.7</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">71
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Oil and Gas Producing Activities</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows crude oil, condensate, natural gas
liquids and natural gas production from our reserves for the
three fiscal years indicated:
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Production Information</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Barrels</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Billions of Cubic Feet</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Crude Oil, Condensate and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Natural Gas Liquids<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Natural Gas<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="left" nowrap><B>Year Ended March&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>92</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>74</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following tables show proved reserves and proved developed
reserves of crude oil, condensate, natural gas liquids and
natural gas as of the ending date of three fiscal years
indicated:
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Proved Reserve Information:</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Proved Reserves</I></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Barrels</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Billions of Cubic Feet</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Crude Oil, Condensate and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Natural Gas Liquids<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Natural Gas<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="left" nowrap><B>Year Ended March&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    At March&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,308</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    At March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,922</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    At March&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,421</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Proved Developed
    Reserves<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></I></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Barrels</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Billions of Cubic Feet</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Crude Oil, Condensate and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Natural Gas Liquids<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Natural Gas<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="left" nowrap><B>Year Ended March&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    At March&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>513</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    At March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    At March&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>436</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    1&nbsp;barrel of crude oil = 5,800 cubic feet of natural gas</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    The proportion of Proved Developed Reserves to Proved Developed
    and Undeveloped Reserves is about 25&nbsp;percent as of
    March&nbsp;31, 2005 and relatively low. The expected costs to
    develop these undeveloped reserves are estimated to be
    &#165;314&nbsp;billion in total as of March&nbsp;31, 2005. The
    major undeveloped reserves are attributable to an associated
    company in Russia and an associated company in Australia. It is
    expected to commence the production of crude oil in 2006 and LNG
    in 2007, for the associated company in Russia. In relation to
    the associated company in Australia, the production of crude oil
    and LNG has already commenced at the existing facilities. The
    drilling of additional development wells will be performed over
    the project life according to the drilling program of the
    project.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
Information on our oil and gas producing activities is shown in
the &#147;Supplemental Information on Oil and Gas Producing
Activities (Unaudited)&#148; to the consolidated financial
statements included elsewhere in this annual report. And also
see &#147;Operating and Financial Review and
Prospects&nbsp;&#151; Operating Results by Operating
Segment&nbsp;&#151; Results of Operations for the Year
Ended&nbsp;31, 2005&nbsp;&#151; Energy Segment.&#148;
</DIV>

<P align="center" style="font-size: 10pt;">72

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='114'></A>
</DIV>

<!-- link1 "Item 5. Operating and Financial Review and Prospects" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;5.</B></TD>
    <TD>
    <B>Operating and Financial Review and Prospects</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='115'></A>
</DIV>

<!-- link1 "A. Operating Results" -->

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>A.</B></TD>
    <TD>
    <B>Operating Results</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read the following discussion and analysis of our
financial condition and results of operations together with
&#147;Selected Financial Data&#148; and our consolidated
financial statements, that appear elsewhere in this annual
report. This discussion and analysis contains forward-looking
statements that involve risks, uncertainties and assumptions.
Our actual results may differ materially from those anticipated
in these forward-looking statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As used in this Operating and Financial Review and Prospects,
&#147;Mitsui&#148; is used to refer to Mitsui&nbsp;&#38; Co.,
Ltd. (Mitsui Bussan Kabushiki Kaisha), and &#147;we,&#148;
&#147;us,&#148; and &#147;our&#148; are used to indicate
Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries, unless otherwise
indicated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the Consolidated Financial Statements and accompanying Notes
to Consolidated Financial Statements, the &#147;Company&#148; is
used to refer to Mitsui&nbsp;&#38; Co., Ltd., and the
&#147;companies&#148; is used to refer to Mitsui&nbsp;&#38; Co.,
Ltd. and subsidiaries, unless otherwise indicated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All references to &#147;Note&#148; throughout the Operating and
Financial Review and Prospects relate to the Notes to
Consolidated Financial Statements contained elsewhere in this
Annual Report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Throughout the Operating and Financial Review and Prospects, we
describe the domicile of our subsidiaries and associated
companies, in parentheses following names of those companies.
For example, Arcadia Petroleum Ltd. (United Kingdom) means that
the company&#146;s name is Arcadia Petroleum Ltd. and that it is
domiciled in the United Kingdom.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operations of a subsidiary that either have been disposed of or
are classified as held for sale have been accounted for as
discontinued operations under accounting principles generally
accepted in the United States of America
(&#147;U.S.&nbsp;GAAP&#148;) This means that income statement
and cash flow information are reclassified for all years
presented to separate the discontinued operations from our
continuing operations. This presentation is required by
U.S.&nbsp;GAAP and facilitates historical and future trend
analysis of our continuing operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subsequent to the issuance of the consolidated financial
statements for the year ended March&nbsp;31, 2004, we decided to
classify financing revenues and costs of certain subsidiaries
engaged mainly in external consumer financing from interest
expense, net of interest income to other sales and cost of other
sales, respectively. This change reflects the growing financing
operations of the subsidiaries and has been made to more fairly
present their financing transactions in the Statements of
Consolidated Income. Specifically, we reclassified the financing
revenues and costs from interest expense, net of interest income
to other sales and cost of other sales, respectively, and
restated the Statements of Consolidated Income for the prior
years to conform to the current year presentation.
</DIV>

<P align="center" style="font-size: 10pt;">73

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Key Performance Measures Under Management&#146;s
Discussion</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although our operating results and financial condition are
influenced by various factors, management believes that as of
the end of the fiscal year under review the following indicators
can be usefully employed to discuss trends in our performance
and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gross Profit, Operating
Income* and Equity in Earnings of Associated Companies</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We undertake worldwide trading in various commodities, involving
diversified risk-return profiles, from conventional intermediary
services as agent to development and production of mineral
resources and energy. In this context, changes in the amounts of
gross profit, operating income and equity in earnings of
associated companies by operating segment reflect the overall
progress of our businesses, and greatly affect the amount of net
income in the Statements of Consolidated Income. For further
information, please refer to the table of &#147;Operating
segment information&#148; and subsequent discussions in
&#147;Operating Results by Operating Segment&#148; in this
Operating and Financial Review and Prospects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Trends in the Price of and
Supply-Demand for Mineral Resources and Energy</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our operating results are influenced by conditions of various
commodity markets. In recent years, our operating results have
been influenced by supply-demand balance and price fluctuations
for mineral resources and energy that have been driven
principally by expanding demand from China, and the importance
of our mineral resources and energy operations in our overall
operating results has increased. For further information
regarding trends and prospects in this field, please refer to
the sections relating to the Metal Products&nbsp;&#38; Minerals
Segment and the Energy Segment in &#147;Operating Results by
Operating Segment.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investment Plans and
Financial Leverage</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are engaged in expanding our investments in core areas such
as development projects of mineral resources and energy and
infrastructure projects including power generation and also in
developing and strengthening new businesses in consumer-oriented
and other growing key areas. Based on our Medium-Term Strategic
and Financial Plan ending March 2006 as announced in May 2004,
each of our operating segments is expanding these business
investments. Mitsui is monitoring and managing our financial
leverage with a view of securing efficient return on equity as
well as maintaining and improving credit ratings and obtaining a
stable supply of funding in order to secure the capital
resources required for these investments and to refinance our
interest-bearing debt. For further discussion on these
investments and related financial policies, please refer to
&#147;B. Liquidity and Capital Resources&#148; in this Operating
and Financial Review and Prospects.
</DIV>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 0pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    <B>Operating Income</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
income is included in the measure of segment performance
reviewed by the chief operating decision maker. Operating income
is comprised of our (a)&nbsp;gross profit, (b)&nbsp;selling,
general and administrative expenses, (c)&nbsp;provision for
doubtful receivables and (d)&nbsp;government grant for transfer
of substitutional portion of the Employee Pension Fund
(&#147;EPF&#148;), as presented in the Statements of
Consolidated Income.
</DIV>

<P align="center" style="font-size: 10pt;">74

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Results of Operations</I></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Summary of Operations for the Year Ended March&nbsp;31,
    2005</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Operating Environment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The global economy continued the steady improvement that began
in the middle of the year ended March&nbsp;31, 2004. Principal
developments in the economic environment that influenced our
results of operations during the year ended March&nbsp;31, 2005
included the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The global economy expanded steadily, driven by growth in the
    United States as well as emerging countries in Asia,
    particularly China, and other regions. Contributing factors
    included higher consumption and housing investment resulting
    from historically low interest rates as well as acceleration of
    demand for motor vehicles and firm infrastructure developments
    in emerging economies.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    These factors contributed to a substantial increase in global
    trade, supported by very strong demand from Asia, particularly
    China, and spurred the rising trend in commodity prices such as
    crude oil, iron ore, coal and non-ferrous metals since the
    previous fiscal year.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Japanese economy continued to recover in the first half of
    the year under review, underpinned by strong exports to
    high-growth areas of Asia, and higher capital expenditure as
    corporate earnings improved in Japan. In the second half of the
    fiscal year, however, economic recovery slowed down especially
    in the manufacturing section in response to inventory
    adjustments in the home electronic equipment and IT-related
    markets as well as concerns about oil price rise.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Bank of Japan continued its quantitative easing policy, and
    short-term interest rates remained very low. In the United
    States, meanwhile, the Federal Reserve Board (&#147;FRB&#148;)
    began progressively raising interest rates beginning in June
    2004 in order to restrain inflationary expectations.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of Operations for
the Year Ended March&nbsp;31, 2005</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, we recorded net income
of &#165;121.1&nbsp;billion, an increase of
&#165;52.7&nbsp;billion, or 77.0%, from &#165;68.4&nbsp;billion
recorded for the year ended March&nbsp;31, 2004. As outlined
below, gross profit and equity in earnings of associated
companies made significant contributions, while the increase in
net other income and expenses was relatively small.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Gross profit increased by &#165;111.9&nbsp;billion, or 18.2%, to
    &#165;725.8&nbsp;billion for the year ended March&nbsp;31, 2005,
    compared with &#165;613.9&nbsp;billion for the year ended
    March&nbsp;31, 2004. Overseas subsidiaries in the Metal
    Products&nbsp;&#38; Minerals Segment generated higher gross
    profit due to price rises and increased shipments of iron ore
    and coal while gross profit grew in the Energy Segment supported
    by higher crude oil prices. In addition, market transactions in
    areas such as commodity derivatives and oil trading performed
    well.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Net other income and expenses increased &#165;25.1&nbsp;billion,
    or 4.8%, to &#165;550.2&nbsp;billion for the year ended
    March&nbsp;31, 2005, compared to &#165;525.1&nbsp;billion for
    the year ended March&nbsp;31, 2004.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#151;&nbsp;</TD>
    <TD align="left">
    Compensation and other charges related to DPF incident of
    &#165;36.0&nbsp;billion was recorded for user response plans
    including free product replacement and compensation for relevant
    subsidy providers relating to diesel particulate filters
    (&#147;DPF&#148;s), which is discussed in &#147;Discussion and
    Analysis of Operating Results for the Year Ended March&nbsp;31,
    2005&nbsp;&#151; Compensation and Other Charges Related to DPF
    incident&#148; below.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#151;&nbsp;</TD>
    <TD align="left">
    Selling, general and administrative expenses increased
    &#165;24.5&nbsp;billion in the year ended March&nbsp;31, 2005,
    largely because there was no government grant for the transfer
    of the substitutional portion of the Employee Pension Fund
    (&#147;EPF&#148;, compared to &#165;17.2&nbsp;billion recorded
    in the year ended March&nbsp;31, 2004.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">75

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#151;&nbsp;</TD>
    <TD align="left">
    With regard to loss on write-down of securities and other
    expense&nbsp;&#151; net, the figures recorded in these
    categories for the year under review reflect the absence of
    large one-time expenses such as those recorded in the year ended
    March&nbsp;31, 2004 of &#165;21.7&nbsp;billion for the
    write-down of securities relating to investment in the Japanese
    telecommunications carrier POWERDCOM, Inc. and
    &#165;13.7&nbsp;billion for the settlement of an antitrust
    lawsuit filed against a feed ingredient manufacturing subsidiary
    Bioproducts, Inc. (the United States).</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Equity in earnings of associated companies rose by
    &#165;25.8&nbsp;billion, or 64.3%, to &#165;65.9&nbsp;billion
    for the year ended March&nbsp;31, 2005, compared with
    &#165;40.1&nbsp;billion for the year ended March&nbsp;31, 2004.
    As was the case with gross profit, this reflected the strong
    performance of associated companies in the Metal
    Products&nbsp;&#38; Minerals Segment and the Energy Segment that
    benefited from the rise in commodity prices.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to the increase in gross profit and equity in earnings of
associated companies outlined above, net income for the year
ended March&nbsp;31, 2005 from overseas subsidiaries and
associated companies reached &#165;117.9&nbsp;billion,
significantly higher than the &#165;53.5&nbsp;billion recorded
for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The impact of foreign currency exchange fluctuations on net
income for the year ending March 2006 will depend on the net
income denominated in local currencies of overseas subsidiaries
and associated companies; however, based on net income in the
business plans of these companies covering the year ending March
2006, yen&#146;s appreciation by &#165;1 against
1&nbsp;U.S.&nbsp;dollar would have the net effect of reducing
net income by approximately &#165;1.3&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2005 the U.S.&nbsp;dollar
continued to weaken against the yen, against a background of
worsening current account and federal deficits and higher oil
prices. The average U.S.&nbsp;dollar-yen exchange rate during
the year ended March&nbsp;31, 2005 was
&#165;107.60&nbsp;=&nbsp;U.S.$1, representing yen appreciation
of &#165;5.16, or 4.6%, over the average rate during the year
ended March&nbsp;31, 2004 of &#165;112.76&nbsp;=&nbsp;U.S.$1.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Discussion and Analysis of Operating Results for the Year
    Ended March&nbsp;31, 2005</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Revenues</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with U.S.&nbsp;GAAP, revenues are reported based
on the gross amount billed to a customer or on the net amount
retained (that is, the amount billed to a customer less the
amount paid to a supplier). Revenues are reported based on gross
amounts for transactions where we have the related risks and
rewards such as transactions where we are a primary obligor in
the arrangement, and/or assume general inventory risk without
any significant mitigation of our risk level. Revenues are
reported based on net amounts where we assume a low degree of
related risks and rewards, effectively acting as an agent for
the applicable products or services. A typical example is a
transaction where we receive a commission or fee at a fixed rate
based on transaction volume or amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We classified our revenues into sales of products, sales of
services and other sales with the corresponding costs of
revenues.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Sales of Products</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales of products include the sale of various products as a
principal in transactions, the manufacture and sale of a wide
variety of products such as metals, chemicals, food and
machinery, the development, production and sale of natural
resources such as coal, iron ore, oil and gas, and the
development and sale of real estate.
</DIV>

<P align="center" style="font-size: 10pt;">76

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2005, sales of products
were &#165;2,980.8&nbsp;billion, an increase of
&#165;490.8&nbsp;billion, or 19.7%, from the
&#165;2,490.0&nbsp;billion recorded for the year ended
March&nbsp;31, 2004. The major reasons classified by products
are as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Revenues from sales of chemicals rose &#165;208.2&nbsp;billion
    principally because of increases in Mitsui&#146;s sales of
    petrochemical products, reflecting higher prices for petroleum
    products due to higher crude oil prices, and increases in volume
    driven by the strong demand in China and other Asian countries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Revenues from sales of energy increased by
    &#165;86.3&nbsp;billion. The average crude oil price (basis of
    Japan Crude Cocktail) during the year ended March&nbsp;31, 2005
    was U.S.$36&nbsp;per barrel, compared to U.S.$29 for the year
    ended March&nbsp;31, 2004, driven by strong demand from China
    and uncertainty in supply from the Middle East and other areas.
    In this environment, revenues from sales of crude oil and oil
    products increased at Westport Petroleum Inc. (the United
    States) and revenues increased domestically as oil product sales
    companies, Mitsui Oil Co., Ltd. (Japan) and Kokusai
    Oil&nbsp;&#38; Chemical Co., Ltd. (Japan) were able to transfer
    higher crude oil cost in their wholesale and retail pricing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Revenues from sales of iron and steel increased
    &#165;85.3&nbsp;billion. In the year ended March&nbsp;31, 2005,
    with long-term contract prices for iron ore 18.6% higher than in
    the year ended March&nbsp;31, 2004, subsidiaries in mineral
    resource business such as Sesa Goa Limited (India) and Mitsui
    Iron Ore Development Pty. Ltd. (Australia) achieved higher
    revenues. Also, supported by a strong market for steel products
    in North America, China and elsewhere in Asia, Champions
    Pipe&nbsp;&#38; Supply, Inc. (the United States), engaged in oil
    pipe sales, recorded higher revenues.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Sales
of Services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales of services include the revenues from trading margins and
commissions related to various trading transactions in which we
act as a principal or an agent. Specifically, we charge a
commission for the performance of various services such as
logistic and warehouse services, information and communication
services and technical support. For some back-to-back sales and
purchase transactions of products, we act as a principal and
record the net amount of sales and purchase prices as revenues.
We also facilitate conclusion of the contracts between
manufacturers and customers and deliveries of the products
between suppliers and customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, sales of services were
&#165;435.2&nbsp;billion, an increase of
&#165;10.7&nbsp;billion, or 2.5%, from &#165;424.5&nbsp;billion
for the year ended March&nbsp;31, 2004. Principal reasons for
this increase included higher revenues from information and
communications services accompanying the acquisition of former
associated company NextCom K.K. (Japan) during the year ended
March&nbsp;31, 2005, and strong performance in cell phone sales
at Telepark Corp. (Japan).
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Other Sales</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other sales principally include the revenues from derivative
commodity instruments and derivative financial instruments held
for trading purposes, the revenues from leasing activities of
real estate, aircraft, ocean transport vessels, rolling stock
and equipment and the revenues from external consumer financing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, other sales were
&#165;109.8&nbsp;billion, an increase of
&#165;41.4&nbsp;billion, or 60.5%, from &#165;68.4&nbsp;billion
for the year ended March&nbsp;31, 2004, which was primarily
attributable to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Derivative trading revenues were &#165;45.4&nbsp;billion for the
    year ended March&nbsp;31, 2005, an increase of
    &#165;27.2&nbsp;billion from &#165;18.2&nbsp;billion for the
    year ended March&nbsp;31, 2004. The principal reasons for this
    increase were strong crude oil trading performance at Arcadia
    Petroleum Ltd. (United Kingdom) and strong energy derivatives
    trading at Mitsui&nbsp;&#38; Co. Energy Risk Management Ltd.
    (United Kingdom) in the context of extremely high volatility in
    the crude oil market;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Leasing revenues were &#165;55.4&nbsp;billion for the year ended
    March&nbsp;31, 2005, an increase of &#165;13.2&nbsp;billion from
    &#165;42.2&nbsp;billion for the year ended March&nbsp;31, 2004.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">77

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gross Profit</I></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gross Profit Classified by Category of Revenues</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, gross profit
(&#147;GP&#148;) was &#165;725.8&nbsp;billion, an increase of
&#165;111.9&nbsp;billion, or 18.2%, from
&#165;613.9&nbsp;billion for the year ended March&nbsp;31, 2004.
The GP ratio (the ratio of GP to revenues) for the year ended
March&nbsp;31, 2005 was 20.6%, in line with the year ended
March&nbsp;31, 2004. Changes in GP and GP ratio classified by
category of revenues are set forth below:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="43%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP Ratio</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP Ratio</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP Ratio</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit from sales of products</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;296.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;197.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165; 99.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit from sales of services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>366.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84.1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>383.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6.1</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit from other sales</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;725.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;613.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;111.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The GP ratio from sales of products for the year ended
March&nbsp;31, 2005 was 10.0%, an increase of 2.1&nbsp;points
compared to the year ended March&nbsp;31, 2004. This increase
was mainly due to the rate of increase in revenue at our natural
resources development subsidiaries outpacing the rate of
increase in costs of revenues, due to the surge in prices for
natural resources. In particular, Sesa Goa Limited (India) and
Mitsui Iron Ore Development Pty. Ltd. (Australia), both of which
are engaged in the development and production of iron ore, saw
significant increases in gross profit driven by rising prices of
iron ore, as did Mitsui Coal Holdings Pty.&nbsp;Ltd. (Australia)
which is engaged in the development and production of
metallurgical coal and thermal coal. In the product of energy,
gross profit increased at Mitsui E&#38;P Middle East B.V.
(Netherlands) which is engaged in development and production of
crude oil in Oman due to a major rise in crude oil prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The GP ratio from sales of services for the year ended
March&nbsp;31, 2005 was 84.1%, a decrease of 6.1&nbsp;points
compared to the year ended March&nbsp;31, 2004. This decrease
was mainly due to a relative increase in transactions where the
total billed amounts were reported as revenues, compared to
transactions where the net amount of sales and purchase prices
were reported as revenues with GP ratio of 100%. Specifically,
NextCom K.K. (Japan), formerly an associated company, became a
subsidiary in the third quarter of the year ended March&nbsp;31,
2005, which resulted in an increase in the transactions for
which gross billed amounts are reported as revenue in network
configuration, operation and maintenance services. Also at
Mitsui, an increase in such transactions was recorded in the
logistic services business. Moreover, at Mitsui and many of its
subsidiaries, transactions reported based on net amounts, where
we assume a low degree of related risks and rewards declined
relatively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The GP ratio in other sales for the year ended March&nbsp;31,
2005 was 57.4%, an increase of 8.6 points compared to the year
ended March&nbsp;31, 2004. This increase was mainly due to a
major increase in revenues from derivative commodity instruments
held for trading purpose reported in net amount, principally an
increase in revenues from crude oil trading at Arcadia Petroleum
Ltd. (United Kingdom), energy derivative transactions at
Mitsui&nbsp;&#38; Co. Energy Risk Management Ltd. (United
Kingdom), and commodities derivative and foreign exchange
transactions at Mitsui, generally driven by the extremely high
volatility in the crude oil markets.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gross Profit Classified by Operating Segment</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, the growth in gross
profit was attributable to the operating segments as set forth
below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Metal Products&nbsp;&#38; Minerals Segment recorded
    significant increases, as the market for metal raw materials and
    products rose on strong demand from Asia, particularly China,
    along with an</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">78

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    increase in transaction volume. For the year ended
    March&nbsp;31, 2005, iron ore prices under long term contracts
    rose 18.6%. Sesa Goa Limited (India) and Mitsui Iron Ore
    Development Pty. Ltd. (Australia) recorded major increases. And
    Mitsui Coal Holdings Pty. Ltd. (Australia), which is involved in
    the development of metallurgical coal and thermal coal, also
    increased gross profit. Steel products operations for the year
    ended March&nbsp;31, 2005 generally maintained similar levels of
    transaction volume to the year ended March&nbsp;31, 2004, amid
    price rises and tight demand, with higher gross profit at Mitsui
    and at domestic and overseas subsidiaries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Energy Segment, Arcadia Petroleum Ltd. (United Kingdom)
    generated significant profit increases as a result of focusing
    on crude oil trading after reporting losses on petroleum product
    trading in the year ended March&nbsp;31, 2004. Mitsui E&#38;P
    Middle East B.V. (Netherlands), which is engaged in crude oil
    production in Oman, and Mittwell Energy Resources Pty. Ltd.
    (Australia), our crude oil and condensate focused subsidiary,
    saw increased gross profit reflecting rising oil prices.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Consumer Products&nbsp;&#38; Services Segment was firm on
    the sale of large-scale commercial facilities and residential
    subdivisions by MBK Real Estate Ltd. (the United States), along
    with Mitsui&#146;s commodity trading including grain and raw
    sugar. Moreover, as Mitsui Norin Co., Ltd. (Japan) became a
    subsidiary from the second quarter of the year ended
    March&nbsp;31, 2004, gross profit for the year ended
    March&nbsp;31, 2005&nbsp;&#151; the first year of a full-year
    contribution&nbsp;&#151; rose &#165;5.1&nbsp;billion compared to
    the year ended March&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Logistics&nbsp;&#38; Financial Markets Segment,
    Mitsui&nbsp;&#38; Co. Energy Risk Management Ltd. (United
    Kingdom) generated increases in energy derivative trading
    reflecting the extremely high volatility in the crude oil
    market. Mitsui&#146;s commodities derivative and foreign
    exchange transactions also produced good results.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Americas Segment, there were broad expansions in gross
    profit at steel product subsidiaries including Mitsui Steel
    Development Co., Inc. (the United States) driven by active
    demand and firm market prices. Portac, Inc. (the United States),
    our lumber and lumber products subsidiary, also saw increased
    gross profit on surging lumber prices.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit rose &#165;19.9&nbsp;billion for subsidiaries
acquired or established from the second quarter of the year
ended March&nbsp;31, 2004 to the end of the year ended
March&nbsp;31, 2005 compared to the year ended March&nbsp;31,
2004. Those subsidiaries include NextCom K.K. (Japan), formerly
an associated company which has become a subsidiary in the third
quarter of the year ended March&nbsp;31, 2005, and Mitsui Norin
Co. Ltd. (Japan) as mentioned above.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Selling, General and Administrative Expenses</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Selling, general and administrative expenses for the year ended
March&nbsp;31, 2005 were &#165;518.9&nbsp;billion, an increase
of &#165;24.5&nbsp;billion, or 5.0%, from
&#165;494.4&nbsp;billion for the year ended March&nbsp;31, 2004.
The main reasons for this change are listed below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Personnel expenses were &#165;257.3&nbsp;billion for the year
    ended March&nbsp;31, 2005, a decrease of &#165;3.3&nbsp;billion
    from &#165;260.6&nbsp;billion for the year ended March&nbsp;31,
    2004. Personnel expenses at Mitsui improved significantly
    because of a &#165;19.2&nbsp;billion reduction in amortization
    of unrecognized net actuarial loss, and operating results for
    the year ended March&nbsp;31, 2005 were not impacted by a
    &#165;10.5&nbsp;billion settlement loss recorded during the year
    ended March&nbsp;31, 2004 in relation to the completion of the
    transfer to the Japanese government of the substitutional
    portion of the Mitsui Employee Pension Fund (&#147;EPF&#148;).
    Meanwhile, there was a considerable increase in personnel
    expenses mainly at overseas subsidiaries. Especially, personnel
    expenses at Mitsui&nbsp;&#38; Co. Energy Risk Management Ltd.
    (United Kingdom) and Arcadia Petroleum Ltd. (United Kingdom), on
    the back of major increases in gross profit from commodities
    trading, rose &#165;4.6&nbsp;billion and &#165;3.6&nbsp;billion,
    respectively, due to large increases in performance linked
    bonuses to traders.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">79

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Communication and information expenses were
    &#165;38.6&nbsp;billion for the year ended March&nbsp;31, 2005,
    an increase of &#165;5.2&nbsp;billion over
    &#165;33.4&nbsp;billion for the year ended March&nbsp;31, 2004.
    This increase resulted from the introduction of a new enterprise
    resource planning system and implementation of a total overhaul
    of office automation equipment in Mitsui.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Selling, general and administrative expenses other than
    personnel and communication and information expenses were
    &#165;176.7&nbsp;billion in the year ended March&nbsp;31, 2005,
    an increase of &#165;22.1&nbsp;billion from
    &#165;154.6&nbsp;billion for the year ended March&nbsp;31, 2004.
    There was an increased expense of &#165;7.4&nbsp;billion at
    domestic subsidiaries, mainly due to the &#165;3.0&nbsp;billion
    increases at the above-mentioned Mitsui Norin Co., Ltd. (Japan).
    Telepark Corp. (Japan) also recorded an increase of
    &#165;1.9&nbsp;billion reflecting the expanded cell phone
    business. Overseas subsidiaries recorded an increase of
    &#165;7.9&nbsp;billion, including &#165;1.0&nbsp;billion at
    P.T.&nbsp;Bussan Auto Finance (Indonesia), reflecting an
    expansion in business activities. There was also an increased
    expense of &#165;6.4&nbsp;billion including office
    administration costs and various stamp duties.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the same manner as gross profit, selling, general and
administrative expenses rose &#165;14.6&nbsp;billion at
subsidiaries acquired or established from the second quarter of
the year ended March&nbsp;31, 2004 to the end of the year ended
March&nbsp;31, 2005.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Provision for Doubtful Receivables</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Provision for doubtful receivables for the year ended
March&nbsp;31, 2005 was &#165;8.9&nbsp;billion, a reduction of
&#165;1.0&nbsp;billion, or 10.1%, from &#165;9.9&nbsp;billion
for the year ended March&nbsp;31, 2004. In both the years ended
March&nbsp;31, 2005 and 2004, provision for doubtful receivables
consisted mainly of individually small provisions for a number
of customers. Of those, the major provisions for doubtful
receivables in the year ended March&nbsp;31, 2005 included a
&#165;0.9&nbsp;billion provision for a machinery-related
domestic customer, while overseas there was a
&#165;0.8&nbsp;billion provision for an overseas customer of
Mitsui&nbsp;&#38; Co. Energy Risk Management Ltd. (United
Kingdom).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The major provisions for doubtful receivables for the year ended
March&nbsp;31, 2004 included provisions against overseas
customers for machinery related transactions, and provisions for
domestic and overseas customers in the steel products business.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Interest Expense, Net of Interest Income</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest income for the year ended March&nbsp;31, 2005 was
&#165;35.5&nbsp;billion, an increase of &#165;5.5&nbsp;billion,
or 18.3%, from the &#165;30.0&nbsp;billion for the year ended
March&nbsp;31, 2004. Interest expenses were
&#165;43.6&nbsp;billion, an increase of &#165;7.7&nbsp;billion,
or 21.4%, from &#165;35.9&nbsp;billion for the year ended
March&nbsp;31, 2004. As a result, interest expense, net of
interest income was &#165;8.1&nbsp;billion, an increase of
&#165;2.2&nbsp;billion, or 37.3%, from &#165;5.9&nbsp;billion
for the year ended March&nbsp;31, 2004. A breakdown of the
principal changes for the year ended March&nbsp;31, 2005 is as
follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    At Mitsui Sakhalin Holdings B.V. (Netherlands), investments
    increased to Sakhalin Energy Investment Company Ltd. (Bermuda),
    and interest expenses rose &#165;1.8&nbsp;billion on the
    resultant increase in borrowings;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Interest expenses at Mitsui&nbsp;&#38; Co. (U.S.A) Inc. (the
    United States) rose &#165;1.7&nbsp;billion reflecting a rise in
    U.S.&nbsp;dollar interest rate.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest rate trends for the year ended March&nbsp;31, 2005 for
the Japanese yen and U.S.&nbsp;dollar, the major currencies in
which we have borrowings, are as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The average of the month-end Japanese yen three-month LIBOR
    remained 0.05%, roughly unchanged from the 0.06% during the year
    ended March&nbsp;31, 2004, as the Bank of Japan maintained its
    existing very low interest rate policy. The average interest
    rate on 10-year Japanese Government Bonds was 1.52%, rising from
    the 1.16% during the year ended March&nbsp;31, 2004, as</TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    yields slipped gradually in line with the emergence of
    perceptions of a slowing in the business cycle, after a rise to
    1.9% in June 2004 on the back of an improvement in global
    business sentiment;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The average of the month-end U.S. dollar three-month LIBOR
    during the year ended March&nbsp;31, 2005 was 2.13%, up from the
    1.16% during the year ended March&nbsp;31, 2004, reflecting the
    gradual rise in the Federal Funds target rate to 3.0% by the FRB
    in the period between June 2004 and May 2005, even as the FRB
    maintained its easing stance.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Dividend Income</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our dividend income for the year ended March&nbsp;31, 2005 was
&#165;24.6&nbsp;billion, an increase of &#165;6.2&nbsp;billion,
or 33.7%, from &#165;18.4&nbsp;billion for the year ended
March&nbsp;31, 2004. Dividends from LNG projects in the Middle
East (Abu Dhabi, Oman and Qatar) were &#165;12.8&nbsp;billion, a
&#165;4.7&nbsp;billion increase from the &#165;8.1&nbsp;billion
for the year ended March&nbsp;31, 2004, reflecting their strong
performance due to higher oil prices.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Government Grant for Transfer of Substitutional Portion of
    EPF</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On March&nbsp;12, 2004, Mitsui completed the transfer of the
substitutional portion of EPF, which is a defined benefit
pension program established under the Welfare Pension Insurance
Law, to the Japanese government. As a result, in the year ended
March&nbsp;31, 2004 a government grant for transfer of the
substitutional portion of EPF of &#165;17.2&nbsp;billion was
recorded. The grant represents the difference between the
accumulated benefit obligations settled with regard to the
substitutional portion and the related government-specified
portion of the plan assets that were transferred. For
information concerning the accounting for the transfer of the
substitutional portion of EPF, see Note&nbsp;14, &#147;PENSION
COSTS AND SEVERANCE INDEMNITIES.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gain on Sales of Securities&nbsp;&#151; Net</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The net realized gain on sales of securities for the year ended
March&nbsp;31, 2005 was &#165;34.9&nbsp;billion, an increase of
&#165;7.4&nbsp;billion, or 26.9% from &#165;27.5&nbsp;billion
for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a breakdown of main points related to net gains
on sales of securities for the year ended March&nbsp;31, 2005.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Machinery, Electronics&nbsp;&#38; Information Segment, we
    reported a &#165;7.2&nbsp;billion gain on the sale of shares in
    Vodafone K.K., a Japanese cell-phone carrier, in response to a
    tender offer, and a &#165;4.1&nbsp;billion gain in
    Mitsui&nbsp;&#38; Associates Telepark Corporation (Japan), a
    subsidiary engaged in sales of mobile devices and fixed
    telecommunication lines, following its initial public offering
    and listing on the second section of the Tokyo Stock Exchange.
    (Mitsui&nbsp;&#38; Associates Telepark Corporation changed its
    name to Telepark Corp. in October 2004.) Also in December 2004,
    in connection with the merger of a formerly associated company
    (equity method investee) NextCom&nbsp;K.K. (public company in
    Japan), a software development and marketing subsidiary BSI Co.,
    Ltd. (non-public company), and a data telecommunications
    equipment marketing subsidiary ADAM NET Ltd. (non-public
    company), Mitsui was allotted shares in NextCom K.K. in exchange
    for shares in two subsidiaries and recorded a
    &#165;3.7&nbsp;billion gain from the exchange of shares of those
    two subsidiaries to the extent of the share-down;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Consumer Products&nbsp;&#38; Services Segment, we
    recorded a combined &#165;4.0&nbsp;billion gain on sales of
    shares of netprice, ltd. and VeriTrans, Inc. when they were
    listed on domestic stock exchanges;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Chemical and the Other Overseas Areas Segments, we sold
    shares in Bangkok Polyethylene Public Company Limited, a maker
    of high density polyethylene, and recorded a gain of
    &#165;3.9&nbsp;billion.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the year ended March&nbsp;31, 2004, we recorded a gain of
&#165;6.7&nbsp;billion from the sale of shares of SKY Perfect
Communications Inc. in the Consumer Products&nbsp;&#38; Services
Segment, a gain of &#165;4.4&nbsp;billion from
</DIV>

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<DIV align="left" style="font-size: 10pt;">
the sale of Caemi Minera&#231;&#227;o e Metalurgia S.A. in the
Metal Products&nbsp;&#38; Minerals Segment, and a gain of
&#165;1.0&nbsp;billion from the sale of MODEC Inc. in the
Machinery, Electronics&nbsp;&#38; Information Segment.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gain on Issuance of Stock by a Subsidiary</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As mentioned above in Gains on Sales of Securities&nbsp;&#151;
Net, Mitsui&nbsp;&#38; Associates Telepark Corporation
registered and issued 8,000&nbsp;shares of common stock in an
initial public offering on the second section of the Tokyo Stock
Exchange in April 2004. As a result of the public offering, our
ownership interest in Mitsui&nbsp;&#38; Associates Telepark
Corporation decreased and we recognized a gain of
&#165;1.7&nbsp;billion on this issuance as a separate line item
in the Statements of Consolidated Income, under gain on issuance
of stock by a subsidiary, in addition to a
&#165;4.1&nbsp;billion gain on securities discussed above. For
further information, see Note&nbsp;19, &#147;ISSUANCE OF STOCK
BY SUBSIDIARIES AND ASSOCIATED COMPANIES.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Loss on Write-Down of Securities</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, the loss on write-down
of securities was &#165;16.5&nbsp;billion, a decrease of
&#165;14.5&nbsp;billion, or 46.8%, from the
&#165;31.0&nbsp;billion for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stock prices in Japan started to rebound around in May 2003 as
the Japanese government&#146;s decision to inject funds into
certain banks reduced concerns about the stability of the
financial system. Stocks continued to recover towards the end of
March 2004 supported by improvements in corporate profits and
gradual economic recovery. For the year ended March&nbsp;31,
2005, within a narrow range between a high of &#165;12,163.89
and a low of &#165;10,505.05 in the Nikkei Stock Average, the
Japanese stock markets experienced repeated minor adjustments
due to surging crude oil prices, concern over worldwide
inflation, appreciation of the yen and a slowdown in the United
States economy. However, the stock markets were underpinned by
hopes for recoveries of domestic and overseas economies and an
expansion in corporate profits. The Nikkei Stock Average closed
at &#165;11,668.95, &#165;11,715.39, and &#165;7,972.71 on
March&nbsp;31, 2005, 2004 and 2003, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Reflecting these developments in the stock market, the
write-down of marketable securities for the year ended
March&nbsp;31, 2005 reduced slightly to &#165;0.6&nbsp;billion
from &#165;1.1&nbsp;billion for the year ended March&nbsp;31,
2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With respect to non-marketable securities, considering a
deterioration in financial conditions due to sluggish
advertising revenue, we recorded losses on shares of satellite
broadcaster BS-I, INCORPORATED (not the same company as BSI Co.,
Ltd., listed under Gains on Sales of Securities&nbsp;&#151; Net)
and BS Japan Corporation of &#165;1.9&nbsp;billion and
&#165;1.2&nbsp;billion, respectively. MBK Australia Resorts Pty,
Ltd. (Australia) reported a write-down of &#165;1.7&nbsp;billion
based on the estimated sale price for its investment in Mirage
Resorts business in Australia. There were also other instances
of small losses. For the year ended March&nbsp;31, 2004, we
recorded a &#165;21.7&nbsp;billion loss on shares in POWEREDCOM,
Inc, a Japanese telecommunications company, in consideration of
the deterioration in its financial position, reflecting the
operating loss caused by fierce price competition along with
expansion of the Internet and the decrease in revenues from
fixed-line business. Setting aside the &#165;1.5&nbsp;billion
loss on shares in Mitsui Denman (Ireland) Co., Ltd., write-downs
of other non-marketable securities were not significant.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>(Gain) Loss on Disposal or Sales of Property and
    Equipment&nbsp;&#151; Net</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, gain on disposal or
sales of property and equipment&nbsp;&#151; net was
&#165;6.5&nbsp;billion, an increase of &#165;2.4&nbsp;billion,
or 58.5%, over &#165;4.1&nbsp;billion in the year ended
March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to a &#165;3.2&nbsp;billion gain from the sale of
Mitsui&#146;s corporate residences and dormitories, there was a
&#165;1.8&nbsp;billion gain from the sale of warehouses for
lease by a logistics-related subsidiary, Tri-Net Logistics
Management, Inc. (the United States).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, we recorded a
&#165;5.7&nbsp;billion gain from the sale of our corporate
residences and dormitories. Those sold in the years ended
March&nbsp;31, 2005 and 2004 had been acquired
</DIV>

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<DIV align="left" style="font-size: 10pt;">
long before the significant land price increase in Japan in the
late 1980s and early 1990s. We also recorded small losses on the
sale of aircraft and gas stations for the year ended
March&nbsp;31, 2004.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Impairment Loss of Long-Lived Assets</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The impairment loss of long-lived assets for the year ended
March&nbsp;31, 2005 was &#165;21.5&nbsp;billion, a
&#165;0.9&nbsp;billion, or 4.0% decrease from
&#165;22.4&nbsp;billion for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The main elements of impairment losses for the year ended
March&nbsp;31, 2005 were as follows.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Metal Products&nbsp;&#38; Minerals Segment, we reported a
    &#165;6.5&nbsp;billion impairment loss on plant facilities at an
    aluminum smelting subsidiary, Mitalco Inc. (the United States),
    reflecting the rising trend of electricity costs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We recorded a &#165;3.3&nbsp;billion impairment loss on land for
    development purposes and a loss of &#165;1.3&nbsp;billion on
    land for lease, both held domestically by Mitsui;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Energy Segment, Mitsui Oil Co., Ltd. (Japan) recorded an
    impairment loss of &#165;2.3&nbsp;billion mainly on gas stations.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The main elements of impairment losses for the year ended
March&nbsp;31, 2004 were as follows:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Impairment losses on Mitsui&#146;s corporate residences and
    dormitories of &#165;8.0&nbsp;billion were recorded due to a
    decline in land prices in Japan. The corporate residences and
    dormitories on which we recorded impairment losses during the
    year ended March&nbsp;31, 2004 had been acquired mainly in the
    early 1990s;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Machinery, Electronics&nbsp;&#38; Information Segment,
    there were impairment losses of &#165;4.3&nbsp;billion that
    resulted from the exit from and disposal of certain business at
    NBI Corporation (formerly Toyo Valve Co., Ltd.) and Mitsui
    Bussan Machinery Co., Ltd.;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A combined &#165;2.8&nbsp;billion loss was reported at two
    domestic subsidiaries that operate golf courses;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Energy Segment, Mitsui Oil Co., Ltd. (Japan) reported
    &#165;1.7&nbsp;billion in impairment losses in connection with
    the restructuring of its gas stations.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For more information on impairment losses on long-lived assets,
see Note&nbsp;10, &#147;IMPAIRMENT LOSS OF LONG-LIVED
ASSETS,&#148; and on our reevaluation and restructuring of
subsidiaries and associated companies, see Note&nbsp;25,
&#147;EXIT OR DISPOSAL ACTIVITIES.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Compensation and Other Charges Related to DPF Incident</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November 2004, Mitsui discovered that false data had been
produced and submitted to authorities for diesel particulate
filters (&#147;DPF&#147;s) manufactured by Mitsui&#146;s
subsidiary, PUREarth Incorporated (Japan), and sold by Mitsui.
These filters were subsidized by the Tokyo Metropolitan
Government and seven other prefectural and municipal
governments, as well as the Ministry of Land, Infrastructure and
Transport, the Ministry of the Environment, and related industry
associations. Mitsui sold approximately 21,500&nbsp;units of the
product.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui is carrying out a three-part user response plan
involving: (1)&nbsp;the free replacement of DPFs, (2)&nbsp;the
reimbursement of the amount paid for purchasing Mitsui&#146;s
DPFs in exchange for their redemption and (3)&nbsp;a support
program for the purchase of alternative vehicles. In addition,
Mitsui has been proceeding with full compensation of relevant
subsidies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, Mitsui recorded
&#165;36.0&nbsp;billion as compensation and other charges
related to DPF incident in the Statements of Consolidated
Income, consisting of a user response charge of approximately
&#165;28.0&nbsp;billion and subsidy compensation of
approximately &#165;8.0&nbsp;billion. The user response charge
was estimated based on expected costs in each user response
plan, which reflects the requirement of each respective user.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The subsidy compensation was recorded based on the amounts
claimed by subsidy providers. As of the end of June 2005, most
of the subsidy compensation amount has been paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For more information please see Note&nbsp;22, &#147;COMPENSATION
AND OTHER CHARGES RELATED TO DPF INCIDENT.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Expense&nbsp;&#151; Net</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, other
expense&nbsp;&#151; net was &#165;7.8&nbsp;billion, a
significant decrease of &#165;20.9&nbsp;billion, or 72.8%, from
&#165;28.7&nbsp;billion for the year ended March&nbsp;31, 2004.
The main elements of other expense&nbsp;&#151; net for the year
ended March&nbsp;31, 2005 were:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the recording of &#165;2.5&nbsp;billion in exploration expenses,
    reflecting an expansion in exploration activities at our
    petroleum and gas development and production subsidiaries,
    including Wandoo Petroleum Pty Ltd. (Australia);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the recording of &#165;2.0&nbsp;billion in restructuring-related
    charges, mainly representing costs related to the termination of
    an indemnity agreement which had been made in connection with
    the sale of a ceramic building materials and fiberboard business
    at Mitsui Wood Systems, Inc. (Japan) in October 2001.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other expense&nbsp;&#151; net for the year ended March&nbsp;31,
2004 mainly consisted of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    litigation charges of &#165;13.7&nbsp;billion related to the
    settlement of an antitrust lawsuit filed against our subsidiary,
    Bioproducts, Inc. (the United States), which manufactures and
    sells feed ingredient;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    restructuring-related charges of &#165;6.3&nbsp;billion, of
    which main elements included a combined &#165;3.7&nbsp;billion
    for Mitsui Bussan Machinery Co., Ltd. (Japan) and NBI
    Corporation (Japan) in the Machinery, Electronics&nbsp;&#38;
    Information Segment.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With regard to litigation charges related to Bioproducts, Inc.,
other related lawsuits are still pending. Although there can be
no assurance of the ultimate results, management believes that
there is less than a reasonable possibility that losses in
addition to amounts that have been reserved for possible
litigation losses will occur, and that the amount of any such
additional losses would not have a material impact on the
consolidated financial position, results of operations or cash
flows. For more details, see Note&nbsp;23, &#147;COMMITMENTS AND
CONTINGENT LIABILITIES.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For more information on other expense&nbsp;&#151; net, see
Note&nbsp;20, &#147;OTHER EXPENSE&nbsp;&#151; NET,&#148; and on
our restructuring activities, see Note&nbsp;25, &#147;EXIT OR
DISPOSAL ACTIVITIES.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Income Taxes</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, income taxes amounted to
&#165;103.6&nbsp;billion, reflecting increases in income from
continuing operations before minority interests and equity in
earnings, and recorded a major rise of &#165;56.6&nbsp;billion,
or 120.4%, from &#165;47.0&nbsp;billion for the year ended
March&nbsp;31, 2004. The effective tax rate was 59.0%, an
increase of 6.0 points from 53.0% for the year ended
March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This was mainly due to the impact of:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    increases in the effect of taxation on dividends from
    subsidiaries and corporate joint ventures (an increase of 5.7
    points from the year ended March&nbsp;31, 2004);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    increases in valuation allowance provided on deferred tax assets
    (an increase of 3.6 points over the year ended March&nbsp;31,
    2004), due mainly to the increase in valuation allowance on
    deferred tax assets on the impairment loss of certain of
    Mitsui&#146;s investments recorded in the past years as a result
    of a change in a policy to sell certain investments.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For further information, see Note&nbsp;21, &#147;INCOME
TAXES.&#148;
</DIV>

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Minority Interests in Earnings of Subsidiaries</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Minority interests in earnings of subsidiaries for the year
ended March&nbsp;31, 2005 were &#165;17.6&nbsp;billion, an
increase of &#165;10.1&nbsp;billion, or 134.7%, from
&#165;7.5&nbsp;billion for the year ended March&nbsp;31, 2004.
Our major minority interests in earnings of subsidiaries for the
year ended March&nbsp;31, 2005 were &#165;5.0&nbsp;billion in
Sesa Goa Limited (India) (with a minority interest of 49%) and
&#165;2.9&nbsp;billion in Japan Collahuasi Resources B.V.
(Netherlands) (with a minority interest of 38.1%) that owns an
interest in a Chilean copper mine joint venture, Compania Minera
Dona Ines de Collahuasi SCM (Chile).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our major minority interests in earnings of subsidiaries for the
year ended March&nbsp;31, 2004 were &#165;1.5&nbsp;billion in
Sesa Goa Limited and &#165;0.7&nbsp;billion in Japan Collahuasi
Resources B.V. Increases for the year ended March&nbsp;31, 2005
were primarily attributable to the strong performances of the
above-mentioned two subsidiaries on the back of rises in prices
of mineral resources.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Equity in Earnings of Associated Companies&nbsp;&#151; Net
    (After Income Tax Effect)</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, equity in earnings of
associated companies&nbsp;&#151; net (after income tax effect)
posted a gain of &#165;65.9&nbsp;billion, a significant increase
of &#165;25.8&nbsp;billion, or 64.3%, from
&#165;40.1&nbsp;billion for the year ended March&nbsp;31, 2004.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Since the second quarter of the year ended March&nbsp;31, 2004,
    equity in earnings of Valepar S.A. (Brazil), a holding company
    of the Brazilian iron ore and mineral resources company,
    Companhia Vale do Rio Doce (&#147;CVRD&#148;), have been
    included. In the Metal Products&nbsp;&#38; Minerals Segment,
    earnings of Valepar S.A. and Compania Minera Dona Ines de
    Collahuasi SCM (Chile) increased to &#165;6.4&nbsp;billion and
    &#165;7.8&nbsp;billion, respectively, for the year ended
    March&nbsp;31, 2005, compared to &#165;2.5&nbsp;billion and
    &#165;1.9&nbsp;billion, respectively, for the year ended
    March&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Energy Segment, earnings increased significantly at Japan
    Australia LNG (MIMI)&nbsp;Pty Ltd. (Australia) which is involved
    in natural gas, crude oil and condensate exploration,
    development and marketing in West Australia, due to rising oil
    prices and increased production on the back of facility
    expansion. Mitsui Oil Exploration Co., Ltd. (Japan) which is
    chiefly engaged in the production of gas and crude oil in
    offshore Thailand, also recorded an increase to
    &#165;2.7&nbsp;billion for the year ended March&nbsp;31, 2005
    from &#165;1.1&nbsp;billion for the year ended March&nbsp;31,
    2004, mainly due to rises in oil prices. Also, Sakhalin Energy
    Investment Company Ltd. (Bermuda) increased earnings on rising
    crude oil prices and an increase in production volume.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Logistics&nbsp;&#38; Financial Markets Segment, Mitsui
    Leasing&nbsp;&#38; Development Co. Ltd. (Japan) increased to
    &#165;2.5&nbsp;billion for the year ended March&nbsp;31, 2005
    from &#165;0.9&nbsp;billion for the year ended March&nbsp;31,
    2004 reflecting the strong performance of its machinery and
    shipping lease business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Machinery, Electronics&nbsp;&#38; Information Segment,
    P.T.&nbsp;Paiton Energy (Indonesia) posted earnings of
    &#165;2.9&nbsp;billion for the year ended March&nbsp;31, 2005,
    continuing the firm performance seen for the year ended
    March&nbsp;31, 2004. Automobile sales associated companies
    overseas continued to show solid performance for the year ended
    March&nbsp;31, 2005. There was also a new contribution of
    &#165;1.1&nbsp;billion from United Auto Group Inc. (the United
    States), an automobile dealer which became an associated company
    during the year ended March&nbsp;31, 2005.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Income (Loss) from Discontinued Operations&nbsp;&#151; Net
    (After Income Tax Effect)</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, income (loss) from
discontinued operations&nbsp;&#151; net (after income tax
effect) was income of &#165;0.7&nbsp;billion, a
&#165;4.4&nbsp;billion increase from the loss of
&#165;3.7&nbsp;billion recorded for the year ended
March&nbsp;31, 2004. The primary components of discontinued
operations for the year ended March&nbsp;31, 2005 are as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Shirasagi Golf Club Co., Ltd. (Japan), a subsidiary reported in
    the All Other Segment, had been engaged in the operation of a
    membership golf club in Japan, which had reported consecutive
    losses since the opening of the golf club because both the
    number of customers and the average sale per</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">85

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    customer had declined. In these business conditions, as it was
    very unlikely that Shirasagi Golf Club Co., Ltd. would be able
    to improve its earnings and pay off its debts in the future,
    Mitsui disposed of other than by sales the operation during the
    year ended March&nbsp;31, 2005. For the year ended
    March&nbsp;31, 2005, the income from discontinued operation of
    Shirasagi Golf Club Co., Ltd. was &#165;0.7&nbsp;billion,
    partially reversing losses in previous years.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A breakdown of operations discontinued for the year ended
March&nbsp;31, 2004 was as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Takeoka Golf Club, a domestic subsidiary in the All Other
    Segment, which had been engaged in the operation of a public
    golf club in Japan, suffered from a declining number of visitors
    due to keen competition with other golf clubs adjacent to the
    golf club and was disposed of by sale during the year ended
    March&nbsp;31, 2004. The business was disposed of and we
    recorded &#165;3.5&nbsp;billion in losses&nbsp;&#151; net (after
    income tax effect). We also posted a loss from disposal of
    Global Octanes Corporation (the United States) and other two
    subsidiaries, which had managed Global Octanes Texas Limited
    Partnership, and had been engaged in the manufacture and sale of
    Methyl Tertiary-Butyl Ether (&#147;MTBE&#148;), as its partners,
    but had dissolved the partnership and disposed of the operations
    during the year ended March&nbsp;31, 2004.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For additional information about our discontinued operations,
see Note&nbsp;4, &#147;DISCONTINUED OPERATIONS.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cumulative Effect of Change in Accounting Principle (After
    Income Tax Effect)</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On April&nbsp;1, 2003, we adopted Statement of Financial
Accounting Standards (&#147;SFAS&#148;) No.&nbsp;143,
&#147;Accounting for Asset Retirement Obligations.&#148;
SFAS&nbsp;No.&nbsp;143 requires entities to record the fair
value of a liability for an asset retirement obligation in the
period in which it is incurred. When the liability is initially
recorded, the entity capitalizes the related cost by increasing
the carrying amount of the long-lived asset. We recognized the
cumulative effect of the initial application of
SFAS&nbsp;No.&nbsp;143 as a separate line item in the Statements
of Consolidated Income under &#147;Cumulative Effect of Change
in Accounting Principle (After Income Tax Effect)&#148;
amounting to &#165;2.3&nbsp;billion including our share of
amounts attributable to associated companies. This represents
the difference between the net amount that was recognized in the
Consolidated Balance Sheets upon the retroactive application of
SFAS&nbsp;No.&nbsp;143 as of April&nbsp;1, 2003 and the amounts
recognized in the Consolidated Balance Sheets at that date prior
to the application of SFAS&nbsp;No.&nbsp;143. The asset
retirement obligations are principally related to the costs of
dismantling and removing mining facilities and gas production
facilities owned by subsidiaries and associated companies in
Australia, which are engaged in mining operations or oil and gas
producing activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For additional information about the cumulative effect of change
in accounting principle, see Note&nbsp;11, &#147;ASSET
RETIREMENT OBLIGATIONS.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Summary of Operations for the Year Ended March&nbsp;31,
    2004</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Environment</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The global economic recovery gained momentum from late 2003. The
principal developments in the economic environment influencing
our results of operations during the year ended March&nbsp;31,
2004 included the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Major expansion in the exports and imports by emerging economies
    including those in Asia, drove the growth of the world economy.
    The Chinese economy reported an exceptionally strong performance
    with its government seeking sustainable economic growth and
    showing a cautious attitude in its monetary and foreign exchange
    policies to avoid overheating of the economy;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    There was marked overall appreciation in international commodity
    prices reflecting increasing demand from Asian countries,
    especially from China;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">86

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Japanese economy began to recover gradually along with the
    improvement in the world economic conditions and the apparent
    reduction in the risks of a recession arising from instability
    of the Japanese financial system;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    As a result of the improvement in the Japanese economy, stock
    prices in Japan bottomed out from the beginning of the year
    ended March&nbsp;31, 2004; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Major countries around the world maintained their low interest
    rate policies.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of Operations for
the Year Ended March&nbsp;31, 2004</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, we recorded net income
of &#165;68.4&nbsp;billion, an increase of
&#165;37.3&nbsp;billion or 119.6% from &#165;31.1&nbsp;billion
for the year ended March&nbsp;31, 2003. Our overview of the
results of the operations for the year ended March&nbsp;31, 2004
is set forth below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Gross profit and equity in earnings of associated
    companies&nbsp;&#151; net (after income tax effect) benefited
    from rising commodity market prices driven by strong demand in
    China and other Asian countries for energy and mineral
    resources. As a result, the Metal Products&nbsp;&#38; Minerals
    Segment improved its operating results and the Energy Segment
    continued to perform well as compared with the year ended
    March&nbsp;31, 2003;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Increased overseas demand for plant projects, automobiles and
    ocean vessels improved gross profit in the Machinery,
    Electronics&nbsp;&#38; Information Segment and higher prices and
    increased demand for petrochemical products, including ammonia
    and olefin, improved the results of operations of the Chemical
    Segment. Charges for impairment losses on leased property and
    equipment, investments in securities and receivables in the
    Machinery, Electronics&nbsp;&#38; Information Segment and losses
    resulting from the discontinued operations of North American
    petrochemical subsidiaries in the Chemical Segment were reduced
    for the year ended March&nbsp;31, 2004 as compared to the year
    ended March&nbsp;31, 2003;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The turnaround of MITSUI FOODS CO., LTD. (Japan), formerly Sanyu
    Koami Co., Ltd., that had recorded a net loss for the year ended
    March&nbsp;31, 2003 due to impairment losses on non-marketable
    equity securities and unused land and for the year ended
    March&nbsp;31, 2002 due to an expense with respect to an early
    retirement program and provision for doubtful receivables
    contributed to the improvement in the Consumer
    Products&nbsp;&#38; Services Segment.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Reflecting development in the above-mentioned operating
segments, our operating results for the year ended
March&nbsp;31, 2004 improved as compared with the year ended
March&nbsp;31, 2003 as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Gross profit increased by &#165;44.3&nbsp;billion to
    &#165;613.9&nbsp;billion for the year ended March&nbsp;31, 2004
    compared with &#165;569.6&nbsp;billion for the year ended
    March&nbsp;31, 2003;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Equity in earnings of associated companies&nbsp;&#151; net
    (after income tax effect) rose by &#165;24.8&nbsp;billion to
    &#165;40.1&nbsp;billion for the year ended March&nbsp;31, 2004.
    Associated companies in the natural resources business
    contributed to this growth, while there were significant losses
    for the year ended March&nbsp;31, 2003 from associated companies
    in the Machinery, Electronics&nbsp;&#38; Information Segment and
    the Chemical Segment.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These improvements were partially offset by an increase in other
expense&nbsp;&#151; net by &#165;17.7&nbsp;billion to
&#165;28.7&nbsp;billion for the year ended March&nbsp;31, 2004,
which was primarily attributable to litigation charges for the
United States antitrust lawsuits related to our chemical
subsidiary, Bioproducts, Inc. (the United States).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The average U.S.&nbsp;dollar-yen exchange rate for the year
ended March&nbsp;31, 2004 was &#165;112.76=U.S.$1 compared with
&#165;121.20=U.S.$1 for the year ended March&nbsp;31, 2003, a
yen appreciation of &#165;8.44, or 7.0%. The appreciation of the
yen had the net effect of reducing gross profit by approximately
&#165;13.0&nbsp;billion.
</DIV>

<P align="center" style="font-size: 10pt;">87

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Discussion and Analysis of Operating Results for the Year
    Ended March&nbsp;31, 2004</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Revenues</I></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Sales of Products</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, sales of products were
&#165;2,490.0&nbsp;billion, an increase of
&#165;173.2&nbsp;billion from &#165;2,316.8&nbsp;billion for the
year ended March&nbsp;31, 2003. The major reason for this
increase was a &#165;112.9&nbsp;billion increase in revenues
from subsidiaries involved in oil and gas trading activities.
This growth was mainly attributable to an 8.5% increase in the
average price of crude oil during the year ended March&nbsp;31,
2004 caused by turmoil in Iraq and a lower inventory level of
petroleum products.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Sales of Services</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, sales of services were
&#165;424.5&nbsp;billion, an increase of &#165;34.8&nbsp;billion
from &#165;389.7&nbsp;billion for the year ended March&nbsp;31,
2003. Major components of these revenues for the year ended
March&nbsp;31, 2004 were revenues related to sales and purchases
of products, which are reported net under EITF No.&nbsp;99-19.
These include commissions received at a fixed amount or rate in
relation to the volume or amount of transactions, and revenues
reported net for some back-to-back sales and purchase
transactions of products where the difference between sales
price and purchase price is recorded as revenue. Revenues from
such trading margins and commissions increased from
&#165;273.2&nbsp;billion for the year ended March&nbsp;31, 2003
to &#165;303.7&nbsp;billion for the year ended March&nbsp;31,
2004. This increase was mainly due to the growth in trading
transactions at subsidiaries such as MITSUI FOODS CO., LTD.
(Japan) primarily with Japanese supermarkets. Revenues from
logistics and warehouse services, information and communication
services, technical support and many other types of services
increased from &#165;77.5&nbsp;billion for the year ended
March&nbsp;31, 2003 to &#165;83.3&nbsp;billion for the year
ended March&nbsp;31, 2004. Revenues from commissions for
facilitating conclusion of the contracts between manufacturers
and customers and for delivering products between suppliers and
customers decreased from &#165;39.0&nbsp;billion for the year
ended March&nbsp;31, 2003 to &#165;37.5&nbsp;billion for the
year ended March&nbsp;31, 2004.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Other Sales</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, leasing revenues
decreased from &#165;49.9&nbsp;billion to
&#165;42.2&nbsp;billion, mainly due to the disposal of leased
aircraft and the termination of the lease contracts in relation
with ocean transport vessels. Derivative trading revenues
decreased from &#165;22.1&nbsp;billion for the year ended
March&nbsp;31, 2003 to &#165;18.2&nbsp;billion for the year
ended March&nbsp;31, 2004.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gross Profit</I></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gross Profit Classified by Category of Revenues</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, gross profit
(&#147;GP&#148;) increased by &#165;44.3&nbsp;billion to
&#165;613.9&nbsp;billion. The changes in GP and GP ratio
classified by category of revenues are set forth below:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP Ratio</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP Ratio</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>GP Ratio</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit from sales of products</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;197.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.9%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;185.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.0%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;11.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.1</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit from sales of services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>383.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90.2%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>345.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>88.6%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit from other sales</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48.8%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49.7%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5.4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.9</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;613.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.6%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;569.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.5%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;44.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">88

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit from sales of products for the year ended
March&nbsp;31, 2004 increased &#165;11.7&nbsp;billion compared
with the year ended March&nbsp;31, 2003. This increase was
mainly due to the contribution of newly acquired subsidiaries,
such as Mitsui Norin Co., Ltd. (Japan).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit from sales of services for the year ended
March&nbsp;31, 2004 increased &#165;38.0&nbsp;billion compared
with the year ended March&nbsp;31, 2003. This increase was
mainly due to the growth in commissions for facilitating the
conclusion of contracts between manufacturers and customers and
profit margin for construction projects of oil refineries and
power plants, trading margins from transactions relating to cell
phones and from the domestic transactions with supermarkets by
MITSUI FOODS CO., LTD. (Japan). Gross profit ratio for the year
ended March&nbsp;31, 2004 improved 1.6 points compared with the
year ended March&nbsp;31, 2003, mainly due to the increase in
revenues from trading margins and commissions reported net,
where the corresponding costs are fully offset by the billed
amount and the gross profit ratio becomes 100%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit from other sales for the year ended March&nbsp;31,
2004 decreased &#165;5.4&nbsp;billion from the year ended
March&nbsp;31, 2003. This decrease was mainly due to the
derivative trading losses at Arcadia Petroleum Ltd. (United
Kingdom) relating to petroleum products tradings. Gross profit
ratio for the year ended March&nbsp;31, 2004 also decreased 0.9
points compared with the year ended March&nbsp;31, 2003, mainly
due to the decrease in revenues from petroleum products
derivative trading transactions.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gross Profit Classified by Operating Segment</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, the growth in gross
profit was mainly attributable to the operating segments as set
forth below:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Segment</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165; 91.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165; 69.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;21.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery, Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consumer Products&nbsp;&#38; Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>135.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Metal Products&nbsp;&#38; Minerals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.5</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Growth in the Chemical Segment was due to higher market prices
    for ammonia and other petrochemicals resulting from the rising
    crude oil and natural gas prices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Results in the Machinery, Electronics&nbsp;&#38; Information
    Segment benefited from a higher volume of transactions for
    construction of oil refineries and power plants, sales of
    automobiles, ocean vessels and cell phones;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Consumer Products&nbsp;&#38; Services Segment, newly
    acquired subsidiary Mitsui Norin Co., Ltd. (Japan), a producer
    and seller of tea leaves, made a new contribution while MITSUI
    FOODS CO., LTD. (Japan) also recorded higher sales mainly to
    supermarkets in Japan;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Metal Products&nbsp;&#38; Minerals Segment, gross profit
    increased at an iron ore subsidiary Sesa Goa Limited (India),
    because of growing iron ore exports to China and higher market
    prices of its products in India, and at Mitsui Iron Ore
    Development Pty. Ltd. (Australia), reflecting increased
    shipments of iron ore driven by the demand from China and other
    countries.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Selling, General and Administrative Expenses</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Selling, general and administrative expenses for the year ended
March&nbsp;31, 2004 increased to &#165;494.4&nbsp;billion from
&#165;454.0&nbsp;billion for the year ended March&nbsp;31, 2003.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Despite lower expenses for the early retirement support plan at
Mitsui, total personnel expenses for the year ended
March&nbsp;31, 2004 increased by &#165;19.3&nbsp;billion to
&#165;261.3&nbsp;billion because:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    At Mitsui, pension costs increased sharply due to a
    &#165;13.0&nbsp;billion increase in amortization of the
    unrecognized net actuarial loss;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A settlement loss of &#165;10.5&nbsp;billion was incurred due to
    the completion of the transfer to the Japanese government of the
    substitutional portion of the Mitsui&#146;s EPF.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Communication and information expenses for the year ended
March&nbsp;31, 2004 increased by &#165;2.4&nbsp;billion to
&#165;33.5&nbsp;billion from the year ended March&nbsp;31, 2003
because of the introduction of a new enterprise resource
planning system designed to raise productivity by standardizing
business processes at Mitsui.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Selling, general and administrative expenses other than
personnel and communication and information expenses increased
by &#165;18.3&nbsp;billion to &#165;155.8&nbsp;billion from the
year ended March&nbsp;31, 2003 due to an increase in newly
acquired subsidiaries, including Mitsui Norin Co., Ltd. (Japan),
where there were additional depreciation and sales promotion
expenses.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Provision for Doubtful Receivables</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Provision for doubtful receivables fell to
&#165;9.9&nbsp;billion compared with &#165;13.7&nbsp;billion for
the year ended March&nbsp;31, 2003. For the year ended
March&nbsp;31, 2004, provision for doubtful receivables
consisted mainly of individually small provisions for a number
of customers, primarily overseas customers in the machinery
business and domestic and overseas customers in the steel
product business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2003, the provision was mainly
for amounts due from United Airlines, Inc. and other receivables
relating to aircraft leasing, caused by the deterioration of the
worldwide airline industry, especially in the United States; for
receivables from customers in Argentina and Honduras reflecting
weak economic conditions; and for receivables from domestic
customers of MITSUI FOODS CO., LTD. (Japan) and Mitsui Bussan
Plant&nbsp;&#38; Project Corp. (Japan).
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Interest Expense, Net of Interest Income</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest expense, net of interest income for the year ended
March&nbsp;31, 2004 decreased by &#165;0.1&nbsp;billion, which
was attributable to lower net interest expenses at overseas
subsidiaries due to lower interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The average of the month-end Japanese yen three-month London
Interbank Offered Rate (&#147;LIBOR&#148;) was 0.06% and 0.07%
for the year ended March&nbsp;31, 2004 and 2003, respectively.
The average long-term prime rate in Japan was 1.59% for the year
ended March&nbsp;31, 2004 compared to 1.79% for the year ended
March&nbsp;31, 2003. The average of the month-end
U.S.&nbsp;dollar three-month LIBOR was 1.16% for the year ended
March&nbsp;31, 2004, which fell from 1.63% for the year ended
March&nbsp;31, 2003 because of the continuing low interest rate
policy in the United States.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Dividend Income</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our dividend income for the year ended March&nbsp;31, 2004
increased by &#165;2.1&nbsp;billion mainly due to the
&#165;1.1&nbsp;billion increase in dividends received by
Mitsui&nbsp;&#38; Co. (Hong Kong) Ltd. from local Hong Kong
investee companies. Dividends from investments in the Energy
Segment amounting to &#165;8.1&nbsp;billion, principally from
LNG projects in Abu Dhabi, Oman and Qatar, were consistent with
dividends for the year ended March&nbsp;31, 2003 of
&#165;8.3&nbsp;billion.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gain on Securities Contributed to an Employee Retirement
    Benefit Trust</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2004, no contribution of
securities to an employee retirement benefit trust was made. For
the year ended March&nbsp;31, 2003, Mitsui made a contribution
of certain available-for-sale securities to the trust and
recorded a &#165;15.8&nbsp;billion gain.
</DIV>

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Government Grant for Transfer of Substitutional Portion of
    EPF</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This was reported for the year ended March&nbsp;31, 2004 only.
For information, see &#147;Discussion and Analysis of Operating
Results for the Year Ended March&nbsp;31, 2005.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Gain on Sales of Securities&nbsp;&#151; Net</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The net realized gain on sales of securities for the year ended
March&nbsp;31, 2004 increased by &#165;16.5&nbsp;billion from
the year ended March&nbsp;31, 2003. For the year ended
March&nbsp;31, 2004, gain related to sales of shares of SKY
Perfect Communications Inc., Caemi Minera&#231;&#227;o e
Metalurgia S.A. and MODEC, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2003, there were gains
resulting from the exchange of shares accompanying the merger of
Japan Airlines Company, Ltd. and Japan Air System Co., Ltd. and
the sale of shares of information technology-related companies,
offsetting losses on sales of listed shares of banking
institutions.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Loss on Write-Down of Securities</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, the loss on write-down
of securities decreased by &#165;6.9&nbsp;billion to
&#165;31.0&nbsp;billion from &#165;37.9&nbsp;billion recorded
for the year ended March&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stock prices in Japan fell sharply in early 2003 as
non-performing loan problems sparked concerns about the Japanese
financial system and the Nikkei Stock Average reached its
&#147;post-bubble&#148; record low in April 2003. However, a
rebound in stock markets began in May 2003 after the Japanese
government&#146;s decision to inject public funds into certain
banks alleviated concerns about financial instability. Improving
corporate earnings and a gradual upturn in the Japanese economy
also drove stock prices higher for the year ended March&nbsp;31,
2004. The Nikkei Stock Average closed at &#165;11,715.39,
&#165;7,972.71 and &#165;11,024.94 on March&nbsp;31, 2004, 2003
and 2002, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to the rebound in Japanese stock markets, the loss on
write-down of marketable securities decreased sharply to
&#165;1.1&nbsp;billion from &#165;15.6&nbsp;billion for the year
ended March&nbsp;31, 2003. The loss on write-down of marketable
securities for the year ended March&nbsp;31, 2003 primarily
consisted of those of banking institutions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, however, with respect to
non-marketable securities, we posted a &#165;21.7&nbsp;billion
loss on shares of POWEREDCOM, Inc., a Japanese
telecommunications company, in consideration of the
deterioration in its financial position reflecting the operating
loss caused by the fierce price competition along with expansion
of the Internet and the decrease in revenues from the fixed-line
business. We also recorded a &#165;1.5&nbsp;billion loss on
shares of Mitsui Denman (Ireland) Co., Ltd., a company in the
chemical industry located in Ireland. For the year ended
March&nbsp;31, 2003, losses on non-marketable securities were
&#165;22.3&nbsp;billion, which included those of information
technology-related companies amounting to &#165;7.6&nbsp;billion.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>(Gain) Loss on Disposal or Sales of Property and
    Equipment&nbsp;&#151; Net</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, gain on disposal or
sales of property and equipment&nbsp;&#151; net was
&#165;4.1&nbsp;billion, an improvement by &#165;5.8&nbsp;billion
compared with the year ended March&nbsp;31, 2003. This
improvement is mostly attributable to a gain of
&#165;5.7&nbsp;billion on sales of Mitsui&#146;s corporate
residences and dormitories in Japan. The corporate residences
and dormitories on which we recorded a gain on sales during the
year ended March&nbsp;31, 2004 had been acquired long before the
land prices significantly increased in Japan in the late 1980s
and early 1990s.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2003, loss on disposal or
sales of property and equipment&nbsp;&#151; net, which were
mainly incurred by domestic subsidiaries, were not significant.
</DIV>

<P align="center" style="font-size: 10pt;">91

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Impairment Loss of Long-Lived Assets</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The impairment loss of long-lived assets for the year ended
March&nbsp;31, 2004 slightly decreased by &#165;1.2&nbsp;billion
to &#165;22.4&nbsp;billion. The main elements of impairment
losses for the year ended March&nbsp;31, 2004 were as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Impairment losses on Mitsui&#146;s corporate residences and
    dormitories of &#165;8.0&nbsp;billion were recorded due to a
    further decline in land prices in Japan. The corporate
    residences and dormitories on which we recorded impairment
    losses during the year ended March&nbsp;31, 2004 had been
    acquired mainly in early 1990s;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Machinery, Electronics&nbsp;&#38; Information Segment,
    there were impairment losses of &#165;4.3&nbsp;billion that
    resulted from the exit from and disposal of certain businesses
    at NBI Corporation (Japan), formerly Toyo Valve Co., Ltd. and
    Mitsui Bussan Machinery Co., Ltd. (Japan);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Impairment losses were also recorded at two domestic
    subsidiaries that operate golf courses.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For more information on our reevaluation and restructuring of
subsidiaries and associated companies, see Note&nbsp;25,
&#147;EXIT OR DISPOSAL ACTIVITIES.&#148; As compared with the
year ended March&nbsp;31, 2003, we saw the following improvement
in impairment losses on long-lived assets for the year ended
March&nbsp;31, 2004:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the year ended March&nbsp;31, 2003, there was an impairment
    loss of &#165;9.4&nbsp;billion on MD-11 leased aircraft due to a
    substantial decline in the fair value of this type of aircraft.
    For the year ended March&nbsp;31, 2004, a similar loss on our
    leased aircraft was not significant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Energy Segment, there was an impairment loss of
    &#165;9.2&nbsp;billion mainly related to gas stations operated
    by Mitsui Oil&nbsp;&#38; Gas Co., Ltd. (Japan), which was
    divided into Mitsui Oil Co., Ltd. and Mitsui Liquefied Gas Co.,
    Ltd. in December 2004, and Kokusai Oil&nbsp;&#38; Chemical Co.,
    Ltd. (Japan) for the year ended March&nbsp;31, 2003;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    MITSUI FOODS CO., LTD. (Japan) recorded an impairment loss on
    unused land in Japan for the year ended March&nbsp;31, 2003.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Other Expense&nbsp;&#151; Net</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, other
expense&nbsp;&#151; net increased by &#165;17.7&nbsp;billion to
&#165;28.7&nbsp;billion. The increase was mainly caused by:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    litigation charges of &#165;13.7&nbsp;billion related to the
    settlement of an antitrust lawsuit filed against our United
    States subsidiary, Bioproducts, Inc., which manufactures and
    sells feed ingredient;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    restructuring charges of &#165;7.0&nbsp;billion arising from
    certain subsidiaries such as Mitsui Bussan Machinery Co., Ltd.
    (Japan) and NBI Corporation (Japan). For more information, see
    Note&nbsp;25, &#147;EXIT OR DISPOSAL ACTIVITIES.&#148;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With regard to the litigation charges related to Bioproducts,
Inc., there are still pending lawsuits, but we believe there is
less than a reasonable possibility that the pending lawsuits
would materially affect our results of operations. For more
details, see Note&nbsp;23, &#147;COMMITMENTS AND CONTINGENT
LIABILITIES.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2003, out of
&#165;11.0&nbsp;billion of other expense&nbsp;&#151; net,
litigation charges were &#165;4.1&nbsp;billion which included
the charge in connection with the lawsuits against Novus
International, Inc., one of our United States subsidiaries.
Additionally, there were foreign exchange losses amounting to
&#165;2.4&nbsp;billion mainly at Mitsui due to the yen
appreciation.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Income Taxes</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income taxes for the year ended March&nbsp;31, 2004 increased by
&#165;5.8&nbsp;billion to &#165;45.0&nbsp;billion compared with
the year ended March&nbsp;31, 2003. The effective tax rate was
53.0%, which was higher than the normal
</DIV>

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<DIV align="left" style="font-size: 10pt;">
statutory corporate tax rate of 42% in Japan. The difference was
primarily caused by the valuation allowance provided for
deferred tax assets for operating losses of certain
subsidiaries. For the year ended March&nbsp;31, 2003, the
effective tax rate of 59.7% was also mainly due to a valuation
allowance for operating losses of certain subsidiaries. For more
detailed information on our income taxes, see Note&nbsp;21,
&#147;INCOME TAXES.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Minority Interests in Earnings of Subsidiaries</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, minority interests in
earnings of subsidiaries increased by &#165;3.1&nbsp;billion to
&#165;7.5&nbsp;billion from the year ended March&nbsp;31, 2003.
The increase was mainly attributable to the strong performance
of an iron ore subsidiary, Sesa Goa Limited (India), in which
the minority interest portion was 49% for the year ended
March&nbsp;31, 2004.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Equity in Earnings of Associated Companies&nbsp;&#151; Net
    (After Income Tax Effect)</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, equity in earnings of
associated companies&nbsp;&#151; net rose by
&#165;24.8&nbsp;billion to &#165;40.1&nbsp;billion due to the
following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Energy Segment, earnings increased at Japan Australia LNG
    (MIMI) Pty. Ltd. (Australia), which operates in Western
    Australia, as both sales volumes and crude oil prices rose;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Metal Products&nbsp;&#38; Minerals Segment, the operating
    results of Valepar S.A. (Brazil), the holding company of
    Companhia Vale do Rio Doce (&#147;CVRD&#148;), were included
    from the second quarter of the year ended March&nbsp;31, 2004,
    and there were higher earnings of Compania Minera Dona Ines de
    Collahuasi SCM (Chile), a copper mine development company
    reflecting rising copper prices from around the middle of the
    year ended March&nbsp;31, 2004;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the Machinery, Electronics&nbsp;&#38; Information Segment,
    earnings rose at P.T.&nbsp;Paiton Energy in Indonesia due to
    higher electric power sales volume and at overseas automobile
    sales subsidiaries.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2003, there were contributions
from associated companies in the Energy and the Metal
Products&nbsp;&#38; Minerals segments, which were offset by the
substantial losses from:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an other than temporary decline in the value of investments in
    NextCom K.K. (Japan), formerly an associated company engaged in
    the information technology business, as a result of the sharp
    decline in its stock price, and an increase in the reserve for
    impaired loans at Furukawa Industrial S.A. Produtos Eletrico
    (Brazil), a telecommunications associated company;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an impairment loss on a production facility of Vinylchloride
    (Malaysia) Sdn. Bhd., an overseas associated company in the
    chemical business.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The absence of such significant losses for the year ended
March&nbsp;31, 2004 was another reason for the increase in net
equity in earnings of associated companies.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Loss from Discontinued Operations&nbsp;&#151; Net (After
    Income Tax Effect)</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, loss from discontinued
operations was &#165;3.7&nbsp;billion. The primary component of
the loss from discontinued operations was the disposal of
Takeoka Golf Club (Japan), amounting to &#165;3.5&nbsp;billion
after income taxes. Takeoka Golf Club, which had been engaged in
the operation of a public golf club in Japan, suffered from the
declining number of visitors due to keen competition with
adjacent golf clubs and was disposed of by sale during the year
ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2003, loss from discontinued
operations was &#165;5.9&nbsp;billion. The primary components of
loss from discontinued operations were related to the following
petrochemical subsidiaries in North America and amounted to
&#165;6.3&nbsp;billion after income tax effect:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Transpacific Glycols, Inc. (the United States), a subsidiary
    reported in both the Chemical and Americas Segments, which had
    been engaged in the sale of ethylene glycol, had ceased its sales</TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    operations during the year ended March&nbsp;31, 2003 due to its
    declining performance caused by overall market
    conditions;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Pacific Ammonia Inc. (the United States), a subsidiary reported
    in the Chemical Segment, which had been engaged in the
    manufacture and sale of ammonia primarily on the West Coast of
    the United States, had suffered from high natural gas costs, its
    main raw material ingredient, and a relatively weak ammonia
    price due to a worldwide oversupply. Due to this business
    environment, Pacific Ammonia Inc. recognized an impairment loss
    on fixed assets during the year ended March&nbsp;31, 2003 based
    on a plan to dispose of the operation by sale.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For additional information about our discontinued operations,
see Note&nbsp;4, &#147;DISCONTINUED OPERATIONS.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cumulative Effect of Change in Accounting Principle (After
    Income Tax Effect)</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This cumulative effect was reported for the year ended
March&nbsp;31, 2004 only. For information, see &#147;Discussion
and Analysis of Operating Results for the Year Ended
March&nbsp;31, 2005.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Operating Results by Operating Segment</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The business units of Mitsui&#146;s Head Office, which are
organized based on &#147;products and services,&#148; plan
overall and worldwide strategies for their products and services
and conduct their worldwide operations. The business units also
collaborate with branches and trading subsidiaries that are
located in overseas countries in planning and executing their
strategies for products and regions. The branches and trading
subsidiaries that are located in overseas countries are separate
operating units, which are delegated the business of their
regions as the centers of each particular regional strategy and
operate diversified business together with their subsidiaries
and associated companies in collaboration with the business
units. Therefore, our operating segments consist of
product-focused operating segments comprised of the business
units of the Head Office and region-focused operating segments
comprised of branches, offices and overseas trading subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our operating segments have been aggregated based on the nature
of the products and other criteria into six product-focused
reportable operating segments and three region-focused
reportable operating segments, totaling nine reportable
operating segments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, with the aim of strengthening
domestic businesses and improving operational efficiency, the
&#147;Domestic Branches and Offices,&#148; which had been
separate operating units until the year ended March&nbsp;31,
2004, were integrated into related businesses units based on the
categories of their products and services. Accordingly,
&#147;Domestic Branches and Offices&#148; was abolished and the
components of the reportable segment were transferred to each
product-focused operating segment in the Head Office. Further,
effective April&nbsp;1, 2004, with the aim of optimizing the
allocation of operating resources and implementing global
strategies more quickly and efficiently, the business units in
the Head Office were reorganized. In this reorganization, the
logistics businesses and the financial businesses, which had
previously been included in &#147;Metal Products&nbsp;&#38;
Minerals&#148; and &#147;All Other,&#148; were aggregated as a
new reportable segment &#147;Logistics&nbsp;&#38; Financial
Markets,&#148; in order to provide high-quality, specialized
logistics and financial capabilities to customers across all
product areas. In addition, with the aim of responding to the
rapid expansion in Japan of service industries such as the
knowledge-based industry, and the healthcare industry, and
developing new business models based on identifying consumer
needs, the Consumer Service Business Unit was established in
&#147;Consumer Products&nbsp;&#38; Services.&#148; Media-related
businesses oriented to consumers were transferred to
&#147;Consumer Products&nbsp;&#38; Services&#148; from
&#147;Machinery, Electronics&nbsp;&#38; Information.&#148; The
operating segment information for the years ended March&nbsp;31,
2004 and 2003 has been restated to conform to the current year
presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Starting from the year ended March&nbsp;31, 2005, we changed the
presentation of financing revenues and costs of certain
subsidiaries engaged mainly in external consumer financing,
which were formerly reported
</DIV>

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<DIV align="left" style="font-size: 10pt;">
as interest expense, net of interest income. In relation to this
change, the figures for the years ended March&nbsp;31, 2004 and
2003 have been restated to conform to the current year
presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Further, starting from the year ended March&nbsp;31, 2005,
equity in earnings of associated companies is disclosed, since
this item is newly included in the measure of segment
performance reviewed by the chief operating decision maker. In
this section, for the convenience of readers to compare equity
in earnings of associated companies by operating segment for the
year ended March&nbsp;31, 2005 and 2004, the breakdowns for the
year ended March&nbsp;31, 2004 are additionally provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our operating segment information for gross profit, operating
income (loss), equity in earnings (losses) of associated
companies and net income (loss) for the years ended
March&nbsp;31, 2005, 2004 and 2003 are as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Operating segment
information</I></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>
    <B><I>Gross profit</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(2005&#150;2004)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(2004&#150;2003)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Metal Products&nbsp;&#38; Minerals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>77.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>71.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>44.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery, Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>87.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consumer Products&nbsp;&#38; Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>152.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>135.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Logistics&nbsp;&#38; Financial Markets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Americas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Europe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Overseas Areas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>714.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>604.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>562.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments and Eliminations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>725.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>613.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>569.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>111.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">95

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Operating Income (Loss)</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(2005&#150;2004)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(2004&#150;2003)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Metal Products&nbsp;&#38; Minerals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>28.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>39.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery, Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consumer Products&nbsp;&#38; Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Logistics&nbsp;&#38; Financial Markets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Americas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Europe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Overseas Areas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>235.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>136.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments and Eliminations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(36.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(32.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>198.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>126.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>101.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Equity in Earnings (Losses) of Associated Companies</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(2005&#150;2004)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Metal Products&nbsp;&#38; Minerals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>13.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery, Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consumer Products&nbsp;&#38; Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Logistics&nbsp;&#38; Financial Markets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Americas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Europe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Overseas Areas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments and Eliminations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6.4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">96

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Net Income (Loss)</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(2005&#150;2004)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(2004&#150;2003)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Metal Products&nbsp;&#38; Minerals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>47.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery, Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consumer Products&nbsp;&#38; Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Logistics&nbsp;&#38; Financial Markets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Americas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Europe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Overseas Areas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>167.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments and Eliminations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34.4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(31.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Operating Income (Loss)</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income (loss) is included in the measure of segment
performance reviewed by the chief operating decision maker.
Operating income (loss) reflects our (a)&nbsp;gross profit,
(b)&nbsp;selling, general and administrative expenses,
(c)&nbsp;provision for doubtful receivables and
(d)&nbsp;government grant for transfer of substitutional portion
of EPF, as presented in the Statements of Consolidated Income.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Results of Operations for the Year Ended March&nbsp;31,
    2005</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Metal Products&nbsp;&#38; Minerals Segment</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>77.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>44.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.8</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit of the Metal Products&nbsp;&#38; Minerals Segment
for the year ended March&nbsp;31, 2005 was
&#165;121.4&nbsp;billion, a substantial increase of
&#165;44.4&nbsp;billion from &#165;77.0&nbsp;billion for the
year ended March&nbsp;31, 2004. The main factors contributing to
this result were as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the year ended March&nbsp;31, 2005, iron ore prices under
    long-term contracts rose by 18.6% over the year ended
    March&nbsp;31, 2004, resulting in major increases in gross
    profit at Sesa Goa Limited (India) and Mitsui Iron Ore
    Development Pty. Ltd. (Australia). Sesa Goa Limited in
    particular contributed a &#165;12.2&nbsp;billion increase
    compared to the year ended March&nbsp;31, 2004, supported by the
    expansion of sales to China. At Mitsui Iron Ore Development Pty,
    Ltd., shipments (on our equity production basis) increased to
    21.4&nbsp;million tons for the year ended March&nbsp;31, 2005
    compared to 18.7&nbsp;million tons for the year ended
    March&nbsp;31, 2004 on the back of expanded production at the
    West Angelas mine which came on line in March 2002.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">97

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Due to the price rise for long-term contracts for thermal coal
    and metallurgical coal for the year ended March&nbsp;31, 2005,
    Mitsui Coal Holdings Pty. Ltd. (Australia) recorded a
    &#165;5.3&nbsp;billion increase in gross profit compared to the
    year ended March&nbsp;31, 2004. Representative prices for
    Australian metallurgical coal rose to U.S.$57&nbsp;per ton/FOB
    for the year ended March&nbsp;31, 2005 compared to
    U.S.$47&nbsp;per ton/FOB for the year ended March&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We recorded a combined gross profit increase of
    &#165;12.6&nbsp;billion in the steel products businesses in this
    segment, as profit margins expanded due to the steady
    transaction volume mainly in the domestic market and Asia, amid
    a tightening in supply and demand for various steel products.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2005 was
&#165;68.1&nbsp;billion, a &#165;39.4&nbsp;billion increase from
&#165;28.7&nbsp;billion for the year ended March&nbsp;31, 2004.
Selling, general and administrative expenses increased, but this
was significantly outweighed by the above-mentioned increase in
gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was &#165;22.4&nbsp;billion, an increase of
&#165;13.8&nbsp;billion from &#165;8.6&nbsp;billion for the year
ended March&nbsp;31, 2004. The main factors contributing to this
result were as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the second quarter of the year ended March&nbsp;31, 2004, we
    sold our shares in Caemi Minera&#231;&#227;o e Metalurgia S.A.
    to the Brazilian iron ore and mineral resources company
    Companhia Vale do Rio Doce (&#147;CVRD&#148;) at the same time
    as acquiring 18.24% of the outstanding voting shares in Valepar
    S.A. (Brazil), the holding company of CVRD. Our equity in
    earnings of Valepar S.A. for the year ended March&nbsp;31, 2005
    was &#165;6.4&nbsp;billion, a &#165;3.9&nbsp;billion increase
    compared to the year ended March&nbsp;31, 2004, also reflecting
    the positive impact of higher mineral resource prices on its
    financial performance.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our equity in earnings in the copper mine joint venture,
    Compania Minera Dona Ines de Collahuasi SCM (Chile), for the
    year ended March&nbsp;31, 2005 was &#165;7.8&nbsp;billion, an
    increase of &#165;5.9&nbsp;billion compared to the year ended
    March&nbsp;31, 2004. Average copper prices over the year as
    listed on the London Metals Exchange (&#147;LME&#148;) rose to
    U.S.$3,000&nbsp;per ton/ FOB for the year ended March&nbsp;31,
    2005 from U.S.$2,046&nbsp;per ton/ FOB for the year ended
    March&nbsp;31, 2004.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2005 was
&#165;47.0&nbsp;billion, a significant increase of
&#165;22.8&nbsp;billion from &#165;24.2&nbsp;billion for the
year ended March&nbsp;31, 2004, reflecting increased operating
income and equity in earnings of associated companies, despite
the following negative factors:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The year ended March&nbsp;31, 2005 saw reduced gains on sales of
    securities, reflecting the absence of the &#165;4.4&nbsp;billion
    gain recorded from the sale of shares in Caemi
    Minera&#231;&#227;o e Metalurgia S.A. for the year ended
    March&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We recorded &#165;6.5&nbsp;billion in impairment losses on plant
    facilities at an aluminum smelting subsidiary, Mitalco Inc. (the
    United States) for the year ended March&nbsp;31, 2005,
    reflecting the rising trend of electricity costs.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Short-and Long-Term Outlook on Prices and Supply-Demand
    Balance for Iron&nbsp;&#38; Steel Raw Materials, and Our Equity
    Production</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Short-Term Pricing and Supply-Demand Balance</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the iron ore and coal production joint venture businesses in
Australia and other regions that we are promoting along with
major overseas mineral resource companies, those joint ventures
conclude multiple year sales contracts with Japanese steel
makers, major clients. Based on these long-term contracts, sales
prices are reviewed and renegotiated each fiscal year. For the
year ending March&nbsp;31, 2006, the annual prices of iron ore
and coal have been raised to reflect limited production
capacities in Australia and Brazil in the face of active demand
for iron and steel raw materials from China as described below.
(Unit prices
</DIV>

<P align="center" style="font-size: 10pt;">98

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
for iron ore and coal from each mine in production also reflect
the difference of respective grades and types.)
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Iron ore prices rose 71.5% compared to the year ended
    March&nbsp;31, 2005, on a pure ore content basis.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Prices for representative Australian metallurgical coal rose to
    U.S.$125&nbsp;per ton/ FOB for the year ending March&nbsp;31,
    2006, a 120% rise over the U.S.$57&nbsp;per ton/ FOB for the
    year ended March&nbsp;31, 2005.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fluctuations in iron ore and coal prices directly result in
revenue from the equity-based production of our iron ore or coal
subsidiaries and associated companies overseas. For the year
ending March&nbsp;31, 2006, the estimated impact on net income
in the Statements of Consolidated Income arising from change in
iron ore and coal prices is as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Estimated impact on net income from a change of U.S.$1&nbsp;per
    ton in iron ore price: Approximately &#165;2.6&nbsp;billion.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Estimated impact on net income from a change of U.S.$1&nbsp;per
    ton in coal price: Approximately &#165;0.6&nbsp;billion.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, an equity-based
production of our overseas subsidiaries and associated companies
in shipments amounted to 39&nbsp;million tons of iron ore and
8&nbsp;million tons of coal. The above-mentioned effect is
calculated based on the assumptions on an estimated increase in
production in line with our holdings after the year ended
March&nbsp;31, 2005, and a specific range of foreign exchange
for yen, the U.S.&nbsp;dollar and other related currencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Efforts are being undertaken at each mine to expand production
and shipments, but production costs are increasing amid a global
trend of rising material and equipment costs, and utility costs
are also trending upwards. In natural resource producing
countries such as Australia, there is a generalized trend toward
currency appreciation in line with any firming in the markets
for export products, resulting in cost pressure for our overseas
subsidiaries and associated companies. As a result, it will also
be necessary for us to take these cost fluctuation factors into
consideration when considering earnings developments at our iron
ore and coal businesses overseas.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Middle- and Long-Term Price Outlook and Supply-Demand Balance
    and Trends in our Equity Production</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to respond to tightening supply-demand, major iron ore
and coal producers are investing to increase production
capacity. As of March&nbsp;31, 2005, noteworthy developments in
iron and steel raw materials projects in which we hold a stake
are as follows. (Unless otherwise noted, production amounts
represent at 100% basis by all participants to the relevant
projects.)
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We are at present expanding the operation at the West Angelas
    mine, a joint venture with Rio Tinto, in order to raise iron ore
    production capacity to 25&nbsp;million tons per annum from the
    present 20&nbsp;million tons within 2005. With respect to joint
    ventures promoted with BHP Billiton, we are expanding to raise
    the combined iron ore production capacity to 118&nbsp;million
    tons from 110&nbsp;million tons by the year ending
    March&nbsp;31, 2007.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    At the Moura/ Theodore mines, a joint venture with Anglo Coal
    Australia Pty Ltd., we have decided to boost annual coal
    production from the present capacity of 7.2&nbsp;million tons to
    12.7&nbsp;million tons by 2007.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
It is difficult to make definitive forecasts about demand
developments from areas such as China for a medium to long term.
On the other hand, operations of other projects are also
expanding production capacity which we expect will be reflected
in global production capacity in the year beyond 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We produce our Medium-Term Strategic and Financial Plan on a
biennial basis, but have yet to come up with the outlook of
supply and demand or iron and steel raw materials prices for the
period
</DIV>

<P align="center" style="font-size: 10pt;">99

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
beyond 2007. As there are too many uncertainties on the future
supply-demand and price outlook for our management to draw up
definitive forecasts at this point in time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Machinery, Electronics&nbsp;&#38; Information
Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>137.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>128.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.5</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit in the Machinery, Electronics&nbsp;&#38;
Information Segment for the year ended March&nbsp;31, 2005 was
&#165;137.3&nbsp;billion, an increase of &#165;8.6&nbsp;billion
from &#165;128.7&nbsp;billion for the year ended March&nbsp;31,
2004. The main components of the changes in gross profit were:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Growth in cell phone agency sales by Telepark Corp., leading to
    an increase in gross profit of &#165;3.6&nbsp;billion. NextCom
    K.K. (Japan), an associated company in the year ended
    March&nbsp;31, 2004, was merged with two of Mitsui&#146;s
    subsidiaries to become a subsidiary in the third quarter of the
    year ended March&nbsp;31, 2005, resulting in growth of
    &#165;4.0&nbsp;billion.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the year ended March&nbsp;31, 2004, there was a significant
    contribution from plant and transportation projects such as a
    power station and railway project in Malaysia, and an oil
    refinery in Russia. In the year ended March&nbsp;31, 2005
    execution of such large contracts declined and gross profit
    decreased slightly.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Business expansion of P.T.&nbsp;Bussan Auto Finance (Indonesia),
    a motorcycle retail finance company, resulted in growth of
    &#165;1.7&nbsp;billion. In general, overseas subsidiaries in the
    automotive field recorded increased gross profit.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2005 was
&#165;31.4&nbsp;billion, a &#165;2.0&nbsp;billion increase from
the &#165;29.4&nbsp;billion for the year ended March&nbsp;31,
2004. Although gross profit rose, selling, general and
administrative expenses including personnel expenses rose for
NextCom K.K. (Japan), Telepark Corp. (Japan) and overseas
subsidiaries in the automotive field.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was &#165;8.2&nbsp;billion, an increase of
&#165;0.5&nbsp;billion from &#165;7.7&nbsp;billion for the year
ended March&nbsp;31, 2004. P.T.&nbsp;Paiton Energy (Indonesia)
continued to be buoyant, recording a figure of
&#165;2.9&nbsp;billion. In addition to the favorable performance
of overseas automotive associated companies, the United Auto
Group, Inc. (the United States), a company which newly became an
associated company made a new contribution of
&#165;1.1&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2005 was
&#165;26.4&nbsp;billion, a substantial increase of
&#165;20.5&nbsp;billion from &#165;5.9&nbsp;billion for the year
ended March&nbsp;31, 2004. In addition to the small increase in
operating income and equity in earnings of associated companies,
there was significant improvement in other expenses for the year
ended March&nbsp;31, 2005. The major factors for this included
the following:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the year ended March&nbsp;31, 2004 there was a
    &#165;21.7&nbsp;billion impairment loss on Mitsui&#146;s
    investment in a telecommunications carrier POWEREDCOM, Inc. in
    consideration of the deterioration in its financial position.
    Moreover, in connection with our effort toward reevaluating and
    restructuring the business of subsidiaries and associated
    companies for the year ended March&nbsp;31, 2004, we reorganized
    the business of NBI Corporation (Japan), formerly known as Toyo
    Valve Co., Ltd. and Mitsui Bussan Machinery Co., Ltd. (Japan),
    which led to impairment losses on property and equipment of
    &#165;4.3&nbsp;billion and other expense-net of
    &#165;3.7&nbsp;billion;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Gains on the sale of shares in Japanese cell-phone carrier
    Vodafone K.K. for the year ended March&nbsp;31, 2005 amounted to
    &#165;7.2&nbsp;billion. As a result of the listing of TelePark
    Corp. (Japan) on the Tokyo Stock Exchange, we recognized a
    &#165;1.7&nbsp;billion gain on issuance of stock by a subsidiary</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">100

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    and a &#165;4.1&nbsp;billion gain on the sale of securities. In
    December 2004, following the merger of associated company
    NextCom K.K. (Japan) with the two subsidiaries ADAM NET Ltd.
    (Japan) and BSI Co., Ltd. (Japan), Mitsui made a gain of
    &#165;3.7&nbsp;billion through the receipt of shares in NextCom
    K.K., in exchange for shares in the two subsidiaries.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Chemical Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>87.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>91.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(4.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings (losses) of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net (loss) income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit in the Chemical Segment for the year ended
March&nbsp;31, 2005 was &#165;87.1&nbsp;billion, a decline of
&#165;4.0&nbsp;billion from &#165;91.1&nbsp;billion for the year
ended March&nbsp;31, 2004. Although gross profit from
petrochemical products was boosted by rising prices reflecting
increasing crude oil prices and strong demand in Asia,
especially in China, these gains were outweighed by unrealized
losses on certain long term petrochemical purchase commitments
based on rising purchase prices that were linked to natural gas
price, and increased raw material cost at a feed additive
manufacturing subsidiary Novus International, Inc. (the United
States).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2005 was
&#165;24.6&nbsp;billion, a &#165;6.8&nbsp;billion decrease from
the &#165;31.4&nbsp;billion for the year ended March&nbsp;31,
2004. In addition to the above-mentioned declines in gross
profit, selling, general and administrative expenses including
personnel expenses also rose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was &#165;2.5&nbsp;billion, improved by
&#165;3.7&nbsp;billion compared with the losses for the year
ended March&nbsp;31, 2004 of &#165;1.2&nbsp;billion. This
segment withdrew from the manufacture and sale of gasoline
additives in which it had been engaged together with
Mitsui&nbsp;&#38; Co. (U.S.A.) Inc. for the year ended
March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment recorded net loss of &#165;6.9&nbsp;billion for the
year ended March&nbsp;31, 2005, a significant decline of
&#165;18.3&nbsp;billion compared with &#165;11.4&nbsp;billion
net income for the year ended March&nbsp;31, 2004. In addition
to the above-mentioned changes in operating income and equity in
earnings of associated companies, the following factors were
also responsible for the losses:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the year ended March&nbsp;31, 2005, Mitsui discovered that
    false data had been produced and submitted to authorities for
    diesel particulate filters (&#147;DPF&#148;s) manufactured by
    its subsidiary PUREarth Incorporated and sold by Mitsui. The
    Tokyo Metropolitan Government and other bodies provided
    subsidies to the purchasers of these DPFs. Mitsui established a
    user response plan including the free replacement of DPFs and
    has been proceeding with full compensation of relevant
    subsidies, which resulted in a &#165;36.0&nbsp;billion loss for
    the year ended March&nbsp;31, 2005 as compensation and other
    charges related to DPF incident.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the year ended March&nbsp;31, 2004, this segment recorded a
    loss of &#165;2.8&nbsp;billion (after income tax effect) which
    was the segment&#146;s share basis for the settlement of
    antitrust lawsuits involving Bioproducts, Inc. (the United
    States), a subsidiary jointly owned by this segment with its 20%
    equity interest and Mitsui&nbsp;&#38; Co. (U.S.A.), Inc. that
    produced choline chloride, a feed ingredient.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the year ended March&nbsp;31, 2005, we sold our shares in
    Bangkok Polyethylene Public Company Limited, a manufacturer of
    high-density polyethylene in Thailand, which had been jointly
    owned by the Chemical Segment and the Other Overseas Areas
    Segment. Of the &#165;3.9&nbsp;billion realized in the sale,
    this Segment&#146;s share came to &#165;2.5&nbsp;billion.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">101

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Energy Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;72.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;54.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;18.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.4</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2005, the price of crude
oil rose considerably, driven by increasing demand, particularly
from China, and spurred by the instability in supply from the
Middle East and other regions. A flood of speculative money into
the futures market drove up the price of West Texas Intermediate
(&#147;WTI&#148;) to an all-time high of U.S.$57.60&nbsp;per
barrel in March 2005. The average price of crude oil bound for
Japan, Japan Crude Cocktail (&#147;JCC&#148;), soared from
U.S.$29.43&nbsp;per barrel during the year ended March&nbsp;31,
2004 to U.S.$38.77&nbsp;per barrel during the year ended
March&nbsp;31, 2005 (the average in calendar year of 2004 was
U.S.$36.37&nbsp;per barrel).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit in the Energy Segment for the year ended
March&nbsp;31, 2005 was &#165;72.6&nbsp;billion, an increase of
&#165;18.0&nbsp;billion from the &#165;54.6&nbsp;billion for the
year ended March&nbsp;31, 2004. The main factors were as below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the year ended March&nbsp;31, 2004 Arcadia Petroleum Ltd.
    (United Kingdom) recorded a loss in petroleum products trading,
    from which it withdrew. For the year ended March&nbsp;31, 2005
    Arcadia Petroleum Ltd. concentrated on crude oil trading and its
    gross profit improved by &#165;13.5&nbsp;billion from the year
    ended March&nbsp;31, 2004;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Among overseas subsidiaries engaged in the development,
    production and sale of oil and gas, Mitsui E&#38;P&nbsp;Middle
    East&nbsp;B.V. (Netherlands), which develops and produces oil
    and gas in Oman, increased gross profit by
    &#165;3.3&nbsp;billion, reflecting the rise in oil prices and an
    increase in sales volume. In addition, Mittwell Energy Resources
    Pty., Ltd. (Australia), which sells crude oil and condensate,
    recorded an increase of &#165;1.7&nbsp;billion;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Domestic petroleum product sales showed strong performance,
    successfully passing higher oil prices on to their wholesale and
    retail pricing. Combined gross profits of three of our domestic
    sales subsidiaries&nbsp;&#151; Mitsui Oil Co., Ltd., Mitsui
    Liquefied Gas Co., Ltd. (which was separated out from Mitsui Oil
    Co., Ltd. in December 2004) and Kokusai Oil&nbsp;&#38; Chemical
    Co., Ltd.&nbsp;&#151; increased by &#165;4.7&nbsp;billion for
    the year ended March&nbsp;31, 2005.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2005 was
&#165;35.5&nbsp;billion, a &#165;13.8&nbsp;billion increase from
&#165;21.7&nbsp;billion for the year ended March&nbsp;31, 2004.
This growth reflected the above-mentioned increase in gross
profit, but was partially offset by a &#165;3.8&nbsp;billion
increase in selling, general and administrative expenses at
Arcadia Petroleum Ltd. arising from higher trader bonuses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was &#165;24.5&nbsp;billion, an increase of
&#165;10.0&nbsp;billion from &#165;14.5&nbsp;billion for the
year ended March&nbsp;31, 2004. Earnings increased significantly
at Japan Australia LNG (MIMI)&nbsp;Pty, Ltd. (Australia),
involved in natural gas, crude oil and condensate exploration,
development and marketing in West Australia, due to rising oil
prices and increased production on the back of expanded
facilities. Mitsui Oil Exploration Co., Ltd. (Japan), chiefly
engaged in the production of gas and crude oil in offshore
Thailand, also recorded an increase to &#165;2.7&nbsp;billion
for the year ended March&nbsp;31, 2005 from
&#165;1.1&nbsp;billion for the year ended March&nbsp;31, 2004,
mainly driven by rising crude oil prices. Also, Sakhalin Energy
Investment Company Ltd. (Bermuda) increased earnings on rising
crude oil prices and an increase in production volume.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2005 was
&#165;42.8&nbsp;billion, a significant increase of
&#165;18.4&nbsp;billion from &#165;24.4&nbsp;billion for the
year ended March&nbsp;31, 2004. This increase resulted from the
above-mentioned improvement in both operating income and equity
in earnings of associated companies. In
</DIV>

<P align="center" style="font-size: 10pt;">102

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<DIV align="left" style="font-size: 10pt;">
addition, dividend income from our three LNG projects in the
Middle East, namely, in Abu Dhabi, Oman and Qatar totaled
&#165;12.8&nbsp;billion for the year ended March&nbsp;31, 2005,
reflecting their strong performance due to rising oil prices, an
increase of &#165;4.7&nbsp;billion over &#165;8.1&nbsp;billion
for the year ended March&nbsp;31, 2004.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Short- and Long-Term Outlook on Prices and Supply-Demand
    Balance for Energy, and Our Equity Production</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Short-Term Pricing and Supply-Demand Balance</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A survey conducted by the International Energy Agency indicated
that world crude oil demand in 2004 was 82.5&nbsp;million
barrels per day, with an estimated demand for 2005 of
84.3&nbsp;million barrels per day. General observations by
agencies and corporations suggest that in the short term, apart
from changing factors such as Organization of Petroleum
Exporting Countries (&#147;OPEC&#148;) production policies and
the political situation in the Middle East, an overall tight
supply-demand balance will continue, driven by strong growth of
demand in Chinese economy and limited capacity of oil producing
countries to increase production.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our equity-based production volume of oil and gas for the year
ended March&nbsp;31, 2005 was about 42&nbsp;million barrels (gas
is converted to barrels of oil at the ratio of 5,800&nbsp;cubic
feet of natural gas to 1&nbsp;barrel of crude oil). For the year
ending March&nbsp;31, 2006, the Sakhalin&nbsp;II LNG project and
Enfield crude oil projects will still be in development stage,
so the level of production is expected to slightly increase from
the year ended March&nbsp;31, 2005. For the year ended
March&nbsp;31, 2005, a change of U.S.$1&nbsp;per barrel in crude
oil prices is expected to have an effect of &#165;1&nbsp;billion
on net income in the Statements of Consolidated Income as a
result of changes in revenues of our oil and gas related
subsidiaries and associated companies. Similar to the iron and
steel raw materials, actual results of operations are also
influenced by production costs, trends in foreign exchange rates
and other factors surrounding those subsidiaries and associated
companies.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Middle- and Long-Term Price Outlook and Supply-Demand Balance
    and Trends in Our Equity Production</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The middle and long term trends in supply, demand, and prices of
crude oil are subject to far greater levels of uncertainty than
trends in the short term, and it is therefore impossible for
management to make a definitive forecast. On the other hand,
with respect to LNG, we are focusing on the changes in market
structure that are currently taking place, and acting
accordingly as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the past, the market has grown mainly with long-term purchase
    contracts by power and gas companies operating in Japan and the
    Far East. Expansion of incumbent oil and gas projects and green
    field projects coming on stream will increase the volume of
    supply to the market, while demand, which has traditionally
    centered around the Far East, will be joined by growing demand
    from Europe and the United States, while huge markets in China
    and India would emerge. Therefore, globalization both in terms
    of supply and demand is expected to progress. In addition, as
    the opportunity for supply and demand adjustments in these
    markets increase, LNG is expected to become a more marketable
    commodity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Those long-term purchase contracts with Japanese companies in
    many projects are expected to come due for renewal around 2010,
    and more flexible terms reflecting the above-mentioned
    supply-demand trends will be requested from the buyers. In
    evaluating the opportunity for the expansion of incumbent
    projects and the participation into green field projects, we are
    putting emphasis on securing stable supply as well as
    diversifying our source of supply to ensure better flexibility.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Assuming that we do not acquire any additional interests on top
of our existing interests in oil and gas as of March&nbsp;31,
2005, our equity based production capacity from 2009 onwards (by
which time production of crude oil from our investments at the
Enfield crude oil project and LNG at the Sakhalin&nbsp;II
project will have come on stream) will increase to an annual
equity-based production capacity of approximately
80&nbsp;million barrels, from the approximately 42&nbsp;million
barrels for the year ended March&nbsp;31, 2005.
</DIV>

<P align="center" style="font-size: 10pt;">103

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On July&nbsp;14, 2005, Mitsui announced that, it received an
interim report from Sakhalin Energy Investment Co., Ltd. which
were addressed to shareholders of the Sakhalin&nbsp;II project,
namely, Royal Dutch/ Shell Group, Mitsui and Mitsubishi
Corporation, relating to the possibility of changes in the total
budget of the development plan for Phase&nbsp;2 of the
Sakhalin&nbsp;II Project, as well as the scheduled timing for
the first delivery of LNG. The report indicates, as provisional
estimates, that there would be the possibility that the total
budget for the project could be of the order of 20&nbsp;billion
U.S.&nbsp;dollars and the first delivery of LNG would take place
in mid 2008. Originally, the total budget for the Phase&nbsp;2
development was expected to be approximately 10&nbsp;billion
U.S.&nbsp;dollars, with the first delivery of LNG expected to
take place in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Consumer Products&nbsp;&#38; Services Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;152.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;135.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;16.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit in the Consumer Products&nbsp;&#38; Services
Segment for the year ended March&nbsp;31, 2005 was
&#165;152.6&nbsp;billion, an increase of &#165;16.7&nbsp;billion
from the &#165;135.9&nbsp;billion for the year ended
March&nbsp;31, 2004. The main factors contributing to this
growth were as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    There was a &#165;4.5&nbsp;billion increase at MBK Real Estate
    Ltd. (the United States) resulting from strong sales of large
    commercial facilities and residential properties;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    With the acquisition of Mitsui Norin Co., Ltd. (Japan) in the
    second quarter of the year ended March&nbsp;31, 2004, gross
    profit for the year ended March&nbsp;31, 2005 increased by
    &#165;5.1&nbsp;billion from year ended March&nbsp;31, 2004
    reflecting its full year contribution;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mitsui&#146;s profit margin on commodity trading in corn,
    soybeans, raw sugar and other agricultural commodities
    increased, following rises in the markets for those commodities.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2005 was
&#165;32.0&nbsp;billion, an &#165;8.7&nbsp;billion increase over
&#165;23.3&nbsp;billion for the year ended March&nbsp;31, 2004.
An increase of &#165;4.0&nbsp;billion in selling, general and
administrative expenses at Mitsui Norin Co., Ltd. was outweighed
by the above-mentioned increase in gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was &#165;3.7&nbsp;billion, a decrease of
&#165;2.6&nbsp;billion from &#165;6.3&nbsp;billion for the year
ended March&nbsp;31, 2004. Ventura Foods LLC (the United
States), engaged in food oil processing, recorded a decline of
&#165;1.1&nbsp;billion due to falling sales prices as a result
of increased competition in the first half of the year ended
March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2005 was
&#165;16.9&nbsp;billion, a decrease of &#165;2.0&nbsp;billion
from &#165;18.9&nbsp;billion for the year ended March&nbsp;31,
2004. Although operating income rose, net income fell because of
a decline in equity in earnings of associated companies, along
with the following factors:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    While we recorded a combined &#165;4.0&nbsp;billion gain on
    sales of shares in netprice, ltd. and VeriTrans, Inc., both
    IT-related companies, when they were listed on domestic stock
    exchanges in the year ended March&nbsp;31, 2005, we recorded
    &#165;6.7&nbsp;billion gain on the sale of SKY Perfect
    Communications Inc. for the year ended March&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Considering a deterioration in financial conditions due to
    sluggish advertising revenue at satellite broadcasters BS-I,
    INCORPORATED and BS Japan Corporation, we recorded losses on
    these shares of &#165;1.9&nbsp;billion and
    &#165;1.2&nbsp;billion, respectively.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">104

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Logistics&nbsp;&#38; Financial Markets Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;46.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;32.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;14.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit in the Logistics&nbsp;&#38; Financial Markets
Segment for the year ended March&nbsp;31, 2005 was
&#165;46.7&nbsp;billion, an increase of &#165;14.4&nbsp;billion
from &#165;32.3&nbsp;billion for the year ended March&nbsp;31,
2004. Mitsui&nbsp;&#38; Co. Energy Risk Management Ltd. (United
Kingdom) increased gross profit by &#165;11.0&nbsp;billion from
the year ended March&nbsp;31, 2004 in energy derivative trading
on the back of extremely high volatility in the crude oil
market. Moreover, Mitsui&#146;s transactions in commodities
derivative in energy and non-ferrous metals and foreign exchange
contracts produced good results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2005 was
&#165;18.5&nbsp;billion, an &#165;8.1&nbsp;billion increase from
&#165;10.4&nbsp;billion for the year ended March&nbsp;31, 2004.
The increase in bonuses paid to traders at Mitsui&nbsp;&#38; Co.
Energy Risk Management Ltd. caused selling, general and
administrative expenses to rise by &#165;4.6&nbsp;billion,
partly offsetting the above-mentioned growth in gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was &#165;2.4&nbsp;billion, an increase of
&#165;0.2&nbsp;billion from &#165;2.2&nbsp;billion for the year
ended March&nbsp;31, 2004. Mitsui Leasing&nbsp;&#38; Development
Ltd. (Japan) recorded an increase in its machinery and ship
leasing business, reflecting the booming global shipping
industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2005 was
&#165;11.8&nbsp;billion, an increase of &#165;7.0&nbsp;billion
from &#165;4.8&nbsp;billion for the year ended March&nbsp;31,
2004, which was attributable to the increase in operating income
and equity in earnings of associated companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Americas Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>49.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>40.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;9.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings (losses) of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.1</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit in the Americas Segment for the year ended
March&nbsp;31, 2005 was &#165;49.9&nbsp;billion, an increase of
&#165;9.2&nbsp;billion from the &#165;40.7&nbsp;billion for the
year ended March&nbsp;31, 2004. Certain subsidiaries owned by
Mitsui&nbsp;&#38; Co. (U.S.A.) Inc. (the United States)
increased gross profit. Steel product subsidiaries enjoyed
favorable business conditions, namely, steep price rises in the
steel product market reflecting the strong growth of the United
States economy. Champions Pipe&nbsp;&#38; Supply, Inc. (the
United States) recorded a &#165;3.5&nbsp;billion rise in gross
profit. In addition, Portac, Inc. (the United States), a
subsidiary that manufactures lumber and lumber products,
increased gross profit by &#165;1.6&nbsp;billion due to the
surge in lumber prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2005 was
&#165;14.7&nbsp;billion, a &#165;6.2&nbsp;billion increase from
&#165;8.5&nbsp;billion for the year ended March&nbsp;31, 2004.
Selling, general and administrative expenses rose at Mitsui
Steel Development Co., Inc. (the United States) and other
subsidiaries, partly offsetting the above-mentioned growth in
gross profit.
</DIV>

<P align="center" style="font-size: 10pt;">105

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was a &#165;1.6&nbsp;billion, an improvement
of &#165;4.1&nbsp;billion from the losses of
&#165;2.5&nbsp;billion for the year ended March&nbsp;31, 2004.
There was a rebound from the impact of losses on the operations
in the manufacture and sale of gasoline additives, which were
disposed of during the year ended March&nbsp;31, 2004; moreover,
TAMCO (the United States), an associated company engaged in the
manufacture and sale of steel bar, increased earnings supported
by rising prices in the steel material market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2005 was
&#165;12.3&nbsp;billion, an increase of &#165;12.1&nbsp;billion
from the &#165;0.2&nbsp;billion for the year ended
March&nbsp;31, 2004. This increase was due to increases in
operating income and equity in earnings of associated companies.
In addition, as described in the Chemical Segment section, this
segment no longer had to bear its share corresponding to an 80%
equity interest of a &#165;13.7&nbsp;billion charge recorded as
other expenses for the year ended March&nbsp;31, 2004, arising
from the settlement of an antitrust lawsuit filed against
Bioproducts, Inc. (the United States) which manufactures and
sells feed ingredients.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Europe Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>20.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>20.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>0.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.2</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit in the Europe Segment for the year ended
March&nbsp;31, 2005 was &#165;20.7&nbsp;billion, a slight
increase of &#165;0.7&nbsp;billion from &#165;20.0&nbsp;billion
for the year ended March&nbsp;31, 2004. Gross profit of our
trading subsidiaries in Europe generally stayed at about the
same level as the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2005 was
&#165;2.4&nbsp;billion, a &#165;0.6&nbsp;billion decrease from
&#165;3.0&nbsp;billion for the year ended March&nbsp;31, 2004.
The increase in selling, general and administrative expenses,
chiefly personnel expenses and office expenses, outweighed the
above-mentioned growth in gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was &#165;0.1&nbsp;billion, a decrease of
&#165;0.1&nbsp;billion from &#165;0.2&nbsp;billion for the year
ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2005 was
&#165;2.9&nbsp;billion, an increase of &#165;2.2&nbsp;billion
from &#165;0.7&nbsp;billion for the year ended March&nbsp;31,
2004. This was attributable to a &#165;1.6&nbsp;billion
improvement in Arcadia Petroleum Ltd. (United Kingdom),
corresponding equity share owned by Mitsui&nbsp;&#38; Co. (U.K.)
Inc., reflecting the share recovery of net income as mentioned
in the Energy Segment section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Other Overseas Areas Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;25.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;24.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.4</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit in the Other Overseas Areas Segment for the year
ended March&nbsp;31, 2005 was &#165;25.8&nbsp;billion, an
increase of &#165;1.7&nbsp;billion from &#165;24.1&nbsp;billion
for the year ended March&nbsp;31, 2004. This was
</DIV>

<P align="center" style="font-size: 10pt;">106

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
due to continuing favorable conditions for agent businesses,
chiefly in the fields of steel products and chemicals at trading
subsidiaries and overseas offices in Asia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2005 was
&#165;8.2&nbsp;billion, a &#165;1.6&nbsp;billion increase from
&#165;6.6&nbsp;billion for the year ended March&nbsp;31, 2004.
This increase resulted from an increase in gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was &#165;0.5&nbsp;billion, a slight
increase of &#165;0.1&nbsp;billion from &#165;0.4&nbsp;billion
for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2005 was
&#165;13.8&nbsp;billion, an increase of &#165;3.4&nbsp;billion
from &#165;10.4&nbsp;billion for the year ended March&nbsp;31,
2004. This increase was due not only to the increase in
operating income, but also to improvement in the equity-based
earnings corresponding to the share owned by Mitsui&nbsp;&#38;
Co. (Australia) Ltd. (Australia), in both Mitsui Iron Ore
Development Pty. Ltd. (Australia) and Mitsui Coal Holdings Pty.
Ltd. (Australia) which showed strong growth in net income for
the year ended March&nbsp;31, 2005, as described in the Metal
Products&nbsp;&#38; Minerals Segment section. The increases in
this segment attributable to these two companies were
&#165;0.9&nbsp;billion and &#165;0.8&nbsp;billion, respectively.
The Other Overseas Areas Segment also recorded a
&#165;1.4&nbsp;billion gain on the sale of the segment&#146;s
shares in Bangkok Polyethylene Public Company Limited, a
manufacturer of high-density polyethylene in Thailand.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>All Other</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;12.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings (losses) of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The activities of this segment include development and marketing
of systems, financing services, office services and other
services to external customers, and/or to us, and associated
companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit in the All Other Segment for the year ended
March&nbsp;31, 2005 was &#165;12.3&nbsp;billion, an increase of
&#165;1.9&nbsp;billion from &#165;10.4&nbsp;billion for the year
ended March&nbsp;31, 2004. This increase was mainly due to the
increase at Mitsui Knowledge Industry Co., Ltd. (Japan), which
is engaged in development and marketing of systems, and
benefited from favorable conditions in the information service
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating loss of &#165;0.5&nbsp;billion was recorded for the
year ended March&nbsp;31, 2005 although this represented a
&#165;1.4&nbsp;billion improvement from the loss of
&#165;1.9&nbsp;billion for the year ended March&nbsp;31, 2004.
The main reason for this improvement was the above-mentioned
growth in gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2005 was &#165;0.4&nbsp;billion, an improvement
of &#165;0.5&nbsp;billion from the &#165;0.1&nbsp;billion loss
for the year ended March&nbsp;31, 2004. The improvement was
mainly due to the improved earnings of our associated companies
in the financing services and leasing business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2005 was
&#165;4.4&nbsp;billion, an increase of &#165;2.5&nbsp;billion
from the &#165;1.9&nbsp;billion for the year ended
March&nbsp;31, 2004. This was due to an increase in operating
income and equity in earnings of associated companies. In
addition, for the year ended March&nbsp;31, 2004, we recorded a
&#165;5.8&nbsp;billion impairment loss of long-lived assets that
had occurred when Takeoka Golf Club sold its public golf club
business. We recorded an impairment loss of
&#165;3.3&nbsp;billion for the year ended March&nbsp;31, 2005 on
the land held by Mitsui for domestic development projects due to
the decline in land prices in Japan.
</DIV>

<P align="center" style="font-size: 10pt;">107

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Results of Operations for the Year Ended March&nbsp;31,
2004</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Metal Products&nbsp;&#38; Minerals Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;77.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;71.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;5.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.1</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, gross profit increased
by &#165;5.5&nbsp;billion to &#165;77.0&nbsp;billion, primarily
attributable to the growth at overseas subsidiaries engaged in
iron and steel raw materials driven by higher demand in China
and other areas of Asia as well as strong market prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, iron ore production
volume at Australian iron ore subsidiaries, including Mitsui
Iron Ore Development Pty. Ltd. (Australia), increased by
3.6&nbsp;million tonnes, reflecting strong demand for iron ore
in China and other countries. During the year ended
March&nbsp;31, 2004, the U.S.&nbsp;dollar price of iron ore
increased by 9% compared with the price of iron ore for the year
ended March&nbsp;31, 2003. Meanwhile, during the year ended
March&nbsp;31, 2004, the Australian dollar appreciated steeply
against the U.S.&nbsp;dollar, rising from an average of
U.S.$0.5656 for the year ended March&nbsp;31, 2003 to
U.S.$0.6941 for the year ended March&nbsp;31, 2004, which
reduced Australian dollar denominated revenues at Mitsui Iron
Ore Development Pty. Ltd. and a coal subsidiary, Mitsui Coal
Holdings Pty. Ltd. (Australia). As a result, gross profit and
operating income at Australian iron and steel raw material
subsidiaries remained at the same high levels as for the year
ended March&nbsp;31, 2003. At an iron ore subsidiary, Sesa Goa
Limited (India), there were sharp increases in gross profit and
operating income because of growing iron ore exports to China
and higher market prices of products in India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, gross profit from steel scrap operations in the
United States and Japan also increased as market prices rose in
the first half of the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For steel products, gross profit declined slightly. Although
exports to China and other Asian countries were stepped up and
prices increased in Japan, gross profit for the year ended
March&nbsp;31, 2003 had included a significant contribution from
highly profitable steel pipe export projects to China and other
Asian countries, which did not continue into the year ended
March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income also rose by &#165;4.0&nbsp;billion to
&#165;28.7&nbsp;billion, reflecting the above-mentioned increase
in gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2004 was
&#165;24.2&nbsp;billion, increased by &#165;8.1&nbsp;billion,
which was attributable to the increase in equity earnings of
associated companies as well as the above-mentioned growth in
operating income. The following are reasons for the increase in
equity in earnings of associated companies:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the iron and steel raw material operations, we sold shares of
    Caemi Minera&#231;&#227;o e Metalurgia S.A. in September 2003
    under a sales contract in March 2003 with CVRD, a Brazilian
    producer of iron ore and other minerals, and recognized a gain
    of &#165;4.4&nbsp;billion. At the same time, Mitsui acquired an
    18.24% voting share of the outstanding shares of Valepar S.A.
    (Brazil), a controlling shareholder of CVRD that owns a 52.3%
    voting share of CVRD. Due to the strong performance of CVRD, our
    equity in earnings of Valepar S.A. for the year ended
    March&nbsp;31, 2004 was &#165;2.5&nbsp;billion;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the non-ferrous metal operations, equity in earnings of
    Compania Minera Dona Ines de Collahuasi SCM (Chile), a copper
    mine development company in Chile, rose to
    &#165;1.9&nbsp;billion as the global market price of copper
    increased from around the middle of the year ended
    March&nbsp;31, 2004.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">108

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Machinery, Electronics&nbsp;&#38; Information
Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;128.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;121.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165; 7.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.1</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit for the year ended March&nbsp;31, 2004 increased by
&#165;7.6&nbsp;billion to &#165;128.7&nbsp;billion. The main
elements of the growth were:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the contribution of large-scale electrical machinery and plant
    projects, including a power plant in Malaysia and an oil
    refinery in Russia;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    in the information technology category, the increase at
    Mitsui&nbsp;&#38; Associates Telepark Corporation (Japan), which
    changed its name to Telepark Corp in October 2004, by
    &#165;3.0&nbsp;billion reflected the introduction of new cell
    phone models which raised the sales volume and the contribution
    by newly acquired subsidiaries including Cablenet Saitama Co.,
    Ltd. (Japan).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    higher gross profit at automobile sales companies and logistics
    and transportation companies in certain areas of the
    world;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    increased sales and lease operations for ocean transport vessels
    as market prices, including the price of used vessels, climbed,
    despite lower gains on sales of leased aircraft.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, operating income of
&#165;29.4&nbsp;billion was also much higher by
&#165;15.3&nbsp;billion due to an increase in gross profit and a
decrease in provision for doubtful receivables, in contrast to
the year ended March&nbsp;31, 2003 when this segment suffered
from provisions for doubtful receivables from: United Airlines,
Inc. and other airline companies; domestic customers at Mitsui
Bussan Plant&nbsp;&#38; Project Corp. (Japan); and
communications and transportation projects in Argentina.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, in addition to an
increase in operating income, net income recovered to
&#165;5.9&nbsp;billion, an increase of &#165;15.1&nbsp;billion,
which was primarily due to the recovery of equity in earnings of
associated companies from the year ended March&nbsp;31, 2003, in
spite of a material write-down of securities for the year ended
March&nbsp;31, 2004 held by this segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There was a &#165;21.7&nbsp;billion impairment loss on
Mitsui&#146;s investment in telecommunications carrier
POWEREDCOM, Inc. in consideration of the deterioration in its
financial position reflecting the operating loss caused by the
fierce price competition along with expansion of the Internet
and the decrease in revenues from fixed-line business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2003, we recorded an
impairment loss of &#165;9.4&nbsp;billion on MD-11 leased
aircraft due to a substantial decline in the fair value of this
type of aircraft. As the business environment in the airline
industry also remained weak during the year ended March&nbsp;31,
2004, we posted another, but much less significant, impairment
loss. Furthermore, in conjunction with our effort of
reevaluating and restructuring the businesses of subsidiaries
and associated companies, we sold the valve business of NBI
Corporation (Japan) due to declining demand for its products
caused by the sluggish capital investment in Japan. We also
reorganized Mitsui Bussan Machinery Co., Ltd. (Japan) due to its
poor performance caused by the shrinking construction and
industrial machinery market. Regarding these two subsidiaries,
we recorded impairment losses on property and equipment of
&#165;4.3&nbsp;billion and other expense&nbsp;&#151; net of
&#165;3.7&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity in earnings of associated companies for the year ended
March&nbsp;31, 2003 was impacted by an impairment of
&#165;4.5&nbsp;billion at NextCom K.K. (Japan) because of the
other-than-temporary decline in the fair value of the securities
and a loss of &#165;4.6&nbsp;billion at Furukawa Industrial S.A.
Produtos Eletrico, a telecommunications associated company in
Brazil, because of a significant provision for doubtful
</DIV>

<P align="center" style="font-size: 10pt;">109

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
receivables. The absence of such items for the year ended
March&nbsp;31, 2004 generated a substantial increase in equity
in earnings of associated companies because of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    increasing sales volume of electric power at P.T.&nbsp;Paiton
    Energy (Indonesia);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    increased production and sales of automobile companies in Canada
    and Indonesia.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Chemical Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;91.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;69.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;21.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, gross profit increased
by &#165;21.8&nbsp;billion to &#165;91.1&nbsp;billion due
primarily to higher market prices of ammonia and other
petrochemicals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2004, market prices of
petrochemicals climbed along with prices of crude oil and
natural gas. The price of ammonia reached the highest level in
30&nbsp;years, and prices of olefins, aromatics, synthetic
textile materials and other petrochemicals also increased. In
addition, there was higher demand in Asia for all categories of
petrochemicals. The result was growth in gross profit of
petrochemical products, chiefly ammonia. In the plastics
business, a new operation in China that produces liquid crystal
cells for personal computers and mobile phones contributed to
growth in gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2004 was
&#165;31.4&nbsp;billion. The improvement of
&#165;13.1&nbsp;billion was attributable to the increase in
gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This segment turned a net loss for the year ended March&nbsp;31,
2003 to net income of &#165;11.4&nbsp;billion for the year ended
March&nbsp;31, 2004, an improvement of &#165;15.0&nbsp;billion.
In the petrochemicals business, losses were recorded for the
year ended March&nbsp;31, 2003 due to the discontinued
operations at two North American subsidiaries, Transpacific
Glycols, Inc. (the Unites States) and Pacific Ammonia Inc. (the
United States). In addition, impairment losses of long-lived
assets in a factory of an associated company, Vinylchloride
(Malaysia) Sdn. Bhd. were recorded due to the lower market price
for the year ended March&nbsp;31, 2003. For the year ended
March&nbsp;31, 2004, there were no significant charges of this
nature, which contributed to the improvement of net income for
the year ended March&nbsp;31, 2004 along with the increase in
operating income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2004, losses on write-down
of securities decreased from the year ended March&nbsp;31, 2003
and included a &#165;3.1&nbsp;billion loss in investment in
Ishihara Sangyo Kaisha, Ltd. Additionally, we recorded a
&#165;1.5&nbsp;billion loss in the investment in Mitsui Denman
(Ireland) Co., Ltd. for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
However, this segment recorded a loss of &#165;2.8&nbsp;billion
for the year ended March&nbsp;31, 2004, after income tax effect,
reflecting the segment&#146;s share of charges for the
settlement of choline chloride antitrust lawsuits by
Bioproducts, Inc. (the United States), a subsidiary jointly
owned by the Chemical Segment and Mitsui&nbsp;&#38; Co.
(U.S.A.), Inc. that produces choline chloride, a feed ingredient.
</DIV>

<P align="center" style="font-size: 10pt;">110

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Energy Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;54.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;53.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;0.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.4</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit for the year ended March&nbsp;31, 2004 increased
slightly by &#165;0.8&nbsp;billion to &#165;54.6&nbsp;billion.
Gross profit rose at Mitsui Oil&nbsp;&#38; Gas Co., Ltd.
(Japan), as a result of an increase in sales prices of petroleum
products which more than offset the increase in costs of these
products. However, this increase was offset by petroleum
products trading losses at Arcadia Petroleum Ltd. (United
Kingdom).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Crude oil prices (Japan Crude Cocktail) were strong during the
year ended March&nbsp;31, 2004 due to OPEC&#146;s announcement
of its decision to cut production in the middle of the year
ended March&nbsp;31, 2004, &#146;turmoil in Iraq, and a low
inventory level of petroleum products. The average price of
crude oil per barrel rose from U.S.$26.7 for the year ended
March&nbsp;31, 2003 to U.S.$29.4 for the year ended
March&nbsp;31, 2004. Furthermore, the year ended March&nbsp;31,
2004 showed growth in the demand for LNG and crude oil in Japan
as the demand for electricity from thermal power plants
increased and in China, South Korea and other Asian countries
due to their expanding economies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income was lower by &#165;4.0&nbsp;billion primarily
because of an increase in selling, general and administrative
expenses including research expenses for new businesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Despite the decrease in operating profit, net income for the
year ended March&nbsp;31, 2004 was &#165;24.4&nbsp;billion, a
slight increase of &#165;1.4&nbsp;billion compared with the year
ended March&nbsp;31, 2003. For the year ended March&nbsp;31,
2004, impairment losses on long-lived assets substantially
decreased by &#165;7.5&nbsp;billion to &#165;1.7&nbsp;billion
from &#165;9.2&nbsp;billion for the year ended March&nbsp;31,
2003 at two domestic subsidiaries, Mitsui Oil&nbsp;&#38; Gas
Co., Ltd. (Japan) and Kokusai Oil&nbsp;&#38; Chemical Co., Ltd.
(Japan). Their impairment losses on long-lived assets for the
year ended March&nbsp;31, 2003 primarily related to their gas
stations in Japan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The cumulative effect of the initial application of
SFAS&nbsp;No.&nbsp;143 had an impact of &#165;2.2&nbsp;billion,
which was mainly the cost of dismantling and removing gas
production facilities owned by an associated company, but its
equity in earnings slightly increased during the year ended
March&nbsp;31, 2004 because of strong operating results backed
by higher sales volumes and high crude oil prices. In addition,
equity in earnings of Mitsui Oil Exploration Co., Ltd. (Japan)
increased due to the improvement in the performance of its main
business, Thai offshore gas development.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Consumer Products&nbsp;&#38; Services Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;135.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;122.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;13.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.3</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, gross profit increased
by &#165;13.3&nbsp;billion to &#165;135.9&nbsp;billion. Higher
gross profit in the foods operations, which contributed in large
part to the improvement of this segment, was primarily
attributable to our newly acquired subsidiary Mitsui Norin Co.,
Ltd. (Japan) and secondly to the higher earnings at MITSUI FOODS
CO., LTD. (Japan), our food wholesaler subsidiary, resulting
from a higher volume of trading transactions with Ito-Yokado
Group and other retailers. Bovine
</DIV>

<P align="center" style="font-size: 10pt;">111

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
Spongiform Encephalopathy (&#147;BSE&#148;) and avian influenza
had a negligible impact on this segment&#146;s results. Also,
these increases were partially offset by the decreases in gross
profit in:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the real estate operations after a strong performance for the
    year ended March&nbsp;31, 2003 that was driven by the sales of
    condominiums in Japan and the sale of a large United States
    commercial facility by MBK Real Estate Ltd. (the United
    States);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the general merchandise operations due to our lower trading
    transactions involved in sports and leisure activities for the
    year ended March&nbsp;31, 2004.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income for the year ended March&nbsp;31, 2004 was
&#165;23.3&nbsp;billion, an increase of &#165;2.1&nbsp;billion
from the year ended March&nbsp;31, 2003 in spite of the
improvement in gross profit. In the foods operations, selling,
general and administrative expenses rose at Mitsui Norin Co.,
Ltd. (Japan) and MITSUI FOODS CO., LTD. (Japan), although the
improvement in gross profit still outweighed the increase in
expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase of &#165;9.3&nbsp;billion in net income to
&#165;18.9&nbsp;billion for the year ended March&nbsp;31, 2004
was primarily attributable to a turnaround of MITSUI FOODS CO.,
LTD. (Japan). It reported net income of &#165;1.6&nbsp;billion
for the year ended March&nbsp;31, 2004, which was a
&#165;6.5&nbsp;billion improvement from the year ended
March&nbsp;31, 2003, due to the drastic decrease in impairment
losses on non-marketable equity securities and unused land, as
well as the above-mentioned improvement in its gross profit. In
addition, there was a &#165;6.7&nbsp;billion gain on the sale of
all shares held in SKY Perfect Communications Inc. during the
year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Logistics&nbsp;&#38; Financial Markets Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;32.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;33.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;(0.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, gross profit slightly
fell by &#165;0.9&nbsp;billion to &#165;32.3&nbsp;billion due to
a decrease in gain from foreign exchange transactions at Mitsui
and decreases in the profit margin in the transportation
businesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating income decreased by &#165;0.5&nbsp;billion to
&#165;10.4&nbsp;billion, reflecting the above-mentioned decline
in gross profit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
However, net income for the year ended March&nbsp;31, 2004
increased slightly, which was attributable to improvement at an
insurance related associated company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Americas Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;40.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;44.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;(3.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit was lower by &#165;3.9&nbsp;billion mainly because
of a decline in the steel products and machinery transactions at
Mitsui&nbsp;&#38; Co. (U.S.A.), Inc. and appreciation of the
Japanese yen against the U.S.&nbsp;dollar. The strong yen also
held down selling, general and administrative expenses, allowing
this segment to hold the decline in operating income to less
than the downturn in gross profit.
</DIV>

<P align="center" style="font-size: 10pt;">112

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income for the year ended March&nbsp;31, 2004 decreased by
&#165;3.1&nbsp;billion to only &#165;0.2&nbsp;billion due to the
charges for the settlement of the antitrust lawsuits at our
wholly owned subsidiary Bioproducts, Inc. (the United States).
Such settlement charges were shared with the Chemical Segment
that owns shares of this subsidiary jointly with
Mitsui&nbsp;&#38; Co. (U.S.A.) Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Europe Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;20.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;22.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;(2.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, gross profit and
operating income declined by &#165;2.5&nbsp;billion and
&#165;1.2&nbsp;billion, respectively, as a result of the decline
in the automobile businesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income also decreased by &#165;2.1&nbsp;billion because
there was a valuation loss on the investment of
Mitsui&nbsp;&#38; Co. UK PLC in Mitsui Denman (Ireland) Co.,
Ltd., a company in the chemical industry. Another cause of the
lower net income was a loss at Arcadia Petroleum Ltd. (United
Kingdom) due to poor petroleum products trading results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Other Overseas Areas Segment</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;24.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;23.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>0.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.8</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit for the year ended March&nbsp;31, 2004 was slightly
higher because of the growth at Mitsui&nbsp;&#38; Co. (Shanghai)
Ltd. and other subsidiaries in China and the contribution of a
newly established foreign trading subsidiary, Mitsui&nbsp;&#38;
Co., India Pvt. Ltd. The operating income shrank for the same
reason as the above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income increased by &#165;1.8&nbsp;billion due to an
increase of &#165;1.1&nbsp;billion in dividend income at
Mitsui&nbsp;&#38; Co. (Hong Kong) Ltd. from local Hong Kong
investee companies.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>All Other</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Change</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;10.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;(0.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The All Other includes business activities which primarily
provide services, such as logistics service, financing service,
development and marketing of systems, and office services, to
external customers and/or to ourselves and associated companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and operating income for the year ended
March&nbsp;31, 2004 recorded almost the same level as the year
ended March&nbsp;31, 2003.
</DIV>

<P align="center" style="font-size: 10pt;">113

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net income decreased by &#165;5.0&nbsp;billion, which was
primarily attributable to a loss in relation with Takeoka Golf
Club, which was disposed of by sale during the year ended
March&nbsp;31, 2004 due to the declining number of visitors
reflecting keen competition from adjacent golf clubs, and to
impairment losses on long-lived assets at two other golf clubs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Inflation</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management believes that inflation did not have a significant
effect on our reported results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Critical Accounting Policies and Estimates</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Accounting policies and estimates are considered to be critical
if they are important to our financial condition and results of
operations and involve estimates that require management&#146;s
subjective or significant judgment about the effect of matters
that are inherently uncertain. For a summary of our significant
accounting policies including the critical accounting policies
discussed below, please see Note&nbsp;2, &#147;BASIS OF
FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preparation of the consolidated financial statements in
conformity with U.S.&nbsp;GAAP requires management to make
estimates and assumptions that affect the carrying values of
assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses
during the reporting period. On an ongoing basis, we evaluate
the estimates that are based on historical experiences and on
various other assumptions that are believed to be reasonable
under the circumstances. The results of these evaluations form
the basis for making judgments about the carrying values of
assets and liabilities and the reported amounts of revenues and
expenses that are not readily apparent from other sources.
Actual results may differ from those estimates under different
assumptions. The following items require significant management
judgments and estimates.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Impairment of Long-Lived Assets</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of impairment losses of long-lived assets, other than
goodwill and other intangible assets, for the years ended
March&nbsp;31, 2005, 2004 and 2003 and the balance of the
long-lived assets, net of accumulated depreciation, as of the
end of March&nbsp;31, 2005, 2004 and 2003 were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>As of March 31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-lived assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;845.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;829.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;835.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.9</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Impairment losses of long-lived assets had a material impact on
our net income in recent years. These losses were mainly due to
the decline in the profitability of the production facilities
owned by certain subsidiaries and the value of land owned by
Mitsui and its domestic subsidiaries. See &#147;Impairment Loss
of Long-Lived Assets&#148; line-by-line explanation in
&#147;Results of Operations&#148; for additional information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our long-lived assets to be held and used or to be disposed of
other than by sale are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. This review is performed by
comparing the carrying amount of the asset with the aggregate
amount of the estimated undiscounted future cash flows
(&#147;impairment analysis&#148;). If the carrying value of the
asset is greater than the aggregate amount of undiscounted
future cash flows, then the asset is considered impaired, and an
impairment loss is recorded for the amount by which the carrying
value of the asset exceeds its fair value. The fair value of the
asset is calculated as present value of the future cash flows
that are expected from the asset.
</DIV>

<P align="center" style="font-size: 10pt;">114

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash flow projections used in our impairment analysis and fair
value calculations are based on the business plan authorized by
our management or, if this is not available, on the operating
plan reflecting the most recent condition of the long-lived
asset. In these plans, we assume, for example, that the most
recent selling prices of the real estate in the surrounding
areas will reasonably continue in the future, and estimate the
sales prices of the products from facilities and equipment for
the certain future period based on the average price of the
equivalent length of period in the past or on the analysts&#146;
reports.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As for the discount rate used in fair value calculations, when
expected variations in cash flows are not considered in the cash
flow estimate, the discount rate, which includes the risk factor
for the cash flow deviation, is used. Assumptions that
marketplace participants would use in their estimates of fair
value are incorporated in the discount rate when such
information is available. When such information is not
available, an expected internal rate of return used for
management purposes or a weighted average cost of capital of a
company that owns the long-lived asset, whichever is higher, is
also considered for the discounted cash flow calculation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Factors to be considered when estimating future cash flows and
determining discount rates vary for each long-lived asset
because of the difference in nature of the assets and in
operating circumstances, such as location, owner, operator,
profitability and other factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management believes that the estimates of future cash flows and
the determination of discount rates and fair value are
reasonable; however, changes in estimates resulting in lower
future cash flows and fair value due to unforeseen changes in
business assumptions could negatively affect the valuations of
those long-lived assets.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Allowance for Doubtful Receivables</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since we are a general trading company, trade receivables
represent a large portion of our total assets, and therefore,
the accounting estimates used to establish an allowance for
doubtful receivables are critical.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
When we deem it is probable that we will be unable to collect
amounts that are contractually due to us for certain large loan
receivables, the specific loan is reviewed for impairment.
Factors considered in assessing collectibility include length of
period overdue, financial condition of the debtor, requests for
debt restructuring and filings for bankruptcy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An impairment loss for a specific loan deemed to be impaired, as
specifically determined under SFAS&nbsp;No.&nbsp;114,
&#147;Accounting by Creditors for Impairment of a
Loan&nbsp;&#151; an amendment of FASB Statements No.&nbsp;5 and
15,&#148; is measured based on the present value of expected
cash flows discounted at the loan&#146;s original effective
interest rate or the fair value of collateral if the loan is
collateral dependent. The expected cash flows from assets and
liabilities of the debtor and the fair value of collateral are
determined mainly based on an evaluation of independent real
estate appraisers, publicly available indication of the real
estate price, market price of financial assets and liabilities,
guarantors&#146; financial condition and other factors. The
recoverable amounts are reviewed on a quarterly basis and if
necessary, an additional allowance is established. See
Note&nbsp;7, &#147;ALLOWANCE FOR DOUBTFUL RECEIVABLES,&#148; for
impaired loan amounts and the respective allowance amounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the above, an allowance for doubtful receivables
is recognized for probable losses inherent in receivables not
specifically deemed to be impaired. The amount of allowance is
the amount judged to be adequate based primarily on our credit
loss experiences and an evaluation of potential losses on the
receivables, considering various factors, including current
economic conditions and financial condition of the debtor. We
review the adequacy of the allowance for doubtful receivables by
assessing both the collateral exposure and the applicable
default rate. Collateral exposure for a particular receivable is
the excess of the carrying value over the applicable collateral
value. A receivable with an estimated collateral value in excess
of the carrying value is considered to have no collateral
exposure. The applicable default rate is determined by a
customer&#146;s credit rating that is identified for each
customer based on our financial analysis. The default rate of
each credit rating is determined based on our historical
experiences.
</DIV>

<P align="center" style="font-size: 10pt;">115

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management believes that the estimates of the future cash flows,
the fair value of collateral, the credit rating of customers and
the corresponding default rate are reasonable; however, changes
in estimates resulting in lower future cash flows and fair value
of the collateral, due to unforeseen changes in business
assumptions, or drastic increases in default rates based on
negative changes in economic condition could negatively affect
the valuations of related receivables.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Impairment of Investment Securities</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An impairment of investment securities is charged to earnings
when a decline in fair value below cost is other than temporary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The impairment of investment equity securities charged to
earnings for recent fiscal years had a significant impact on our
income. The following table shows the cost of marketable and
non-marketable equity securities as of March&nbsp;31, 2005, 2004
and 2003 and the impairment loss for the years ended
March&nbsp;31, 2005, 2004 and 2003:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Impairment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Impairment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Impairment</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Loss</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Loss</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Loss</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Marketable equity securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>191.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>178.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>140.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>15.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-marketable equity securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>214.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>216.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>234.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>405.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>395.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>30.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>374.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>37.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Impairments were mainly due to the decline in the world economy
for the year ended March&nbsp;31, 2003, and the total amount of
impairment loss has been decreasing along with the recovery of
the world economy. Impairment losses on marketable equity
securities have decreased substantially during the years ended
March&nbsp;31, 2005 and 2004, which suggests that the securities
market prices and economic conditions of Japan, which
predominantly affects our investment portfolio, has bottomed out.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As for non-marketable equity securities, a
&#165;21.7&nbsp;billion loss was recorded for a single investee,
POWEREDCOM, Inc. based on the deterioration in its financial
position from operating losses from its data communication
business for the year ended March&nbsp;31, 2004. Losses of
&#165;15.9&nbsp;billion and &#165;22.3&nbsp;billion for the
years ended March&nbsp;31, 2005 and 2003, respectively,
consisted of various smaller amounts of losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management principally recognizes that a 50% or more decline in
fair value of a security leads to the conclusion that the
security has other than temporary impairment. If the decline is
less than 50%, various factors, such as the extent to which the
cost exceeds the market value, the duration of the market
decline, our intention and ability to hold the investment until
its market price recovery and the financial conditions of the
investees, are considered in concluding whether the decline is
temporary or not.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2005, there was no individual marketable
security that had been in a continuous unrealized loss position
for one year or more. The aggregate unrealized loss amount of
the marketable securities (approximately 20&nbsp;issuers) that
had been in continuous unrealized loss positions for less than
one year and had severity of decline of fair value below cost
ranging from&nbsp;2% to&nbsp;19% was &#165;1.2&nbsp;billion. But
considering the combination of length of time that fair values
have been below cost, the extent of decline and the financial
condition of the investees, we expect that their fair value will
recover above their costs while we hold these investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For non-marketable securities, fair value of an investment is
generally determined based on our equity in a net amount of the
fair value of the investee&#146;s assets and liabilities. In
addition, where future business plans formally adopted by
management of the entities are available and when deemed
appropriate, discounted future cash flow method is used to
determine the fair value of the non-marketable equity
securities. The discount rate reflects risk factors for the cash
flow deviation from the future business plans and assumptions
that marketplace participants would use in their estimates of
fair value when the
</DIV>

<P align="center" style="font-size: 10pt;">116

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<DIV align="left" style="font-size: 10pt;">
information is available and appropriate. However, there are
investments that are not evaluated for impairment because no
events or changes in circumstances that may have had a
significant adverse effect on the fair value were identified.
See Note&nbsp;5, &#147;MARKETABLE SECURITIES AND OTHER
INVESTMENTS,&#148; for further discussion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management believes that the criteria for evaluating the
significance of the decline in fair value are reasonable and
that as long as the economic condition continues to improve, the
amount of impairment losses in investment securities will
continue to decrease in the near future. However, changes in the
securities market or circumstances of each individual investment
due to unforeseen changes in economic and business assumptions
could affect the valuation of the investment securities.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Pension Benefit Costs</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Employee pension benefit costs and obligations are dependent on
various assumptions, including discount, retirement, and
mortality rates, which are based on the current statistical
data, as well as the expected long-term rate of return on plan
assets and other factors. In accordance with U.S.&nbsp;GAAP, the
difference between actual results and the assumptions is
accumulated and amortized over future periods and, therefore,
generally affects the recognized costs and the recorded
obligations in future periods. Management believes that the
assumptions used are appropriate, however, differences in actual
experience or changes in assumptions may affect our future
pension costs and obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We determine the discount rates each year as of the measurement
date, based on a review of interest rates associated with
long-term Japanese government bonds or high-quality fixed-income
corporate bonds. The discount rates determined on each
measurement date are used to calculate the benefit obligation as
of that date, and are also used to calculate the net periodic
pension costs for the upcoming plan year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On March&nbsp;31, 2003, to reflect declining current market
interest rates in Japan, Mitsui, which is liable for most of our
benefit obligations, reduced the discount rate for its pension
plans from&nbsp;3% to&nbsp;2.25%. This change resulted in an
increase in its projected benefit obligation (&#147;PBO&#148;)
as of March&nbsp;31, 2003 and its net periodic pension costs
(&#147;NPPC&#148;) for the year ended March&nbsp;31, 2004 by
approximately &#165;26.0&nbsp;billion and
&#165;4.2&nbsp;billion, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui determines the expected long-term rate of return on plan
assets based on the weighted-average rate of return computed by
using the expected long-term rate of return on each asset class,
which is derived from an extensive study conducted by investment
advisors and actuaries on a periodic basis, and the target
allocations for each asset class. The study includes a review of
anticipated future performance with market analysis of
individual asset classes, and also gives appropriate
consideration to actual historical returns achieved by the
plans. The subsidiaries determine the expected long-term rates
of return on plan assets mainly based on the expectations for
future returns by investment advisors and actuaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table illustrates the sensitivity to changes in
certain assumptions for Mitsui&#146;s pension plans:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="55%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Impact of Change in</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Assumption on</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Impact of Change</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>NPPC for the Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>in Assumption on</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ending</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>PBO as of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31,&nbsp;2006</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31,&nbsp;2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    50 basis point decrease in discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    50 basis point increase in discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    50 basis point decrease in expected long-term rate of return on
    plan assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    50 basis point increase in expected long-term rate of return on
    plan assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See Note&nbsp;14, &#147;PENSION COSTS AND SEVERANCE
INDEMNITIES,&#148; for further discussion about the estimates
and assumptions on PBO and NPPC.
</DIV>

<P align="center" style="font-size: 10pt;">117

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Tax Asset Valuation</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We classify subsidiaries and associated companies into the
following five categories and evaluate realizability of deferred
tax assets by each category. The valuation allowance for the
deferred tax assets is established for the amount determined to
be unrealizable.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>First Category</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies, which constantly generate sufficient taxable
income every year to cover all the future deductible temporary
differences as of the end of each fiscal year, and no
significant change exists or is expected in the business
environment. For this category, we view all deferred tax asset
amounts as realizable.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Second Category</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies with stable operating results in the past years
(approximately in the last three years), but do not generate
sufficient taxable income in the current year to cover all the
future deductible temporary differences as of the end of the
fiscal year. For this category, the portion of the deferred tax
assets that is recoverable based on an analysis of the scheduled
taxable income in the future is determined to be realizable.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Third Category</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies with unstable operating results in the past years,
and do not generate sufficient taxable income in the current
year to cover all the future deductible temporary differences as
of the end of the fiscal year. For this category, the portion of
the deferred tax assets that is recoverable based on an analysis
of the scheduled taxable income within a reasonable estimation
period (approximately five years) is determined to be realizable.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Fourth Category</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies, which have significant amounts of tax loss
carryforwards at the end of the fiscal year, have experienced
the expiration of a significant amount of tax loss carryforward
in the past three years, or will fail to utilize significant
amount of tax loss carryforward up to the expiration date in the
current period. For this category, the portion of the deferred
tax assets that is recoverable with a high degree of certainty
based on an analysis of the scheduled taxable income within the
next fiscal year is determined to be realizable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the tax loss carryforward results from a non-recurring and
unusual event such as a significant restructuring of the
business or a change in law or regulation, and the companies
otherwise consistently generate taxable income, the portion of
the deferred tax assets that is recoverable based on an analysis
of the scheduled taxable income within a reasonable estimation
period (approximately five years) is determined to be realizable.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Fifth Category</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies, which recorded a significant amount of tax loss
carryforwards for each of the past three years and are expected
to record a significant tax loss in the current year as well.
For this category, no deferred tax assets are determined to be
realizable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For Mitsui, the realizability of deferred tax assets is
determined based on all available evidence, both positive and
negative, including all currently available information
regarding tax deductibility on future years and ability to
generate sufficient taxable income prior to the expiration of
loss carryforward.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management believes it is more likely than not that all of our
deferred tax assets, net of valuation allowance, will be
realized. However, the amount of realizable net deferred tax
assets may change in the near term if estimates of future
taxable income during the carryforward period are changed or if
statutory
</DIV>

<P align="center" style="font-size: 10pt;">118

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<DIV align="left" style="font-size: 10pt;">
tax rates are changed. See Note&nbsp;21, &#147;INCOME
TAXES,&#148; for further discussion about the deferred tax
assets and valuation allowance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>New Accounting Standards</I></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>The Meaning of Other-than-Temporary Impairment and Its
    Application to Certain Investments</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In Issue No.&nbsp;03-1, &#147;The Meaning of
Other-than-Temporary Impairment and Its Application to Certain
Investments,&#148; the FASB Emerging Issues Task Force reached a
consensus in November 2003 on certain quantitative and
qualitative disclosures about unrealized losses on debt and
marketable equity securities and also reached a consensus in
March 2004 on the application of a three-step impairment model
for certain investments in securities and disclosures about
investments accounted for under the cost method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The three-step impairment model of investments was planned to be
effective for reporting periods beginning after June&nbsp;15,
2004, however, in September 2004, the FASB issued FASB Staff
Position (&#147;FSP&#148;) No.&nbsp;EITF&nbsp;03-1-1 which
delayed the effective date for Step&nbsp;2 and Step&nbsp;3 of
the three-step impairment model until the final issuance of FSP
No.&nbsp;EITF Issue&nbsp;03-1-a.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The effect of adoption of this consensus on our financial
position and results of operations will be immaterial as long as
the current market environment remains unchanged.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Inventory Costs</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November 2004, the FASB issued SFAS&nbsp;No.&nbsp;151,
&#147;Inventory Costs&nbsp;&#151; an amendment of
ARB&nbsp;No.&nbsp;43, Chapter&nbsp;4.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SFAS&nbsp;No.&nbsp;151 requires that abnormal amounts of idle
facility expense, freight, handling costs, and wasted material
(spoilage)&nbsp;should be recognized as current-period charges.
In addition, SFAS&nbsp;No.&nbsp;151 requires that allocation of
fixed production overheads to the costs of conversion be based
on the normal capacity of the production facilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SFAS&nbsp;No.&nbsp;151 is effective for inventory costs incurred
during fiscal years beginning after June&nbsp;15, 2005. The
effect of adoption of this statement on our financial position
and results of operations is not currently known and cannot be
reasonably estimated until further analysis is completed.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Exchanges of Nonmonetary Assets</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the FASB issued SFAS&nbsp;No.&nbsp;153,
&#147;Exchanges of Nonmonetary Assets&nbsp;&#151; an amendment
of APB&nbsp;Opinion No.&nbsp;29.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SFAS&nbsp;No.&nbsp;153 eliminates the exception to fair value
measurement for nonmonetary exchanges of similar productive
assets and replaces it with a general exception to fair value
measurement for exchanges of nonmonetary assets that do not have
commercial substance. A nonmonetary exchange has commercial
substance if the future cash flows of the entity are expected to
change significantly as a result of the exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SFAS&nbsp;No.&nbsp;153 is effective for nonmonetary asset
exchanges occurring in fiscal periods beginning after
June&nbsp;15, 2005. The effect of adoption of this statement on
our financial position and results of operations is not
currently known and cannot be reasonably estimated until further
analysis is completed.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Share-Based Payment</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the FASB issued SFAS&nbsp;No.&nbsp;123
(revised 2004), &#147;Share-Based Payment&#148;
(&#147;SFAS&nbsp;No.&nbsp;123R&#148;). SFAS&nbsp;No.&nbsp;123R
requires the compensation cost from share-based payment
transactions to be recognized in the financial statements. The
amount of the compensation cost is measured based on the
grant-date fair value of the equity instruments issued or the
liabilities incurred. In
</DIV>

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<DIV align="left" style="font-size: 10pt;">
addition, the award of liability instruments will be remeasured
at the end of each reporting period. The compensation cost is
recognized over the requisite service period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April 2005, the SEC adopted a new rule which amends the
effective dates for SFAS&nbsp;No.&nbsp;123R. Under the new rule,
SFAS&nbsp;No.&nbsp;123R is effective for fiscal years beginning
after June&nbsp;15, 2005. The effect of adoption of this
statement on our financial position and results of operations is
not currently known and cannot be reasonably estimated until
further analysis is completed.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Accounting for Stripping Costs Incurred During Production in
    the Mining Industry</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March 2005, the FASB Emerging Issues Task Force reached a
consensus on Issue No.&nbsp;04-6 (&#147;EITF
No.&nbsp;04-6&#148;), &#147;Accounting for Stripping Costs
Incurred during Production in the Mining Industry.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EITF&nbsp;No.&nbsp;04-6 requires that stripping costs incurred
during the production stage of mine are variable production
costs that should be considered a component of mineral inventory
costs and are recognized as a component of costs of sales in the
same period as the revenue from the sale of the inventory.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EITF No.&nbsp;04-6 is effective for fiscal years beginning after
December&nbsp;15, 2005. The effect of adoption of this consensus
on our financial position and results of operations will be
immaterial.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Conditional Asset Retirement Obligations</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March 2005, the FASB issued FIN&nbsp;No.&nbsp;47,
&#147;Accounting for Conditional Asset Retirement
Obligations&nbsp;&#151; an interpretation of FASB Statement
No.&nbsp;143.&#148; FIN&nbsp;No.&nbsp;47 clarifies that an
entity is required to recognize a liability for the fair value
of a legal obligation to perform asset retirement activities
that are conditional on a future event if the amount can be
reasonably estimated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
FIN&nbsp;No.&nbsp;47 also clarifies when an entity would have
sufficient information to reasonably estimate the fair value of
an asset retirement obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
FIN&nbsp;No.&nbsp;47 is effective for fiscal years ending after
December&nbsp;15, 2005. The effect of adoption of this
interpretation on our financial position and results of
operations will be immaterial.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='116'></A>
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity and Capital
Resources</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Use of Non-GAAP Financial Measures</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Non-GAAP financial measures are defined in the SEC regulations
as financial measures that either exclude or include amounts
that are not excluded from or included in the most directly
comparable measure calculated and presented in accordance with
GAAP.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Net Debt-to-Equity Ratio</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We refer to &#147;Net Debt-to-Equity Ratio&#148; (&#147;Net
DER&#148;) in this Liquidity and Capital Resources and elsewhere
in this annual report. Net DER is comprised of &#147;net
interest bearing debt&#148; divided by shareholders&#146; equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Net interest bearing debt&#148; is defined as adjusted
interest bearing debt described as below less cash and cash
equivalents and time deposits. Our interest bearing debt
primarily consists of long term debt, less current maturities,
which are not readily repayable. As mentioned below
&#147;Funding and Treasury Policies and Objectives,&#148; to
flexibly meet capital requirements and to prepare for future
debt-service requirements in case of unforeseen deteriorations
in financial markets, currently we hold a relatively high level
of cash and cash equivalents reflecting the current financial
market conditions and future capital requirements. Under this
policy, Net DER is a useful internal measure for our management
to review the balance between:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our capacity to meet debt repayments; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    leverage to improve return on equity in our capital structure.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">120

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management believes it is also helpful for the readers of this
annual report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To calculating our adjusted interest bearing debt, followings
are the eliminating factors:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    accounts payables, derivative liabilities and others;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    capital lease obligations;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    SFAS&nbsp;No.&nbsp;133 fair value adjustment.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Elimination of SFAS&nbsp;No.&nbsp;133 fair value adjustment is
made because Japanese investors usually evaluate Net DER of
other general trading companies in this manner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This measure does not recognize the fact that cash and cash
equivalents and time deposits may not be available completely
for debt repayments, but cash and cash equivalents and time
deposits may be required for operational needs including certain
contractual obligations or capital expenditure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Net interest bearing debt&#148; and &#147;Net DER&#148;
are presented in the table below.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As of March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>615.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>646.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,196.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,898.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less eliminating factors included in long-term debt:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payables, derivative liabilities and others</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(193.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(147.6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital lease obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(19.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less SFAS&nbsp;No.&nbsp;133 fair value adjustment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(58.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(43.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjusted interest bearing debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,539.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,335.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less cash and cash equivalents and time deposits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(819.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(685.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net interest bearing debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,719.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,650.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shareholders&#146; equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,122.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>963.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net DER (times)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.75</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The most directly comparable GAAP measure is considered to be
&#147;Debt-to-Equity Ratio&#148; (&#147;DER&#148;). However,
this ratio measures gross debt relative to equity, and does not
measure changes in cash position.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjusted DER (times)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.46</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(defined as adjusted interest bearing debt divided by
shareholders&#146; equity)
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>
    <B><I>Free Cash Flow</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We define &#147;free cash flow&#148; as the sum of net cash
provided by operating activities and net cash used in investing
activities. Management believes that such indicator is useful to
investors, to measure available net cash for investment in
strategic opportunities and/or debt repayment; or magnitude of
reliance on borrowing to procure fund for strategic investments.
</DIV>

<P align="center" style="font-size: 10pt;">121

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows a reconciliation of net cash provided
by operating activities to free cash flow.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>As of March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by operating activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>200.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>100.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>52.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash used in investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(224.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(134.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Free Cash Flow</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(23.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(34.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>47.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Finance and Liquidity Management</I></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>
    <B><I>Funding and Treasury Policies and Objectives</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our basic funding policy is to secure stable sources of funds to
maintain adequate liquidity and financing to satisfy capital
requirements for our operations and to maintain the strength of
our balance sheet. In order to achieve our objectives, our
principal strategy is to obtain long-term funds (those with
maturities of around 10-years) from financial institutions,
including insurance companies and banks, and through the
issuance of corporate bonds. In addition, we utilize financing
programs provided by government financing agencies for various
projects to obtain long-term financing. Another strategy is to
maintain sufficient liquidity to flexibly meet capital
requirements and to prepare for future debt-service requirements
in case of unforeseen deteriorations in financial markets. We
hold cash and cash equivalents as liquidity sources, which
consist mainly of highly-liquid and highly-rated short-term
financial instruments and deposits. We aim to maintain the level
of cash and cash equivalents at about 10% of total assets,
reflecting the current financial market conditions and future
capital requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In principle, our wholly owned domestic subsidiaries do not
raise their funds in financial markets or borrow from banks, but
instead use a cash management service provided by
Mitsui&nbsp;&#38; Co. Financial Services Ltd. (Japan), our
financing subsidiary, which centralizes the fund raising
function and promotes efficient use of funds. We are currently
extending this policy to our principal overseas subsidiaries.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>
    <B><I>Funding Sources</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We borrow funds based on our longstanding relations with
financial institutions in Japan and overseas, borrow from
government financing agencies, and also utilize project
financing. In addition to these funding sources, Mitsui
maintains a &#165;200&nbsp;billion debt shelf-registration and a
&#165;2,400&nbsp;billion commercial paper program in Japan.
Similarly, Mitsui&nbsp;&#38; Co. (U.S.A.), Inc.,
Mitsui&nbsp;&#38; Co. International (Europe) B.V.,
Mitsui&nbsp;&#38; Co., Asia Investment Ltd. and
Mitsui&nbsp;&#38; Co., Ltd. have arranged a joint Euro
medium-term note (&#147;MTN&#148;) program of
U.S.$5&nbsp;billion. Mitsui guarantees notes issued by these
overseas subsidiaries. For raising short-term funds,
Mitsui&nbsp;&#38; Co. (U.S.A.), Inc. has a U.S.$1.5&nbsp;billion
U.S.&nbsp;domestic commercial paper program, and we have made
arrangements for commercial paper programs in some other
overseas markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unused lines of credit, for short-term financing outside Japan,
aggregated &#165;498.5&nbsp;billion at March&nbsp;31, 2005.
Certain foreign subsidiaries compensate banks for these
facilities in the form of commitment fees, which were not
material in each of the past three years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Taking advantage of a favorable financial market environment,
during the year ended March&nbsp;31, 2005, we increased
long-term funding by borrowing from financial institutions and
issuing bonds in Japan and MTNs in overseas markets for debt
retirement and for working capital requirements. There were five
bond issues that raised &#165;55.0&nbsp;billion in total (with
maturities of 10 to 20&nbsp;years) under the shelf-registration
in Japan during the year ended March&nbsp;31, 2005. As a result,
long-term debt accounted for approximately 83% of total debt as
of March&nbsp;31, 2005, in which we regard as a satisfactory
level from the viewpoint of our financial policies.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Approximately 76% of the balance of short-term and long-term
debt as of March&nbsp;31, 2005 was denominated in Japanese yen
and the rest was mainly denominated in U.S.&nbsp;dollars.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We employ certain derivative financial instruments, which
include interest rate swaps, currency swaps and foreign exchange
forward contracts, to manage financial exposures resulting from
our financing activities. Currency swap agreements and foreign
exchange forward contracts are used to manage risks associated
with the fluctuations in foreign exchange rates. The principal
financial derivative instruments that are employed to manage
interest rate risk exposure are interest rate swap agreements. A
large part of such agreements are used for fair value hedging of
fixed rate interest-bearing debt, including fixed interest rate
borrowing, bonds and notes, converting into floating interest
rates based on the three-month or six-month LIBOR. The interest
rates on approximately 81% of Mitsui&#146;s long-term debt,
other than borrowings for certain projects, were floating after
taking into account interest rate swap arrangements as of
March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See Note&nbsp;26, &#147;DERIVATIVE INSTRUMENTS AND HEDGING
ACTIVITIES&#148; for further description of our risk management
policies.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>
    <B><I>Credit Ratings</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To facilitate access to funds from capital markets, Mitsui and
our certain foreign trading subsidiaries have obtained ratings
for their commercial paper (short-term debt) and long-term
senior unsecured debt (long-term debt) from Rating and
Investment Information, Inc. (&#147;R&#38;I&#148;), Moody&#146;s
Investors Service, Inc. (&#147;Moody&#146;s&#148;) and Standard
and Poor&#146;s Services (&#147;S&#38;P&#148;). The ratings as
of June 2005 were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>R&#38;I</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Moody&#146;s</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>S&#38;P</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>a-1+</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>P-1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>A-2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>AA-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>A2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>A-</TD>
    <TD align="left" valign="bottom" nowrap>*</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    The credit rating by S&#38;P on long-term debt was provided
    without our request.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
S&#38;P in March 2005 raised our long-term corporate credit
rating to &#147;A-&#148; from &#147;BBB+.&#148; S&#38;P cited
the following factors for the change in ratings:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the gradually improving financial profiles on the Japanese
    general trading companies, with evidence of an upswing in
    operating income and equity in earnings of associated companies
    supported by the progress in restructuring unprofitable
    businesses, and sound performance in their trading of energy and
    metal businesses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the reduction in the risk from investments and loans, due to
    proper management of the risks involved in investments and
    loans, with the resulting improvement in the risk balance
    between shareholders&#146; equity and investments and loans; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the continuation of our strategy to strengthen our profitability
    after credit costs.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Moody&#146;s in April 2005 upgraded the rating to A2 from A3 on
unsecured long-term debt of Mitsui and its supported
subsidiaries. Mitsui&#146;s short-term debt rating was also
upgraded to Prime 1 from Prime 2. According to Moody&#146;s,
this rating action reflects the progress the company has made in
improving our debt to equity ratio (&#147;DER&#148;) and
profitability over the past several years in the difficult
operating environment. Mitsui intends to maintain and improve
its current credit ratings by enhancing its earnings and risk
management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Credit ratings are an assessment by the rating agencies of
the credit risks associated with us and are based on information
provided by us and other sources that the rating agencies
consider reliable. Lower ratings generally result in higher
borrowing costs and reduced access to capital markets. Credit
ratings do not constitute a recommendation to buy, sell or hold
securities and are subject to change or withdrawal by each of
rating agencies at any time. As rating agencies may have
different criteria in evaluating the risk</I>
</DIV>

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<DIV align="left" style="font-size: 10pt;">
<I>associated with a company, you should evaluate each rating
independently of other ratings. Ratings may be changed without
pre-notice at any time.</I>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>
    <B><I>Liquidity Management</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the interest rate structure and the maturity profile of our
outstanding debt, see Note&nbsp;13, &#147;SHORT-TERM AND
LONG-TERM DEBT.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We had working capital, or current assets minus current
liabilities, of &#165;1,138.9&nbsp;billion,
&#165;900.7&nbsp;billion and &#165;806.4&nbsp;billion as of
March&nbsp;31, 2005, 2004 and 2003, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Short-term debt was &#165;615.4&nbsp;billion,
&#165;646.7&nbsp;billion and &#165;690.9&nbsp;billion, and
long-term debt less current maturity was
&#165;2,904.9&nbsp;billion, &#165;2,541.2&nbsp;billion and
&#165;2,500.5&nbsp;billion as of March&nbsp;31, 2005, 2004 and
2003, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash and cash equivalents were &#165;791.8&nbsp;billion,
&#165;638.3&nbsp;billion and &#165;694.8&nbsp;billion as of
March&nbsp;31, 2005, 2004 and 2003, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to cash and cash equivalents, we had time deposits
and marketable securities of &#165;28.1&nbsp;billion and
&#165;28.1&nbsp;billion, &#165;46.7&nbsp;billion and
&#165;29.3&nbsp;billion, and &#165;37.7&nbsp;billion and
&#165;64.5&nbsp;billion, as of March&nbsp;31, 2005, 2004 and
2003, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net interest-bearing debt (interest-bearing debt less cash and
cash equivalents and time deposits) was
&#165;2,719.9&nbsp;billion, an increase of
&#165;69.3&nbsp;billion from the year ended March&nbsp;31, 2004.
However, the net DER improved from 2.75 as of March&nbsp;31,
2004 to 2.42 as of March&nbsp;31, 2005, reflecting a strong
increase in shareholders&#146; equity. Mitsui anticipates an
increase in total assets from &#165;7,593.4&nbsp;billion as of
March&nbsp;31, 2005 to &#165;8,000&nbsp;billion as of
March&nbsp;31, 2006 in our outlook for the year ending
March&nbsp;31, 2006 due to our new investments. However, we
expect to keep the net debt-to-equity ratio around 2.5 in order
to maintain our sound financial standing while refraining from a
highly leveraged funding policy and utilizing operating cash
flows during this period for new investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The ratio of current assets to current liabilities improved from
129.7% as of March&nbsp;31, 2004 to 134.7% as of March&nbsp;31,
2005 partly because long-term debt and bonds increased in line
with our principal funding strategies as mentioned above. The
ratio of current assets to current liabilities as of
March&nbsp;31, 2003 was 126.7%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2005, we have given guarantees for
obligations of various third parties and associated companies.
These guarantees are not expected to require substantial use of
our capital resources. We have not had any material payment
requirements resulting from activities for the past three years.
For details on guarantees issued by us, see Note&nbsp;23,
&#147;COMMITMENTS AND CONTINGENT LIABILITIES.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With the exception of project financing and non-recourse
financing, it is our policy not to conclude agreements for
important financial transactions with financial institutions
that contain additional debt restriction clauses that may cause
acceleration of our obligations, including debt incurrence
restrictions, negative pledges, restrictions on dividend
payments and various financial ratio limits, and there are no
material financial covenants in the agreements undertaken.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Assuming that our subsidiaries have sufficient distributable net
assets or retained earnings as provided under the local laws of
the relevant jurisdictions, there are no material contractual or
legal restrictions on the ability of our subsidiaries to
transfer funds to us in the form of dividends, loans or
advances. There are no material economic restrictions on
payments of dividends, loans or advances to us by our
subsidiaries other than general withholding or other taxes
calculated at the rates determined by the local tax laws of the
relevant jurisdictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We held &#165;791.8&nbsp;billion of cash and cash equivalents as
of March&nbsp;31, 2005 in comparison to &#165;237.5&nbsp;billion
of outstanding debt from commercial papers, MTNs and bonds with
current maturities. Of the cash and cash equivalents,
approximately 72% was held by Mitsui and approximately 80% was
denominated in Japanese yen. We believe that we maintain
sufficient liquidity to satisfy our working
</DIV>

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<DIV align="left" style="font-size: 10pt;">
capital and debt-service requirements for the foreseeable future
through existing cash and cash equivalents and time deposits,
the sales of certain assets in parallel with outside borrowings
from financial institutions, as well as, the issuance of bonds
and notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We plan to contribute &#165;8.6&nbsp;billion to our
defined-benefit pension plans for the year ending March&nbsp;31,
2006. This fund requirement will be managed under our funding
policy mentioned above.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>
    <B><I>Investment Plans and Financial Policies of the Current
    Medium-Term Strategic and Financial Plan</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
According to our two-year Medium-Term Strategic and Financial
Plan (announced in May 2004) ending in March 2006, we plan to
invest &#165;400&nbsp;billion during the period of the plan. By
the end of March 2005, we had placed a total of approximately
&#165;260&nbsp;billion into investments and the acquisition of
long-lived assets. This included &#165;62.8&nbsp;billion for the
Enfield crude oil development project, &#165;82.4&nbsp;billion
for the Sakhalin&nbsp;II project, &#165;63.4&nbsp;billion for
the purchase of Edison Mission Energy&#146;s overseas power
generation business portfolio, and &#165;12.6&nbsp;billion for
the expansion of iron ore and coal mining in Australia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
After the end of March 2005, we revised our investment plan, and
announced in May 2005 that we expect to invest a total of
&#165;420&nbsp;billion in the period from April 2005 to the end
of March 2006. The principal investments in this plan are
described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#151;&nbsp;Approximately &#165;200&nbsp;billion in mineral
resources and energy projects,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#151;&nbsp;Approximately &#165;100&nbsp;billion in
infrastructure projects,&nbsp;and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#151;&nbsp;Approximately &#165;100&nbsp;billion in growing and
strengthening fields such as consumer and financial products and
services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Many of the projects in the investment plan involve bidding. The
outcome of bidding will have an effect on our actual cash flows
and financial condition for the year ending March&nbsp;31, 2006.
Our investment plan assumes that all of the planned investments
will be made by the year ending March&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will procure funding for these investments by increasing
internal liquidity, as well as fund raising (including project
finance) from the private sector and government financing
agencies, and direct financing from capital markets. We forecast
our level of interest-bearing debt to increase by about
&#165;270&nbsp;billion by the year ending March&nbsp;31, 2006;
however, this amount may vary, depending on the state of
progress of the investment plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In formulating our investment plans we are paying careful
attention to our level of financial leverage&nbsp;&#151;
including our shareholders&#146; equity ratio and our net DER.
Accompanying the revision of the investment plan outlined above,
we have targeted a net DER of around 2.5 for the year ending
March&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Non-Exchange Traded Commodity Contracts at Fair
Value</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We perform trading activities in commodities that are listed on
the terminal (futures)&nbsp;markets. Our trading consists of
derivative instruments traded in the commodity futures markets,
as well as non-exchange traded commodity contracts including
commodity derivatives. Non-exchange traded commodity contracts
are recorded at fair value based on prices actively quoted in
the terminal (futures)&nbsp;market for commodities such as
precious metals. Some non-exchange traded commodity contracts,
such as non-exchange traded derivatives of crude oil and oil
products, are recorded at fair value based on the prices
provided by other external sources. Their effect on earnings and
financial position is immaterial.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Transactions With Related Parties</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
When conducting our business operations throughout the world, we
form alliances with leading partner companies in Japan and
overseas, including manufacturers and companies in raw materials
resources fields, such as energy and ferrous materials. In
addition to investing in associated companies
</DIV>

<P align="center" style="font-size: 10pt;">125

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<DIV align="left" style="font-size: 10pt;">
where we are a minority shareholder, we conduct selling and
purchasing transactions of various products on a recurring basis
with such associated companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal associated companies include Valepar S.A.
(18.24%), Japan Australia LNG (MIMI)&nbsp;Pty. Ltd. (50.00%),
Mitsui Oil Exploration Co., Ltd. (44.34%), IPM Eagle LLP
(30.00%), Nihon Unisys, Ltd. (28.91%), Sakhalin Energy
Investment Company Ltd. (25.00%) and United Auto Group, Inc.
(15.53%), among others.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the years ended March&nbsp;31, 2005, 2004 and 2003 our
gross revenues from transactions with these associated companies
amounted to &#165;121&nbsp;billion, &#165;108&nbsp;billion and
&#165;91&nbsp;billion, respectively, and the values of goods and
services purchased from such companies and reported as cost of
revenues were &#165;192&nbsp;billion, &#165;161&nbsp;billion and
&#165;143&nbsp;billion, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prices applied in transactions with associated companies are
computed in the same way that such prices would be calculated in
transactions with unrelated third parties. In addition, when
associated companies are counterparties in transactions with us
and we conduct such business under long-term procurement and/or
sales contracts, in general, we conclude a corresponding sales
contract with the purchasers (unrelated parties) of goods
procured by us and/or with suppliers (unrelated parties) of the
goods we sell to associated companies. In addition, as of
March&nbsp;31, 2005, we were the guarantor for
&#165;57.6&nbsp;billion in funds borrowed and other financial
obligations of associated companies. Regarding any other
commitments related to transactions with associated companies,
we do not normally assume risk in excess of our percentage of
share ownership in such associated companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Assets, Liabilities and Shareholders&#146; Equity</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total assets as of March&nbsp;31, 2005 increased by
&#165;877.4&nbsp;billion to &#165;7,593.4&nbsp;billion, compared
with &#165;6,716.0&nbsp;billion as of March&nbsp;31, 2004.
Current assets as of March&nbsp;31, 2005 increased by
&#165;486.2&nbsp;billion to &#165;4,420.7&nbsp;billion, compared
with &#165;3,934.5&nbsp;billion as of March&nbsp;31, 2004. The
details of the increase are as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Cash and cash equivalents increased by &#165;153.5&nbsp;billion
    from the year ended March&nbsp;31, 2004, mainly derived from our
    long-term borrowings and issuance of bonds.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    As a result of increased business transactions and rising prices
    in various markets, accounts receivables and inventories
    increased by &#165;156.9&nbsp;billion and by
    &#165;83.9&nbsp;billion, respectively, mainly at subsidiaries in
    the Energy Segment, the Metal Products&nbsp;&#38; Minerals
    Segment, and the Americas Segment. As a result of an increase in
    the derivative assets of Mitsui&nbsp;&#38; Co. Energy Risk
    Management Ltd. (United Kingdom) and other subsidiaries in the
    Logistics&nbsp;&#38; Financial Markets Segment, other current
    assets increased by &#165;74.1&nbsp;billion.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Current liabilities as of March&nbsp;31, 2005 increased by
&#165;248.0&nbsp;billion to &#165;3,281.8&nbsp;billion compared
with &#165;3,033.8&nbsp;billion as of March&nbsp;31, 2004. The
main factors were as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In addition to a &#165;178.3&nbsp;billion increase in accounts
    payables corresponding to the above-mentioned increase in
    accounts receivables, the increase in derivative liabilities of
    Mitsui&nbsp;&#38; Co. Energy Risk Management Ltd. and others led
    to a &#165;92.1&nbsp;billion increase in other current
    liabilities, corresponding to the above-mentioned increase in
    the derivative assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    On the other hand, short-term debts declined by
    &#165;31.4&nbsp;billion, mainly due to the redemption of
    Mitsui&#146;s commercial papers. Similarly, there was a decline
    of &#165;65.7&nbsp;billion in current maturities of long-term
    debt through repayments by Mitsui on the due date.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result, working capital as of March&nbsp;31, 2005, or
current assets minus current liabilities, increased by
&#165;238.2&nbsp;billion to &#165;1,138.9&nbsp;billion compared
with &#165;900.7&nbsp;billion as of March&nbsp;31, 2004
(including the above-mentioned increase in cash and cash
equivalents by &#165;153.5&nbsp;billion).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The sum of total investments and non-current receivables, net
property and equipment, intangible assets, less accumulated
amortization, deferred tax assets&nbsp;&#151; non-current, and
other assets as of March&nbsp;31, 2005 increased by
&#165;391.1&nbsp;billion to &#165;3,172.7&nbsp;billion from
&#165;2,781.6&nbsp;billion as of March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Within investments and non-current receivables, the total of
investments in and advances to associated companies and other
investments as of March&nbsp;31, 2005 increased by
&#165;289.7&nbsp;billion to &#165;1,633.4&nbsp;billion compared
with &#165;1,343.7&nbsp;billion as of March&nbsp;31, 2004. The
details of the increase are as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Investments in and advances to associated companies increased
    due to our investment in the preferred stock of Sakhalin Energy
    Investment Company Ltd. (Bermuda) of &#165;82.4&nbsp;billion and
    through our investment in IPM Eagle LLP (United Kingdom) of
    &#165;63.4&nbsp;billion that purchased Edison Mission
    Energy&#146;s overseas power plant business portfolio. In
    addition, there was an &#165;84.2&nbsp;billion increase due to
    the increase in our equity in earnings of associated companies
    for the year ended March&nbsp;31, 2005 and a
    &#165;28.1&nbsp;billion increase reflecting an increase in
    unrealized holding gains on available-for-sale securities in
    relation to the investment in INPEX CORPORATION
    (&#147;INPEX&#148;) owned by our associated company Mitsui Oil
    Exploration Co., Ltd. (Japan) following INPEX&#146;s initial
    public offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Other investments increased due to the increase in unrealized
    holding gains on available-for-sale securities of
    &#165;23.7&nbsp;billion.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net property and equipment (less accumulated depreciation) rose
by &#165;63.6&nbsp;billion to &#165;662.7&nbsp;billion compared
with &#165;599.1&nbsp;billion as of March&nbsp;31, 2004. The
main assets acquired during the year ended March&nbsp;31, 2005
were mineral rights of &#165;48.5&nbsp;billion as well as
equipment and fixtures of &#165;14.3&nbsp;billion in relation to
the Enfield crude oil project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Long-term debt, less current maturities as of March&nbsp;31,
2005 increased by &#165;363.7&nbsp;billion to
&#165;2,904.9&nbsp;billion from &#165;2,541.2&nbsp;billion as of
March&nbsp;31, 2004. This was due to an increase in borrowings
from financial institutions and the issuance of bonds by both
Mitsui and Mitsui&nbsp;&#38; Co. International (Europe) B.V.
(Netherlands). In addition to the procurement of funding for
investments and acquisition of property and equipment during the
year ended March&nbsp;31, 2005 as mentioned above, we have been
proceeding with further funding procurement ahead of
implementation of investments set forth in our investment plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholders&#146; equity as of March&nbsp;31, 2005 increased by
&#165;159.5&nbsp;billion to &#165;1,122.8&nbsp;billion from
&#165;963.3&nbsp;billion as of March&nbsp;31, 2004, mainly due
to the accumulation of retained earnings, but also as a result
of an increase in unrealized holding gains and losses on
available-for-sale securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Cash Flows</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by operating activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>200.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>100.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>52.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash used in investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(224.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(134.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided (used in) by financing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>171.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Effect of exchange rate changes on cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net increase (decrease) in cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(56.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>638.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>694.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>633.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>791.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>638.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>694.8</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">127

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Cash Flows during the Year Ended March&nbsp;31,
    2005</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cash Flows from Operating Activities</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash provided by operating activities for the year ended
March&nbsp;31, 2005 was &#165;200.1&nbsp;billion, which was
primarily attributable to:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Operating income which increased steadily in the Metal
    Products&nbsp;&#38; Minerals Segment, Energy Segment, and other
    segments</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Dividends received from associated companies as well as our
    investment in third parties amounting to
    &#165;53.6&nbsp;billion, mainly from investments in our mineral
    resource and energy related associated companies such as Japan
    Australia LNG (MIMI)&nbsp;Pty. Ltd. (Australia), Valepar S.A.
    (Brazil), and other Middle Eastern LNG companies</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Total payments, in relation to contributions to our defined
    benefit pension plan and payments under unfunded severance
    indemnities plans amounting to &#165;30.9&nbsp;billion</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A one-time payment of &#165;8.1&nbsp;billion for compensation
    and other charges related to DPF incident</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Payments of &#165;56.9&nbsp;billion for corporate income taxes</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash provided by operating activities increased by
&#165;100.0&nbsp;billion for the year ended March&nbsp;31, 2005
compared with the year ended March 2004. The reasons for this
increase were:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Operating income which increased by &#165;71.2&nbsp;billion in
    total, and by operating segment mainly attributable to a
    &#165;39.4&nbsp;billion increase in the Metal
    Products&nbsp;&#38; Minerals Segment and a
    &#165;13.8&nbsp;billion increase at the Energy Segment.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Dividends received from associated companies as well as our
    investments in third parties showed further increase.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cash Flows from Investing Activities</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in investing activities for the year ended
March&nbsp;31, 2005 totaled &#165;224.0&nbsp;billion. Of this
amount, &#165;133.3&nbsp;billion was used in relation to
investments and loans. The details of the cash flows are as
follows:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A total of &#165;190.4&nbsp;billion was paid for investments in
    and advances to associated companies. This included
    &#165;80.7&nbsp;billion* investment in preferred stock of
    Sakhalin Energy Investment Company Ltd. (Bermuda) and an
    investment of &#165;62.2&nbsp;billion* in IPM Eagle LLP (United
    Kingdom) that purchased Edison Mission Energy&#146;s overseas
    power generation business portfolio. Deduction of a
    &#165;52.7&nbsp;billion proceeds from sales of investments in
    and collection of advances to associated companies resulted in a
    net cash outflow of &#165;137.7&nbsp;billion.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A total of &#165;68.5&nbsp;billion was used on acquisition of
    debt securities for fund management purposes, mainly by Mitsui
    and its financing subsidiaries, and &#165;59.8&nbsp;billion was
    obtained as proceeds from maturities of debt securities. While
    &#165;14.5&nbsp;billion was provided by the sale of shares in
    Vodafone K.K., &#165;8.9&nbsp;billion was used in the purchase
    of shares in CornerStone Research&nbsp;&#38; Development, Inc.
    (the United States).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A total of &#165;90.7&nbsp;billion was paid for fixed assets,
which includes property leased to others and property and
equipment. The main items are listed below.
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Payments of &#165;64.4&nbsp;billion* for the acquisition of
    mineral rights and other fixed assets in the Enfield crude oil
    project in Western Australia</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Payments of &#165;17.2&nbsp;billion for the acquisition of
    facilities for the development of iron ore and coal</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 0pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
*&nbsp;Cash flows in foreign currencies were translated into yen
using the average foreign exchange rates during the year, and
therefore differ from the amounts appearing in &#147;Investment
Plans and Financial Policies of the Current Medium-Term
Strategic and Financial Plan&#148; and &#147;Assets, Liabilities
and Shareholders&#146; Equity&#148; as above, which were
translated by the current rate as of March&nbsp;31, 2005.
</DIV>

<P align="center" style="font-size: 10pt;">128

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Payments of &#165;16.0&nbsp;billion for purchasing rolling stock
    and ocean vessels for lease, and proceeds of
    &#165;17.0&nbsp;billion from the sale of aircraft, rolling stock
    and ocean vessels for lease</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A proceed of &#165;10.8&nbsp;billion from the sale of our office
    building in the United Kingdom</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Proceeds of &#165;12.8&nbsp;billion from the sale of
    Mitsui&#146;s corporate residences and dormitories</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash flows used in investing activities for the year ended
March&nbsp;31, 2005 increased by &#165;89.8&nbsp;billion
compared with the year ended March&nbsp;31, 2004. Large cash
outflow and cash inflow for the year ended March&nbsp;31, 2004
included an investment of &#165;97.1 to acquire shares in
Valepar S.A. (Brazil), an investment of &#165;56.7&nbsp;billion
in the preferred stock of Sakhalin Energy Investment Company
Ltd. (Bermuda), and a proceed of &#165;49.8&nbsp;billion from
the sale of shares in Caemi Minera&#231;&#227;o e Metalurgia S.A.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cash Flows from Financing Activities</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash provided by financing activities for the year ended
March&nbsp;31, 2005 was &#165;171.3&nbsp;billion, which was
primarily attributable to:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    An increase in long-term and short-term debt of
    &#165;183.8&nbsp;billion, mainly consisting of the increased
    long-term borrowings and issuance of long-term bonds by Mitsui,
    Mitsui&nbsp;&#38; Co. (U.S.A.) Inc. and other trading
    subsidiaries. Of this amount, &#165;141.2&nbsp;billion was
    procured by Mitsui.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In response to increasing demand for funds for our investments
    and acquisition of fixed assets, we increased our level of
    long-term fund procurement, taking advantage of a favorable
    financial market environment. As a result, that our long-term
    debt increased by &#165;120.7&nbsp;billion in long-term
    borrowings and by &#165;55.0&nbsp;billion in bonds.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Other major cash flows from financing activities included a
    &#165;2.6&nbsp;billion proceed from the issuance of stock of
    Telepark Corp. (Japan), and payments of &#165;14.2&nbsp;billion
    for cash dividends.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash flows from financing activities for the year ended
March&nbsp;31, 2005 increased by &#165;183.5&nbsp;billion
compared with the year ended March&nbsp;31, 2004. The main
sources, as described above, were increases in levels of
long-term fund procurement through our borrowings from financial
institutions and issuance of bonds. Please refer to
&#147;Finance and Liquidity Management&nbsp;&#151; Funding
Sources&#148; above for details of our fund procurement for the
year ended March&nbsp;31, 2005.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cash and Cash Equivalents at End of the Year</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the increase of &#165;6.1&nbsp;billion due to
changes in exchange rates, the balance of our cash and cash
equivalents increased by &#165;153.5&nbsp;billion for the year
ended March&nbsp;31, 2005 to &#165;791.8&nbsp;billion as of
March&nbsp;31, 2005.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Cash Flows in the Current Medium-Term Strategic and
    Financial Plan</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Reflecting our active investment program, free cash flow, which
we define as net of cash flows from operating activities
(&#165;200.1&nbsp;billion for the year ended March&nbsp;31,
2005) and cash flows from investing activities (negative
&#165;224.0&nbsp;billion for the same year) as shown in our
Statements of Consolidated Cash Flows, was negative
&#165;23.9&nbsp;billion for the year ended March&nbsp;31, 2005.
In the year ending March 2006, our free cash flow is expected to
be approximately the same as the year ended March&nbsp;31, 2005
mainly due to the following reasons:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our analysis of the trends in mineral resource and energy prices
    and their expected influence on our operating results for the
    year ending March&nbsp;31, 2006 suggests that rising resource
    and energy prices will continue to support growth in net income
    and operating cash flows in the year ending March 2006.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Many investments in our current Medium-Term Strategic and
    Financial Plan ending March 2006 will be made in the fields of
    mineral resources and energy. It will take a long time to begin
    generating cash inflow from those investments.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">129

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Cash Flows during the Year Ended March&nbsp;31,
    2004</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cash Flows from Operating Activities</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash provided by operating activities for the year ended
March&nbsp;31, 2004 was &#165;100.1&nbsp;billion, which was
primarily attributable to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    operating income in almost all segments, especially in the Metal
    Products&nbsp;&#38; Minerals Segment and the Chemical Segment;
    and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    dividends from associated companies and unrelated investees,
    particularly those operating in the natural resources business
    (e.g., iron and steel raw materials, oil and gas).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The above net cash inflow was partly offset by the payment of
U.S.$126.5&nbsp;million, or &#165;13.7&nbsp;billion, for the
settlement of a major part of choline chloride lawsuits in the
United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash provided by operating activities increased by
&#165;47.9&nbsp;billion compared to the year ended
March&nbsp;31, 2003. The principal reasons for this increase
were:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#165;21.9&nbsp;billion higher operating income;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#165;25.9&nbsp;billion decline in contributions to defined
    benefit plans from &#165;26.0&nbsp;billion to
    &#165;0.1&nbsp;billion.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, during the year ended March&nbsp;31, 2003, our
domestic financing subsidiary, Bussan Credit Co., Ltd. (Japan),
which has merged with other subsidiaries and been operating as
Mitsui&nbsp;&#38; Co. Financial Services Ltd. since April 2005.,
purchased trade receivables (Mitsui&#146;s trade payables) at a
discount from various suppliers, which caused early payments of
our trade payables, which reduced net cash from operating
activities.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cash Flows from Investing Activities</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in investing activities was
&#165;134.2&nbsp;billion. There was a net cash outflow of
&#165;80.9&nbsp;billion for investments and loans, which
consisted of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#165;124.8&nbsp;billion cash inflow from proceeds from
    maturities of debt securities held by financing subsidiaries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    proceeds of &#165;49.8&nbsp;billion from the sale of investments
    in Caemi Minera&#231;&#227;o e Metalurgia S.A. (Brazil);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    payment of &#165;97.1&nbsp;billion for investment in Valepar
    S.A. (Brazil);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    payment of &#165;56.7&nbsp;billion for the purchase of preferred
    stock of Sakhalin Energy Investment Company Ltd. (Bermuda).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 As for the additions and sales of long-lived assets, cash
inflow and outflow mainly consisted of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    purchases of mining facilities in the Metal Products&nbsp;&#38;
    Minerals Segment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    purchases of aircraft, rolling stock and ocean transport vessels
    for leasing;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    proceeds from sales of leased aircraft and ocean transport
    vessels;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    proceeds from sales of Mitsui&#146;s residences and dormitories.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in investing activities increased by
&#165;129.9&nbsp;billion compared to the year ended
March&nbsp;31, 2003, due mainly to investments in Valepar S.A.
in the Metal Products&nbsp;&#38; Minerals Segment and Sakhalin
Energy Investment Company Ltd. in the Energy Segment.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cash Flows from Financing Activities</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2004, Mitsui and its
financial subsidiary repaid short-term and long-term debt, while
Mitsui and its foreign trading subsidiaries raised
&#165;177.4&nbsp;billion through the issuance of
</DIV>

<P align="center" style="font-size: 10pt;">130

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
bonds. As a result, net cash provided by short-term and
long-term financing activities totaled &#165;0.7&nbsp;billion.
After the payments of cash dividends, net cash used in financing
activities totaled &#165;12.2&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash flows used in financing activities increased by
&#165;30.1&nbsp;billion from the cash flows of
&#165;17.8&nbsp;billion provided by financing activities for the
year ended March&nbsp;31, 2003, because:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    there was an increase in borrowings at the above-mentioned
    financing subsidiary in Japan to finance early repayments of
    Mitsui&#146;s trade payables during the year ended
    March&nbsp;31, 2003;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mitsui and the domestic financial subsidiary increased the
    repayments of short-term debt.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cash and Cash Equivalents at End of Year</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash and cash equivalents declined by &#165;56.5&nbsp;billion
after the effect of exchange rate changes on cash and cash
equivalents. As a result, cash and cash equivalents as of
March&nbsp;31, 2004 were &#165;638.3&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='117'></A>
</DIV>

<!-- link1 "C. Research &#38; Development" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research&nbsp;&#38;
Development</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, research and development
(&#147;R&#38;D&#148;) expenses totaled &#165;5.6&nbsp;billion,
which consist mainly of &#165;3.9&nbsp;billion in the Chemical
Segment related to nanotechnology, biotechnology and life
sciences technology, &#165;0.9&nbsp;billion in the Machinery,
Electronics&nbsp;&#38; Information Segment, and
&#165;0.7&nbsp;billion in the Consumer Products&nbsp;&#38;
Services Segment including R&#38;D relating to food products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the nanotechnology field, a key research area in the Chemical
Segment, we have been developing and promoting the
commercialization of ethanol separation technology by using
zeolite membranes, which will dramatically improve the energy
efficiency of biomass ethanol production. Biomass ethanol is a
renewable energy source, and as such it is being studied all
over the world as an additive for automobile gasoline and fuel
for electrical power generation, as a means of addressing the
issue of global warming. By realizing improved energy efficiency
in the production of biomass ethanol through the use of zeolite
membranes, it is expected to reduce costs and promote the
introduction of biomass ethanol fuel in Japan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Furthermore, carbon nanotubes are expected to be developed for a
variety of advanced applications in the future, and we are
continuing to cooperate with industry and academia to conduct
development research into these applications, providing the
produced carbon nanotubes for many partner university
laboratories and companies as we strive together to
commercialize this technology.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With regards to the manufacturing of zeolite membranes and
carbon nanotubes, we build a commercial plant for zeolite
membranes (dehydration membranes) during the year ending
March&nbsp;31, 2006, and we are also laying the groundwork for
establishing a company for carbon nanotubes during the same year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, with the primary objective of expanding demand for
methionine, a feed supplement subsidiary, Novus International
Inc. (the United States) has been working to develop new
applications and manufacturing processes, and has also been
conducting R&#38;D in feed analysis services and new products by
using a broad array of techniques ranging from cellular biology
techniques to living-body experiments. These R&#38;D efforts are
producing tangible results, such as improvements in the
market&#146;s view for its products, the startup of a new plant
for intermediates, and the debut of new products in the area of
organic acids and organic minerals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the Machinery, Electronics&nbsp;&#38; Information Segment,
Chlorine Engineers Corp. (Japan)&nbsp;&#151; a unit of a
subsidiary, MBK Project Holdings Ltd. (Japan) that is engaged in
the business of making electrolyzers and providing engineering
for chlor-alkali plants&nbsp;&#151; continuously conducts
research on the structure of electrolyzers and the optimization
of the materials used in these devices, in order to realize
energy savings by boosting plant operating rates and prolonging
the lifespan of these electrolyzers. This research helps reduce
operating and maintenance costs for users, and also contributes
to the protection of the environment.
</DIV>

<P align="center" style="font-size: 10pt;">131

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a food related activities in the Consumer Products&nbsp;&#38;
Services Segment, a subsidiary, Mitsui Norin Co., Ltd. (Japan)
is primarily focused on the commercialization of its research
into the health benefits, application and material development
of catechin, a substance in tea that has high sterilization and
anti-viral properties, and to its commercialization in the
pharmaceutical field. Mitsui Norin Co., Ltd. is pursuing
research with universities and research institutions inside and
outside of Japan, and seeking to uncover the bioactive
properties of tea, it is also using genetic engineering methods
to establish microbe identification technology and methods for
analyzing foreign substances and offensive odors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2004, R&#38;D expenses were
&#165;6.0&nbsp;billion. Principal R&#38;D activities undertaken
were related to nanotechnology and biotechnology in the Chemical
Segment, electrolysis technology in the Machinery,
Electronics&nbsp;&#38; Information Segment and food-related
initiatives in the Consumer Products&nbsp;&#38; Services
Segment. R&#38;D expenses incurred in these three segments were
&#165;4.5&nbsp;billion, &#165;1.1&nbsp;billion and
&#165;0.3&nbsp;billion, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2003, R&#38;D expenses were
&#165;3.4&nbsp;billion. R&#38;D activities were mainly related
to nanotechnology and biotechnology in the Chemical Segment and
information technology in the Machinery, Electronics&nbsp;&#38;
Information Segment. R&#38;D expenses incurred in these three
segments were &#165;2.0&nbsp;billion and &#165;1.2&nbsp;billion,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='118'></A>
</DIV>

<!-- link1 "D. Trend Information" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trend Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See relevant discussion elsewhere in this item.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='119'></A>
</DIV>

<!-- link1 "E. Off-Balance Sheet Arrangements" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Off-Balance Sheet
Arrangements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We use off-balance sheet arrangements in the ordinary course of
business to further our trading, fund-raising and other
activities. Categories of off-balance arrangements are as
follows:
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Guarantees</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following tables summarize our guarantees as of
March&nbsp;31, 2005 and 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The maximum potential amount of future payments represents the
amount without consideration of possible recoveries under
recourse provision or from collateral held or pledged that we
could be obliged to pay if there were defaults by guaranteed
parties or there were changes in an underlying which would cause
triggering events under market value guarantees and
indemnification contracts. Such amounts bear no relationship to
the anticipated losses on these guarantees and indemnifications,
and they greatly exceed anticipated losses. Estimated proceeds
from collateral and recourse represent the anticipated values of
assets we could liquidate or receive from other parties to
offset our payments under guarantees. The carrying amounts of
liabilities recorded on the Consolidated Balance Sheets reflect
our best estimate of future payments we may incur as part of
fulfilling our guarantee obligations.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Maximum</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Recourse</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Carrying</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Potential Amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Provisions/</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>As of March&nbsp;31, 2005:</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Future Payments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Collateral</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financial Guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Performance Guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Market Value Guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Maximum</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Recourse</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Carrying</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Potential Amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Provisions/</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>As of March&nbsp;31, 2004:</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Future Payments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Collateral</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financial Guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Performance Guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Market Value Guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">132

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the furtherance of our trading activities, it is a customary
practice for us to guarantee, severally or jointly with others,
indebtedness of certain of our customers and suppliers and of
certain associated companies as well as to guarantee the
performance of contracts by such entities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As lessees in operating lease contracts, certain subsidiaries
have issued residual value guarantees of leased ocean transport
vessels, and on the date of expiration of operating lease
contracts, such subsidiaries will either purchase the leased
assets at a fixed price or will be responsible for making up any
shortfall between the actual sales price and the guaranteed
value. In accordance with FASB Interpretation No.&nbsp;46,
&#147;Consolidation of Variable Interest Entities (revised
December 2003)&nbsp;&#151; an Interpretation of ARB
No.&nbsp;51,&#148; on December&nbsp;31, 2003, we consolidated
&#165;19.9&nbsp;billion and &#165;20.2&nbsp;billion of total
assets related to certain ocean transport vessels entities at
March&nbsp;31, 2005 and 2004, respectively. This information is
provided in Note&nbsp;24, &#147;VARIABLE INTEREST ENTITIES.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Sales of Trade Receivables</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui&nbsp;&#38; Co. (U.S.A.), Inc. and Mitsui&nbsp;&#38; Co.
(Canada) Ltd. use off-balance sheet arrangements in which
certain trade receivables are sold to third parties. At
March&nbsp;31, 2005 and 2004, the outstanding amounts of these
off-balance sheet arrangements were immaterial.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Variable Interest Entities</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are involved with and have significant variable interests in
a number of variable interest entities that are not consolidated
because we are not the primary beneficiary, but in which we have
significant variable interests. These variable interest entities
mainly engage in leasing and financing activities. Further
information is provided in Note&nbsp;24, &#147;VARIABLE INTEREST
ENTITIES.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Commitments on Deferred Payments</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We had financing commitments totaling &#165;2.7&nbsp;billion at
March&nbsp;31, 2005, principally for financing, on a
deferred-payment basis, the cost of ocean transport vessels and
equipment to be purchased by our customers. We had so much
financing commitments at March&nbsp;31, 2004. Further
information is provided in Note&nbsp;23, &#147;COMMITMENTS AND
CONTINGENT LIABILITIES.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='120'></A>
</DIV>

<!-- link1 "F. Tabular Disclosure of Contractual Obligations" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tabular Disclosure of
Contractual Obligations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides our contractual obligations as of
March&nbsp;31, 2005 and payment due by period of these
contractual obligations:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Billions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Payment Due by Period</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Balance as of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>After</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Contractual Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March 2006</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March 2008</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March 2010</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March 2010</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-Term Debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>664</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,495</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital Lease Obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating Leases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase Obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>435</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,972</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amounts of &#147;Long-Term Debt&#148; include bank
borrowings, bonds and long-term trade payables, excluding the
effect of SFAS&nbsp;No.&nbsp;133 fair value adjustment and
capital lease obligations (present value of net minimum lease
payments). &#147;Capital Lease Obligations&#148; represents the
schedule of payments for future minimum lease payments.
&#147;Operating Leases&#148; represents the schedule of payments
for future minimum rentals. Minimum rental payments have not
been reduced by minimum sublease rentals of
&#165;59&nbsp;billion due in the future under noncancelable
subleases. &#147;Purchase Obligations&#148; represents the
schedule of payments for long-term purchase obligations, net of
advance payments of &#165;77&nbsp;billion made to suppliers as of
</DIV>

<P align="center" style="font-size: 10pt;">133

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
March&nbsp;31, 2005. The purchased items are principally
chemical materials, oil products, ocean transport vessels,
metals and machinery and equipment, either at fixed prices or at
basic purchase prices adjustable to the market. In general, our
customers, primarily large Japanese industrial companies and
shipping firms, are also parties to the contracts or by separate
agreements and are committed to purchase the items from us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the above, we plan to contribute
&#165;8.6&nbsp;billion to our defined benefit pension plans for
the year ending March&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For additional information regarding long-term debt, capital
lease obligations and operating leases, and purchase
obligations, see Note&nbsp;13, &#147;SHORT-TERM AND LONG-TERM
DEBT,&#148; Note&nbsp;8, &#147;LEASES,&#148; and Note&nbsp;23,
&#147;COMMITMENTS AND CONTINGENT LIABILITIES,&#148; respectively.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='121'></A>
</DIV>

<!-- link1 "Item 6. Directors, Senior Management and Employees." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;6.</B></TD>
    <TD>
    <B>Directors, Senior Management and Employees.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='122'></A>
</DIV>

<!-- link1 "A. Directors and Senior Management." -->

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>A.</B></TD>
    <TD>
    <B>Directors and Senior Management.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are managed by a Board of Directors and Executive Officers.
As of June&nbsp;30, 2005, we have eleven Directors and
thirty-eight Executive Officers including eight of which are
also Directors. In accordance with Mitsui&#146;s Articles of
Incorporation and Rules of the Board of Directors, each Director
was elected for a term of one&nbsp;year. Each Executive Officer
has been appointed by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors is our decision-making body. The Board of
Directors determines our basic guidelines and policies by
establishing our corporate strategy, reviewing our business
plans, and supervising and monitoring the activities of our
Executive Officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Executive Officers are responsible for the execution of our
corporate activities. They must follow and enforce the general
guidelines and policies established by the Board of Directors
and Mitsui&#146;s Articles of Incorporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2005, Mitsui&#146;s Executive Officers
consisted of one President, three Executive Vice Presidents,
six&nbsp;Senior Executive Managing Officers, ten&nbsp;Executive
Managing Officers and eighteen Managing Officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The execution of the Directors&#146; functions (including their
functions to supervise and monitor the activities of the
Executive Officers) is audited by Corporate Auditors. Each
Corporate Auditor is elected by shareholders of Mitsui at a
general meeting of the shareholders. As of June&nbsp;30, 2005,
we have five Corporate Auditors. In performing their auditing
activities, they act independently of each other while they
constitute and act through the Board of Corporate Auditors as
the applicable Japanese laws and regulations require.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Directors, Corporate Auditors and Executive
    Officers</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Directors, Corporate Auditors and Executive Officers as of
the end of June 2005 were:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Position</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Nobuo Ohashi</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chairman and Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shoei Utsuda</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tetsuya Matsuoka</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Masataka Suzuki</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gempachiro Aihara</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yushi Nagata</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hiroshi Tada</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yasunori Yokote</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">134

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Position</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kazuya Imai</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Akishige
    Okada<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director; Advisor, Sumitomo Mitsui Banking Corporation</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Akira
    Chihaya<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director; Representative Director and Chairman of the Board of
    Directors of Nippon Steel Corporation</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Akishige Okada and Mr.&nbsp;Akira Chihaya are external
    directors as provided for in Item&nbsp;7-2, Clause&nbsp;2,
    Article&nbsp;188 of the Commercial Code of Japan. See
    &#147;Item&nbsp;6.C. Board Practices.&#148;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate
Auditors</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="44%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="53%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Position</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tasuku
    Kondo<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Corporate Auditor</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hiroshi
    Matsuura<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Corporate Auditor</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ko
    Matsukata<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Corporate Auditor, Senior Consultant, Mitsui Sumitomo Marine and
    Fire Insurance Co., Ltd.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yasutaka
    Okamura<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Corporate Auditor, Member of the Japan Federation of Bar
    Associations.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hideharu
    Kadowaki<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Corporate Auditor, Chairman of the Institute, The Japan Research
    Institute, Limited</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Tasuku Kondo and Mr.&nbsp;Hiroshi Matsuura are
    Corporate Auditors of full-time service as provided for in
    Clause&nbsp;2, Article&nbsp;18, of the &#147;Law Concerning
    Special Measures under the Commercial Code with Respect to
    Audit, etc. of Corporations&#148; of Japan.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Ko Matsukata, Mr.&nbsp;Yasutaka Okamura and
    Mr.&nbsp;Hideharu Kadowaki are external Corporate Auditors as
    provided for in Clause&nbsp;1, Article&nbsp;18 of the
    aforementioned law.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Officers</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title and Principal Position</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shoei Utsuda</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President and Chief Executive Officer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yasuo Hayashi</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President; Managing Director, Mitsui&nbsp;&#38;
    Co. Europe PLC</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tetsuya Matsuoka</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President; Power, Transportation&nbsp;&#38; Plant
    Projects Business Unit; Machinery Business Unit; Information,
    Electronics and Telecommunication Business Unit; Financial
    Markets Business Unit; Transportation Logistics Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Masataka Suzuki</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President; Organic Chemicals Business Unit;
    Plastics&nbsp;&#38; Inorganic Chemicals Business Unit;
    Foods&nbsp;&#38; Retail Business Unit; Lifestyle Business Unit;
    Consumer Service Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gempachiro Aihara</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer, Regional Managing Director,
    Asia; DPF Matters</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yushi Nagata</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer; Corporate Staff Division
    (Information Strategic Planning Division, Corporate Planning and
    Strategy Division, Corporate Administrative Division, Corporate
    Communications Division, Investor Relations Division); Overall
    Administrative Divisions of Business Units; New Business
    Promotion; Chief Operating Officer, Business Process
    Re-Engineering Project Headquarters; Director, Mitsui&nbsp;&#38;
    Co. Europe PLC</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hiroshi Tada</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer; Iron&nbsp;&#38; Steel
    Products Business Unit; Iron&nbsp;&#38; Steel Raw Materials and
    Non-Ferrous Metals Business Unit; Energy Business Unit</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">135

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title and Principal Position</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yasunori Yokote</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer; Corporate Staff Division
    (Secretariat, Compliance&nbsp;&#38; Operational Control
    Division, Human Resources&nbsp;&#38; General Affairs Division,
    Legal Division); Chief Compliance Officer; Chief Privacy
    Officer; Environmental Matters; Deputy Chief Operating Officer,
    Business Process Re-Engineering Project Headquarters</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kazuya Imai</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer; Chief Financial Officer;
    Deputy Chief Operating Officer, Business Process Re-Engineering
    Project Headquarters; Director, Mitsui&nbsp;&#38; Co.(U.S.A),
    Inc.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Toshihiro Soejima</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer; Chief Representative of
    Mitsui&nbsp;&#38; Co., Ltd. in China</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Motokazu Yoshida</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; Chairman for the Americas</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yoshiyuki Izawa</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; General Manager, Osaka Office</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Osamu Mori</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; Chief Operating Officer, Financial
    Markets Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Satoru Miura</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; General Manager, Nagoya Office</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Masayoshi Sato</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; Chief Operating Officer,
    Foods&nbsp;&#38; Retail Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ken Abe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; Chief Operating Officer,
    Iron&nbsp;&#38; Steel Raw Materials and Non-Ferrous Metals
    Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Takao Sunami</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; Chief Operating Officer, Machinery
    Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Junichi Matsumoto</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; Chief Operating Officer,
    Transportation Logistics Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shunichi Miyazaki</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; General Manager, Internal Auditing
    Division</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hiroshi Ito</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer; Chief Operating Officer, Consumer
    Service Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Takeshi Ohyama</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; General Representative of Mitsui&nbsp;&#38;
    Co., Ltd. in Indonesia</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shinjiro Ogawa</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Chief Operating Officer, Information,
    Electronics and Telecommunication Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Toshimasa Furukawa</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Chief Operating Officer, Power,
    Transportation&nbsp;&#38; Plant Projects Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Akio Ikeda</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Chairman&nbsp;&#38; Managing Director,
    Mitsui&nbsp;&#38; Co. (Australia) Ltd.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Jitsuro Terashima</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; President, Mitsui Global Strategic Studies
    Institute</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Motonori Murakami</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; General Manager, General Accounting&nbsp;&#38;
    Risk Management Division</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kyoichi Endo</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Managing Director, Mitsui&nbsp;&#38; Co. UK PLC</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Toshio Awata</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; General Manager, Information Strategic
    Planning Division; Chief Information Officer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Koji Nakamura</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Chief Operating Officer, Plastics&nbsp;&#38;
    Inorganic Chemicals Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Toru Kitamura</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Chief Operating Officer, Lifestyle Business
    Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kenichi Yamamoto</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; General Manager, Human Resources&nbsp;&#38;
    General Affairs Division</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Masaaki Murakami</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; President, Mitsui&nbsp;&#38; Co.(CANADA) Ltd.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">136

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title and Principal Position</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kiyotaka Watanabe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Chief Operating Officer, Iron&nbsp;&#38; Steel
    Products Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Masaaki Fujita</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Deputy Chief Operating Officer,
    Foods&nbsp;&#38; Retail Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Junichi Mizonoue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Chief Operating Officer, Organic Chemicals
    Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Takao Omae</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; President, Mitsui Brasileira
    Importa&#231;&#227;o e Exporta&#231;&#227;o S.A.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Norinao Iio</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Chief Operating Officer, Energy Business Unit</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Osamu Koyama</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer; Executive Vice President, Mitsui&nbsp;&#38;
    Co. (U.S.A), Inc.</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The date of birth, the current position and the prior positions
of our Directors, Corporate Auditors, and Executive Officers is
provided below.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="3" align="left" valign="top">
    <B>Directors</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Nobuo Ohashi</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    September&nbsp;13, 1938</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Chairman and Director (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1994</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, General Manager of
    Seoul Office)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1996</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Chief Operating Officer of Foods Unit</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1997</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Director, Chief Operating Officer of Foods
    Unit</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Director, General Manager of Corporate
    Planning Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Director, General Manager of Corporate
    Planning Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002 /4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President, President of Consumer
    Products&nbsp;&#38; Services Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chairman and Executive Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Shoei Utsuda</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    February&nbsp;12, 1943</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    President and Chief Executive Officer , Executive Director
    (since October&nbsp;1, 2002)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1997</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, General Manager of
    Machinery, Electronics&nbsp;&#38; Information Administrative
    Division)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Chief Operating Officer of Information Business Unit</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Director, General Manager of Corporate
    Planning Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer, Chief Strategic Officer,
    Responsible for Administration Division</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">137

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Tetsuya Matsuoka</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    January&nbsp;5, 1945</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Vice President , Executive Director (since
    April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, General Manager of
    Metals Administrative Division)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Chief Operating Officer of Non-Ferrous Metals Unit</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Director, Managing Director of
    Mitsui&nbsp;&#38; Co. Europe PLC, Managing Director of
    Mitsui&nbsp;&#38; Co. UK PLC and Chairman of Mitsui&nbsp;&#38;
    Co. International (Europe) B.V.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer&nbsp;&#38; Chief Strategic
    Officer, Responsible for Administration Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director, Senior Executive Managing Officer and Chief
    Operating Officer of Business Process Re-Engineering Project
    Headquarters</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Masataka Suzuki</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    April&nbsp;2, 1944</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Vice President , Executive Director (since
    April&nbsp;1,</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    2005)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, Chief Operating
    Officer of Textile&nbsp;&#38; Fashion Unit)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of
    Textile&nbsp;&#38; Fashion Unit, Consumer Products&nbsp;&#38;
    Services Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, President of Consumer
    Products&nbsp;&#38; Services Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director, Senior Executive Managing Officer</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Gempachiro Aihara</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    October&nbsp;3, 1943</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Senior Executive Managing Officer, Regional Managing Director,
    Asia; Executive Director (since October&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, Chief Operating
    Officer of Performance Chemicals Unit)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, General Representative of
    Mitsui&nbsp;&#38; Co., Ltd. in China</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004 /6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director, Senior Executive Managing Officer</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">138

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Yushi Nagata</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    August&nbsp;30, 1946</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Senior Executive Managing Officer, Chief Operating Officer of
    Business Process Re-Engineering Project Headquarters ; Executive
    Director (since June&nbsp;24, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, Chief Operating
    Officer of Plant&nbsp;&#38; Project Business Unit)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Operating Officer of Electric Machinery,
    Plant&nbsp;&#38; Project Business Unit</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, Operating Officer of Electric
    Machinery, Plant&nbsp;&#38; Project Business Unit, Machinery,
    Electronics&nbsp;&#38; Information Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of Electric
    Machinery, Plant&nbsp;&#38; Project Business Unit</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer, Chief Operating Officer of
    Business Process Re-Engineering Project Headquarters</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Hiroshi Tada</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    March&nbsp;3, 1945</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Senior Executive Managing Officer; Executive Director (since
    June&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    24, 2005)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, Chief Operating
    Officer of Iron&nbsp;&#38; Steel Raw Materials Unit)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer, Chief Operating Officer of
    Iron&nbsp;&#38; Steel Raw Materials Unit, Metals Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, Chairman for the Americas, and
    President and Chief Executive Officer of Mitsui&nbsp;&#38; Co.
    (U.S.A.), Inc.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Yasunori Yokote</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    June&nbsp;23, 1946</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Senior Executive Managing Officer, Chief Compliance Officer;
    Chief Privacy Officer; Environmental Matters; Deputy Chief
    Operating Officer, Business Process Re-Engineering Project
    Headquarters; Executive Director, (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, General Manager of
    Personnel Division)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Senior Managing Officer, General Representative of
    Mitsui&nbsp;&#38; Co., Ltd. in Indonesia</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer, General Representative of
    Mitsui&nbsp;&#38; Co., Ltd. in Indonesia</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director, Executive Managing Officer, Chief Compliance
    Officer</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">139

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Kazuya Imai</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    April&nbsp;20, 1946</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Senior Executive Managing Officer, Chief Financial Officer,
    Deputy Chief Operating Officer, Business Process Re-Engineering
    Project Headquarters; Executive Director, (since June&nbsp;24,
    2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, Executive Vice
    President of Mitsui&nbsp;&#38; Co. (U.S.A.), Inc.)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Senior Managing Officer</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, General Manager of Internal Auditing
    Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2005</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer, Chief Financial Officer,
    Deputy Chief Operating Officer, Business Process Re-Engineering
    Project Headquarters</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Akishige Okada</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    April&nbsp;9, 1938</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Director (since June&nbsp;27, 2003)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1991</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, The Mitsui Taiyo Kobe Bank, Ltd.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1997</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President , The Sakura Bank, Ltd.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Chairman of Sumitomo Mitsui Banking Corporation</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Chairman of Sumitomo Mitsui Financial Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2005</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Advisor, Sumitomo Mitsui Banking Corporation</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Akira Chihaya</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    March&nbsp;6, 1935</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Director (since June&nbsp;24, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1987</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of Nippon Steel Corporation</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Representative Director and President of Nippon Steel Corporation</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Representative Director and Chairman of the Board of
    Directors of Nippon Steel Corporation (remaining in the same
    position on June&nbsp;30,2005)</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <B>Corporate Auditors</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Tasuku Kondo</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    August&nbsp;12, 1942</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Corporate Auditor (since June&nbsp;24, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1996</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, General Manager of
    Finance Division)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Director</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer and Chief Financial Officer,
    Responsible for General Accounting Division, Finance Division
    and Corporate Risk Management Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President and Chief Financial Officer</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2005/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Director</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">140

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Hiroshi Matsuura</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    May&nbsp;24, 1946</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Corporate Auditor (since June&nbsp;27, 2003)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1996</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    General Manager of Credit Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    General Manager of Corporate Risk Management Division</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Ko Matsukata</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    March&nbsp;27, 1933</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Corporate Auditor (since June&nbsp;27, 1996)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1990</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President of Mitsui Marine and Fire Insurance Co., Ltd.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1996</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice Chairman of Mitsui Marine and Fire Insurance Co., Ltd.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1997</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Advisor to Board of Mitsui Marine and Fire Insurance Co.,
    Ltd.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Consultant, Mitsui Sumitomo Marine and Fire Insurance
    Co., Ltd. (remaining in the same position on June&nbsp;30, 2005)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Yasutaka Okamura</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    June&nbsp;13, 1929</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Corporate Auditor (since June&nbsp;27, 2003)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1992</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Prosecutor, General</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1994</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Attorney at Law (remaining in the same position on June&nbsp;30,
    2005)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;1997</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Corporate Auditor of Toyota Motor Corporation (remaining in the
    same position on June&nbsp;30, 2005)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Hideharu Kadowaki</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    June&nbsp;20, 1944</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Corporate Auditor (since June&nbsp;24, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Director of Sumitomo Mitsui Banking
    Corporation</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Executive Vice President of Sumitomo Mitsui Financial
    Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chairman of the Institute, The Japan Research Institute, Limited
    (remaining in the same position on June&nbsp;30, 2005)</TD>
</TR>

<TR>
    <TD colspan="5" align="left" valign="top">
    <B>Executive Officers (excluding Executive Officers who are also
    a Director)</B></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Yasuo Hayashi</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    August&nbsp;5, 1942</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Vice President, Managing Director of Mitsui&nbsp;&#38;
    Co. Europe PLC (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Executive Managing Director)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Director, Chief Operating Officer of Electric
    Machinery, Plant&nbsp;&#38; Project Business Unit, Machinery
    Electronics&nbsp;&#38; Information Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Director, President of Machinery
    Electronics&nbsp;&#38; Information Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Executive Managing Officer</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">141

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Toshihiro Soejima</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    November&nbsp;10, 1946</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Senior Executive Managing Officer, Chief Representative of
    Mitsui&nbsp;&#38; Co., Ltd. in China (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, Chief Operating
    Officer of Electronics Devices Business Unit)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Senior Managing Officer, Chief Operating Officer of
    Electronics Business Unit, Machinery, Electronics&nbsp;&#38;
    Information Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer, Chief Operating Officer of Electronics
    Business Unit, Machinery, Electronics&nbsp;&#38; Information
    Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer, General Manager of Corporate
    Planning&nbsp;&#38; Strategy Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, General Representative of
    Mitsui&nbsp;&#38; Co., Ltd. in China</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Motokazu Yoshida</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    January&nbsp;7, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, Chairman for the Americas and
    President and Chief Executive Officer of Mitsui&nbsp;&#38; Co.
    (U.S.A.), Inc. (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, Chief Operating
    Officer of Motor Vehicles, Marine&nbsp;&#38; Aerospace Business
    Unit)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Senior Managing Officer Chief Operating Officer of
    Motor Vehicles, Marine&nbsp;&#38; Aerospace Business Unit,
    Machinery, Electronics&nbsp;&#38; Information Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer, Chief Operating Officer of Motor
    Vehicles, Marine&nbsp;&#38; Aerospace Business Unit, Machinery,
    Electronics&nbsp;&#38; Information Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of Motor
    Vehicles, Marine&nbsp;&#38; Aerospace Business Unit</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of Machinery
    Business Unit</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Yoshiyuki Izawa</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    February&nbsp;10, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, General Manager of Osaka Office
    (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, Chief Operating
    Officer of Information Business Unit)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Senior Managing Officer, Chief Operating Officer of
    Information Business Unit, Machinery, Electronics&nbsp;&#38;
    Information Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer, Chief Operating Officer of Information
    Business Unit</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">142

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Osamu Mori</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    January&nbsp;1, 1949</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of Financial
    Markets Business Unit (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, General Manager of
    Finance Division)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Senior Managing Officer, General Manager of Finance
    Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer, General Manager of Finance Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer, Chief Operating Officer, of Financial
    Markets Business Unit</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Satoru Miura</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    March&nbsp;2, 1947</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, General Manager of Nagoya Office
    (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    A member of Board of Directors (Director, Chief Operating
    Officer of Iron&nbsp;&#38; Steel Products Unit)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Senior Managing Officer, Chief Operating Officer of
    Iron&nbsp;&#38; Steel Products Unit, Metals Group</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002/6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Managing Officer, Chief Operating Officer of
    Iron&nbsp;&#38; Steel Products Unit</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of
    Iron&nbsp;&#38; Steel Products Business Unit</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Masayoshi Sato</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    November&nbsp;30, 1945</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of
    Foods&nbsp;&#38; Retail Business Unit (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, Chief Operating Officer of Foods Unit</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Ken Abe</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    September&nbsp;19, 1947</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of
    Iron&nbsp;&#38; Steel Raw Materials and Non-Ferrous Metals
    Business Unit (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of Metals Administrative
    Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, Chief Operating Officer of Iron&nbsp;&#38;
    Steel Raw Materials Unit</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Takao Sunami</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    August&nbsp;22, 1947</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of Machinery
    Business Unit (since January&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of e-Mitsui Business Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of Fukuoka Office</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">143

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Junichi Matsumoto</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    September&nbsp;25, 1947</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of
    Transportation Logistics Business Unit (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of Corporate Planning Division</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, Deputy General Vice Representative of
    Mitsui&nbsp;&#38; Co., Ltd. in China</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, Chief Operating Officer of Transportation
    Logistics Business Unit</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Shunichi Miyazaki</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    February&nbsp;11, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, General Manager of Internal Auditing
    Division (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of Consumer
    Products&nbsp;&#38; Services Administrative Division</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Hiroshi Ito</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    February&nbsp;8, 1947</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Executive Managing Officer, Chief Operating Officer of Consumer
    Service Business Unit (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, Chief Operating Officer of Service Business
    Unit</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, Chief Operating Officer of Consumer Service
    Business Unit</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Takeshi Ohyama</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    May&nbsp;18, 1947</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, General Representative of Mitsui&nbsp;&#38;
    Co., Ltd. in Indonesia (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of Personnel Division</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Shinjiro Ogawa</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    September&nbsp;17, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, Chief Operating Officer of Information,
    Electronics and Telecommunication Business Unit (since
    April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of Machinery,
    Electronics&nbsp;&#38; Information Administrative Division</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Toshimasa Furukawa</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    December&nbsp;25, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, General Manager of Machinery,
    Electronics&nbsp;&#38; Information Administrative Division
    (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2002</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, President of Mitsui&nbsp;&#38; Co. (Taiwan)
    Ltd.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Akio Ikeda</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    January&nbsp;1, 1947</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, Chairman&nbsp;&#38; Managing Director of
    Mitsui&nbsp;&#38; Co. (Australia) Ltd. (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, Chief Operating Officer of General Merchandise
    Unit</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">144

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Jitsuro Terashima</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    August&nbsp;11, 1947</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, President of Mitsui Global Strategic Studies
    Institute (since April&nbsp;1, 2003)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Motonori Murakami</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    November&nbsp;19, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, General Manager of General
    Accounting&nbsp;&#38; Risk Management Division (since
    April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of General Accounting Division</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Kyoichi Endo</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    October&nbsp;5, 1947</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, Managing Director of Mitsui&nbsp;&#38; Co. UK
    PLC and Deputy Managing Director, Mitsui&nbsp;&#38; Co. Europe
    PLC (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Toshio Awata</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    July&nbsp;28, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, Chief Information Officer&nbsp;&#38; General
    Manager of Information Strategic Planning Division (since
    April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, Chief Information Officer&nbsp;&#38; General
    Manager of Business Process Re-Engineering Division</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Koji Nakamura</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    August&nbsp;15, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, Chief Operating Officer of Plastics&nbsp;&#38;
    Inorganic Chemicals Business Unit (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Toru Kitamura</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    March&nbsp;23, 1949</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, Chief Operating Officer of Lifestyle Business
    Unit (since April&nbsp;1, 2004)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Kenichi Yamamoto</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    July&nbsp;25, 1949</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer General Manager of Human Resources&nbsp;&#38;
    General Affairs Division (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of Personnel Division</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Masaaki Murakami</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    August&nbsp;10, 1949</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, President, Mitsui&nbsp;&#38; Co. (Canada) Ltd.
    (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior Positions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Managing Officer, General Manager of Chemical Administrative
    Division</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Kiyotaka Watanabe</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    May&nbsp;31, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, Chief Operating Officer of Iron&nbsp;&#38;
    Steel Products Business Unit (since April&nbsp;1, 2005)</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">145

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>


<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Masaaki Fujita</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    January&nbsp;4, 1949</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, Deputy Chief Operating Officer of
    Foods&nbsp;&#38; Retail Business Unit (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Junichi Mizonoue</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    February&nbsp;15, 1950</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, Chief Operating Officer of Organic Chemicals
    Business Unit (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Takao Omae</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    December&nbsp;18, 1949</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer, President of Mitsui Brasileira
    Importa&#231;&#227;o e Exporta&#231;&#227;o S.A. (since
    April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Norinao Iio</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    March&nbsp;2, 1951</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer; Chief Operating Officer of Energy Business
    Unit (since April&nbsp;1, 2005)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Name</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <I>Osamu Koyama</I></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date of Birth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    August&nbsp;8, 1948</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Position</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    Managing Officer; Executive Vice President of Mitsui&nbsp;&#38;
    Co. (U.S.A), Inc. (since April&nbsp;1, 2005)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There is no family relationship between any Directors, Corporate
Auditors, Executive Officers and any other persons named above.
There is no arrangement or understanding between any of the
above and any other person pursuant to which they were selected
as a Director, a Corporate Auditor or a member of the senior
management.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='123'></A>
</DIV>

<!-- link1 "B. Compensation." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>B.</B></TD>
    <TD>
    <B>Compensation.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate amount of compensation, including benefits from
Directors&#146;, Auditors&#146; and Executive Officers&#146;
Pension Plan, paid to Directors, Corporate Auditors and
Executive Officers during the year ended March&nbsp;31, 2005,
was &#165;4,070&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with customary Japanese business practices, a
retiring Director or Corporate Auditor receives a retirement
allowance, which is subject to approval by shareholders at a
general meeting of the shareholders. The amount of the
retirement allowance generally reflects the number of years of
service, rank at the time of retirement and special
contributions to our performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Retirement allowances, including benefits from Directors&#146;,
Corporate Auditors&#146; and Executive Officers&#146; Pension
Plan, paid to retired individual Directors, Corporate Auditors
and Executive Officers during the year ended March&nbsp;31, 2005
totaled &#165;1,439&nbsp;million, and the annual bonuses paid to
Directors, Corporate Auditors and Executive Officers during the
year ended March&nbsp;31, 2005 was &#165;207&nbsp;million, both
of which were included in the &#165;4,070&nbsp;million aggregate
compensation discussed above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount set aside by us for Directors&#146;, Corporate
Auditors&#146; and Executive Officers&#146; Pension Plan to
provide pension benefit to retired Directors, Corporate
Auditors, and Executive Officers was &#165;1,632&nbsp;million as
of March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The retirement allowance system for Directors, Corporate
Auditors and Executive Officers was abolished pursuant to a
resolution of the Board of Directors in February 2004.
</DIV>

<P align="center" style="font-size: 10pt;">146

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui&#146;s Articles of Incorporation do not provide for the
establishment of stock option plans for Mitsui&#146;s directors
and senior management.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='124'></A>
</DIV>

<!-- link1 "C. Board Practices." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>C.</B></TD>
    <TD>
    <B>Board Practices.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information in &#147;Item&nbsp;6.A. Directors and Senior
Management&#148; is incorporated into this section by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None of our Directors have entered into any service contracts
with us providing for benefits upon termination of his or her
employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A 2002 amendment to the Commercial Code of Japan gave the
company the alternative of selecting the &#147;Committee
System&#148; as the framework for corporate governance. We
decided, however, to maintain the current system with corporate
auditors because we believe that our corporate auditors, of
which two are full-time and three are external auditors as of
June&nbsp;30, 2005 and their functions are legally defined and
reinforced, provide adequate auditing functions. Furthermore,
internal directors are familiar with our business operations and
can therefore contribute to effective management. Although we
retained the corporate auditor system, we did decide to adopt
certain aspects of the Committee System and have established
three committees (The Governance Committee, the Nomination
Committee, and the Remuneration Committee) to provide advice to
the Board of Directors. In addition, other measures have been
taken, such as shortening the term of Directors and Executive
Officers from two years to one year, eliminating the retirement
allowance, and increasing the number of external directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Directors and Corporate Auditors are elected at a general
meeting of shareholders. In accordance with our Articles of
Incorporation, Rules of the Board of Directors and Rules of the
Corporate Auditors, the normal term of office for its Directors
is one
year<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
and for its Corporate Auditors is four years. However, they may
both serve any number of consecutive terms. The following table
shows our Directors&#146;, Corporate Auditors&#146; and
Executive Officers&#146; terms of office and their shareholdings
as of June&nbsp;30, 2005.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Length of Time</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Served in Office</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(From Appointment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shareholdings as of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>to June 2005)<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Director:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Nobuo Ohashi</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,868</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shoei Utsuda</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,810</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tetsuya Matsuoka</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,567</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Masataka Suzuki</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,103</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gempachiro Aihara</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,670</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yushi Nagata</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,070</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yasunori Yokote</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,525</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hiroshi Tada</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,473</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kazuya Imai</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,926</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Akishige
    Okada<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Akira
    Chihaya<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    At Mitsui&#146;s ordinary general meeting of shareholders held
    on June&nbsp;24, 2004, an amendment to the Articles of
    Incorporation was resolved whereby the normal term of office for
    Directors has been changed from two years to one year.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Akishige Okada and Mr.&nbsp;Akira Chihaya are external
    directors as defined in the Commercial Code of Japan.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">147
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Length of Time</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Served in Office</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Date of Expiration of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(From Appointment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shareholdings as of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Current Term of Office</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>to June 2005)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Corporate Auditor:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tasuku Kondo</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>June 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>Less than 1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,151</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hiroshi Matsuura</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>June 2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>2&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,673</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ko
    Matsukata<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>June 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>9&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,784</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yasutaka
    Okamura<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>June 2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>2&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,079</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hideharu
    Kadowaki<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>June 2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,276</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Ko Matsukata, Mr.&nbsp;Yasutaka Okamura and
    Mr.&nbsp;Hideharu Kadowaki are external Corporate Auditors as
    defined in the Law for Special Exceptions to the Commercial Code
    of Japan Concerning Audit, etc. of Joint Stock Corporations.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">148
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Length of Time</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Served in Office</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(From Appointment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shareholdings as of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>to June 2005)<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Executive Officer (excluding Executive Officers who are also
    a Director):</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yasuo Hayashi</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>5&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,621</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Toshihiro Soejima</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>4&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,172</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Motokazu Yoshida</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>4&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,396</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Yoshiyuki Izawa</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>5&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,285</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Osamu Mori</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>5&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,263</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Satoru Miura</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>4&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,485</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Masayoshi Sato</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,433</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ken Abe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,319</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Takao Sunami</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,966</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Junichi Matsumoto</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shunichi Miyazaki</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,191</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hiroshi Ito</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>2&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,250</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Takeshi Ohyama</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,775</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shinjiro Ogawa</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,939</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Toshimasa Furukawa</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>3&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,260</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Akio Ikeda</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>2&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,874</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Jitsuro Terashima</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>2&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,987</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Motonori Murakami</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>2&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,248</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kyoichi Endo</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Toshio Awata</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,712</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Koji Nakamura</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,009</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Toru Kitamura</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,603</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kenichi Yamamoto</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,801</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Masaaki Murakami</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,307</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kiyotaka Watanabe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>Less than 1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>591</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Masaaki Fujita</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>Less than 1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>591</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Junichi Mizonoue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>Less than 1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>591</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Takao Omae</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>Less than 1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,030</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Norinao Iio</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>Less than 1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>295</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Osamu Koyama</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>Less than 1&nbsp;year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Shareholdings by Directors, Corporate Auditors, and
    Executive Officers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>561,969</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    The rules of Executive Officers provides for the term of the
    Executive Officers as one year starting April&nbsp;1 and ending
    March&nbsp;31.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui&#146;s Articles of Incorporation provide that the Board
of Directors shall elect from among its members Representative
Directors, one of whom shall be the President. Under the
Commercial Code of Japan, each of the Representative Directors
has statutory authority and power to represent and act on behalf
of the company in all respects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At least one of Corporate
Auditors<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP>
should be a person who has not been a director, manager or
employee of a company or any of its subsidiaries during the
five-year
period<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP>
prior to his or her election
</DIV>

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<DIV align="left" style="font-size: 10pt;">
as a Corporate Auditor. Each Corporate Auditor has a statutory
duty to examine financial statements, in collaboration with
independent certified public accountants, and business reports
to be submitted by the Board of Directors at the general meeting
of shareholders and also to supervise the administration of the
company&#146;s affairs by Directors. Corporate Auditors are
required to participate in meetings of the Board of Directors
but are not entitled to vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Corporate Auditors constitute the Board of Corporate Auditors.
The Board of Corporate Auditors has a statutory duty to prepare
and submit its audit report to the Board of Directors each year.
A Corporate Auditor may note his or her opinion in the audit
report if his or her opinion is different from the opinion
expressed in the independent auditors&#146; report. The Board of
Corporate Auditors is empowered to establish audit principles,
methods of examination by the Corporate Auditors of the
company&#146;s affairs and financial position and other matters
concerning the performance of the Corporate Auditors&#146;
duties. The Corporate Auditors may not at the same time be
directors, managers or employees of the company or any of its
subsidiaries or executive officers of any of its subsidiaries.
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    In accordance with amendments of the Law for Special Exceptions
    to the Commercial Code of Japan Concerning Audit, etc. of Joint
    Stock Corporations, the number of external corporate auditors
    after the conclusion of the first ordinary general meeting of
    shareholders held with respect to the fiscal year ending on and
    after May&nbsp;1, 2005, is required to be at least half the
    number of corporate auditors of a large company whose capital is
    not less than &#165;500&nbsp;million, or whose total debt amount
    is not less than &#165;20&nbsp;billion.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    In accordance with the same amendment as (4), an external
    corporate auditor who is elected at the first ordinary general
    meeting of shareholders held with respect to the fiscal year
    ended on and after May&nbsp;1, 2005, is defined as any person
    who has not at any time been an employee, manager or director of
    the company or of any of its subsidiaries.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Exemption from Certain Corporate Governance Requirements
    of NASDAQ.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nasdaq Marketplace Rule&nbsp;4350(a)(1) provides that a foreign
private issuer may follow its home country practice in lieu of
the requirements of Rule&nbsp;4350, provided that such foreign
private issuer discloses in its annual reports filed with the
Securities and Exchange Commission each requirement of
Rule&nbsp;4350 that it does not follow and describes the home
country practice followed by the issuer in lieu of such
requirements. Such requirements of Rule&nbsp;4350 and the
relevant home country practices we follow are described below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nasdaq Marketplace Rule&nbsp;4350(b) requires that there be a
    distribution to shareholders of copies of our annual report
    containing our audited financial statements a reasonable period
    of time prior to our annual meeting of shareholders. In
    accordance with Japanese law, we hold an annual meeting of
    shareholders within three months after the end of each fiscal
    year. Also, in accordance with Japanese law, we distribute to
    shareholders, prior to the annual meeting of shareholders,
    copies of a report of business operations, together with our
    audited unconsolidated financial statements prepared in
    accordance with Japanese GAAP in Japanese. Concurrently with
    such distribution, we distribute Japanese GAAP audited
    unconsolidated financial statements in English to the depository
    for the ADSs, and instruct the depository to distribute the same
    to the registered ADS holders in a timely manner. The English
    version contains a statement that, upon request by an interested
    party, we will provide the party with a copy of our annual
    report on Form&nbsp;20-F. As a reporting company under the
    Securities Exchange Act of 1934, we are required to prepare
    financial statements in accordance with U.S.&nbsp;GAAP for
    inclusion in our annual report on Form&nbsp;20-F, which must be
    filed within six months after the end of each fiscal year.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nasdaq Marketplace Rule&nbsp;4350(c)(1) requires that a majority
    of the board of directors of each issuer be independent
    directors as defined in Rule&nbsp;4200, and Rule&nbsp;4350(c)(2)
    requires that independent directors of each issuer have
    regularly scheduled meetings at which only independent directors
    are present. For large Japanese companies, including us, which
    employ a corporate</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    governance system based on a board of corporate auditors,
    Japan&#146;s company law has no independence requirement with
    respect to directors. The task of overseeing management and
    accounting firms is assigned to the corporate auditors, who are
    separate from the company&#146;s management. Large Japanese
    companies, including us, are required to have at least one
    &#147;outside&#148; corporate auditor who must meet independence
    requirements under Japan&#146;s company law. An outside
    corporate auditor is defined as a corporate auditor who has not
    served as a director, manager or any other employee of the
    company or any of its subsidiaries for the last five years prior
    to the appointment. Currently, we have three outside corporate
    auditors. Starting on the date of our ordinary meeting of
    shareholders relating to the fiscal year ending March&nbsp;31,
    2006, at least 50% of our corporate auditors will be required to
    be outside corporate auditors. Also, starting on the same date,
    the independence requirements for outside corporate auditors
    will be strengthened by extending the five-year period referred
    to above to any time prior to the appointment. Our Board of
    Corporate Auditors, which, as explained below, performs
    functions similar to those of an audit committee, has regularly
    scheduled meetings at which only corporate auditors are present.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nasdaq Marketplace Rule&nbsp;4350(d)(2) requires that each
    issuer have and will continue to have an audit committee of at
    least three members, each of whom (1)&nbsp;is independent as
    defined under Rule&nbsp;4200(a)(15), (2)&nbsp;meets the
    requirements of Rule&nbsp;10A-3(b)(1) under the Securities
    Exchange Act of 1934, (3)&nbsp;has not participated in the
    preparation of the financial statements of the issuer or any
    current subsidiary thereof at any time during the past three
    years, and (4)&nbsp;is able to read and understand fundamental
    financial statements, including a company&#146;s balance sheet,
    income statement and cash flow statement, as required by
    Rule&nbsp;4350(d)(2). Nasdaq Marketplace Rule&nbsp;4350(d)(1)
    requires that each issuer have adopted a formal written audit
    committee charter specifying the items enumerated in that rule
    and that its audit committee have reviewed and reassessed the
    adequacy of the charter on an annual basis. Under Japanese law,
    we are not required to establish or maintain such an audit
    committee. Japan&#146;s company law has no independence
    requirement with respect to directors of those &#147;large&#148;
    companies (defined under Japanese law as joint stock
    corporations with stated capital of &#165;500&nbsp;million or
    more or with total liabilities equal to or exceeding
    &#165;20&nbsp;billion), including Mitsui, that employ a
    corporate governance system based on a board of corporate
    auditors. In many such &#147;large&#148; companies, functions
    similar to those of such an audit committee are performed by its
    board of corporate auditors. We have established such a board of
    corporate auditors, each of whom does not concurrently serve as
    a director, manager or any other employee of the company or any
    of its subsidiaries. Under Japan&#146;s company law, corporate
    auditors are elected at a general meeting of shareholders and
    are under a statutory duty to review the administration of the
    affairs of Mitsui by its directors and to examine financial
    statements and other documents and reports of Mitsui.
    Furthermore, large Japanese companies, including Mitsui, are
    required to have at least one &#147;outside&#148; corporate
    auditor who must meet additional independence requirements under
    Japan&#146;s company law. Starting on the date of our ordinary
    meeting of shareholders relating to the fiscal year ending
    March&nbsp;31, 2006, at least 50% of our corporate auditors will
    be required to be outside corporate auditors. An outside
    corporate auditor is currently defined as a corporate auditor
    who has not served as a director, manager or any other employee
    of the company or any of its subsidiaries for the last five
    years prior to the appointment. Starting on the date of our
    ordinary meeting of shareholders relating to the fiscal year
    ending March&nbsp;31, 2006, the additional independence
    requirements for outside corporate auditors will be strengthened
    by extending the five-year period to any time prior to the
    appointment. Currently, we have five corporate auditors, three
    of whom are outside corporate auditors who meet these additional
    requirements. Mitsui&#146;s board of corporate auditors has
    adopted its own regulations setting forth the scope of its
    responsibilities and the manner in which it carries out such
    responsibilities, and certain other matters.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nasdaq Marketplace Rule&nbsp;4350(c)(3) requires that
    compensation of the chief executive officer of each issuer be
    determined or recommended to its board of directors for
    determination either by (i)&nbsp;a majority of its independent
    directors or (ii)&nbsp;a compensation committee comprised solely
    of independent directors and that compensation of all other
    executive officers be determined or</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    recommended to the board of directors for determination either
    by (i)&nbsp;a majority of the independent directors or
    (ii)&nbsp;a compensation committee comprised solely of
    independent directors. As explained above, we are not required
    to have independent directors. With regard to director
    compensation, Japan&#146;s company law requires the board of
    directors to pass a board resolution proposing director
    compensation to be submitted for approval at a general
    shareholders&#146; meeting. Within the upper limit approved at
    the shareholders meeting, the board of directors may determine
    the amount of compensation for each director. The board of
    directors, by resolution of the board of directors, may delegate
    such decision to the chief executive officer or other persons
    authorized by the board of directors. As for Mitsui, the upper
    limit of compensation for its directors approved by the general
    shareholders&#146; meeting is 60&nbsp;million yen per month and
    the board of directors has determined to delegate to the chief
    executive officer the decision-making authority as to the amount
    of compensation for each director within such limit. With regard
    to employee (including officer) compensation, the board of
    directors has the authority under Japan&#146;s company law to
    determine matters relating to employee compensation. The board
    of directors, by resolution of the board of directors, may
    delegate employment compensation matters to the chief executive
    officer or other persons authorized by the board of directors.
    As for Mitsui, its board of directors duly resolved the
    Regulations for the Executive Officers, which provide that
    executive officers who are also directors of the Company shall
    not be paid any compensation in their capacities as executive
    officers and that the compensation of the executive officers who
    are not directors of the Company shall be decided by the board
    of directors, or decided by the chief executive officer or other
    officer authorized by the board of directors. Mitsui determines
    compensation of its chief executive officer and other officers
    in accordance with the aforementioned procedures. Corporate
    auditors do not have any specific duties with respect to
    compensation of the chief executive officer and other executive
    officers under Japanese law. However, the duties of corporate
    auditors include a general duty to audit the affairs of the
    company to ensure that the business is being operated in
    accordance with applicable law and its charter. If the corporate
    auditors conclude, in connection with the performance of those
    duties, that the compensation of directors violated applicable
    law or the company&#146;s charter, the corporate auditors are
    required to report their conclusion to the general
    shareholders&#146; meeting and may bring a lawsuit against the
    responsible directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nasdaq Marketplace Rule&nbsp;4350(c)(4) requires that director
    nominees be selected or recommended for the board of
    directors&#146; selection either by (i)&nbsp;a majority of the
    independent directors or (ii)&nbsp;a nomination committee
    comprised solely of independent directors. Also, Nasdaq
    Marketplace Rule&nbsp;4350(c)(4)(B) requires that each issuer
    have adopted a formal written charter or board resolution, as
    applicable, addressing the nominations process and such related
    matters as may be required under the U.S.&nbsp;federal
    securities laws. As explained above, We are not required to have
    independent directors. Under Japan&#146;s company law, a
    director may be nominated by (i)&nbsp;a resolution of the board
    of directors or (ii)&nbsp;a shareholder owning one percent or
    more of the outstanding shares of a company. Approval by a
    majority of the shareholders in attendance at a general
    shareholders meeting is required to elect a director. There is
    no specific requirement that a company adopt a written charter
    or board resolution addressing the nominations process, nor is
    it customary to do so. Nominations of directors of Mitsui are
    conducted in accordance with the aforementioned procedures.
    Corporate auditors do not have any specific duties with respect
    to nomination of directors under Japanese law. However, the
    duties of corporate auditors include a general duty to audit the
    affairs of the company to ensure that the business is being
    operated in accordance with applicable law and its charter. If
    the corporate auditors conclude, in connection with the
    performance of those duties, that the nomination of directors
    violated applicable law or the company&#146;s charter, the
    corporate auditors are required to report their conclusion to
    the general shareholders&#146; meeting and may bring a lawsuit
    against the responsible directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nasdaq Marketplace Rule&nbsp;4350(f) requires that there be a
    provision in the by-laws for a quorum for any meeting of the
    holders of common stock and that such quorum be not less than
    33<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">3</FONT>%
    of the outstanding shares of the common voting stock. In
    accordance with the Commercial Code of Japan (the
    &#147;Commercial Code&#148;), however, under our Articles of
    Incorporation no quorum is</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    required for the adoption of resolutions at a general meeting of
    shareholders, except for (i)&nbsp;the election of directors and
    corporate auditors for which the quorum shall not be less than
    one-third of the total voting rights and (ii)&nbsp;resolutions
    for other specified issues required by the Commercial Code (the
    &#147;special shareholders resolutions&#148;), including an
    amendment to the Articles of Incorporation, a reduction of
    stated capital, the removal of a director or corporate auditor,
    dissolution, merger or consolidation requiring shareholders
    resolution, the transfer of the whole or an important part of
    the business, the taking over of the whole of the business of
    any other corporation requiring shareholders resolution, share
    exchange or share transfer requiring shareholders resolution for
    the purpose of establishing 100% parent-subsidiary
    relationships, splitting of the corporation into two or more
    corporations requiring shareholders&#146; resolution, any
    offering of new shares at a &#147;specially favorable&#148;
    price (or any offering of the rights to subscribe for, or
    acquire its shares at a &#147;specially favorable&#148;
    conditions) to any persons other than shareholders, for which
    the quorum shall be at least one-third of the total voting
    rights and the approval of the holders of at least two-thirds of
    the voting rights represented at the meeting is required. This
    approach is consistent with generally accepted business
    practices of publicly-held companies in Japan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nasdaq Marketplace Rule&nbsp;4350(g) provides that each issuer
    solicit proxies and provide proxy statements for all meetings of
    shareholders and provide copies of such proxy solicitation to
    Nasdaq. Currently a Japanese company whose shares are listed on
    the securities exchanges defined in the Securities and Exchange
    Law, including us, may, but is not required to, solicit proxies
    for meetings of shareholders. If such a Japanese company
    solicits proxies for a meeting of shareholders, it is required
    to provide proxy statements and documents for reference as
    provided for in the Securities and Exchange Law and provide
    copies of such proxy statements and documents for reference to
    the Kanto Local Finance Bureau.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nasdaq Marketplace Rule&nbsp;4350(h) provides that each issuer
    conduct appropriate review of all related party transactions for
    potential conflict of interest situations on an ongoing basis
    and that all such transactions be approved by the issuer&#146;s
    audit committee or another independent body of the board of
    directors. Following the requirements of the Commercial Code of
    Japan, we require a Director to obtain the approval of our Board
    of Directors in order for such Director to enter into such
    transactions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nasdaq Marketplace Rule&nbsp;4350(i)(1) requires that
    shareholder approval be obtained for the issuance of the
    issuer&#146;s stock in certain conditions or certain specified
    transactions described therein. The Commercial Code requires us
    to seek shareholder approval of various matters, and in certain
    instances the special shareholders resolutions as described
    above are required for approval. In addition, while the
    Commercial Code permits, in certain instances, the issuance of
    equity securities without shareholder approval, the Commercial
    Code also contains provisions requiring the timely dissemination
    of information relating to such issuance, allowing for
    opportunities for shareholders to voice their concern with such
    issuance, and mandating the election of statutory auditors whose
    fiduciary duty is to, among other things, oversee on behalf of
    the shareholders actions by the board of directors relating to
    such issuance.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The rights of ADS holders, including their rights relating to
corporate governance practices, are provided in the deposit
agreement.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Limitation of Liabilities of Directors and Corporate
    Auditors</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Articles of Incorporation of Mitsui provide that Mitsui may,
by resolution of the Board of Directors, limit the liabilities
of Directors and Corporate Auditors to the extent as permitted
by Japanese laws. The Articles of Incorporation of Mitsui also
provide that Mitsui may conclude a contract with external
Directors to limit the liability of such Directors to the extent
as permitted by Japanese laws. In accordance with such provision
of the Articles of Incorporation, Mitsui has concluded with
Mr.&nbsp;Akishige Okada, an external Director, a contract dated
June&nbsp;27, 2003 and has also concluded with Mr.&nbsp;Akira
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Chihaya, an external Director, a contract dated June&nbsp;24,
2004, to limit their liability to the extent permitted by
Japanese laws.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='125'></A>
</DIV>

<!-- link1 "D. Employees." -->

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<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>D.</B></TD>
    <TD>
    <B>Employees.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2005, we had 38,210 employees. The average
number of temporary employees during the year ended
March&nbsp;31, 2005 was 10,367.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides the number of employees by
operating segment as of the year ended March&nbsp;31, 2005.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Operating Segment:</B>
</DIV>

<CENTER>
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<TR style="font-size: 1pt;">
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Metal</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Machinery,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consumer</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Logistics&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Electronics&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Financial</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Overseas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="left" nowrap><B>Year Ended March&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Minerals</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Information</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Chemical</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Energy</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Services</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Markets</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Americas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Europe</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Areas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,210</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2004 and 2003, we had 39,735 and 37,734
employees, respectively. Effective April&nbsp;1, 2004, the
domestic branches and offices, which had been separated
operating units until the year ended March&nbsp;31, 2004, were
integrated into related business units based on the categories
of their products and services. Accordingly, &#147;Domestic
Branches and Offices&#148; was abolished and the components of
the reportable segment were transferred to each product-focused
operating segment in the Head Office. See Note&nbsp;17,
&#147;Segment Information,&#148; to our consolidated financial
statements. The number of employees as of March&nbsp;31, 2004
and 2003 are provided below. Restatement of the figure of
employees at Domestic Branch and Offices as of March&nbsp;31,
2004 and 2003 to conform to the current year presentation is not
practicable.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Operating Segment:</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Domestic</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Metal</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Machinery,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consumer</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Branches</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Electronics&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Overseas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="left" nowrap><B>Year Ended March&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Minerals</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Information</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Chemical</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Energy</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Services</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offices</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Americas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Europe</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Areas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,735</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>2003</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,796</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,945</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,734</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We consider relations between management and our labor unions to
be good.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='126'></A>
</DIV>

<!-- link1 "E. Share Ownership." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>E.</B></TD>
    <TD>
    <B>Share Ownership.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Directors, Corporate Auditors and Executive
    Officers</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2005, the members of Mitsui&#146;s Board of
Directors, Corporate Auditors and Executive Officers held as a
group, 561,969&nbsp;shares of our common stock, representing
0.04% of the shares outstanding. This number of shares included
56,509&nbsp;shares held by Mitsui Executives&#146; Shareholding
Association.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None of Mitsui&#146;s Directors, Corporate Auditors nor
Executive Officers is the beneficial owner of more than 1% of
Mitsui&#146;s common stock. The number of shares held by
Mitsui&#146;s Directors, Corporate Auditors and Executive
Officers, on an individual basis, is provided in
&#147;Item&nbsp;6.C. Board Practices,&#148; and is incorporated
herein by reference.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Employees Shareholding Association</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui operates an Employees&#146; Shareholding Association
which, as of June&nbsp;30, 2005, had 3,286 employee member
participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Employee members declare monthly the amount to be deducted from
their salary to be used to purchase shares of common stock of
Mitsui through the Employees&#146; Shareholding Association.
Employee
</DIV>

<P align="center" style="font-size: 10pt;">154

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<DIV align="left" style="font-size: 10pt;">
members receive from Mitsui a monthly subsidy equivalent to 10%
of the declared amount, enabling them to purchase shares
equivalent to 110% of the declared amount. Employee members are
entitled to dividends which are applied towards the purchase of
additional shares through the Employees&#146; Shareholding
Association. Employee members are able to sell part of their
shares that have been reserved for them under the
Employees&#146; Shareholding Association&#146;s plan, in
multiples of 1,000&nbsp;shares, once every month. As of
June&nbsp;30, 2005, the total amount of shares having voting
rights owned by the Employees&#146; Shareholding Association was
12,981,901, representing 0.82% of the total shares issued and
outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui does not have any other arrangements for involving its
employees in the capital of Mitsui, including any arrangement
that involves the issue or grant of options, shares or
securities of Mitsui.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='127'></A>
</DIV>

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;7.</B></TD>
    <TD>
    <B>Major Shareholders and Related Party Transactions.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='128'></A>
</DIV>

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<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>A.</B></TD>
    <TD>
    <B>Major Shareholders.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2005, there were 1,583,687,322&nbsp;shares
of our common stock issued (including 1,476,692&nbsp;shares of
treasury stock), of which 7,359,040&nbsp;shares were in the form
of ADSs, representing 0.46% of our then outstanding common
stock, and 166,875,559&nbsp;shares, representing 10.54% of our
then outstanding common stock, were held of record in the form
of common stock by residents in the United States. The number of
registered ADS holders was 42, and the number of registered
holders of shares of common stock in the United States
was&nbsp;135.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows our major shareholders as of
March&nbsp;31, 2005, including shareholders who owned less than
5% of our then outstanding common stock, disclosed under the
Security and Exchange Law of Japan.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="57%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Thousands of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares of Common</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of Common</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Shareholders</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Issued(*)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    The Master Trust Bank of Japan, Ltd. (trust account)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>170,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.74</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Japan Trustee Services Bank, Ltd. (trust account)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>124,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.83</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Mutual Life Insurance Co.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.22</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sumitomo Mitsui Banking Corporation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.55</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    The Chuo Mitsui Trust and Banking Company, Limited</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    State Street Bank and Trust Company</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.29</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Nippon Life Insurance Co.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mizuho Corporate Bank, Ltd.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.08</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    The Bank of Tokyo-Mitsubishi, Ltd.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.91</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mitsui Sumitomo Insurance Co., Ltd.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.56</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
(*) The figures are rounded down to two decimal places.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Securities and Exchange Law of Japan, any person that
becomes a holder (together with its related persons) of 5% of
the total issued voting shares of a company listed on any
Japanese stock exchange (including ADSs representing such
shares) must file a report with the Director of the relevant
Local Finance Bureau and send a copy of such report to the
company. A similar report must also be filed if the percentage
holding of a holder of more than 5% of the total issued voting
shares of a company increases or decreases by 1% or more.
</DIV>

<P align="center" style="font-size: 10pt;">155
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on such reports we have received, we are aware that each
of the following persons, together with its affiliates, was the
beneficial owner of our common stock in the amounts and as of
the dates shown in the following tables:
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Schroder Investment Management (Japan) Ltd.</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Thousands of Shares of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of Common</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Ownership as of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common Stock Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Issued</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>146,045,454</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.22</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    September&nbsp;30, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132,175,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.35</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>105,825,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.68</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Mitsui Asset Trust&nbsp;Banking Company, Limited</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Thousands of Shares of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of Common</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common Stock Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Issued</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Ownership as of</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    November&nbsp;30, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>87,912,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.55</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    February&nbsp;22, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70,694,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.46</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Mizuho Corporate Bank, Ltd.</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Thousands of Shares of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of Common</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common Stock Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Issued</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Ownership as of</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    April&nbsp;30, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,810,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.84</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Deutsche Bank AG</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Thousands of Shares of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of Common</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common Stock Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Issued</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Ownership as of</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>81,768,610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.16</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,271,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.16</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The voting rights of our major shareholders do not differ from
the voting rights of other shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To our knowledge, we are not directly or indirectly owned or
controlled by any other corporations, by any foreign government
or by any other natural or legal persons severally or jointly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We know of no arrangements which may, at a subsequent date,
result in a change in control of Mitsui.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='129'></A>
</DIV>

<!-- link1 "B. Related Party Transactions." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>B.</B></TD>
    <TD>
    <B>Related Party Transactions.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In conducting our business operations involving a broad range of
products throughout the world, we have, in the ordinary course
of business, formed alliances with leading partner companies in
Japan and overseas, including manufacturers and companies in the
field of natural resources, such as energy and ferrous
materials. Moreover, in the ordinary course of business, from
time to time, we make minority investments in, or provide loans
to, amongst others, our customers, manufacturers, alliance
partners, distributors or suppliers. We conduct our global
business operations on a continuing basis with such associated
companies (investees owned 20% to 50%, corporate joint ventures,
other investees over which we have the ability to exercise
significant influence, noncontrolling investments in general
partnerships, limited partnerships and limited liability
companies). Our principal associated companies include Valepar
S.A. (18.24%), Japan Australia LNG (MIMI)&nbsp;Pty. Ltd.
(50.00%), Mitsui Oil Exploration Co., Ltd.
</DIV>

<P align="center" style="font-size: 10pt;">156

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<DIV align="left" style="font-size: 10pt;">
(44.34%), IPM Eagle LLP (30.00%), Nihon Unisys, Ltd. (28.91%),
Sakhalin Energy Investment Company Ltd. (25.00%) and United Auto
Group, Inc. (15.53%), among others.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows information regarding account balances
and transactions with associated companies:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="81%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Billions of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts receivable, trade</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;186</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advances to associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable, trade</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends received from associated companies for the years ended
March&nbsp;31, 2005, 2004 and 2003 amounted to
&#165;33&nbsp;billion, &#165;19&nbsp;billion and
&#165;13&nbsp;billion, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See Note&nbsp;6, &#147;INVESTMENTS IN AND ADVANCES TO ASSOCIATED
COMPANIES,&#148; to our consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prices applied in transactions with associated companies are
computed in the same way that such prices would be calculated in
transactions with unrelated third parties. In addition, when
associated companies are counterparties in transactions with us
and we conduct such business under long-term procurement and/or
sales contracts, in general, we conclude a corresponding sales
contract with the purchasers (unrelated parties) of goods
procured by us and/or with suppliers (unrelated parties) of the
goods we sell to associated companies. Regarding any other
commitments related to transactions with associated companies,
we do not normally assume risk in excess of its percentage of
share ownership in an associated company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In furtherance of their trading activities, it is customary
practice for us to loan or guarantee, severally and jointly with
others, indebtedness of certain customers and suppliers and of
certain associated companies as well as to guarantee the
performance of contracts by such entities. At March&nbsp;31,
2005, the aggregate amount of loans (including
&#165;58&nbsp;billion guarantees) relating to associated
companies was &#165;129&nbsp;billion. The largest amount
outstanding as of March&nbsp;31, 2005 was &#165;30&nbsp;billion
loan with no interest to P.T.&nbsp;Paiton Energy Co., which owns
and operates a coal-fired power plant in East Java, Indonesia.
The loan was mainly from Paiton Power Financing B.V., which is a
wholly owned subsidiary of Mitsui engaged in the financing for
P.T.&nbsp;Paiton Energy Co. Other major loans to associated
companies are related to power plant projects and projects of
developments of natural resources jointly invested with other
partners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the ordinary course of our business, we have entered into
transactions with various organizations with which certain of
the our Directors and Senior Management are associated, but no
material transactions have been entered into for the three-year
period ended March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2005, no person was the beneficial owner of
more than 10% of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='130'></A>
</DIV>

<!-- link1 "C. Interests of Experts and Counsel." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>C.</B></TD>
    <TD>
    <B>Interests of Experts and Counsel.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='131'></A>
</DIV>

<!-- link1 "Item 8. Financial Information." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;8.</B></TD>
    <TD>
    <B><I>Financial Information.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='132'></A>
</DIV>

<!-- link1 "A. Consolidated Statements and Other Financial Information." -->

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>A.</B></TD>
    <TD>
    <B>Consolidated Statements and Other Financial Information.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Consolidated Financial Statements</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The audited consolidated financial statements required by this
item are included elsewhere in this annual report.
</DIV>

<P align="center" style="font-size: 10pt;">157

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Export Sales</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The total amount of revenues from export transactions for the
year ended March&nbsp;31, 2005 was &#165;258&nbsp;billion or 7%
of total revenue of &#165;3,526&nbsp;billion.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Legal Proceedings</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Antitrust Suits against Mitsui, Mitsui U.S.A. and Novus
    International</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui and two of its subsidiaries, together with other
third-party methionine manufacturers, were named as defendants
in class action lawsuits in the United States, filed by direct
and indirect customers of methionine. In these cases,
manufacturers of methionine allegedly violated federal and/or
state antitrust laws by conspiring to fix the prices of
methionine. The lawsuits sought compensatory and treble damages
in unspecified amounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May 2002, Mitsui and the subsidiaries reached an agreement
for settlement with the class action plaintiffs constituted by
direct customers. Under this settlement, Novus International,
Inc., Mitsui&#146;s 65%-owned subsidiary, paid
U.S.$37.8&nbsp;million as a settlement amount. In November 2002,
Mitsui and the subsidiaries reached an agreement for settlement
with the plaintiffs who opted out of that class action. Under
this settlement, Novus International, Inc. paid
U.S.$58.2&nbsp;million as a settlement amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This did not affect our consolidated results of operations for
the years ended March&nbsp;31, 2005, 2004 and 2003, since Novus
International, Inc. had previously recorded an estimated
provision for the full settlement amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other related lawsuits are still pending, but the management
believes that there is less than a reasonable possibility that
the pending lawsuits would materially affect our consolidated
results of operations.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Antitrust Suits against Mitsui, Mitsui U.S.A. and
    Bioproducts</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our wholly-owned U.S.&nbsp;subsidiary, Bioproducts, Inc., which
was producing and selling choline chloride, an ingredient of
animal feed and pet foods, was named as a defendant in the
lawsuits in the United States, together with other third-party
choline chloride manufacturers. In these cases, manufacturers of
choline chloride allegedly violated U.S.&nbsp;antitrust laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although Mitsui and its wholly owned U.S.&nbsp;subsidiary,
Mitsui&nbsp;&#38; Co. (U.S.A.), Inc. (&#147;Mitsui
U.S.A.&#148;), were neither a manufacturer nor a seller of
choline chloride in the U.S.&nbsp;market, Mitsui and Mitsui
U.S.A. were also named as defendants in a class action lawsuits
based on the plaintiffs&#146; allegation that Mitsui and Mitsui
U.S.A. were involved in the violation of the antitrust laws.
During the course of the legal proceedings, Mitsui and Mitsui
U.S.A. have consistently denied any wrongdoing. However, in the
trial before the Federal District Court of the District of
Columbia in June 2003, the jury rendered a verdict stating that
the defendants participated in the violation of the antitrust
laws. Mitsui and Mitsui U.S.A. considered undertaking the legal
proceedings necessary to overrule the verdict, but given the
circumstances, it was determined that a settlement with the
class action plaintiffs would be in the best interest of Mitsui
and all of its stakeholders, and entered into an agreement for
settlement with the class action plaintiffs by paying
U.S.$53.0&nbsp;million as a settlement amount. The settlement
was subject to court approval, which was obtained on
April&nbsp;27, 2005. This amount is recorded as other
expense&nbsp;&#151; net in the Statements of Consolidated Income
for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui, Mitsui U.S.A. and Bioproducts, Inc. were also named as
defendants in other lawsuits made by the plaintiffs who opted
out of that class action, but entered into an agreement for
settlement with most of the plaintiffs in February 2004. Under
this settlement, Mitsui, Mitsui U.S.A. and Bioproducts, Inc.
were released from the legal proceedings by paying the opt-out
plaintiffs U.S.$73.5&nbsp;million as a settlement amount. This
amount was paid in February 2004 and was recorded as other
expense&nbsp;&#151; net in the Statements of Consolidated Income
for the year ended March&nbsp;31, 2004.
</DIV>

<P align="center" style="font-size: 10pt;">158

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For other related lawsuits that are still pending, although
there can be no assurance of the ultimate results, management
believes that there is less than a reasonable possibility that
losses in addition to amounts that have been reserved for
possible litigation losses will occur, and that the amount of
any such additional losses would not have a material impact on
our consolidated financial position, results of operations or
cash flows.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Other Matters</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Various other claims and legal actions are pending against us in
respect of contractual obligations and other matters arising out
of the conduct of our business. Appropriate provision has been
recorded for the estimated loss on claims and legal actions
including those mentioned above. In the opinion of management,
any additional liability will not materially affect our
consolidated financial position, results of operations, or cash
flows.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Dividend Policy</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under our Medium-Term Strategic&nbsp;&#38; Financial Plan that
we announced on May&nbsp;19, 2004, which runs thorough
March&nbsp;31, 2006, we have set the target dividend payout
ratio at 20% of consolidated net income, and by growing profits
at Mitsui will aim to progressively and sustainably increase
dividend payments. Such payments will, however, be subject to
our future earnings, financial condition, approval at the
shareholders&#146; meeting (in the case of year-end dividends)
and other factors, including statutory and other restrictions
with respect to the payment of dividends.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='133'></A>
</DIV>

<!-- link1 "B. Significant Changes." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>B.</B></TD>
    <TD>
    <B>Significant Changes.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as disclosed in this annual report, there has not been
any significant change since the date of the latest annual
consolidated financial statements included elsewhere in this
annual report.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='134'></A>
</DIV>

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;9.</B></TD>
    <TD>
    <B>The Offer and Listing.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='135'></A>
</DIV>

<!-- link1 "A. Offer and Listing Details." -->

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>A.</B></TD>
    <TD>
    <B>Offer and Listing Details.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary market for our common stock is the Tokyo Stock
Exchange, or TSE. Our common stock is traded on the First
Section of the TSE and is also listed on four other stock
exchanges in Japan (Osaka, Nagoya, Fukuoka and Sapporo Stock
Exchanges).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our ADSs, each representing 20&nbsp;shares of common stock, are
traded on the National Market of NASDAQ under the symbol MITSY.
ADRs, each evidencing one or more ADSs, were originally issued
pursuant to a Deposit Agreement in May 1963, as amended from
time to time, that we entered into with Citibank N.A. of New
York as Depositary and the holders of the ADRs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our common stock was listed on the Luxembourg Stock Exchange, in
the form of European Depositary Shares, each representing
20&nbsp;shares; on the Frankfurt Stock Exchange, in the form of
co-ownership shares, each representing 1&nbsp;share, in Global
Bearer Certificates; and on the Euronext Amsterdam Stock
Exchange. However, by reason that trading volume had been
extremely low, we applied to each stock exchange for delisting
our common stock and each application was approved with the
following effective date of delisting:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="67%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name of Stock Exchange</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Effective Date of Delisting</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    The Euronext Amsterdam Stock Exchange</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>February&nbsp;28, 2005</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    The Frankfurt Stock Exchange</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>May&nbsp;2, 2005</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    The Luxembourg Stock Exchange</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>September&nbsp;26, 2005</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">159
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides for the periods indicated the
reported high and low closing sales prices of our common stock
on the TSE and the reported high and low closing bid price
quotations per ADS on the National Market of NASDAQ:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="56%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>TSE</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>NASDAQ</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Price per Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>of Common</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Price per ADS</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Stock (Yen)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(U.S.&nbsp;dollars)<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2001</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>851</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>161.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>98.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>926</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>152.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>146.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>89.40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90.90</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>773</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>206.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    First quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>106.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>90.90</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Second quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>106.76</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Third quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>162.77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>136.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fourth quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>150.80</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2005:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    First quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>773</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>191.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>137.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Second quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>172.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>144.45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Third quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>182.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163.98</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fourth quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>206.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>176.94</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ending March&nbsp;31, 2006:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    First quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>192.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>171.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Month of:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>206.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>181.75</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    April 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>188.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>174.51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>189.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>171.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    June 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>192.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>180.09</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>193.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>182.53</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    August 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>185.52</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    All fractional figures of the prices per ADS are rounded to the
    nearest two decimal points.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Share prices on Japanese stock exchanges are determined on a
real-time basis by the equilibrium between bids and offers.
These exchanges set daily price limits, which limit the maximum
range of fluctuation within a single trading day. Daily price
limits are set according to the previous day&#146;s closing
price or special quote. Although transactions may continue at
the upward or downward limit price if the limit price is reached
on a particular trading day, no transactions may take place
outside these limits. Consequently, an investor wishing to sell
at a price above or below the relevant daily limit may not be
able to sell his shares at such price on a particular trading
day, or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On September&nbsp;16, 2005, the closing sales price per share of
our common stock on the TSE was &#165;1,226, and the closing
sales price per ADS on the National Market of NASDAQ was
U.S.$222.00.
</DIV>

<P align="center" style="font-size: 10pt;">160

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='136'></A>
</DIV>

<!-- link1 "B. Plan of Distribution." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>B.</B></TD>
    <TD>
    <B>Plan of Distribution.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='137'></A>
</DIV>

<!-- link1 "C. Markets." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>C.</B></TD>
    <TD>
    <B>Markets.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;Item&nbsp;9.A. Offer and Listing Details.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='138'></A>
</DIV>

<!-- link1 "D. Selling Shareholders." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>D.</B></TD>
    <TD>
    <B>Selling Shareholders.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='139'></A>
</DIV>

<!-- link1 "E. Dilution." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>E.</B></TD>
    <TD>
    <B>Dilution.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='140'></A>
</DIV>

<!-- link1 "F. Expenses of the Issue." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>F.</B></TD>
    <TD>
    <B>Expenses of the Issue.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='141'></A>
</DIV>

<!-- link1 "Item 10. Additional Information." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;10.</B></TD>
    <TD>
    <B><I>Additional Information.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='142'></A>
</DIV>

<!-- link1 "A. Share Capital." -->

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>A.</B></TD>
    <TD>
    <B>Share Capital.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='143'></A>
</DIV>

<!-- link1 "B. Memorandum and Articles of Association." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>B.</B></TD>
    <TD>
    <B>Memorandum and Articles of Association.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>General</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Set forth below is information relating to the organization and
common stock of Mitsui, including brief summaries of the
relevant provisions of Mitsui&#146;s Articles of Incorporation
and Share Handling Regulations adopted by Mitsui&#146;s Board of
Directors, as currently in effect, and of the Commercial Code
and related legislation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A law to modernize and make overall amendments to the Commercial
Code was promulgated on July&nbsp;26, 2005. As a result of such
amendments, the provisions governing joint stock corporations
under the Commercial Code will be embodied in a new company law
(the &#147;New Company Law&#148;). The New Company Law will come
into effect within one and a half years after its promulgation,
and it is currently expected that the New Company Law and other
related laws and regulations will take effect in the spring of
2006.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Organization</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui is a corporation ( <I>kabushiki kaisha </I>) incorporated
in Japan under the Commercial Code of Japan (the
&#147;Commercial Code&#148;). It is registered in the Commercial
Register ( <I>shogyo tokibo </I>) maintained by the Tokyo Legal
Affairs Bureau and several other registry offices of the
Ministry of Justice.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Objects and Purposes</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Article&nbsp;2 of Mitsui&#146;s Articles of Incorporation
provides that our objects are to engage in the following
business:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>1.&nbsp;</TD>
    <TD align="left">
    Foreign trading business, purchasing and selling business,
    wholesaling business, agency business and brokerage business,
    relating to the following commodities:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Ferrous and non-ferrous metals and their raw materials and
    manufactured goods, and minerals.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Coal, petroleum, natural gas and other fuels and their
    by-products.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">161

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    All kinds of machines and appliances (including measuring
    instruments and medical apparatus), equipment including
    manufacturing equipment, communications equipment and
    antipollution equipment, rolling stock and vehicles, ships and
    boats, aerospace equipment and aircraft, and parts for the
    foregoing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    All kinds of chemical products, salt, fertilizers, high-pressure
    gas, explosives, pharmaceuticals (including medicines,
    non-medicinal drugs, medicine for veterinary use, narcotics,
    powerful poison and poison), radio isotope, toilet preparations
    and their raw materials.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    Cereals, sugar, oils and fats, feeds and their raw materials;
    livestocks, agricultural, dairy and marine products, processed
    foods, alcoholic beverage and other foodstuffs and drinks.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    All kinds of textile products and their raw materials.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    All kinds of fur products and raw fur.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(8)&nbsp;</TD>
    <TD align="left">
    Lumber, cement, other building materials and housing related
    equipment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(9)&nbsp;</TD>
    <TD align="left">
    Rubber, pulp, paper and their manufactured goods; tobacco,
    cigars, cigarettes and sundry goods.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (10)&nbsp;Industrial water and drinking water.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>2.&nbsp;</TD>
    <TD align="left">
    Exploration, development, manufacturing, processing, scrapping
    and recycling business relating to the above-mentioned
    commodities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>3.&nbsp;</TD>
    <TD align="left">
    Acquisition, planning, preservation, utilization and disposition
    of copyrights, patent rights, other intellectual property
    rights, know-how, system technology, and other software and
    acting as intermediary in such transactions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>4.&nbsp;</TD>
    <TD align="left">
    Information processing and supply, telecommunications business,
    broadcasting business, advertising business, publishing
    business, printing, translation, and production and sales of
    audio and visual copyright products.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>5.&nbsp;</TD>
    <TD align="left">
    Forestry business, sawing business and lumber processing
    business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>6.&nbsp;</TD>
    <TD align="left">
    Movable assets leasing business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>7.&nbsp;</TD>
    <TD align="left">
    Secondhand goods business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>8.&nbsp;</TD>
    <TD align="left">
    Freight forwarding and agency business, land transportation
    business, marine transportation business, port transportation
    business, freight forwarding business, customs brokerage
    business, shipping agency business and warehousing business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>9.&nbsp;</TD>
    <TD align="left">
    Intermediary business for non-life insurance and insurance under
    the Automobile Liability Law, and offering of life insurance,
    and overseas reinsurance business for non-life insurance.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>10.&nbsp;</TD>
    <TD align="left">
    Business as contractor, design of building, supervision and
    management of various construction works.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>11.&nbsp;</TD>
    <TD align="left">
    Acquisition, disposition, leasing, utilization in any other
    manner and development of real estate and acting as intermediary
    in such transactions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>12.&nbsp;</TD>
    <TD align="left">
    Supply and development of hot springs.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>13.&nbsp;</TD>
    <TD align="left">
    Surveying and researching business relating to land, sea and sky.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>14.&nbsp;</TD>
    <TD align="left">
    Investment in, purchasing, selling and handling as intermediary
    of negotiable instruments, etc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>15.&nbsp;</TD>
    <TD align="left">
    Lending money, guaranteeing and assuming debts, engaging in the
    sale and purchase of various credits, dealing in foreign
    exchange transactions, and conducting any other financing
    business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>16.&nbsp;</TD>
    <TD align="left">
    Operation and management of medical facilities, day-care
    facilities, sports facilities and restaurants, and hotel
    business and travel business.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">162

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>17.&nbsp;</TD>
    <TD align="left">
    Planning, administration and implementation of various events.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>18.&nbsp;</TD>
    <TD align="left">
    Temporary personnel placement service business, employment
    agency business, and personnel guidance and training business
    for development of appropriate job skills and qualifications,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>19.&nbsp;</TD>
    <TD align="left">
    Maintenance and management of real estate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>20.&nbsp;</TD>
    <TD align="left">
    Investment business, commodities investment dealing service,
    commodities investment advisory service, securities investment
    advisory service, trust business, sale of beneficial interest in
    trust, management service of investment trusts, asset management
    service for investment corporations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>21.&nbsp;</TD>
    <TD align="left">
    Generation, supply, and sale or purchase of electricity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>22.&nbsp;</TD>
    <TD align="left">
    Administrative agency service for operations, labor and
    accounting work.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>23.&nbsp;</TD>
    <TD align="left">
    Buying, selling, and derivative transactions for greenhouse
    effect gas emissions rights and related intermediary services.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>24.&nbsp;</TD>
    <TD align="left">
    Agent and intermediary for credit cards application.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>25.&nbsp;</TD>
    <TD align="left">
    Consultancy business relating to the foregoing items.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>26.&nbsp;</TD>
    <TD align="left">
    Other lines of business relating to any of the foregoing items.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Directors</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui&#146;s Articles of Incorporation do not have provisions
with respect to: (a)&nbsp;a Director&#146;s power to vote on a
proposal, arrangement or contract in which the Director is
materially interested; (b)&nbsp;the Director&#146;s power, in
the absence of an independent quorum, to vote compensation to
themselves or any members of their body; (c)&nbsp;the borrowing
powers exercisable by the Directors and how such borrowing
powers can be varied; (d)&nbsp;the retirement or non-retirement
of Directors under an age limit requirement, or (e)&nbsp;the
number of shares, if any, required for Director&#146;s
qualification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Commercial Code, unless approved by the Board of
Directors, the Directors must refrain from effecting any
transaction with a company on his or her behalf or on that of a
third person or otherwise effecting with a person other than the
Director a transaction in which interests are contrary between a
company and the Director, and any Director who has a material
interest in the subject matter of a resolution to be taken by
the Board of Directors cannot vote in such resolution. The total
amounts of remuneration to Directors and that to Corporate
Auditors are subject to the approval of the general meeting of
shareholders and within such authorized amounts, the Board of
Directors and the Board of Corporate Auditors are respectively
authorized to determine the compensation to each Director and
Corporate Auditor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Commercial Code specifically requires the approval of the
Board of Directors for a company to borrow a large amount of
money. The Commercial Code does not specifically provide for
what constitutes a &#147;large&#148; amount in these contexts.
It has been the general practice of Mitsui&#146;s Board of
Directors to adopt an individual resolution for a borrowing in
excess of certain amount determined by the Board of Directors to
be a &#147;large&#148; amount for Mitsui. The Commercial Code
has no provision with respect to: retirement or non-retirement
of directors under an age limit requirement; and the Commercial
Code prohibits any corporation from requiring a qualification
share for a Director.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Common Stock</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Authorized capital</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Article&nbsp;5 of the Mitsui&#146;s Articles of Incorporation
provides that the total number of shares authorized to be issued
by Mitsui is two billion five hundred million (2,500,000,000)
shares.
</DIV>

<P align="center" style="font-size: 10pt;">163

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Mitsui&#146;s Articles of Incorporation, currently in
effect, only shares of common stock are issuable and
1,583,687,322&nbsp;shares of common stock (including treasury
stock of 1,476,692&nbsp;shares) were issued, fully paid as of
March&nbsp;31, 2005.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Dividends</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Mitsui&#146;s Articles of Incorporation provide that
dividends, if any, shall be paid to shareholders, beneficial
shareholders or pledgees of record as of the end of the
Mitsui&#146;s fiscal year, i.e., March&nbsp;31. After the close
of the fiscal period, the Board of Directors prepares, among
other things, a proposed allocation of profits for dividends and
other purposes; this proposal is submitted to Mitsui&#146;s
Corporate Auditors and to independent certified public
accountants and then submitted for approval to shareholders at
the ordinary general meeting, which is normally held in June of
each year. In addition to provisions for dividends, if any, and
for the legal reserve and other reserves, the allocation of
profits customarily includes a bonus to Directors. In addition
to year-end dividends, the Board of Directors may, by its
resolution, declare a cash distribution pursuant to
Article&nbsp;293-5 of the Commercial Code (an &#147;interim
dividend&#148;) to shareholders, beneficial shareholders or
pledgees of record as of each September&nbsp;30, without
shareholders&#146; approval, but subject to the limitations
described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Commercial Code provides that a company may not make any
distribution of profit by way of dividends or interim dividends
for any fiscal period unless it has set aside in its legal
reserve an amount equal to at least one-tenth of the amount paid
by way of appropriation of retained earnings for such fiscal
period until the aggregate amount of capital surplus and legal
reserve reaches one-quarter of its stated capital. Under the
Commercial Code, a company is permitted to distribute profits by
way of year-end or interim dividends out of the excess of its
net assets over the aggregate of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(i)&nbsp;</TD>
    <TD align="left">
    its stated capital;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(ii)&nbsp;</TD>
    <TD align="left">
    its capital surplus;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(iii)&nbsp;</TD>
    <TD align="left">
    its accumulated legal reserve;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(iv)&nbsp;</TD>
    <TD align="left">
    the legal reserve to be set aside in respect of the fiscal
    period concerned;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(v)&nbsp;</TD>
    <TD align="left">
    the excess, if any, of unamortized expenses incurred in
    preparation for commencement of business and in connection with
    research and development over the aggregate of amounts referred
    to in (ii), (iii)&nbsp;and (iv)&nbsp;above;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(vi)&nbsp;</TD>
    <TD align="left">
    the subscription price or the security deposit for the
    subscription price of new shares issued by the company;&nbsp;and</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(vii)&nbsp;</TD>
    <TD align="left">
    if certain assets of the company are stated at market value
    pursuant to the provisions of the Commercial Code, the aggregate
    amount by which their market value exceeds acquisition cost.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the case of interim dividends, the net assets are calculated
by reference to the balance sheet as at the last closing of
Mitsui&#146;s accounts, but adjusted to reflect any subsequent
payment by way of appropriation of retained earnings and
transfer to legal reserve in respect thereof, provided that
interim dividends may not be paid where there is a risk that at
the end of the fiscal year there might not be any excess of net
assets over the aggregate of the amounts referred to in
(i)&nbsp;through (vii)&nbsp;above. In addition, if Mitsui&#146;s
Board of Directors has adopted a resolution for its purchase of
its own shares, the total amount of purchase price authorized by
such resolution shall, whether or not such purchase has been
effected, be deducted from the amount available for interim
dividend.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under certain loan agreements with government-owned banks, the
lenders may require us to submit proposals as to the payment of
dividends and other appropriations of earnings for the
lenders&#146; review and approval before presentation to the
shareholders. Certain of such agreements require the borrower,
upon the request of the lender, to reduce outstanding loans
before scheduled maturity dates when the lender considers that
Mitsui is able to reduce such loans through increased earnings
or through the proceeds from
</DIV>

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<DIV align="left" style="font-size: 10pt;">
the sale of common stock or bonds and notes. During the fiscal
years ended March&nbsp;31, 2005 and 2004, Mitsui did not receive
any such requests, and there is no expectation that any such
requests will be made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In Japan the &#147;ex-dividend&#148; date and the record date
for dividends precede the date of determination of the amount of
the dividends to be paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Articles of Incorporation, Mitsui is not obligated to
pay any dividends or interim dividends which are left unclaimed
for a period of three years after the date on which they first
became payable.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Shareholders&#146; Meetings</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui normally holds its ordinary general meeting of
shareholders in June of each year in Tokyo, Japan. In addition,
Mitsui may hold an extraordinary general meeting of shareholders
whenever necessary by giving at least two weeks advance notice
to shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Commercial Code, notice of a shareholders&#146;
meeting setting forth the place, time, purpose thereof and
providing a summary of the matters to be acted upon, must be
mailed to each shareholder having voting rights (or, in the case
of a non-resident shareholder, to his or her resident proxy or
mailing address in Japan) at least two weeks prior to the date
set for the meeting. The record date for any ordinary general
meeting of shareholders of Mitsui is March&nbsp;31.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any shareholder or group of shareholders holding at least 3% of
the total outstanding voting rights, for a continuous period of
six months or longer, may require the convocation of a general
meeting of shareholders for a particular purpose. Unless such
shareholders&#146; meeting is convened promptly or a convocation
notice of a meeting which is to be held not later than eight
weeks from the day such demand is dispatched, the requiring
shareholders may, upon obtaining court approval, convene such
shareholders&#146; meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any shareholder or group of shareholders holding at least 300
voting rights, or 1% of the total outstanding voting rights, for
a continuous period of six months or longer, may propose a
matter to be considered at a general meeting of shareholders by
submitting a written request to a Representative Director at
least eight weeks prior to the date set for such meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To attend a shareholders&#146; meeting in person or by proxy,
shareholders must provide proof of identity upon request.
Shareholders may be represented by proxies in writing appointed
for the meeting. The representative must be Mitsui&#146;s
shareholder holding voting rights. A director appointed by the
Board of Directors acts as the chairman at a general meeting of
shareholders.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Voting rights</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A shareholder is entitled to one vote per unit subject to the
limitations on voting rights set forth in the following
paragraph and &#147;Unit&#148; share system&nbsp;&#151; Voting
rights under the unit share system&#148; below. Except as
otherwise provided by law or by the Articles of Incorporation, a
resolution can be adopted at a general meeting of shareholders
by a majority of the voting rights represented at the meeting.
The Commercial Code and Mitsui&#146;s Articles of Incorporation
provide, however, that the quorum for the election of Directors
and Corporate Auditors shall not be less than one-third of the
total voting rights. Mitsui&#146;s shareholders are not entitled
to cumulative voting in the election of Directors. A corporate
shareholder, more than one-quarter of whose outstanding shares
are directly or indirectly owned by Mitsui, may not exercise its
voting rights with respect to shares of Mitsui that it owns.
Shareholders may exercise their voting rights through proxies,
provided that the proxies are also Mitsui&#146;s shareholders
holding voting rights. Mitsui&#146;s shareholders also may cast
their votes in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Commercial Code provides that in order for a company to
amend the Articles of Incorporation and in certain other
instances, including a reduction of stated capital, the removal
of a Director or Corporate Auditor, dissolution, merger or
consolidation requiring shareholders resolution, the transfer of
the whole or an important part of the business, the taking over
of the whole of the business of any other corporation requiring
shareholders resolution, share exchange or share transfer
requiring shareholders
</DIV>

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<DIV align="left" style="font-size: 10pt;">
resolution for the purpose of establishing 100%
parent-subsidiary relationships, splitting of the corporation
into two or more corporations requiring shareholders&#146;
resolution, any offering of new shares at a &#147;specially
favorable&#148; price (or any offering of the rights to
subscribe for, or acquire its shares at a &#147;specially
favorable&#148; conditions) to any persons other than
shareholders, the quorum shall be at least one-third of the
total voting rights and the approval of the holders of at least
two-thirds of the voting rights represented at the meeting is
required (the &#147;special shareholders resolutions&#148;);
provided that any amendment to the Articles of Incorporation
reducing the number of shares constituting a unit or eliminating
the provisions for the unit of shares may be made by the
resolution of the Board of Directors rather than by the special
shareholders resolution, as set forth in &#147;&#146;Unit&#146;
share system&nbsp;&#151; Voting rights under the unit share
system.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Subscription rights</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of Mitsui&#146;s shares of common stock have no
pre-emptive rights under its Articles of Incorporation.
Authorized but unissued shares may be issued at such times and
upon such terms as the Board of Directors determines, subject to
the limitations as to the offering of new shares at a
&#147;specially favorable&#148; price mentioned under
&#147;Voting rights&#148; above. The Board of Directors may,
however, determine that shareholders shall be given subscription
rights regarding a particular issue of new shares, in which case
such rights must be given on uniform terms to all shareholders
as at a record date of which not less than two weeks prior
public notice must be given. Each of the shareholders to whom
such rights are given must also be given notice of the
expiration thereof at least two weeks prior to the date on which
such rights expire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the amendments to the Commercial Code which became
effective on April&nbsp;1, 2002, a company may also issue the
rights to subscribe for or acquire its shares. Subscription
rights and the rights to subscribe for or acquire shares may be
made transferable or nontransferable by the Board of Directors.
Whether or not a company will make such rights generally
transferable in future rights offerings will depend upon the
circumstances at the time of such offerings.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Liquidation rights</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event of Mitsui&#146;s liquidation, the assets remaining
after payment of all debts and liquidation expenses and taxes
will be distributed among shareholders in proportion to the
respective number of shares of common stock held.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Record date</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
March&nbsp;31 is the record date for Mitsui&#146;s year-end
dividends. The shareholders and beneficial shareholders who are
registered as the holders of the number of shares constituting
1&nbsp;unit or more whole units in Mitsui&#146;s register of
shareholders and/or beneficial shareholders at the end of each
March&nbsp;31 are also entitled to exercise shareholders&#146;
voting rights at the ordinary general meeting of shareholders
with respect to the fiscal year ending on such March&nbsp;31.
September&nbsp;30 is the record date for interim dividends. In
addition, Mitsui may, if necessary, set a record date on a
temporary basis, by giving advance public notice in accordance
with the resolution of the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The price of shares generally goes ex-dividends or ex-rights on
Japanese stock exchanges on the third business day prior to a
record date (or if the record date is not a business day, the
fourth business day prior thereto), for the purpose of dividends
or rights offerings.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Repurchase by Mitsui of its Common Stock</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the amendments to the Commercial Code which became
effective on September&nbsp;25, 2003, subject to an amendment to
articles of incorporation, a board of directors is authorized to
resolve to purchase its own shares. Mitsui&#146;s ordinary
general meeting of shareholders held on June&nbsp;24, 2004
resolved an amendment to the Articles of Incorporation to that
effect. Except as otherwise permitted by the Commercial Code,
Mitsui may purchase its own shares by a resolution of the Board
of Directors, provided, however, that Mitsui shall report at the
upcoming ordinary shareholders meeting the reason for its
</DIV>

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<DIV align="left" style="font-size: 10pt;">
purchase, the total number of shares and the total acquisition
amount which Mitsui may purchase, and the total amount of
purchase price referred to the above cannot exceed the amount
which can be distributed as interim dividends as above-mentioned
in &#147;Dividends,&#148; less the sum of dividends which have
been actually paid as interim dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui may also acquire its own shares in response to a
shareholder&#146;s request for purchase of his or her shares
representing less than 1&nbsp;unit. See &#147;&#145;Unit&#146;
share system&nbsp;&#151; Repurchase by Mitsui of shares
constituting less than a full unit&#148; below.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Transfer of shares</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Commercial Code, the transfer of shares is effected by
delivery of share certificates but, in order to assert
shareholders&#146; rights against a company, the transferee must
have its name and address registered on a company&#146;s
register of shareholders. For this purpose, Mitsui&#146;s
shareholders are required to file their names, addresses and
seals with The Chuo Mitsui Trust and Banking Company, Limited,
which is the transfer agent for Mitsui&#146;s shares. Foreign
shareholders may file specimen signatures in lieu of seals.
Non-resident shareholders are required to appoint a standing
proxy in Japan or designate a mailing address in Japan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The central clearing system of share certificates under the Law
Concerning Central Clearing of Share Certificates and Other
Securities in Japan applies to the shares. Pursuant to this
system, a holder of the share is able to choose, at his/her
discretion, to participate in this system and all certificates
of the shares elected to be put into this system are deposited
with the Japan Securities Depository Center, Inc.
(&#147;JASDEC&#148;) (through a participating institution having
a clearing account with JASDEC, if the holder is not such a
participating institution) and all such shares are registered in
the name of JASDEC, on Mitsui&#146;s register of shareholders.
Each participating shareholder (&#147;beneficial
shareholder&#148;) will, in turn, be registered in the register
of Mitsui&#146;s beneficial shareholders, and be treated in the
same way as shareholders registered on Mitsui&#146;s register of
shareholders. In connection with the transfer of the shares held
under this system, entry of the share transfer in the book
maintained by JASDEC for the participating institutions shall
have the same effect as delivery of share certificates.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>&#147;Unit&#148; share system</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the Commercial Code, Mitsui has adopted
1,000&nbsp;shares (50 ADSs) as 1&nbsp;unit of shares. This unit
share system is called <I>&#147;tangen-kabu-system.&#148;</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any amendment to the Articles of Incorporation reducing the
number of shares constituting a unit or eliminating the
provisions for the unit of shares may be made by a resolution of
the Board of Directors rather than by a special shareholders
resolution. The number of shares constituting 1&nbsp;unit cannot
exceed 1,000 or one two-hundredth (1/200) of all issued shares.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Voting rights under the unit share system</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the unit share system, shareholders shall have one voting
right for each unit of shares that they hold. Any number of
shares less than a full unit will carry no voting rights.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Share certificates for less than a unit of shares</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under its Article of Incorporation, except as otherwise provided
in the Share Handling Regulations, Mitsui will not issue share
certificates for less than a unit of shares. Thus, unless
Mitsui&#146;s Board of Directors takes a resolution to eliminate
the provision for the unit shares from the Articles of
Incorporation or the shareholders amend the Articles of
Incorporation by a special shareholders resolution to eliminate
the provision for not to issue share certificates for less than
a unit of shares, a share certificate for any number of shares
less than a full unit will in general not be issued. As the
transfer of shares normally requires the delivery of the share
certificates, therefore, any fraction of a unit for which no
share certificates are issued is not transferable.
</DIV>

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Repurchase by Mitsui of shares constituting less than a full
    unit</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A holder of shares constituting less than 1&nbsp;unit may
require Mitsui to purchase such shares at their market value.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Increase in purchase of the shares to make one unit</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Articles of Incorporation, any shareholder who holds
shares less than one unit may request Mitsui to sell such number
of shares owned by Mitsui as are necessary to make one unit by
adding the number of shares owned by such shareholder in
accordance with the Share Handling Regulations and the
Commercial Code.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Effect of the unit share system on holders of ADSs</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A holder who owns ADSs evidencing less than 1,000&nbsp;common
shares will indirectly own less than a whole unit. Although, as
discussed above, under the unit share system holders of less
than a unit have the right to require Mitsui to purchase their
shares or sell such number of shares owned by Mitsui as are
necessary to make one unit by adding the number of their shares,
holders of ADSs that represent other than integral multiples of
whole units are unable to withdraw the underlying shares of
capital stock representing less than a unit and, therefore, are
unable, as a practical matter, to exercise the rights to require
Mitsui to purchase nor sell such underlying shares, unless
Mitsui&#146;s Articles of Incorporation are amended to eliminate
the provision not to issue share certificates for the numbers of
shares less than a whole unit. As a result, access to the
Japanese markets by holders of ADSs through the withdrawal
mechanism will not be available for dispositions of shares in
lots less than a unit. The unit share system does not affect the
transferability of ADSs, which may be transferred in lots of any
size.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Reporting of Substantial Shareholdings</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Securities and Exchange Law of Japan and its related
regulations require any person who has become, beneficially and
solely or jointly, a holder of more than 5% of the total issued
shares of a company listed on any Japanese stock exchange or
whose shares are traded on an over-the-counter market in Japan,
to file a report concerning such shareholdings with the director
of the relevant Local Finance Bureau of the Ministry of Finance
within five business days. With certain exceptions, a similar
report must also be made in respect of any subsequent change of
1% or more in any such holding or of any change in material
matters set out in any previously-filed reports. For this
purpose, shares issuable or transferable to such person upon
exercise of exchangeable securities, conversion of convertible
securities or exercise of warrants or stock acquisition rights
(including those incorporated in bonds with share subscription
rights) are taken into account in determining both the number of
shares held by such holder and the issuer&#146;s total issued
share capital. Copies of each report must also be furnished to
the issuer of the shares and to all Japanese stock exchanges on
which the shares are listed or, in the case of shares traded
over-the-counter, to the Japan Securities Dealers Association.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Exercise of Voting Rights</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except for the general limitation under Japanese anti trust and
anti monopoly regulations against holding of shares of capital
stock of a Japanese corporation which leads or may lead to a
restraint of trade or monopoly, and except for general
limitations under the Commercial Code or Mitsui&#146;s Articles
of Incorporation on the rights of shareholders applicable
regardless of residence or nationality, there is no limitation
under Japanese laws and regulations applicable to Mitsui or
under its Articles of Incorporation on the rights of
non-resident or foreign shareholders to hold or exercise voting
rights on the shares of common stock of Mitsui.
</DIV>

<P align="center" style="font-size: 10pt;">168

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Change in Control</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There is no provision in Mitsui&#146;s Articles of Incorporation
that would have an effect of delaying, deferring or preventing a
change in control of Mitsui and that would operate only with
respect to merger, consolidation, acquisition or corporate
restructuring involving Mitsui.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Daily Price Fluctuation Limits under Japanese Stock
    Exchange Rules</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Share prices on Japanese stock exchanges are determined on a
real-time basis by the equilibrium between bids and offers.
These exchanges are order-driven markets without specialists or
market makers to guide price formation. To prevent excessive
volatility, these exchanges set daily upward and downward price
fluctuation limits for each share, based on the previous
day&#146;s closing price. Although transactions may continue at
the upward or downward limit price if the limit price is reached
on a particular trading day, no transactions may take place
outside these limits. Consequently, an investor wishing to sell
at a price above or below the relevant daily limit may not be
able to sell his or her shares at such price on a particular
trading day, or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On September&nbsp;16, 2005, the closing price of our shares on
the Tokyo Stock Exchange was &#165;1,226 per share. The
following table shows the daily price limit for a stock on the
Tokyo Stock Exchange with a closing price of between &#165;500
and &#165;1,000&nbsp;per share, as well as the daily price limit
if our per share price were to rise to between &#165;1,000 and
&#165;1,500, or fall to between &#165;200 and &#165;500. Other
daily price limits would apply if our per share price moved to
other ranges.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Selected Daily Price Limits</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Maximum</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Previous Day&#146;s Closing Price or</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Daily&nbsp;Price</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Special Quote</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Movement</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Greater or equal to</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>Less than</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>80</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Greater or equal to</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>Less than</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Greater or equal to</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>Less than</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>200</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For a history of the trading price of our shares on the Tokyo
Stock Exchange, see &#147;Item&nbsp;9.A. Offer and Listing
Details&#148; of this annual report.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='144'></A>
</DIV>

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>C.</B></TD>
    <TD>
    <B>Material Contracts.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have not been a party to any material contract, other than
contracts entered into in the ordinary course of business,
within past two years immediately preceding the date of this
report.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='145'></A>
</DIV>

<!-- link1 "D. Exchange Controls." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>D.</B></TD>
    <TD>
    <B>Exchange Controls.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Foreign Exchange Regulations</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Foreign Exchange and Foreign Trade Law of Japan, as
currently in effect, and the cabinet orders and ministerial
ordinances thereunder (the &#147;Foreign Exchange
Regulations&#148;) govern certain matters relating to the
acquisition and holding of the shares or the ADSs, by
&#147;Non-Residents of Japan&#148; and by &#147;Foreign
Investors&#148; as hereinafter defined.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Non-Residents of Japan&#148; are defined as individuals
who are not resident in Japan and corporations whose principal
offices are located outside Japan. Branches and other offices of
Japanese corporations located outside Japan are regarded as
Non-Residents of Japan, and branches and other offices located
within Japan of foreign corporations are regarded as residents
of Japan. &#147;Foreign Investors&#148; are defined to be
(i)&nbsp;individuals not resident in Japan,
(ii)&nbsp;corporations which are organized under the laws of
foreign countries or whose principal offices are located outside
Japan, and (iii)&nbsp;other corporations of which (a)&nbsp;50%
or more of the shares are held directly or indirectly by
(i)&nbsp;or (ii)&nbsp;above, (b)&nbsp;a majority of
</DIV>

<P align="center" style="font-size: 10pt;">169

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<DIV align="left" style="font-size: 10pt;">
officers consists of Non-Residents of Japan or (c)&nbsp;a
majority of officers having the power of representation consists
of Non-Residents of Japan.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Acquisition of Shares</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, acquisition of shares of stock of a Japanese company
listed on any Japanese stock exchange or traded in any
over-the-counter market in Japan (&#147;Listed Shares&#148;) by
a Non-Resident of Japan from a resident of Japan is not subject
to any prior filing requirements except as described below.
However, the Minister of Finance of Japan (the &#147;MOF&#148;)
and other Ministers having jurisdiction over the business of the
subject company (together, the &#147;Ministers&#148;) may
require a prior approval for any such acquisition in certain
exceptional circumstances. The resident of Japan who transferred
the shares of a Japanese company to a Non-Resident of Japan must
file a report concerning such transfer with the MOF within
20&nbsp;days after the transfer unless such transfer is made
through a bank, securities company or financial futures trader
licensed under the relevant Japanese law or consideration of
such transfer is &#165;100&nbsp;million or less.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the number of Listed Shares to be acquired, or the number of
Listed Shares that will be held as a result of such acquisition,
by a Foreign Investor (whether from a resident of Japan, another
Foreign Investor or from or through security companies) is 10%
or more of the total outstanding shares of the subject company,
the Foreign Investor must file a post facto report with the
Ministers within 15&nbsp;days of the date of acquisition. In
certain exceptional cases, a prior notification is required in
respect of such an acquisition.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Acquisition of Shares upon Exercise of Subscription Rights
    Attached to Bonds</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The acquisition by a Non-Resident of Japan of shares upon
exercise of his or her rights under the bonds with rights for
subscription of new shares offered overseas is exempted from the
notification and reporting requirements described under this
&#147;Item&nbsp;10.D. Exchange Controls&nbsp;&#151; Acquisition
of Shares&#148; above.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>ADRs</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The deposit of the shares by a Non-Resident of Japan, the
issuance of the ADRs, in exchange therefore and the withdrawal
of the underlying shares upon surrender of the ADRs are not
subject to any formalities referred to under &#147;Acquisition
of Shares&#148; above, except where as a result of such deposit
(or withdrawal) the aggregate number of shares held by the
depositary (or its nominee) or the holder surrendering the ADRs,
as the case may be, would be certain percentage of the total
outstanding shares, in which event the relevant report is
required as outlined under &#147;Item&nbsp;10.&nbsp;B.
Memorandum and Articles of Association&nbsp;&#151; Reporting of
Substantial Shareholdings&#148; and/or under this
&#147;Item&nbsp;10.D. Exchange Controls&nbsp;&#151; Acquisition
of Shares.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Dividends and Proceeds of Sales</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends paid on, and the proceeds of sales in Japan of the
shares held by Non-Residents of Japan may be convertible into
any foreign currency and repatriated abroad with no limit on the
amount under the Foreign Exchange Regulations currently in
effect. The acquisition of the shares by Non-Residents of Japan
by way of stock splits is not subject to any of the aforesaid
notification and confirmation requirements.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='146'></A>
</DIV>

<!-- link1 "E. Taxation." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>E.</B></TD>
    <TD>
    <B>Taxation.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Japanese Taxation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a summary of the principal Japanese national
tax consequences to owners of our shares or ADSs who are
non-resident individuals or non-Japanese corporations without a
permanent establishment in Japan to which income from our shares
is attributable. The tax treatment is subject to
</DIV>

<P align="center" style="font-size: 10pt;">170

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<DIV align="left" style="font-size: 10pt;">
possible changes in the applicable Japanese laws or double
taxation conventions occurring after that date. This summary is
not exhaustive of all possible tax considerations that may apply
to a particular investor. Investors are encouraged to consult
their own tax advisers as to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the overall tax consequences of the acquisition, ownership and
    disposition of shares or ADSs, including specifically the tax
    consequences under Japanese law;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the laws of the jurisdiction of which they are resident;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    any tax treaty between Japan and their country of residence.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Generally, a non-resident holder of shares or ADSs is subject to
Japanese withholding tax on dividends paid by us. In the absence
of any applicable tax treaty, convention or agreement reducing
the maximum rate of withholding tax, the rate of Japanese
withholding tax applicable to dividends paid by us to
non-resident holders is 7% for dividends to be paid on or before
March&nbsp;31, 2008, and 15% thereafter, except for dividends
paid to any individual shareholder who holds 5% or more of the
issued shares of Mitsui. Japan has income tax treaties,
conventions or agreements whereby the maximum withholding tax
rate for dividend payment is set at, in most cases, 15% for
portfolio investors, with, among other countries, Australia,
Belgium, Canada, Denmark, Finland, France, Germany, Ireland,
Italy, Luxembourg, The Netherlands, New Zealand, Norway,
Singapore, Spain, Sweden, Switzerland and the United Kingdom.
Under the new U.S.-Japan tax treaty (the &#147;Treaty&#148;),
the maximum withholding rate on dividends for portfolio
investors is 10%, if (i)&nbsp;they do not have a permanent
establishment in Japan, and (ii)&nbsp;the shares on ADSs with
respect to which such dividends are paid are not effectively
connected with such permanent establishment, and (iii)&nbsp;they
are qualified U.S.&nbsp;residents eligible for benefits under
the Treaty. Under the Treaty, withholding tax on dividends for
pension funds which are qualified U.S.&nbsp;resident eligible
for benefits under the Treaty is exempt from Japanese taxation
by way of withholding or otherwise, unless such dividends are
derived from the carrying on of a business, directly or
indirectly, by such pension funds. Japanese tax law provides in
general that if the Japanese statutory rate is lower than the
maximum rate applicable under tax treaties, conventions or
agreements, the Japanese statutory rate shall be applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stock splits are not subject to Japanese income or corporate
tax. A capitalization of retained earnings or legal reserve by
Japanese corporations is not subject to Japanese income or
corporate tax as &#147;constructive dividends&#148; in case of
no cash payment or assets delivery. A capitalization of capital
surplus is not subject to Japanese income or corporate tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Non-resident holders who are entitled to a reduced rate of
Japanese withholding tax on payments of dividends on the shares
by us are required to submit an Application Form for the Income
Tax Convention regarding Relief from Japanese Income Tax on
Dividends in advance through us to the relevant tax authority
before the payment of dividends. A standing proxy for
non-resident holders may provide the application. With respect
to ADSs, this reduced rate is applicable if the depositary or
its agent submits two Application Forms for Income Tax
Convention (one prior to payment of dividends, the other within
eight months after our fiscal year-end). To claim this reduced
rate, a non-resident holder of ADSs will be required to file
proof of taxpayer status, required by the depositary.
Non-resident holders who do not submit an application in advance
will generally be entitled to claim a refund from the relevant
Japanese tax authority of withholding taxes withheld in excess
of the rate of an applicable tax treaty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gains derived from the sale outside Japan of Mitsui&#146;s
shares or the ADSs by Non-Residents of Japan, including
non-Japanese corporations, will not be subject to Japanese taxes
on income. Gains derived from the sale in Japan of Mitsui&#146;s
shares or the ADSs by a Non-Resident of Japan or a non-Japanese
corporation not having a permanent establishment in Japan to
which such income is attributable are, in general, not subject
to Japanese income or corporate tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Japanese inheritance and gift taxes, at progressive rates, may
be payable by an individual who acquire the shares or the ADSs
as a legatee, heir or donee.
</DIV>

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    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>United States Taxation</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD></TD>
    <TD>
    <I>General</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This discussion of certain U.S.&nbsp;federal tax consequences
only applies to U.S.&nbsp;holders who hold our ADSs or common
shares as capital assets for tax purposes and are not members of
a special class of holders subject to special rules, including:
dealers in securities; traders in securities who elect to use a
mark-to-market method of accounting for their securities
holdings; tax-exempt organizations; insurance companies; persons
liable for alternative minimum tax; persons who actually or
constructively own 10% or more of Mitsui voting stock; persons
who hold shares or ADSs as part of a hedging or straddle or
conversion transaction; or U.S.&nbsp;holders whose functional
currency is not the U.S.&nbsp;dollar. A U.S.&nbsp;holder is a
beneficial owner of shares or ADSs that is: a citizen or
resident of the United States; a domestic corporation; an estate
whose income is subject to U.S.&nbsp;federal income tax
regardless of its source; or a trust, if a U.S.&nbsp;court can
exercise primary supervision over the trust&#146;s
administration and one or more U.S.&nbsp;persons are authorized
to control all substantial decisions of the trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Moreover, the effect of any applicable U.S.&nbsp;state or local
tax laws is not discussed in this annual report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For U.S.&nbsp;federal income tax purposes, if a person holds
ADRs evidencing ADSs, that person will be treated as the owner
of the underlying shares represented by those ADSs. Exchanges of
common shares for ADRs, and ADRs for ordinary shares, will not
be subject to U.S.&nbsp;federal income tax.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Taxation of Dividends</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the passive foreign investment company
(&#147;PFIC&#148;) rules discussed below, the gross amount of
any dividend paid by Mitsui out of its current or accumulated
earnings and profits (as determined for U.S.&nbsp;federal income
tax purposes) is subject to tax. For noncorporate
U.S.&nbsp;holders, dividends paid in taxable years beginning
before January&nbsp;1, 2009 that constitute qualified dividend
income will be taxable at a maximum tax rate of 15% provided
that shares or ADSs were held for more than 60&nbsp;days during
the 121-day period beginning 60&nbsp;days before the ex-dividend
date and other holding period requirements are met. Dividends
Mitsui pays with respect to its shares or ADSs generally will be
qualified dividend income. Dividends are taxable to
U.S.&nbsp;holders when they, in the case of shares, or the
depositary, in the case of ADSs, receive them, either actually
or constructively. The dividend will not be eligible for the
dividends-received deduction generally allowed to
U.S.&nbsp;corporations in respect of dividends received from
other U.S.&nbsp;corporations. Any distribution in excess of
current and accumulated earnings and profits (as determined for
U.S.&nbsp;federal income tax purposes) will be treated as a
non-taxable return of capital to the extent of a holder&#146;s
basis in the ADSs or common shares and thereafter as capital
gain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of the dividend distribution that a holder must
include in his or her income will be the U.S.&nbsp;dollar value
of the Japanese yen payments made, determined at the spot
Japanese yen/ U.S.&nbsp;dollar rate on the date such dividend
distribution is includible in such holder&#146;s income,
regardless of whether the payment is in fact converted into
U.S.&nbsp;dollars. Generally, any gain or loss resulting from
currency exchange fluctuations during the period from the date a
holder includes the dividend payment in income to the date such
payment is converted into U.S.&nbsp;dollars will be treated as
ordinary income or loss and will not be eligible for the special
tax rate applicable to qualified dividend income. Such gain or
loss will generally be income or loss from sources within the
United States for foreign tax credit limitation purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends will be income from sources outside the United States,
but dividends paid in taxable years beginning before
January&nbsp;1, 2007 generally will be &#147;passive&#148; or
&#147;financial services&#148; income, and dividends paid in
taxable years beginning after December&nbsp;31, 2006 will,
depending on your circumstances, be &#147;passive&#148; or
&#147;general&#148; income which, in either case, is treated
separately from other types of income for purposes of computing
the foreign tax credit allowable to you. No U.S.&nbsp;foreign
tax credit will be allowed to U.S.&nbsp;holders of common shares
or ADSs in respect of any personal property or similar tax
imposed by Japan (or any taxing authority thereof or therein).
Special rules apply in determining the foreign tax credit
limitation with respect to dividends that are subject to the
maximum 15% tax rate.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Distributions of additional shares or rights to subscribe for
additional shares to U.S.&nbsp;holders with respect to their
common shares or ADSs that are made as part of a pro rata
distribution to all shareholders generally will not be subject
to U.S.&nbsp;federal income tax.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
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</TR>

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    <TD></TD>
    <TD>
    <I>Taxation of Capital Gains</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the PFIC rules discussed below, a U.S.&nbsp;holder
who sells or otherwise disposes of common shares or ADSs will
recognize gain or loss for U.S.&nbsp;federal income tax purposes
in an amount equal to the difference between the
U.S.&nbsp;dollar value of the amount realized and his or her tax
basis (determined in U.S.&nbsp;dollars) in such shares or ADSs.
Capital gain of a noncorporate U.S.&nbsp;holder that is
recognized before January&nbsp;1, 2009 is generally taxed at a
maximum rate of 15% where the holder has a holding period
greater than one year. The gain or loss will generally be income
or loss from sources within the U.S.&nbsp;for foreign tax credit
limitation purposes.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>PFIC Rules</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui does not believe that the common shares or ADSs will be
treated as stock of a PFIC for United States federal income tax
purposes, but this conclusion is a factual determination that is
made annually and thus is subject to change. If Mitsui were
treated as a PFIC, unless a U.S.&nbsp;holder elected to be taxed
annually on a mark-to-market basis with respect to the common
shares or ADSs, gain realized on the sale or other disposition
of the shares or ADSs would in general not be treated as capital
gain. Instead a U.S.&nbsp;holder would be treated as if he or
she had realized such gain and certain &#147;excess
distributions&#148; ratably over the holding period for the
shares or ADSs and would be taxed at the highest tax rate in
effect for each such year to which the gain was allocated, in
addition to which an interest charge in respect of the tax
attributable to each such year would apply. In addition,
dividends received from Mitsui would not be eligible for the
special tax rates applicable to qualified dividend income if
Mitsui were a PFIC either in the taxable year of the
distribution or the preceding taxable year, but instead would be
taxable at rates applicable to ordinary income.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='147'></A>
</DIV>

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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>F.</B></TD>
    <TD>
    <B>Dividends and Paying Agents.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='148'></A>
</DIV>

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<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>G.</B></TD>
    <TD>
    <B>Statement by Experts.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='149'></A>
</DIV>

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<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>H.</B></TD>
    <TD>
    <B>Documents on Display.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to the informational requirements of the
Securities Exchange Act of 1934 and, in accordance therewith, we
file annual reports on Form&nbsp;20-F within six months of our
fiscal year-end and furnish other reports and information on
Form&nbsp;6-K with the Securities and Exchange Commission. These
reports and other information can be inspected at the public
reference room at the Securities and Exchange Commission at
100&nbsp;F&nbsp;Street, N.E., Washington,&nbsp;D.C. 20549. You
can also obtain copies of such material by mail from the public
reference room of the Securities and Exchange Commission at
prescribed fees. You may obtain information on the operation of
the Securities and Exchange Commission public reference room by
calling the Securities and Exchange Commission in the United
States at 1-800-SEC-0330. You can also access to the documents
filed via the Electronic Data Gathering, Analysis and Retrieval,
or EDGAR, system on the website of the Securities and Exchange
Commission (http://www.sec.gov).
</DIV>

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<A name='150'></A>
</DIV>

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    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>I.</B></TD>
    <TD>
    <B>Subsidiary Information.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='151'></A>
</DIV>

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    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;11.</B></TD>
    <TD>
    <B>Quantitative and Qualitative Disclosures about Market
    Risk.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the normal course of business, we are exposed to many risks
arising from the potential change in financial and other
instruments&#146; values caused by fluctuations in interest
rates, foreign currency exchange rates, commodity prices and
equity prices. We maintain a comprehensive risk management
policy to use derivative financial and commodity instruments,
including foreign exchange forward contracts, interest rate and
currency swap agreements, commodity futures, forwards, options
and swap agreements, however, these risks are not fully
insulated. To a lesser degree, Mitsui and certain subsidiaries
also enter into derivative financial and commodity instruments
for trading purposes within position limits and loss limits
(trading limits) strictly set under the risk management
structure, which is described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have established market risk management procedures at several
levels throughout our organization. Chief Operating Officers of
operating segments have the first line of responsibility for
managing market risk within prescribed limits. These officers
have in-depth knowledge of the primary sources of risk in their
individual markets and the instruments available to hedge their
exposures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The General Accounting&nbsp;&#38; Risk Management Division
within our headquarters monitors the company-wide process of
risk management and compliance with trading limits set for
operating segments. The General Accounting&nbsp;&#38; Risk
Management Division also provides general oversight with respect
to the market risk management process for operating segments.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Interest Rate Risk</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our normal business activities expose us to market risk arising
from changes in interest rates. To manage our interest rate
risk, we enter into interest rate swap agreements and interest
rate and currency swap agreements in order to modify and match
the interest rate characteristics of our assets and liabilities.
</DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Foreign Currency Exchange Rate Risk</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our global operations in many countries generate foreign
currency exposures related to imports, exports and financing in
currencies other than the local currency. We use derivative
instruments such as foreign exchange forward contracts, currency
swap agreements, and interest rate and currency swap agreements
to hedge market risk arising from the changes in foreign
exchange rates associated with existing assets, obligations,
future cash flows from receivables and payables resulting from
selling and purchasing activities, long-term financing
transactions, identifiable commitments and forecasted
transactions denominated in foreign currencies.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Commodity Price Risk</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As major participants in global commodities markets, we trade in
physical precious and base metals, energy products (crude oil
and refined oil products) and agricultural products (wheat,
coffee, sugar and others), and utilize a variety of derivatives
related to these commodities, such as futures, forwards, swaps
and options. Derivatives on those commodities are often used to
hedge price movements in the underlying physical inventory or
future inventory needs and to fix the expected future cash flows
from forecasted transactions. To facilitate hedging, we are
often required to take positions in the commodity markets in the
form of future, forward, swap and option contracts involving
those commodities.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Equity Price Risk</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We hold stocks issued by our business partners including,
amongst others, our customers and suppliers as marketable
securities for the promotion of business and strategic
objectives. We also hold other marketable securities, such as of
banking institutions, for investment purposes. We are exposed to
equity
</DIV>

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<DIV align="left" style="font-size: 10pt;">
price risk inherent in these stocks. We do not take continuous
hedging measures against the market exposures on those
securities.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Risk Management of Derivative Financial Instruments and
    Other Financial Instruments</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As an independent monitoring and advisory division for currency
and interest rate risks to which we are exposed, the General
Accounting&nbsp;&#38; Risk Management Division obtains and
analyzes detailed information on financial transactions,
measures the risks and reports them directly to a member of
senior management. For financial instruments entered into for
trading purposes, such as interest rate swap transactions,
foreign exchange forward contracts, interest rate futures and
others, the General Accounting&nbsp;&#38; Risk Management
Division measures daily Value-at-Risk (&#147;VaR&#148;) and
conducts back-testing, validating their risk model by comparing
its assumptions with actual results semi-annually.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to a policy that the counterparties in most
derivative transactions are strictly limited to highly rated
financial institutions, the General Accounting&nbsp;&#38; Risk
Management Division continuously evaluates the creditworthiness
and the level of transactions with individual institutions and
estimates our current and potential exposure, or the cost of
replacing existing swaps and other transactions, in the event
that a counterparty is unable to meet its obligations.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Risk Management of Derivative Commodity Instruments</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each of our operating segments has a general framework for
measuring portfolio risk which is based on aggregate risk limits
approved by our management and credit risk of counterparties.
The transactions are confirmed with counterparties and are
recorded by independent risk management sections. The results of
trading are periodically reported to our Executive Officers in
charge of risk management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to strengthen our risk monitoring process, particularly
by sharing and exchanging information on newly developed risk
measurement methods, we periodically hold company-wide
conferences among the concerned operating segments and related
divisions in the corporate headquarters.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>VaR</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We use the VaR method to measure market risk. VaR is a
statistical measure of the potential maximum loss in the fair
value of a portfolio resulting from adverse market movements in
underlying risk factors, over a defined period, within a certain
confidence level. As VaR incorporates historical data regarding
changes in market risk factors, our actual results may differ
materially from the calculations below. The sum of the VaRs for
the risk categories do not represent our aggregate VaR, because
market risk factors such as interest rates and currency exchange
rates are partially correlated to offset a portion of the simple
sum of the VaRs. At March&nbsp;31, 2005 and 2004, we estimated
VaR in one day with respect to the interest rate, foreign
currency exchange rate and commodity price risks (with some
exceptions to certain commodity price risks in which case VaRs
in five days are used) using a variance-covariance method and a
historical simulation approach with a confidence level of 97.7%.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>VaRs for Non-Trading Activities</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the year-end, high, low and
average VaR figures of interest rate risk, foreign currency
exchange rate risk and commodity price risk for non-trading
purposes, for the years ended March&nbsp;31, 2005 and 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following VaR figures do not reflect the full effect of the
hedging activities related to all of the underlying exposures
such as the effect of receivables, payables and cash flows from
anticipated transactions that are hedged items.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest rate risk consists of the net risk position based on
the management of our assets and liabilities. Foreign exchange
rate risk consists of the net risk position of transactions
denominated in foreign currencies, but mainly in
U.S.&nbsp;dollars. Commodity price risk consists of the net risk
position of
</DIV>

<P align="center" style="font-size: 10pt;">175

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
commodity positions and commodity derivative instruments
utilized to hedge the commodity price risk associated with
physical commodity inventories and firm commitments.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="30" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="30" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="30" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="30" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year End</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Average</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year End</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Average</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest rate risk</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>983</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency exchange rate risk</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>986</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>738</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Commodity price risk</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,089</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,207</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>VaRs for Trading Activities</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui and certain trading subsidiaries conduct trading
activities within well-defined position limits and loss limits
strictly set under the risk management structure mentioned
above. The results of the transactions and positions are
confirmed, monitored daily and reported to management by
independent sections to eliminate or reduce unacceptable losses
from the trading activities. The items traded by Mitsui and
certain subsidiaries are principally foreign exchange contracts,
interest rate swap agreements and commodity futures, forwards,
swaps and options related to base metals and agricultural
products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the year end, high, low, and
average VaR figures of interest rate risk, foreign exchange rate
risk and commodity price risk, for trading purposes, for the
years ended March&nbsp;31, 2005 and 2004.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="30" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="30" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="30" align="center" nowrap><B>Years Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="30" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year End</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Average</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year End</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Average</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest rate risk</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency exchange rate risk</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Commodity price risk</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,035</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Tabular Presentation of Equity Price Risk</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The cost, fair value and unrealized holding net gains on
marketable equity securities by industry at March&nbsp;31, 2005
and 2004 were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>March&nbsp;31, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>March&nbsp;31, 2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unrealized Holding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unrealized Holding</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net Gains</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net Gains</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Manufacturing</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>113,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>194,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>80,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>101,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>172,984</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>71,677</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Commercial, finance and real estate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68,374</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,208</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Transport and telecommunication</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,814</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,844</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,439</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy, service and others</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,986</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,085</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>191,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>333,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>142,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>178,609</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>297,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>118,409</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended March&nbsp;31, 2005, the general increase in
unrealized holding gains (except for the commercial, finance and
real estate sector) compared to the year ended March&nbsp;31,
2004 was mainly due to the overall improvement in holding
stocks&#146; prices. The decrease in cost and fair value of the
commercial, finance and real estate was mainly due to the
application of equity method to the investment in the retail
industry. The increase in cost and fair value of the
manufacturing sector was mainly due to
</DIV>

<P align="center" style="font-size: 10pt;">176

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
the new investments in the chemical and textile industries. The
energy, service and others sector and transport and
telecommunication sector also showed the increase in cost and
fair value mainly due to initial public offerings of
non-marketable equity securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Maturities and fair values of debt securities classified as
available-for-sale and held-to-maturity at March&nbsp;31, 2005
were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Available-for-Sale</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Held-to-Maturity</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Aggregate</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Aggregate</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amortized Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amortized Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair Value</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Contractual maturities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Within 1&nbsp;year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;234,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;234,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1,348</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    After 1&nbsp;year through 5&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>233</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    After 5&nbsp;years through 10&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    After 10&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;306,922</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;306,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1,591</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The actual maturities may differ from the contractual maturities
shown above because certain issuers may have the right to redeem
debt securities before their maturity.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='152'></A>
</DIV>

<!-- link1 "Item 12. Description of Securities Other than Equity Securities." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;12.</B></TD>
    <TD>
    <B>Description of Securities Other than Equity Securities.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='153'></A>
</DIV>

<!-- link1 "PART II" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;II</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='154'></A>
</DIV>

<!-- link1 "Item 13. Defaults, Dividend Arrearages and Delinquencies." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;13.</B></TD>
    <TD>
    <B>Defaults, Dividend Arrearages and Delinquencies.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='155'></A>
</DIV>

<!-- link1 "Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;14.</B></TD>
    <TD>
    <B>Material Modifications to the Rights of Security Holders and
    Use of Proceeds.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='156'></A>
</DIV>

<!-- link1 "Item 15. Controls and Procedures." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;15.</B></TD>
    <TD>
    <B>Controls and Procedures.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Disclosure Controls and Procedures</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our management, with the participation of its principal
executive and principal financial officer, has performed an
evaluation of the effectiveness of disclosure controls and
procedures (as defined by Rule&nbsp;13a-15(e) under the
U.S.&nbsp;Securities Exchange Act of 1934) as of the end of the
period covered by this report. Based upon that evaluation, our
principal executive and principal financial officer concluded
that the disclosure controls and procedures were effective as of
the end of the period covered by this report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There was no change in our internal control over financial
reporting that occurred during the period covered by this report
that has materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November 2004, Mitsui has completed the implementation of a
new enterprise resource planning system based on SAP R/3, which
records contracts, controls delivery of goods, manages
settlement and runs financial reporting applications.
</DIV>

<P align="center" style="font-size: 10pt;">177

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='157'></A>
</DIV>

<!-- link1 "Item 16. [Reserved]" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;16.</B></TD>
    <TD>
    <B>[Reserved]</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='158'></A>
</DIV>

<!-- link1 "Item 16A. Audit Committee Financial Expert." -->

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;16A.</B></TD>
    <TD>
    <B>Audit Committee Financial Expert.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Board of Corporate Auditors has determined that Tasuku
Kondo, Hiroshi Matsuura and Hideharu Kadowaki qualify as an
&#147;audit committee financial expert&#148; as defined in this
Item&nbsp;16A serving on our Board of Corporate Auditors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Kondo joined Mitsui in 1965. Since then he had always
worked in the field of accounting or financing and was appointed
as Director and General Manager of Finance Division in 1996 and
as Representative Director and Chief Financial Officer in 2001.
He was elected as one of our Corporate Auditors at the ordinary
general meeting of shareholders held in June 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Matsuura joined Mitsui in 1970. Since then he had
always worked in the field of management of credit risk, country
risk, investment risk and market risk and was appointed as
General Manager of the Corporate Risk Management Division before
having been elected as one of our Corporate Auditors at the
ordinary general meeting of shareholders held in June 2003.
Through his career, he has acquired, among other things,
experience auditing, analyzing and evaluating financial
statements of a great number of companies to be granted our
credit including loan, guarantee and investment for various
transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Kadowaki was elected as one of our Corporate Auditors
at the ordinary general meeting of shareholders held in June
2004. His main career has been in the field of financial risk
management at Mitsui Bank, Sakura Bank, Sumitomo Mitsui Banking
Corporation, and Sumitomo Mitsui Financial Group, Inc. His final
position in the bank was an executive vice president who, while
overseeing the entire operation of the bank, was responsible for
risk management and internal auditing.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='159'></A>
</DIV>

<!-- link1 "Item 16B. Code of Ethics." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;16B.</B></TD>
    <TD>
    <B>Code of Ethics.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui maintains Business Conduct Guidelines for Employees and
Officers, applicable to all employees and officers. The Business
Conduct Guidelines set forth provisions relating to compliance
with applicable laws and regulations, honest and ethical conduct
including the handling of conflicts of interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, Mitsui adopted a &#147;Code of Ethics&#148; as a
supplement to the Business Conduct Guidelines. The Code of
Ethics applies to Mitsui&#146;s financial professionals
including our principal executive officer, principal financial
officer, principal accounting officer and persons performing
similar functions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Both the Business Conduct Guidelines for Employees and Officers
and the Code of Ethics are filed as exhibits to this annual
report.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='160'></A>
</DIV>

<!-- link1 "Item 16C. Principal Accountant Fees and Services." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;16C.</B></TD>
    <TD>
    <B>Principal Accountant Fees and Services.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deloitte Touche Tohmatsu, a Japanese member firm of Deloitte
Touche Tohmatsu (a Swiss Verein), has been our principal
accountant for SEC reporting purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The table below shows aggregate fees billed for each of the last
two fiscal years for professional services rendered to Mitsui
and its subsidiaries by Deloitte Touche Tohmatsu and other
member firms of Deloitte Touche Tohmatsu (a Swiss Verein).
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="79%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Audit
    fees<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1,298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1,223</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Audit-related
    fees<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>143</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tax
    fees<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>430</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All other
    fees<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;1,977</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Audit fees are fees billed for professional services rendered by
    the principal accountant for the audit of our annual financial
    statements and services that are provided by the accountant in
    connection with statutory and regulatory filings or engagements.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">178

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Audit-related fees are fees billed for assurance and related
    services that are reasonably related to the performance of the
    audit or review of our financial statements, such as assessment
    of internal accounting controls and due diligence services in
    connection with potential business acquisitions, that are not
    reported in audit fees.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Tax fees are fees billed for professional services rendered by
    the principal accountant for tax compliance, tax advice and tax
    planning.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    All other fees are fees billed for services provided by the
    principal accountant, other than services reported in audit
    fees, audit-related fees and tax fees, such as advisory services
    for risk management and regulatory matters.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Beginning with the year ended March&nbsp;31, 2004, the first
fiscal year of application of paragraph&nbsp;(c)(7) of
Rule&nbsp;2-01 of Regulation&nbsp;S-X, our Board of Corporate
Auditors has adopted pre-approval policies and procedures
requiring pre-approval by the Board of Corporate Auditors for
all audit and non-audit services provided by the principal
accountant. For the year ended March&nbsp;31, 2005, the
pre-approval policies and procedures have been amended so that
(i)&nbsp;any audit or non-audit services, for which estimated
total fee shall not exceed 10&nbsp;Million Yen, may be
pre-approved by the two full-time Corporate Auditors, provided
that such pre-approval must be reported at the next proceeding
full Board of the Corporate Auditors and that (ii)&nbsp;certain
categories of non-audit services prescribed in the pre-approval
policies and procedures may be pre-approved comprehensively on
an annual basis provided that the estimated total fees should be
specified in the relevant application and that the actual
services provided shall be periodically reported to the Board of
Corporate Auditors. All of the services provided by the
principal accountant for the year ended March&nbsp;31, 2005 were
approved by the full-time Corporate Auditors or the Board of
Corporate Auditors pursuant to the pre-approval policies and
procedures described above, and none of such services were
approved pursuant to the procedures described in
Rule&nbsp;2-01(c)(7)(i)(C) of Regulation&nbsp;S-X, which waives
the general requirement for pre-approval in certain
circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='161'></A>
</DIV>

<!-- link1 "Item 16D. Exemptions from the Listing Standards for Audit Committees." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;16D.</B></TD>
    <TD>
    <B>Exemptions from the Listing Standards for Audit
    Committees.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='162'></A>
</DIV>

<!-- link1 "Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers." -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;16E.</B></TD>
    <TD>
    <B>Purchases of Equity Securities by the Issuer and Affiliated
    Purchasers.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth Mitsui&#146;s purchases of its
common stock during fiscal the year ended March&nbsp;31, 2005:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(c) Total Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(d) Maximum Number</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares Purchased as</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Shares that May</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(a) Total Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(b) Average</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Part of Publicly</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Yet Be Purchased</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price Paid per</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Announced Plans or</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Under the Plans or</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="left" nowrap><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Purchased<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share (Yen)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Programs</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Programs</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    April&nbsp;1, 2004&nbsp;&#150; April&nbsp;30, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;970.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May&nbsp;1, 2004&nbsp;&#150; May&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,634</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>854.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    June&nbsp;1, 2004&nbsp;&#150; June&nbsp;30, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>848.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July&nbsp;1, 2004&nbsp;&#150; July&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>829.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    August&nbsp;1, 2004&nbsp;&#150; August&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>868.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    September&nbsp;1, 2004&nbsp;&#150; September&nbsp;30, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>923.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    October&nbsp;1, 2004&nbsp;&#150; October&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>93,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>952.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    November&nbsp;1, 2004&nbsp;&#150; November&nbsp;30, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>918.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    December&nbsp;1, 2004&nbsp;&#150; December&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>168,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>877.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    January&nbsp;1, 2005&nbsp;&#150; January&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>86,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>931.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    February&nbsp;1, 2005&nbsp;&#150; February&nbsp;28, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>991.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;1, 2005&nbsp;&#150; March&nbsp;31,
    2005<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,853</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,048.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>899,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>922.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Under the Commercial Code of Japan, a holder of shares
    constituting less than one full unit may require Mitsui to
    purchase such shares at their market value (See &#147;Memorandum
    and Articles of</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">179
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    Association&nbsp;&#151; &#145;Unit&#146; share
    system&nbsp;&#151; Repurchase by Mitsui of shares constituting
    less than a full unit&#148; in &#147;Item&nbsp;10. Additional
    Information&#148;). During the year ended March&nbsp;31, 2005,
    Mitsui purchased 899,247&nbsp;shares for a total purchase price
    of 829,921,816 yen upon such requests from holders of shares
    constituting less than one full unit.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    On January&nbsp;19, 2005, Mitsui announced that, at its Meeting
    of the Board of Directors, Mitsui decided to merge with Mitsui
    Sakhalin Development Co. Ltd. (&#147;MSD&#148;) on
    March&nbsp;31, 2005.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 MSD was a wholly-owned subsidiary of Mitsui and a holding
vehicle of Mitsui&#146;s investment in Sakhalin Energy
Investment Co., Ltd. (&#147;SEIC&#148;). SEIC is engaged in the
Sakhalin&nbsp;II Crude Oil and LNG Exploration, Development and
Production Project (&#147;Sakhalin&nbsp;II Project&#148;)
promoted by Mitsui. Mitsui Sakhalin Holdings B.V.
(&#147;MSH&#148;) had been subsequently established in
Netherlands to flexibly respond to the recycling of cash flow in
conjunction with the phased development of the Sakhalin&nbsp;II
Project. Mitsui executed a short-form merger with MSD in order
to simplify its financing structure and make MSH the only
holding vehicle for its investment in SEIC. The merger had
minimal impact on Mitsui&#146;s business performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Under the Commercial Code of Japan, a shareholder giving a
written notice to the company of his/her intention to oppose the
merger within 2&nbsp;weeks after the company&#146;s announcement
of such merger may make a demand upon the company that the
company purchase the shares owned by such shareholder at a fair
price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 In March 2005, there was such a request for 5,000&nbsp;shares
by a shareholder who opposed the merger of MSD, and Mitsui
purchased those shares in the due course. This purchase of
5,000&nbsp;shares was not included in the purchase of
71,853&nbsp;shares from March&nbsp;1, 2005 to March&nbsp;31,
2005 in the column of &#147;(a) Total Number of Shares
Purchased&#148;.
</DIV>

<P align="center" style="font-size: 10pt;">180

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<DIV align="left" style="font-size: 10pt;">
<A name='163'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;III</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='164'></A>
</DIV>

<!-- link1 "Item 17. Financial Statements." -->

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<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;17.</B></TD>
    <TD>
    <B>Financial Statements.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='165'></A>
</DIV>

<!-- link1 "Item 18. Financial Statements." -->

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<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;18.</B></TD>
    <TD>
    <B>Financial Statements.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information required by this item has been provided
elsewhere in this annual report.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='166'></A>
</DIV>

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<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;19.</B></TD>
    <TD>
    <B>Exhibits.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Exhibits</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Document</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Articles of Incorporation of Mitsui&nbsp;&#38; Co., Ltd., as
    of June&nbsp;24, 2005 (English-language translation).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.2*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Share Handling Regulation of Mitsui&nbsp;&#38; Co., Ltd., as
    amended on June&nbsp;24, 2004 (English-language translation).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.3*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Rules of the Board of Directors of Mitsui&nbsp;&#38; Co.,
    Ltd., as amended on April&nbsp;1, 2004 (English-language
    translation).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Rules of the Board of Corporate Auditors of
    Mitsui&nbsp;&#38; Co., Ltd., as amended on September&nbsp;8,
    2004 (English-language translation).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD align="left" valign="top" nowrap>.1**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Deposit Agreement, dated October&nbsp;1, 1982 among
    Mitsui&nbsp;&#38; Co., Ltd., Citibank, N.A., and holders of ADRs
    and European Depositary Receipts.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>8</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    List of Subsidiaries of Mitsui&nbsp;&#38; Co., Ltd.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>11</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Code of Ethics for Senior Financial Officers and Professionals.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>11</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Business Conduct Guidelines for Employees and Officers of
    Mitsui&nbsp;&#38; Co., Ltd.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>12</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certification of the principal executive officer of
    Mitsui&nbsp;&#38; Co., Ltd. required by Rule&nbsp;13a-14(a).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>12</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certification of the principal financial officer of
    Mitsui&nbsp;&#38; Co., Ltd. required by Rule&nbsp;13a-14(a).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>13</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certification required by Rule&nbsp;13a-14(b) and
    Section&nbsp;1350 of Chapter&nbsp;63 of Title&nbsp;18 of the
    United States Code.</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>*&nbsp;</TD>
    <TD align="left">
    Incorporated by reference to the corresponding exhibit to our
    annual report on Form&nbsp;20-F <BR>
     (File No.&nbsp;0-9929) filed on September&nbsp;30, 2004.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    Incorporated by reference to the corresponding exhibit to our
    annual report on Form&nbsp;20-F <BR>
     (File No.&nbsp;0-9929) filed on September&nbsp;27, 2002.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have not included as exhibits certain instruments with
respect to our long-term debt, the amount of debt authorized
under each of which does not exceed 10% of our total assets, and
we agree to furnish a copy of any such instruments to the
Securities and Exchange Commission upon request.
</DIV>

<P align="center" style="font-size: 10pt;">181
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>MITSUI&nbsp;&#38; CO., LTD. (MITSUI BUSSAN KABUSHIKI KAISHA)
AND SUBSIDIARIES</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The audited consolidated financial statements of
Mitsui&nbsp;&#38; Co., Ltd. (Mitsui Bussan Kabushiki Kaisha) and
subsidiaries, together with the report of Deloitte Touche
Tohmatsu as of March&nbsp;31, 2005 and 2004, and for the years
ended March&nbsp;31, 2005, 2004 and 2003, filed as part of this
annual reports are as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Report of Independent Registered Public Accounting Firm</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Balance Sheets, March&nbsp;31, 2005 and 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Statements of Consolidated Income for the Years Ended
    March&nbsp;31, 2005, 2004 and 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Statements of Consolidated Shareholders&#146; Equity for the
    Years Ended March&nbsp;31, 2005, 2004 and 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Statements of Consolidated Cash Flows for the Years Ended
    March&nbsp;31, 2005, 2004 and 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes to Consolidated Financial Statements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Supplemental Information on Oil and Gas Producing Activities
    (Unaudited)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-82</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Supplemental Information:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedules for the Years
Ended March&nbsp;31, 2005, 2004 and 2003:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(Schedules are omitted because of the absence of the conditions
under which they are required or because the required
information is included in the consolidated financial statements
or notes thereto.)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Financial statements of majority-owned subsidiaries of the
registrant not consolidated and of 50% or less owned persons
accounted for by the equity method have been omitted because
Mitsui&nbsp;&#38; Co., Ltd.&#146;s proportionate share of the
income from continuing operations before income taxes, and total
assets of each such company is less than 20% of the respective
consolidated amounts, and the investment in and advances to each
company is less than 20% of consolidated total assets.
</DIV>

<P align="center" style="font-size: 10pt;">F-1

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
To the Board of Directors and Shareholders of
</DIV>

<DIV align="left" style="font-size: 10pt;">
Mitsui&nbsp;&#38; Co., Ltd. (Mitsui Bussan Kabushiki Kaisha):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
We have audited the accompanying consolidated balance sheets of
Mitsui&nbsp;&#38; Co., Ltd. (Mitsui Bussan Kabushiki Kaisha) and
subsidiaries (the &#147;Company&#148;) as of March&nbsp;31, 2005
and 2004, and the related statements of consolidated income,
consolidated shareholders&#146; equity, and consolidated cash
flows for each of the three years in the period ended
March&nbsp;31, 2005 (all expressed in Japanese yen). These
financial statements are the responsibility of the
Company&#146;s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. The Company is not required to
have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audits included
consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company&#146;s internal control over
financial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of
Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries as of
March&nbsp;31, 2005 and 2004, and the results of their
operations and their cash flows for each of the three years in
the period ended March&nbsp;31, 2005, in conformity with
accounting principles generally accepted in the United States of
America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in Note&nbsp;2 to the consolidated financial
statements, the accompanying statements of consolidated income
for the years ended March&nbsp;31, 2004 and 2003 have been
restated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in Note&nbsp;11 to the consolidated financial
statements, effective April&nbsp;1, 2003, the Company changed
its method of accounting for asset retirement obligations to
conform to Statement of Financial Accounting Standards
No.&nbsp;143.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our audits also comprehended the translation of Japanese yen
amounts into U.S.&nbsp;dollar amounts and, in our opinion, such
translation has been made in conformity with the basis stated in
Note&nbsp;2. Such U.S.&nbsp;dollar amounts are presented solely
for the convenience of readers outside Japan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
/s/ DELOITTE TOUCHE TOHMATSU
</DIV>

<DIV align="left" style="font-size: 10pt;">
Deloitte Touche Tohmatsu
</DIV>

<DIV align="left" style="font-size: 10pt;">
Tokyo, Japan
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
June&nbsp;15, 2005, except for Note&nbsp;29, as to which the
date is June&nbsp;24, 2005
</DIV>

<P align="center" style="font-size: 10pt;">F-2
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CONSOLIDATED BALANCE SHEETS</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>March&nbsp;31, 2005 and 2004</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>U.S.&nbsp;Dollars</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Note&nbsp;2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="15" align="center" valign="top">
    <B>ASSETS</B></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Current Assets:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents (Notes&nbsp;2 and 5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>791,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>638,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Time deposits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Marketable securities (Notes&nbsp;2 and 5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade receivables (Note&nbsp;9):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes and loans, less unearned interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>450,678</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>467,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,212</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts (Note&nbsp;8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,863,742</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,706,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,418</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>197,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>186,373</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,841</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allowance for doubtful receivables (Notes&nbsp;2, 7 and 8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22,519</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22,498</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(210</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Inventories (Notes&nbsp;2 and 9)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>596,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>513,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,578</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advance payments to suppliers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>850</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax assets&nbsp;&#151; current (Notes&nbsp;2 and 21)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>434</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>349,622</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>275,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,268</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,420,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,934,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,315</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Investments and Non-current Receivables </B>(Notes&nbsp;2 and
    9):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investments in and advances to associated companies
    (Notes&nbsp;6, 11 and 17)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>973,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>726,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,096</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other investments (Note&nbsp;5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>660,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>617,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,170</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current receivables, less unearned interest (Note&nbsp;8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>544,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>485,446</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,090</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allowance for doubtful receivables (Notes&nbsp;7 and 8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(100,066</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(110,098</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(935</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property leased to others&nbsp;&#151; at cost, less accumulated
    depreciation (Notes&nbsp;8, 10 and 24)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>183,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>230,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,712</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total investments and non-current receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,261,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,949,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,133</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Property and Equipment&nbsp;&#151; at Cost
    </B>(Notes&nbsp;2,&nbsp;8, 9, 10 and 11):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land, land improvements and timberlands</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>207,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>220,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,936</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Buildings, including leasehold improvements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>317,576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>329,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,968</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equipment and fixtures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>429,315</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>395,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,012</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mineral rights</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>732</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vessels</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>196</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projects in progress</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>334</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,089,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,017,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,178</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated depreciation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(426,350</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(417,906</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,985</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net property and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>662,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>599,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,193</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Intangible Assets, less Accumulated Amortization
    </B>(Notes&nbsp;2,&nbsp;3, 12 and&nbsp;14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>104,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90,809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>974</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Deferred Tax Assets&nbsp;&#151; Non-current
    </B>(Notes&nbsp;2, 11 and&nbsp;21)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>277</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Other Assets (Note&nbsp;14)</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>114,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,074</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Total</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,593,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,716,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>70,966</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>CONSOLIDATED BALANCE SHEETS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>March&nbsp;31, 2005 and 2004</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>U.S.&nbsp;Dollars</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Note&nbsp;2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="15" align="center" valign="top">
    <B>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</B></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Current Liabilities:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term debt (Notes&nbsp;9 and 13)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>615,353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>646,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,751</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current maturities of long-term debt (Notes&nbsp;8, 9 and 13)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>291,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>357,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,728</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade payables:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes and acceptances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>124,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,060</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,645,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,467,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,382</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>886</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued expenses:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income taxes (Notes&nbsp;2 and 21)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>441</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>183</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>704</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advances from customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>83,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>941</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other current liabilities (Notes&nbsp;2,&nbsp;21, 22 and 23)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>277,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>185,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,595</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,281,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,033,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,671</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Long-term Debt, less Current Maturities
    </B>(Notes&nbsp;8,&nbsp;9, 11 and&nbsp;13)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,904,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,541,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,149</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Accrued Pension Costs and Liability for Severance Indemnities
    </B>(Notes&nbsp;2 and 14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>369</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Deferred Tax Liabilities&nbsp;&#151; Non-current
    </B>(Notes&nbsp;2 and&nbsp;21)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>143,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,341</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Commitments and Contingent Liabilities </B>(Notes&nbsp;9 and
    23)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Minority Interests </B>(Note&nbsp;11)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>942</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Shareholders&#146; Equity </B>(Note&nbsp;15):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common stock&nbsp;&#151; no par value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Authorized, 2,500,000,000&nbsp;shares;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Issued, 1,583,687,322&nbsp;shares in 2005 and
    1,583,674,837&nbsp;shares in 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>192,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>192,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,799</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital surplus</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>288,048</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>287,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,692</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Retained earnings:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Appropriated for legal reserve</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>346</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unappropriated (Notes&nbsp;6,&nbsp;13, 21 and 29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>656,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>549,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,131</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated other comprehensive income (loss) (Note&nbsp;2):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding gains and losses on available-for-sale
    securities (Note&nbsp;5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>936</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(142,787</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(161,454</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,334</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minimum pension liability adjustment (Note&nbsp;14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,691</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,743</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(53</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net unrealized gains and losses on derivatives (Note&nbsp;26)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,252</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,996</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total accumulated other comprehensive loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(49,551</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(101,464</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(463</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Treasury stock, at cost: 1,476,692&nbsp;shares in 2005 and
    2,661,783&nbsp;shares in 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,212</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,662</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total shareholders&#146; equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,122,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>963,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,494</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Total</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,593,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,716,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>70,966</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
See notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Statements of Consolidated Income</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Years Ended March&nbsp;31, 2005, 2004 and 2003</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>U.S.&nbsp;Dollars</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Note&nbsp;2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Note&nbsp;2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Note&nbsp;2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Revenues </B>(Notes&nbsp;2, 17 and 18):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales of products</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,980,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,490,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,316,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>27,858</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales of services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>435,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>424,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>389,653</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,067</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other sales (Note&nbsp;8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,026</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,525,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,982,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,784,571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,951</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Trading Transactions (Notes&nbsp;2 and 17): 2005,
    &#165;13,615,047&nbsp;million&nbsp;&#151; $127,243&nbsp;million;
    2004, &#165;12,284,111&nbsp;million; 2003,
    &#165;11,474,183&nbsp;million</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cost of Revenues </B>(Notes&nbsp;2 and 18):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cost of products sold</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,684,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,292,662</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,131,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,086</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cost of services sold</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68,995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,594</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>645</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cost of other sales (Note&nbsp;8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>437</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total cost of revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,799,930</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,368,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,215,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,168</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Gross Profit</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>725,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>613,943</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>569,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,783</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Other Expenses (Income):</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative (Notes&nbsp;2,&nbsp;8,
    12,&nbsp;14, 18 and 25)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>518,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>494,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>453,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,850</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Provision for doubtful receivables (Notes&nbsp;2 and 7)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,883</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>83</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense, net of interest income (Notes&nbsp;2 and 26):
    2005, &#165;35,512&nbsp;million&nbsp;&#151; $332&nbsp;million;
    2004, &#165;30,015&nbsp;million; 2003, &#165;39,641&nbsp;million</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dividend income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(24,570</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18,448</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,266</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(230</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on securities contributed to an employee retirement benefit
    trust (Notes&nbsp;5&nbsp;and&nbsp;14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Government grant for transfer of substitutional portion of EPF
    (Notes&nbsp;2&nbsp;and&nbsp;14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(17,224</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on sales of securities&nbsp;&#151; net (Notes&nbsp;2 and 5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34,856</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(27,465</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,026</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(326</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on issuance of stock by a subsidiary (Notes&nbsp;2 and 19)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,677</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss on write-down of securities (Notes&nbsp;2 and 5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>155</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    (Gain) loss on disposal or sales of property and
    equipment&nbsp;&#151; net (Note&nbsp;25)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,527</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,057</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(61</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment loss of long-lived assets (Notes&nbsp;2,&nbsp;10, 12
    and 25)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,505</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>201</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and other charges related to DPF incident
    (Note&nbsp;22)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>336</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other expense&nbsp;&#151; net (Notes&nbsp;18,&nbsp;20, 23 and 25)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total other expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>550,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>525,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>504,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,141</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Income from Continuing Operations before Income Taxes,
    Minority Interests and Equity in Earnings </B>(Note&nbsp;21)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>88,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64,990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,642</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Income Taxes </B>(Notes&nbsp;2 and 21):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>608</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred (Note&nbsp;19)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,457</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(389</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>360</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>103,555</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,041</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>968</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Income from Continuing Operations before Minority Interests
    and Equity in Earnings</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,089</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>674</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Minority Interests in Earnings of Subsidiaries</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(17,558</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,470</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,412</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(164</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Equity in Earnings of Associated Companies&nbsp;&#151; Net
    (After Income Tax Effect) </B>(Notes&nbsp;2, 6 and&nbsp;21)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,893</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,078</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>615</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Income from Continuing Operations</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>120,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>74,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,125</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Income (Loss) from Discontinued Operations&nbsp;&#151; Net
    (After Income Tax Effect) </B>(Notes&nbsp;4, 21 and 25)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,700</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,937</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cumulative Effect of Change in Accounting Principle (After
    Income Tax Effect) </B>(Notes&nbsp;11 and 21)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,285</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Net Income</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,132</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Statements of Consolidated Income&nbsp;&#151; (Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Years Ended March&nbsp;31, 2005, 2004 and 2003</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>U.S.&nbsp;Dollars</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Note&nbsp;2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Net Income per Share </B>(Notes&nbsp;2, 11 and 16):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Continuing operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>76.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>47.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>23.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.71</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discontinued operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.35</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.75</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.01</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.44</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>76.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>43.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>19.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.72</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Continuing operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>71.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>44.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.67</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discontinued operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.19</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.48</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.36</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>72.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>40.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.67</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
See notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Statements of Consolidated Shareholders&#146; Equity</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Years Ended March&nbsp;31, 2005, 2004 and 2003</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>U.S.&nbsp;Dollars</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Note&nbsp;2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Common Stock </B>(Note&nbsp;15):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued: 2005, 2004 and
    2003&nbsp;&#151;&nbsp;1,583,674,837&nbsp;shares</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>192,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>192,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>192,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,799</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common stock issued upon conversion of bonds</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued: 2005&nbsp;&#151;&nbsp;12,485&nbsp;shares; 2004
    and 2003&nbsp;&#151;&nbsp;0&nbsp;share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued: 2005&nbsp;&#151;&nbsp;1,583,687,322&nbsp;shares;
    2004 and 2003&nbsp;&#151;&nbsp;1,583,674,837&nbsp;shares</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>192,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>192,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>192,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,799</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Capital Surplus </B>(Note&nbsp;15):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>287,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>287,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>287,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,690</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Conversion of bonds</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on sales of treasury stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exchange of treasury stock for subsidiary&#146;s stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>288,048</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>287,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>287,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,692</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Retained Earnings </B>(Note&nbsp;15):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Appropriated for Legal Reserve:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>35,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>342</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Transfer from unappropriated retained earnings</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>251</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>509</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>37,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>346</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Unappropriated </B>(Notes&nbsp;6,&nbsp;13, 21 and 29):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>549,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>494,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>476,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,136</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,132</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash dividends paid (annual rate per share: 2005,
    &#165;9.0&nbsp;&#151;&nbsp;8.4&#162;; 2004 and 2003, &#165;8.0)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,240</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,653</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,665</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(133</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Transfer to retained earnings appropriated for legal reserve</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(385</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(251</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(509</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>656,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>549,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>494,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,131</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Accumulated Other Comprehensive Income (Loss) (After Income
    Tax Effect) </B>(Notes&nbsp;2, 15 and 21):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(101,464</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(147,138</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(76,918</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(948</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding gains and losses on available-for-sale
    securities (Note&nbsp;5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(40,841</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>285</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(20,401</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22,384</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>174</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minimum pension liability adjustment (Note&nbsp;14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,358</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net unrealized gains and losses on derivatives (Note&nbsp;26)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,237</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(637</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(49,551</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(101,464</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(147,138</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(463</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-7

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Statements of Consolidated Shareholders&#146;
Equity&nbsp;&#151; (Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Years Ended March&nbsp;31, 2005, 2004 and 2003</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>U.S.&nbsp;Dollars</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Note&nbsp;2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Treasury Stock, at Cost </B>(Note&nbsp;15):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares in treasury: 2005&nbsp;&#151;&nbsp;2,661,783&nbsp;shares;
    2004&nbsp;&#151;&nbsp;2,297,845&nbsp;shares;
    2003&nbsp;&#151;&nbsp;494,860&nbsp;shares</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,662</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,378</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(302</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(15</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase of treasury stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares purchased: 2005&nbsp;&#151;&nbsp;1,000,990&nbsp;shares;
    2004&nbsp;&#151;&nbsp;472,590&nbsp;shares;
    2003&nbsp;&#151;&nbsp;1,802,985&nbsp;shares</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(904</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(356</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,076</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales of treasury stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares sold: 2005&nbsp;&#151;&nbsp;317,200&nbsp;shares;
    2004&nbsp;&#151;&nbsp;108,652&nbsp;shares;
    2003&nbsp;&#151;&nbsp;0&nbsp;share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exchange of treasury stock for subsidiary&#146;s stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares exchanged: 2005&nbsp;&#151;&nbsp;1,868,881&nbsp;shares;
    2004 and 2003&nbsp;&#151;&nbsp;0&nbsp;share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares in treasury: 2005&nbsp;&#151;&nbsp;1,476,692&nbsp;shares;
    2004&nbsp;&#151;&nbsp;2,661,783&nbsp;shares;
    2003&nbsp;&#151;&nbsp;2,297,845&nbsp;shares</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,212</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,662</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,378</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(11</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Summary of Changes in Equity from Nonowner Sources
    (Comprehensive Income (Loss)) </B>(Notes&nbsp;2, 15 and&nbsp;21):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,132</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive income (loss) (after income tax effect):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding gains and losses on available-for-sale
    securities (Note&nbsp;5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(40,841</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>285</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(20,401</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22,384</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>174</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minimum pension liability adjustment (Note&nbsp;14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,358</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net unrealized gains and losses on derivatives (Note&nbsp;26)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,237</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(637</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in equity from nonowner sources</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>173,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>114,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(39,082</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,617</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
See notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-8

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Statements of Consolidated Cash Flows</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Years Ended March&nbsp;31, 2005, 2004 and 2003</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>U.S.&nbsp;Dollars</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Note&nbsp;2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Operating Activities </B>(Note&nbsp;28):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,132</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments to reconcile net income to net cash provided by
    operating activities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>622</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pension and severance costs, less payments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18,575</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,660</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(174</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Provision for doubtful receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,883</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>83</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on securities contributed to an employee retirement benefit
    trust</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Government grant for transfer of substitutional portion of EPF</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(17,224</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on sales of securities&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34,856</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(27,465</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,026</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(326</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on issuance of stock by a subsidiary</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,677</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss on write-down of securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>155</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    (Gain) loss on disposal or sales of property and
    equipment&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,527</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,057</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(61</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment loss of long-lived assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,505</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>201</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,457</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(389</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>360</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minority interests in earnings of subsidiaries</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,558</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>164</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies, less dividends
    received</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(33,076</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,364</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,258</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(309</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    (Income) loss from discontinued operations&nbsp;&#151; net
    (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(712</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of change in accounting principle (after
    income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in operating assets and liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in trade receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(169,700</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(127,066</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(42,933</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,586</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in inventories</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(73,375</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(32,689</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(27,512</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(686</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase (decrease) in trade payables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>209,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,703</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,960</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advances from customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,509</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>327</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,484</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,490</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by operating activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>200,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,870</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Investing Activities </B>(Note&nbsp;28):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net decrease (increase) in time deposits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,603</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>190</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investments in and advances to associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(190,388</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(203,380</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(63,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,779</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales of investments in and collection of advances to associated
    companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,111</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>492</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of available-for-sale securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(90,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(131,207</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(154,050</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(848</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sales of available-for-sale securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>204</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from maturities of available-for-sale securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>110,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>144,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>532</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of held-to-maturity debt securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,233</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(17</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,231</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from maturities of held-to-maturity debt securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of other investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(67,506</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(46,856</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(39,838</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(631</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sales of other investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,242</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>686</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in long-term loan receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(68,111</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(42,768</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(56,169</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(636</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Collection of long-term loan receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84,445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>587</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additions to property leased to others and property and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(170,068</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(113,197</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(123,216</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,589</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sales of property leased to others and property
    and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>79,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,186</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>742</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of subsidiaries, net of cash acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,233</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,208</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(49</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash used in investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(224,010</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(134,154</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,243</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,093</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Financing Activities </B>(Note&nbsp;28):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net (decrease) increase in short-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(29,113</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(71,759</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(272</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>754,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>636,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>509,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,050</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayments of long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(541,544</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(564,529</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(571,968</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,061</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchases of treasury stock&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(764</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(264</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,086</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments of cash dividends</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,240</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,653</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,665</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(133</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from issuance of stock by a subsidiary</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by (used in) financing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>171,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,248</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,601</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Effect of Exchange Rate Changes on Cash and Cash
    Equivalents</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,191</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,499</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Net Increase (Decrease) in Cash and Cash Equivalents</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(56,514</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,435</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash and Cash Equivalents at Beginning of Year</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>638,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>694,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>633,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,965</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash and Cash Equivalents at End of Year</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>791,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>638,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>694,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
See notes to consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-9

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Consolidated Financial Statements</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>1.</B></TD>
    <TD>
    <B>NATURE OF OPERATIONS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Mitsui&nbsp;&#38; Co., Ltd. (Mitsui Bussan Kabushiki Kaisha) and
subsidiaries (collectively, the &#147;companies&#148;), as
<I>sogo shosha </I>or general trading companies, are engaged in
business activities, such as trading in various commodities,
financing for customers and suppliers relating to such trading
activities worldwide, and organizing and coordinating industrial
projects through their worldwide business networks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies conduct sales, export, import, offshore trades and
manufacture of products in the areas of &#147;Metal
Products&nbsp;&#38; Minerals,&#148; &#147;Machinery,
Electronics&nbsp;&#38; Information,&#148; &#147;Chemical,&#148;
&#147;Energy,&#148; and &#147;Consumer Products&nbsp;&#38;
Services (foods&nbsp;&#38; retail, lifestyle and consumer
service business),&#148; while providing general services for
retailing, information and communications, technical support,
transportation and logistics and financing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Further, the companies are also engaged in development of
natural resources such as oil and gas, and iron and steel raw
materials.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the above, the companies are engaged in strategic
business investments in new areas such as information
technology, biotechnology and nanotechnology.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>2.</B></TD>
    <TD>
    <B>BASIS OF FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT
    ACCOUNTING POLICIES</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>I.</B></TD>
    <TD>
    <B>BASIS OF FINANCIAL STATEMENTS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying consolidated financial statements are stated in
Japanese yen, the currency of the country in which
Mitsui&nbsp;&#38; Co., Ltd. (the &#147;Company&#148;) is
incorporated and principally operates. The translation of
Japanese yen amounts into U.S.&nbsp;dollar amounts for the year
ended March&nbsp;31, 2005 is included solely for the convenience
of readers outside Japan and has been made at the rate of
&#165;107= U.S.$1, the approximate rate of exchange at
March&nbsp;31, 2005. The translation should not be construed as
a representation that the Japanese yen amounts could be
converted into U.S.&nbsp;dollars at the above or any other rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The accompanying consolidated financial statements have been
prepared on the basis of accounting principles generally
accepted in the United States of America
(&#147;U.S.&nbsp;GAAP&#148;). Effect has been given in the
consolidated financial statements to adjustments which have not
been entered in the companies&#146; general books of account
maintained principally in accordance with accounting practices
prevailing in the countries of incorporation. Major adjustments
include those relating to accounting for derivative instruments
and hedging activities, recognition of expected losses on
purchase and sale commitments, accounting for certain
investments including non-monetary exchange of investments,
accounting for warrants, accounting for pension costs and
severance indemnities, recognition of installment sales on the
accrual basis of accounting, accounting for business
combinations, accounting for goodwill and other intangible
assets, accounting for asset retirement obligations, accounting
for consolidation of variable interest entities and accounting
for leasing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subsequent to the issuance of the consolidated financial
statements for the year ended March&nbsp;31, 2004, the companies
decided to classify financing revenues and costs of certain
subsidiaries engaged mainly in external consumer financing from
interest expense, net of interest income to other sales and cost
of other sales, respectively. This change reflects the growing
financing operations of the subsidiaries and has been made to
more fairly present their financing transactions in the
Statements of Consolidated Income. Specifically, the companies
reclassified the financing revenues and costs from interest
expense, net of interest income to other sales and cost of other
sales, respectively, and restated the Statements of Consolidated
Income for the prior years to conform to the current year
presentation. As a result of this restatement, other sales, cost
of other sales and gross profit increased by
&#165;6,938&nbsp;million, &#165;1,887&nbsp;million and
</DIV>

<P align="center" style="font-size: 10pt;">F-10

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&#165;5,051&nbsp;million, respectively, and interest expense,
net of interest income increased by &#165;5,051&nbsp;million,
which was net by the decrease in interest income of
&#165;6,938&nbsp;million, in the Statements of Consolidated
Income for the year ended March&nbsp;31, 2004. Also, other
sales, cost of other sales and gross profit increased by
&#165;4,867&nbsp;million, &#165;1,778&nbsp;million and
&#165;3,089&nbsp;million, respectively, and interest expense,
net of interest income increased by &#165;3,089&nbsp;million,
which was net by the decrease in interest income of
&#165;4,867&nbsp;million, in the Statements of Consolidated
Income for the year ended March&nbsp;31, 2003. This restatement
had no impact on net income or shareholders&#146; equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total trading transactions, as presented in the accompanying
Statements of Consolidated Income, are a voluntary disclosure as
permitted by Financial Accounting Standards Board
(&#147;FASB&#148;) Emerging Issues Task Force Issue
(&#147;EITF&#148;) No.&nbsp;99-19, &#147;Reporting Revenue Gross
as a Principal versus Net as an Agent,&#148; and represent the
gross transaction volume or the aggregate nominal value of the
sales contracts in which the companies act as principal and
transactions in which the companies serve as agent. Total
trading transactions should not be construed as equivalent to,
or a substitute or a proxy for, revenues, or as an indicator of
the companies&#146; operating performance, liquidity or cash
flows generated by operating, investing or financing activities.
The companies have included the gross transaction volume
information because similar Japanese trading companies have
generally used it as an industry benchmark. As such, management
believes that total trading transactions are a useful supplement
to the results of operations information for users of the
consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>II.</B></TD>
    <TD>
    <B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Consolidation</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The consolidated financial statements include the accounts of
the Company, its majority-owned domestic and foreign
subsidiaries, the variable interest entities (&#147;VIEs&#148;)
where the Company or one of its subsidiaries is a primary
beneficiary, and its proportionate shares of the assets,
liabilities, revenues and expenses of certain of its oil and gas
producing, and mining unincorporated joint ventures in which the
companies own an undivided interest in the assets, and pursuant
to the joint venture agreements, are severally liable for their
share of each liability. The VIEs are defined by FASB
Interpretation (&#147;FIN&#148;) No.&nbsp;46,
&#147;Consolidation of Variable Interest Entities (revised
December 2003)&nbsp;&#151; an Interpretation of ARB
No.&nbsp;51&#148; (&#147;FIN No.&nbsp;46R&#148;). The
unincorporated joint ventures proportionately consolidated by
the companies include but are not limited to WA-28-L&nbsp;J/V
(40%), Oman Block&nbsp;9 J/V (35%), Wandoo Oil Field J/V (40%),
Robe River Iron Associates J/V (33%), German Creek J/V (30%) and
Moura J/V (49%).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The difference between the cost of investments in VIEs which are
not a business and the equity in the fair value of the net
assets at the dates of acquisition is accounted for as an
extraordinary gain or loss while the excess of the cost of
investments in other subsidiaries over the equity in the fair
value of the net assets at the dates of acquisition is accounted
for as goodwill.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain subsidiaries with a fiscal year-end on or after
December&nbsp;31, but prior to the parent company&#146;s fiscal
year-end of March&nbsp;31, are included on the basis of the
subsidiaries&#146; respective fiscal year-end.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Foreign currency translation</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Foreign currency financial statements have been translated in
accordance with Statement of Financial Accounting Standards
(&#147;SFAS&#148;) No.&nbsp;52, &#147;Foreign Currency
Translation.&#148; Pursuant to this statement, the assets and
liabilities of foreign subsidiaries and associated companies are
translated into Japanese yen at the respective year-end exchange
rates. All income and expense accounts are translated at average
rates of exchange. The resulting translation adjustments are
included in accumulated other comprehensive income.
</DIV>

<P align="center" style="font-size: 10pt;">F-11

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Receivables and payables denominated in foreign currencies are
translated into Japanese yen at year-end exchange rates with the
resulting gains and losses recognized in earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Cash equivalents</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Cash equivalents are defined as short-term (original maturities
of three months or less), highly liquid investments which are
readily convertible into cash and have no significant risk of
change in value including certificates of deposit, time
deposits, financing bills and commercial papers with original
maturities of three months or less.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Allowance for doubtful receivables</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with SFAS&nbsp;No.&nbsp;114, &#147;Accounting by
Creditors for Impairment of a Loan&nbsp;&#151; an amendment of
FASB Statements No.&nbsp;5 and 15,&#148; an impairment loss for
a specific loan deemed to be impaired is measured based on the
present value of expected cash flows discounted at the
loan&#146;s original effective interest rate or the fair value
of the collateral if the loan is collateral dependent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An allowance for doubtful receivables is recognized for all
receivables not subject to the accounting requirement of
SFAS&nbsp;No.&nbsp;114 based primarily upon the companies&#146;
credit loss experiences and an evaluation of potential losses in
the receivables.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Inventories</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Inventories, consisting mainly of commodities and materials for
resale, are stated at the lower of cost, principally on the
specific-identification basis, or market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Derivative instruments and hedging activities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with SFAS&nbsp;No.&nbsp;133, &#147;Accounting for
Derivative Instruments and Hedging Activities,&#148; as amended
by SFAS&nbsp;No.&nbsp;138, &#147;Accounting for Certain
Derivative Instruments and Certain Hedging
Activities&nbsp;&#151; an amendment of FASB Statement
No.&nbsp;133,&#148; and SFAS&nbsp;No.&nbsp;149, &#147;Amendment
of Statement&nbsp;133 on Derivative Instruments and Hedging
Activities,&#148; all derivative instruments are recognized and
measured at fair value as either assets or liabilities in the
Consolidated Balance Sheets. The accounting for changes in the
fair value depends on the intended use of the derivative
instruments and its resulting hedge designation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies enter into derivative commodity instruments, such
as future, forward, option and swap contracts, as a means of
hedging the exposure to changes in the fair value of inventories
and unrecognized firm commitments and the exposure to
variability in the expected future cash flows from forecasted
transactions, principally for non-ferrous metals, crude oil and
agricultural products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in the fair value of derivative commodity instruments,
designated and effective as fair value hedges, are recognized in
sales of products or cost of products sold as offsets to changes
in the fair value of the hedged items. Changes in the fair value
of derivative commodity instruments, designated and effective as
cash flow hedges, are initially recorded as other comprehensive
income and reclassified into earnings as sales of products or
cost of products sold when the hedged transactions affect
earnings. Changes in the fair value of the ineffective portion
are recognized in sales of products or cost of products sold
immediately.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in the fair value of derivative commodity instruments,
for which hedge requirements are not met under
SFAS&nbsp;No.&nbsp;133, are currently recognized in sales of
products or cost of products sold without any offsetting changes
in the fair value of the hedged items.
</DIV>

<P align="center" style="font-size: 10pt;">F-12

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company and certain subsidiaries also enter into agreements
for derivative commodity instruments as a part of their trading
activities. These derivative instruments are marked to market
and gains or losses resulting from these contracts are reported
in other sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in the fair value of all open positions of precious
metals traded in terminal (future) markets are recognized in
other sales in order to reflect the fair value of commodity
trading transactions consisting of inventories, unrecognized
firm commitments and derivative commodity instruments as a whole.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies enter into derivative financial instruments such
as interest rate swap agreements, foreign exchange forward
contracts, currency swap agreements, and interest rate and
currency swap agreements as a means of hedging their interest
rate and foreign exchange exposure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in the fair value of interest rate swap agreements,
designated and effective as fair value hedges for changes in the
fair value of fixed-rate financial assets or liabilities
attributable to changes in the designated benchmark interest
rate, are recognized in interest expense, net of interest income
as offsets to changes in the fair value of hedged items. Changes
in the fair value of interest rate swap agreements, designated
and effective as cash flow hedges for changes in the cash flows
of floating-rate financial assets or liabilities attributable to
changes in the designated benchmark interest rate, are initially
recorded in other comprehensive income and reclassified into
earnings as interest expense, net of interest income when the
hedged transactions affect earnings. Changes in the fair value
of the ineffective portion are recognized in interest expense,
net of interest income immediately.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in the fair value of foreign exchange forward contracts
and currency swap agreements, designated and effective as cash
flow hedges for changes in the cash flows of
foreign-currency-denominated assets or liabilities, unrecognized
firm commitments and forecasted transactions attributable to
changes in the related foreign currency exchange rate, are
initially recorded in other comprehensive income and
reclassified into earnings as foreign exchange gains or losses
when the hedged transactions affect earnings. Changes in the
fair value of the ineffective portion are recognized in foreign
exchange gains or losses immediately.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in the fair value of interest rate and currency swap
agreements, designated and effective as fair value hedges or
cash flow hedges for changes in the fair values or cash flows of
foreign-currency-denominated assets or liabilities attributable
to changes in the designated benchmark interest rate or the
related foreign currency exchange rate are recorded as either
earnings or other comprehensive income depending on the
treatment of foreign currency hedges as fair value hedges or
cash flow hedges.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in the fair value of derivative financial instruments,
for which hedge requirements are not met under
SFAS&nbsp;No.&nbsp;133, are currently recognized in interest
expense, net of interest income for interest rate swap
agreements and in foreign exchange gains or losses for foreign
exchange forward contracts, currency swap agreements and
interest rate and currency swap agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company and certain subsidiaries also enter into agreements
for certain derivative financial instruments as a part of their
trading activities. These derivative instruments are marked to
market and the related gains or losses are reported in interest
expense, net of interest income for interest rate swap
agreements and in other sales for foreign exchange forward
contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies use non-derivative financial instruments, such as
foreign-currency-denominated debt, in order to reduce the
foreign currency exposure in the net investment in a foreign
operation. The foreign currency transaction gains or losses on
these instruments, designated as and effective as hedging
instruments, are deferred and recorded as foreign currency
translation adjustments within other
</DIV>

<P align="center" style="font-size: 10pt;">F-13

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
comprehensive income to the extent they are effective as hedge.
These amounts are only recognized in income upon the complete or
partial sale of the related investment or the complete
liquidation of the investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the Statements of Consolidated Cash Flows, cash flows from
derivative commodity instruments and derivative financial
instruments that qualify for hedge accounting are included in
the same category as the items being hedged.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Debt and marketable equity securities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies classify debt and marketable equity securities, at
acquisition, into one of three categories: held-to-maturity,
available-for-sale or trading under provisions of
SFAS&nbsp;No.&nbsp;115, &#147;Accounting for Certain Investments
in Debt and Equity Securities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Trading securities are carried at fair value and unrealized
holding gains and losses are included in earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Debt securities are classified as held-to-maturity and measured
at amortized cost in the Consolidated Balance Sheets only if the
companies have the positive intent and ability to hold those
securities to maturity. Premiums and discounts amortized in the
period are included in interest income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Debt and marketable equity securities other than those
classified as trading or held-to-maturity securities are
classified as available-for-sale securities and carried at fair
value with related unrealized holding gains and losses reported
in accumulated other comprehensive income in shareholders&#146;
equity on a net-of-tax basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For other than a temporary decline in the value of debt and
marketable equity securities below their cost or amortized cost,
the investment is reduced to its fair value, which becomes the
new cost basis of the investment. The amount of the reduction is
reported as a loss for the year in which such determination is
made. Various factors, such as the extent which the cost exceeds
the market value, the duration of the market decline, the
financial condition and near-term prospects of the issuer, and
the intent and ability to retain the investment for a period of
time sufficient to allow for any anticipated recovery in market
value, are reviewed to judge whether the decline is other than
temporary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The cost of debt and marketable securities sold is determined
based on the moving-average cost method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Non-marketable equity securities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Non-marketable equity securities are carried at cost. When other
than a temporary decline in the value of such securities below
their cost occurs, the investment is reduced to its fair value
and an impairment loss is recognized. Various factors, such as
the financial condition and near-term prospects of the issuer,
are reviewed to judge whether it is other than temporary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The cost of non-marketable equity securities sold is determined
based on the moving-average cost method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Investments in associated companies</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Investments in associated companies (investees owned 20% to 50%,
corporate joint ventures and other investees over which the
companies have the ability to exercise significant influence)
and noncontrolling investments in general partnerships, limited
partnerships and limited liability companies are accounted for
under the equity method, after appropriate adjustments for
intercompany profits and dividends. The differences between the
cost of such investments and the companies&#146; equity in the
underlying fair value of
</DIV>

<P align="center" style="font-size: 10pt;">F-14

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
the net assets of associated companies at the dates of
acquisition are recognized as equity method goodwill.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For other than a temporary decline in the value of investments
in associated companies below the carrying amount, the
investment is reduced to its fair value and an impairment loss
is recognized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Leasing</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies are engaged in lease financing consisting of
direct financing leases and leveraged leases, and in operating
leases of properties. For direct financing leases, unearned
income is amortized to income over the lease term at a constant
periodic rate of return on the net investment. Income on
leveraged leases is recognized over the life of the lease at a
constant rate of return on the positive net investment. Initial
direct costs are deferred and amortized using the interest
method over the lease period. Operating lease income is
recognized as other sales over the term of underlying leases on
a straight-line basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies are also lessees of various assets. Rental
expenses on operating leases are recognized over the respective
lease terms using the straight-line method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Property and equipment</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Property and equipment are stated at cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Depreciation of property and equipment (including property
leased to others) is computed principally under the
declining-balance method for assets located in Japan and under
the straight-line method for assets located outside Japan, using
rates based upon the estimated useful lives of the related
property and equipment. The estimated useful lives for
buildings, equipment and fixtures, and vessels are primarily 8
to 65&nbsp;years, 2 to 30&nbsp;years, and 13 to 20&nbsp;years,
respectively. Mineral rights are amortized over their respective
estimated useful lives, which are 14 to 20&nbsp;years, using the
straight-line method or the unit-of-production method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Leasehold improvements are amortized over the lesser of the
useful life of the improvement or the term of the underlying
lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Significant renewals and additions are capitalized at cost.
Maintenance and repairs, and minor renewals and betterments are
charged to expense as incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Impairment of long-lived assets</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with SFAS&nbsp;No.&nbsp;144, &#147;Accounting for
the Impairment or Disposal of Long-Lived Assets,&#148;
long-lived assets to be held and used or to be disposed of other
than by sale are reviewed, by using undiscounted future cash
flows, for impairment whenever events or changes in
circumstances indicate that the carrying amount of the assets
may not be recoverable. If the sum of the expected future cash
flows is less than the carrying amount of the asset, an
impairment loss is recognized. Such impairment loss is measured
as the amount by which the carrying amount of the asset exceeds
its fair value. Long-lived assets to be disposed of by sale are
reported at the lower of carrying amount or fair value less cost
to sell.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Business combinations</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with SFAS&nbsp;No.&nbsp;141, &#147;Business
Combinations,&#148; the purchase method of accounting is used
for all business combinations. The companies separately
recognize and report acquired intangible assets as goodwill or
other intangible assets. Any excess of fair value of acquired
net assets over cost arising from a business combination is
immediately recognized as an extraordinary gain.
</DIV>

<P align="center" style="font-size: 10pt;">F-15

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The cumulative effect of a change in accounting principles on
the write-off of any unamortized deferred credit as of
April&nbsp;1, 2002 was immaterial.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Goodwill and other intangible assets</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with SFAS&nbsp;No.&nbsp;142, &#147;Goodwill and
Other Intangible Assets,&#148; goodwill is not amortized but
tested for impairment annually or more frequently if impairment
indicators arise. Identifiable intangible assets with a finite
useful life are amortized over their respective estimated useful
lives and reviewed for impairment in accordance with
SFAS&nbsp;No.&nbsp;144. Any identifiable intangible asset
determined to have an indefinite useful life is not amortized,
but instead tested for impairment in accordance with
SFAS&nbsp;No.&nbsp;142 until its useful life is determined to be
no longer indefinite.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity method goodwill is reviewed for impairment as a part of
other than a temporary decline in the value of investments in
associated companies below the carrying amount in accordance
with Accounting Principles Board (&#147;APB&#148;) Opinion
No.&nbsp;18, &#147;The Equity Method of Accounting for
Investments in Common Stock.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies completed the transitional impairment test for
goodwill as of April&nbsp;1, 2002 in accordance with
SFAS&nbsp;No.&nbsp;142 and determined that the fair value of the
reporting units including goodwill was in excess of their
carrying amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Intangible assets subject to amortization consist primarily of
software, unpatented technologies, trademarks, patents and
customer relationships which are amortized over their respective
estimated useful lives using the straight-line method. The
estimated useful lives for software, unpatented technologies,
trademarks, patents and customer relationships are 3 to
5&nbsp;years, 10&nbsp;years, 5 to 10&nbsp;years, 5 to
8&nbsp;years and 10 to 30&nbsp;years, respectively. Intangible
assets not subject to amortization mainly consist of land rights
and trademarks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies completed the transitional reassessment of the
useful lives of identifiable intangible assets as of
April&nbsp;1, 2002. The companies also completed the
transitional impairment test for intangible assets not subject
to amortization and determined that they are not impaired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Oil and gas producing activities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Oil and gas exploration and development costs are accounted for
using the successful efforts method of accounting. The costs of
acquiring properties, costs of drilling and equipping
exploratory wells, and costs of development wells and related
plant and equipment are capitalized, and amortized using the
unit-of-production method. Exploratory well costs are expensed,
if economically recoverable reserves are not found. Other
exploration costs, such as geological and geophysical costs, are
expensed as incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with SFAS&nbsp;No.&nbsp;144, proved properties are
reviewed for impairment whenever events or changes in
circumstances indicate that the carrying value may not be
recoverable. If the proved properties are determined to be
impaired, an impairment loss is recognized based on the fair
value. Unproven properties are assessed annually for impairment
in accordance with the guidance in SFAS&nbsp;No.&nbsp;19,
&#147;Financial Accounting and Reporting by Oil and Gas
Producing Companies,&#148; with any impairment charged to
expense. The companies&#146; policy is to consider the unproved
properties not impaired if the estimated reserves of those
properties can be established to be economically viable.
Economically viable means that they may be developed in such a
way that it is probable that over their project lives they will
generate, at a minimum, zero net cash flow on an undiscounted
pre-tax basis, based on current prices. For the purpose of this
test, the current price is the price at the end of the period
for which the review is conducted for the reserves concerned.
</DIV>

<P align="center" style="font-size: 10pt;">F-16

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Mining operations</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Mining exploration costs are expensed as incurred until the
mining project has been established as commercially viable by a
final feasibility study. Once established as commercially
viable, costs are capitalized as development costs and are
amortized using the unit-of-production method or straight-line
method based on the proven and probable reserves.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In open pit mining operations, it is necessary to remove
overburden and other waste materials to access mineral deposits.
The costs of removing waste materials are referred to as
&#147;stripping costs.&#148; During the development of a mine,
before production commences, such costs are generally
capitalized as part of the development costs. Removal of waste
materials continues during the production stage of the mine.
Such post-production stripping costs are variable production
costs to be considered a component of mineral inventory costs
and are recognized as a component of costs of products sold in
the same period as the related revenues from the sales of the
minerals. Depending on the configuration of the mineral
deposits, the post-production stripping costs could lead to a
lower of cost or market inventory adjustment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Asset retirement obligations</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with SFAS&nbsp;No.&nbsp;143, &#147;Accounting for
Asset Retirement Obligations,&#148; the companies record the
fair value of a liability for an asset retirement obligation in
the period in which it is incurred. When the liability is
initially recorded, the companies capitalize the related cost by
increasing the carrying amount of the long-lived asset. Over
time, the liability is accreted to its present value each
period, and the capitalized cost is depreciated over the useful
life of the related asset.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Pension and severance indemnities plans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies have pension plans and/or severance indemnities
plans covering substantially all employees other than directors.
The costs of the pension plans and severance indemnities plans
are accrued based on amounts determined using actuarial methods,
in accordance with SFAS&nbsp;No.&nbsp;87, &#147;Employers&#146;
Accounting for Pensions.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Guarantees</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with FIN&nbsp;No.&nbsp;45, &#147;Guarantor&#146;s
Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others&nbsp;&#151; an
Interpretation of FASB Statements No.&nbsp;5, 57 and 107 and
rescission of FASB Interpretation No.&nbsp;34,&#148; the
companies recognize, at the inception of a guarantee, a
liability for the fair value of the obligation undertaken for
the guarantee issued or modified after December&nbsp;31, 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Revenue recognition</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies recognize revenues when they are realized or
realizable and earned. Revenues are realized or realizable and
earned when the companies have persuasive evidence of an
arrangement, the goods have been delivered or the services have
been rendered to the customer, the sales price is fixed or
determinable and collectibility is reasonably assured. In
addition to this general policy, the following are specific
revenue recognition policies:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Sales of products</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales of products include the sales of various products as a
principal in the transactions, the manufacture and sale of a
wide variety of products such as metals, chemicals, foods and
general consumer merchandise, the development of natural
resources such as coal, iron ore, oil and gas, and the
development and sale of real estate. The companies recognize
those revenues at the time the delivery conditions agreed
</DIV>

<P align="center" style="font-size: 10pt;">F-17

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
with customers are met. These conditions are usually considered
to have been met when the goods are received by the customer,
the title to the warehouse receipts are transferred, or the
implementation testing is duly completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For long-term construction contracts such as railroad projects,
depending on the nature of the contract, revenues are accounted
for by the percentage-of-completion method if costs to complete
and extent of progress toward completion of long-term contracts
are reasonably dependable, otherwise the companies use the
completed contract method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company and certain subsidiaries enter into buy/sell
arrangements, mainly relating to transactions of crude oil and
petroleum products. Under buy/sell arrangements, which are
entered into primarily to optimize supply or demand
requirements, the Company and certain subsidiaries agree to buy
(sell) a specific quality and quantity of commodities to be
delivered at a specific location and/or time while agreeing to
sell (buy) the same quality and quantity of the commodities at a
different location and/or time to the same counterparty. The
buy/sell arrangements are reported on a net basis in the
Statements of Consolidated Income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Sales of services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales of services include the revenues from trading margins and
commissions related to various trading transactions in which the
companies act as a principal or an agent. Specifically, the
companies charge a commission for the performance of various
services such as logistic and warehouse services, information
and communication services, and technical support. For some
back-to-back sales and purchase transactions of products, the
companies act as a principal and record the net amount of sales
and purchase prices as revenues. The companies also facilitate
conclusion of the contracts between manufacturers and customers
and deliveries for the products between suppliers and customers.
Revenues from service related businesses are recorded as
revenues when the contracted services are rendered to
third-party customers pursuant to the agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Other sales</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other sales principally include the revenues from leasing
activities of real estate, aircraft, ocean transport vessels,
rolling stock and equipment, the revenues from derivative
commodity instruments and derivative financial instruments held
for trading purposes, and the revenues from external consumer
financing. See accounting policies for leasing and derivative
instruments and hedging activities for the revenue recognition
policies regarding leasing and derivative transactions,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Research and development expenses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Research and development costs are charged to expenses when
incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Advertising expenses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Advertising costs are charged to expenses when incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Issuance of stock by subsidiaries and associated
companies</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
A subsidiary or an associated company may issue its shares to
third parties at amounts per share in excess of or less than the
Company&#146;s average per share carrying value. With respect to
such transactions, the resulting gains or losses arising from
the change in equity interest are recorded in income for the
year in which such shares are issued.
</DIV>

<P align="center" style="font-size: 10pt;">F-18

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Income taxes</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Income tax expense is based on reported earnings before income
taxes. Deferred income taxes reflect the impact of temporary
differences between assets and liabilities recognized for
financial reporting purposes and such amounts recognized for tax
purposes and tax loss carryforwards. These deferred taxes are
measured using the currently enacted tax rates in effect for the
year in which the temporary differences or tax loss
carryforwards are expected to reverse. Valuation allowances are
established when it is more likely than not that some or all of
the deferred tax assets will not be realized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Net income per share</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Basic net income per share is computed by dividing net income by
the weighted-average number of common shares outstanding for the
period. Diluted net income per share reflects the potential
dilution as a result of issuance of shares upon conversion of
the companies&#146; convertible bonds.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>III.</B></TD>
    <TD>
    <B>RECLASSIFICATION</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Certain reclassifications and format changes have been made to
prior year amounts to conform to the current year presentation.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>IV.</B></TD>
    <TD>
    <B>NEW ACCOUNTING STANDARDS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The meaning of other-than-temporary impairment and its
application to certain investments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In Issue No.&nbsp;03-1, &#147;The Meaning of
Other-than-Temporary Impairment and Its Application to Certain
Investments,&#148; the FASB Emerging Issues Task Force reached a
consensus in November 2003 on certain quantitative and
qualitative disclosures about unrealized losses on debt and
marketable equity securities and also reached a consensus in
March 2004 on the application of a three-step impairment model
for certain investments in securities and disclosures about
investments accounted for under the cost method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The three-step impairment model of investments was planned to be
effective for reporting periods beginning after June&nbsp;15,
2004, however, in September 2004, the FASB issued FASB Staff
Position (&#147;FSP&#148;) No.&nbsp;EITF Issue&nbsp;03-1-1 which
delayed the effective date for Step 2 and Step 3 of the
three-step impairment model until the final issuance of FSP
No.&nbsp;EITF Issue&nbsp;03-1-a.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The effect of adoption of this consensus on the companies&#146;
financial position and results of operations will be immaterial
as long as the current market environment remains unchanged.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Investments in limited liability companies
(&#147;LLCs&#148;)</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
During the year ended March&nbsp;31, 2005, the companies adopted
EITF No.&nbsp;03-16, &#147;Accounting for Investments in Limited
Liability Companies.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EITF No.&nbsp;03-16 requires investments of more than 3% to 5%
in an LLC that maintain a specific ownership account for each
investor be accounted for under the equity method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The effect of adoption of this consensus on the companies&#146;
financial position and results of operations was immaterial.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Classification of mineral rights</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
During the year ended March&nbsp;31, 2005, the companies adopted
EITF No.&nbsp;04-2, &#147;Whether Mineral Rights are Tangible or
Intangible Assets,&#148; and FSP Nos. FAS&nbsp;141-1 and
FAS&nbsp;142-1 which amend SFAS&nbsp;No.&nbsp;141 and
SFAS&nbsp;No.&nbsp;142. EITF No.&nbsp;04-2, FSP Nos.
FAS&nbsp;141-1 and FAS&nbsp;142-1 require mineral
</DIV>

<P align="center" style="font-size: 10pt;">F-19

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
rights held by mining entities other than oil- and gas-
producing entities that are within the scope of
SFAS&nbsp;No.&nbsp;19 be accounted for as tangible assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies adopted FSP No.&nbsp;FAS&nbsp;142-2,
&#147;Application of FASB Statement No.&nbsp;142, Goodwill and
Other Intangible Assets, to Oil- and Gas-Producing
Entities.&#148; FSP No.&nbsp;FAS&nbsp;142-2 requires the scope
exception required by SFAS&nbsp;No.&nbsp;142 to be extended to
the balance sheet classification and disclosures for drilling
and mineral rights held by oil- and gas-producing entities that
are within the scope of SFAS&nbsp;No.&nbsp;19.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon adoption of these consensus and guidances, all mineral
rights that had been classified as intangible assets in the
Consolidated Balance Sheets as of March&nbsp;31, 2004 were
reclassified as tangible assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Inventory costs</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In November 2004, the FASB issued SFAS&nbsp;No.&nbsp;151,
&#147;Inventory Costs&nbsp;&#151; an amendment of ARB
No.&nbsp;43, Chapter&nbsp;4.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SFAS&nbsp;No.&nbsp;151 requires that abnormal amounts of idle
facility expense, freight, handling costs, and wasted material
(spoilage)&nbsp;should be recognized as current-period charges.
In addition, SFAS&nbsp;No.&nbsp;151 requires that allocation of
fixed production overheads to the costs of conversion be based
on the normal capacity of the production facilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SFAS&nbsp;No.&nbsp;151 is effective for inventory costs incurred
during fiscal years beginning after June&nbsp;15, 2005. The
effect of adoption of this statement on the companies&#146;
financial position and results of operations is not currently
known and cannot be reasonably estimated until further analysis
is completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Exchanges of nonmonetary assets</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In December 2004, the FASB issued SFAS&nbsp;No.&nbsp;153,
&#147;Exchanges of Nonmonetary Assets&nbsp;&#151; an amendment
of APB Opinion No.&nbsp;29.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SFAS&nbsp;No.&nbsp;153 eliminates the exception to fair value
measurement for nonmonetary exchanges of similar productive
assets and replaces it with a general exception to fair value
measurement for exchanges of nonmonetary assets that do not have
commercial substance. A nonmonetary exchange has commercial
substance if the future cash flows of the entity are expected to
change significantly as a result of the exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SFAS&nbsp;No.&nbsp;153 is effective for nonmonetary asset
exchanges occurring in fiscal periods beginning after
June&nbsp;15, 2005. The effect of adoption of this statement on
the companies&#146; financial position and results of operations
is not currently known and cannot be reasonably estimated until
further analysis is completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Share-based payment</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In December 2004, the FASB issued SFAS&nbsp;No.&nbsp;123
(revised 2004), &#147;Share-Based Payment&#148;
(&#147;SFAS&nbsp;No.&nbsp;123R&#148;). SFAS&nbsp;No.&nbsp;123R
requires the compensation cost from share-based payment
transactions to be recognized in the financial statements. The
amount of the compensation cost is measured based on the
grant-date fair value of the equity instruments issued or the
liabilities incurred. In addition, the award of liability
instruments will be remeasured at the end of each reporting
period. The compensation cost is recognized over the requisite
service period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April 2005, the U.S.&nbsp;Securities and Exchange Commission
adopted a new rule which amends the effective dates for
SFAS&nbsp;No.&nbsp;123R. Under the new rule,
SFAS&nbsp;No.&nbsp;123R is effective for fiscal years beginning
after June&nbsp;15, 2005. The effect of adoption of this
statement on the companies&#146; financial
</DIV>

<P align="center" style="font-size: 10pt;">F-20

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
position and results of operations is not currently known and
cannot be reasonably estimated until further analysis is
completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Accounting for stripping costs incurred during production
in the mining industry</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In March 2005, the FASB Emerging Issues Task Force reached a
consensus on Issue No.&nbsp;04-6 (&#147;EITF
No.&nbsp;04-6&#148;), &#147;Accounting for Stripping Costs
Incurred during Production in the Mining Industry.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EITF No.&nbsp;04-6 requires that stripping costs incurred during
the production stage of the mine are variable production costs
that should be considered a component of mineral inventory costs
and are recognized as a component of costs of sales in the same
period as the revenue from the sale of the inventory.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EITF No.&nbsp;04-6 is effective for fiscal years beginning after
December&nbsp;15, 2005. The effect of adoption of this consensus
on the companies&#146; financial position and results of
operations will be immaterial.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Conditional asset retirement obligations</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In March 2005, the FASB issued FIN&nbsp;No.&nbsp;47,
&#147;Accounting for Conditional Asset Retirement
Obligations&nbsp;&#151; an interpretation of FASB Statement
No.&nbsp;143.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
FIN&nbsp;No.&nbsp;47 clarifies that an entity is required to
recognize a liability for the fair value of a legal obligation
to perform asset retirement activities that are conditional on a
future event if the amount can be reasonably estimated.
FIN&nbsp;No.&nbsp;47 also clarifies when an entity would have
sufficient information to reasonably estimate the fair value of
an asset retirement obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
FIN&nbsp;No.&nbsp;47 is effective for fiscal years ending after
December&nbsp;15, 2005. The effect of adoption of this
interpretation on the companies&#146; financial position and
results of operations will be immaterial.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>V.</B></TD>
    <TD>
    <B>USE OF ESTIMATES IN THE PREPARATION OF THE CONSOLIDATED
    FINANCIAL STATEMENTS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The preparation of consolidated financial statements in
conformity with U.S.&nbsp;GAAP requires management to make
estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements
and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those
estimates.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>3.</B></TD>
    <TD>
    <B>BUSINESS COMBINATIONS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>For the year ended March&nbsp;31, 2005</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The following are the primary business combinations, which were
completed during the year ended March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Cornerstone Nutritional Labs, LLC</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
On December&nbsp;21, 2004, CornerStone Research&nbsp;&#38;
Development, Inc., a wholly owned subsidiary of
Mitsui&nbsp;&#38; Co. (U.S.A.), Inc.
(&#147;Mitsui&nbsp;USA&#148;, a wholly owned subsidiary of the
Company) agreed with Cornerstone Nutritional Labs, LLC
(&#147;Cornerstone&#148;) to take over its nutraceutical
business by acquiring substantially all of the assets used in
the business for U.S.$84.5&nbsp;million. Cornerstone covers
every aspect of nutraceutical production including raw material
sourcing, blending, encapsulation and packaging in addition to
new product development and sells its products to wholesalers
mainly throughout the United States and Canada.
</DIV>

<P align="center" style="font-size: 10pt;">F-21

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Demand for nutraceuticals in the U.S.&nbsp;market, which is one
of the largest supplements markets in the world, has been
continuously growing. By acquiring Cornerstone&#146;s business
through Mitsui USA, which had sold raw materials for supplements
to Cornerstone, the companies have established a vertically
integrated business structure from raw material sourcing to
manufacturing end products and believe the acquisition will
contribute to the companies&#146; business performance. This
acquisition is consistent with the companies&#146; core
strategy, which places strategic investments in the medical and
healthcare field.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements for the year ended
March&nbsp;31, 2005 include the operating results of Cornerstone
from the date of acquisition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The purchase price was determined based on expected future cash
flows Cornerstone will generate. The excess of the purchase
price over the fair value of net assets acquired was recorded as
goodwill. The significant factors that contributed to the
determination of the purchase price that resulted in the
recognition of goodwill include the following: (1)&nbsp;the
growth potential of Cornerstone&#146;s supplements business due
to an increased demand by major supplement makers to contract
manufacturers including Cornerstone to provide every aspect of
nutraceutical production and (2)&nbsp;the synergies that might
be achieved from combining the operations with the Company and
Mitsui USA&#146;s supplements businesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with this acquisition, &#165;4,395&nbsp;million
and &#165;3,490&nbsp;million were assigned to intangible assets
subject to amortization and goodwill, respectively. The
intangible assets subject to amortization consist primarily of
customer relationships of &#165;4,093&nbsp;million with an
amortization period of ten years. The goodwill is deductible for
tax purposes and has been assigned to the Americas Segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the estimated fair values of the
assets acquired and liabilities assumed at the date of
acquisition:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,174</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>209</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,885</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,268</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,414</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total liabilities assumed</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,414</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,854</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pro forma results of operations for the above business
combination have not been presented because the effects were not
material to the consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>NextCom K.K.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
BSI Co., Ltd. (&#147;BSI,&#148; a wholly owned subsidiary of the
Company), ADAM NET Ltd. (&#147;ADAM NET,&#148; a 92.3% owned
subsidiary of the Company) and NextCom K.K.
(&#147;NextCom,&#148; a 31.2% owned associated company of the
Company accounted for under the equity method) entered into a
merger agreement on September&nbsp;10, 2004 and merged on
December&nbsp;11, 2004. NextCom remains as the surviving company
among them. In conjunction with the merger, NextCom issued its
own stocks to each shareholder of BSI and ADAM NET. As a result,
the Company&#146;s ownership of voting shares of NextCom rose by
16.5% to 47.7%. Upon the merger, by sending a major part of
board members, the companies took control of the decision making
by the NextCom&#146;s board of directors, and consequently,
NextCom became a subsidiary of the Company. This exchange
transaction was accounted for as partial sales of shares of BSI
and ADAM NET previously owned by the Company and partial
acquisitions of shares of NextCom. As a result of the
</DIV>

<P align="center" style="font-size: 10pt;">F-22

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
partial sales transaction, the companies recognized a gain of
&#165;3,715&nbsp;million in gain on sales of
securities&nbsp;&#151; net during the year ended March&nbsp;31,
2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NextCom is engaged in the development and distribution of
networking equipment, the consultation of network building, and
system integration as its main businesses, and also provides
other services relating to the above main businesses in Japan.
The companies have designated network integration and system
integration businesses, which are expected to be high growth
businesses along with growth in the broadband network market, as
strategic initiatives, and aim to build a framework which
creates synergies of comprehensive services including both
upstream and downstream services in the information technology
industry for the purpose of maximizing the companies&#146;
profit. This acquisition is consistent with the companies&#146;
core strategy as mentioned above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements for the year ended
March&nbsp;31, 2005 include the operating results of NextCom as
a subsidiary from the date of acquisition, i.e., the date of the
merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since NextCom is listed on the Tokyo Stock Exchange, the
purchase price of the partial acquisitions was determined based
on the market price of the shares of NextCom over a reasonable
period of time before and after the terms of the acquisition
were agreed to and announced. The excess of the purchase price
of &#165;4,441&nbsp;million, over the fair value of net assets
acquired was recorded as goodwill. The significant factors that
contributed to the determination of the purchase price that
resulted in the recognition of goodwill include the following:
(1)&nbsp;the growth potential of NextCom by taking advantage of
scale, strengthening technological capabilities, and a
broadening customer base, which are brought about by the merger
of the three companies and (2)&nbsp;the synergies that might be
achieved from combining the operations with the companies&#146;
businesses. These factors are based on the expectations of
continuous growth of network integration and system integration
businesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with this acquisition, &#165;128&nbsp;million,
&#165;7&nbsp;million and &#165;3,063&nbsp;million were assigned
to intangible assets subject to amortization, intangible assets
not subject to amortization and goodwill, respectively. The
goodwill is not deductible for tax purposes and has been
assigned to the Machinery, Electronics&nbsp;&#38; Information
Segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the estimated fair values of the
assets acquired and liabilities assumed at the date of
acquisition:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16,995</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>908</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,198</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investments and other assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,488</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,589</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,270</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,356</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minority interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,981</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total liabilities assumed</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,607</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,982</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pro forma results of operations for the above business
combination have not been presented because the effects were not
material to the consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-23

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>For the year ended March&nbsp;31, 2004</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The following is a primary business combination, which was
completed during the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;30, 2003, the Company entered into an agreement with
Mitsui Norin Co., Ltd. (&#147;Mitsui Norin&#148;) to acquire the
newly issued shares of Mitsui Norin for &#165;6,400&nbsp;million
and completed the acquisition on August&nbsp;19, 2003, resulting
in the 85% ownership of voting shares of Mitsui Norin. Mitsui
Norin mainly manufactures and sells processed products of tea
and beverage material for tea.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to the acquisition, Mitsui Norin had suffered from a large
amount of impaired real estate investment made during the
Japanese bubble economy period. In connection with a revival
plan, Mitsui Norin exited the property development business and
focused its management resources on the profitable food
business. Having considered the plan, the Company decided to
acquire the newly issued shares to further strengthen Mitsui
Norin&#146;s competitiveness in the food businesses, which
consist mainly of manufacturing and sales of tea for home and
business use and leaves for tea beverages. The Company has a
strategic business plan to assist and expand the operations of
Mitsui Norin as a core consolidated subsidiary in the tea
material businesses conducted by the companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements for the year ended
March&nbsp;31, 2004 include the operating results of Mitsui
Norin from the date of acquisition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The purchase price was determined based on expected future cash
flows Mitsui Norin will generate. The excess of the purchase
price over the fair value of net assets acquired was recorded as
goodwill. The significant factors that contributed to the
determination of the purchase price that resulted in the
recognition of goodwill include the following: (1)&nbsp;Mitsui
Norin&#146;s long-term relationships with customers in the food
market, (2)&nbsp;growth potential of Mitsui Norin&#146;s tea
materials business and (3)&nbsp;the synergies that might be
achieved from combining the operations with the Company&#146;s
food businesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with this acquisition, &#165;16,607&nbsp;million,
&#165;2,387&nbsp;million and &#165;16,547&nbsp;million were
assigned to intangible assets subject to amortization,
intangible assets not subject to amortization and goodwill,
respectively. The intangible assets subject to amortization
consist primarily of unpatented technologies of
&#165;15,658&nbsp;million with an amortization period of ten
years. The intangible assets not subject to amortization consist
primarily of a trademark of &#165;2,375&nbsp;million. The
goodwill is deductible for tax purposes and has been assigned to
the Consumer Products&nbsp;&#38; Services Segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the estimated fair values of the
assets acquired and liabilities assumed at the date of
acquisition:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>30,736</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,162</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,541</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investments and other assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,263</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77,702</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(54,414</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,151</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minority interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,737</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total liabilities assumed</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(71,302</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-24

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pro forma results of operations for the above business
combination have not been presented because the effects were not
material to the consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>For the year ended March&nbsp;31, 2003</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The following is a primary business combination, which was
completed during the year ended March&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui&nbsp;&#38; Co. (E&#38;P) B.V. (a wholly owned Dutch
subsidiary of the Company) and MOECO International B.V. (a
wholly owned Dutch subsidiary of Mitsui Oil Exploration Co.,
Ltd., an associated company of the Company) acquired all the
outstanding shares of Fortum (E&#38;P) B.V., a wholly owned
Dutch subsidiary of Fortum Finance B.V., which is also a wholly
owned subsidiary of a Finnish energy company, Fortum Oyj. Fortum
(E&#38;P) B.V. held a 35% participating interest in the
oil-producing Block&nbsp;9 area in Oman. In the first quarter of
the year ended March&nbsp;31, 2003, Mitsui&nbsp;&#38; Co.
(E&#38;P) B.V. and MOECO International B.V. paid the equivalent
amount to the fair value of the net assets acquired and
completed the acquisition of Fortum (E&#38;P) B.V. The
proportion of acquired shares of Fortum (E&#38;P) B.V. is 60%
for Mitsui&nbsp;&#38; Co. (E&#38;P) B.V. and 40% for MOECO
International B.V. The companies changed the name of
&#147;Fortum (E&#38;P) B.V.&#148; into &#147;Mitsui E&#38;P
Middle East B.V.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Block&nbsp;9, the second largest oil field in Oman, is located
onshore about 300 kilometers west of the capital city, Muscat,
and is operated by Occidental Petroleum Corporation, which holds
the remaining 65% participating interest of the Block&nbsp;9.
Block&nbsp;9 has had a proven track record of production since
1984, and is expected to continue producing crude oil for
approximately 25&nbsp;years. The companies consider the
acquisition to be an excellent addition to their upstream
portfolios, providing stable cash inflows immediately after the
acquisition and over the long term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This acquisition is consistent with the companies&#146; core
strategy, which places the strategic investments in energy and
natural resources and aims to acquire excellent upstream assets
for the purpose of maintaining a stable earnings structure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements include the operating
results of Mitsui E&#38;P Middle East B.V. from the beginning of
the year ended March&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies acquired a mineral right in the Block&nbsp;9 area
as property and equipment for &#165;9,051&nbsp;million which is
being amortized using the unit-of-production method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the estimated fair values of the
assets acquired and liabilities assumed at the date of
acquisition:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,104</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,528</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,051</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,683</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,514</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minority interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,822</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total liabilities assumed</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,336</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,347</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pro forma results of operations for the above business
combination have not been presented because the effects were not
material to the consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-25

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>4.</B></TD>
    <TD>
    <B>DISCONTINUED OPERATIONS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with SFAS&nbsp;No.&nbsp;144, the companies present
the results of discontinued operations (including operations of
a subsidiary that either has been disposed of or is classified
as held for sale) as a separate line item in the Statements of
Consolidated Income under income (loss) from discontinued
operations&nbsp;&#151; net (after income tax effect). The
figures of the Statements of Consolidated Income and the
Statements of Consolidated Cash Flows for the prior years
related to the discontinued operations have been reclassified to
conform to the current year presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The carrying amounts of assets and liabilities of a disposal
group classified as held for sale were immaterial for the years
ended March&nbsp;31, 2005 and 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Summarized selected financial information for the years ended
March&nbsp;31, 2005, 2004 and 2003 for the discontinued
operations reclassified during the year ended March&nbsp;31,
2005 was as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shirasagi</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Golf Club</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>subsidiaries</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2005:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss from discontinued operations before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on disposal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,208</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(477</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(19</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(496</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income from discontinued operations&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>712</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,344</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss from discontinued operations before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(100</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,818</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,918</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax benefit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,249</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    (Loss) income from discontinued operations&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(61</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>331</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,447</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss from discontinued operations before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(495</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(26</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(521</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax benefit (expense)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(45</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss from discontinued operations&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(409</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(71</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(480</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary discontinued operations for the year ended
March&nbsp;31, 2005 were as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Shirasagi Golf Club</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Shirasagi Golf Club, a subsidiary reported in the All Other
Segment, had been engaged in the operation of a membership golf
club in Japan, which opened for business in 1996. Shirasagi Golf
Club had reported consecutive losses since the opening of the
golf club because both the number of customers and the average
sale per customer had declined amidst the prolonged severe
economic conditions that followed the collapse of the bubble
economy in Japan. In these business conditions, it was very
unlikely that Shirasagi Golf Club would be able to improve its
earnings and pay off its debts in the future therefore, the
Company disposed of other than by sale the operation during the
year ended March&nbsp;31, 2005.
</DIV>

<P align="center" style="font-size: 10pt;">F-26

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Other subsidiaries</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The main subsidiary in this category is MBR Corporation (former
Mitsui Bussan Rossignol Corporation), a subsidiary reported in
the Consumer Products&nbsp;&#38; Services Segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company had been engaged in the sale of Rossignol brand
skis, snowboards and other sporting goods in the Japanese market
through MBR Corporation based on the distributorship agreements
and the license agreement with Rossignol Group. These agreements
were terminated in 2004, and accordingly, the Company disposed
of other than by sale MBR Corporation during the year ended
March&nbsp;31, 2005. The gain on disposal of the operations
before income taxes was immaterial. No revenues and loss from
discontinued operations before income taxes were recognized by
MBR Corporation for the year ended March&nbsp;31, 2005. The
revenues for the years ended March&nbsp;31, 2004 and 2003 were
&#165;1,662&nbsp;million and &#165;5,829&nbsp;million,
respectively, and the loss from discontinued operations before
income taxes for the years ended March&nbsp;31, 2004 and 2003
was &#165;1,784&nbsp;million and &#165;247&nbsp;million,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Summarized selected financial information for the years ended
March&nbsp;31, 2004 and 2003 for the discontinued operations
reclassified during the year ended March&nbsp;31, 2004 was as
follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="62%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Takeoka</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Golf Club</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>subsidiaries</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,816</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss from discontinued operations before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(5,919</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(2,139</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(8,058</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss on disposal&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(49</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,958</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,007</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax benefit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,034</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss from discontinued operations&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(3,519</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(512</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(4,031</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,421</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss from discontinued operations before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(282</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(3,621</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(3,903</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax benefit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>922</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from discontinued operations&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(3,038</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(2,981</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary discontinued operations for the year ended
March&nbsp;31, 2004 were as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Takeoka Golf Club</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Takeoka Golf Club, a subsidiary reported in the All Other
Segment, had been engaged in the operation of a public golf club
in Japan. Takeoka Golf Club had suffered from the declining
number of visitors due to keen competition with other golf clubs
adjacent to the golf club and was disposed of by sale during the
year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Other subsidiaries</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The main subsidiaries in this category are Global Octanes
Corporation, a subsidiary partially reported in both the
Chemical and Americas segments, Global Octanes Investment Inc.,
a subsidiary reported in the Chemical Segment, and Global
Octanes Holding Inc., a subsidiary reported in the Americas
Segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These subsidiaries had managed Global Octanes Texas Limited
Partnership, which had been engaged in the manufacture and sale
of Methyl Tertiary-Butyl Ether (&#147;MTBE&#148;), as its
partners, but dissolved the
</DIV>

<P align="center" style="font-size: 10pt;">F-27

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
partnership and disposed of the operations during the year ended
March&nbsp;31, 2004. This is because the demand for MTBE was
expected to decrease in the future due to the increased
probability that mandatory use of oxygenates including MTBE for
gasoline would be abolished in the United States. The loss on
disposal of the operations before income taxes was
&#165;3,054&nbsp;million. The loss from discontinued operations
before income taxes for the years ended March&nbsp;31, 2004 and
2003 were &#165;2,160&nbsp;million and &#165;1,478&nbsp;million,
respectively. The revenues for the years ended March&nbsp;31,
2004 and 2003 were immaterial.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Summarized selected financial information for the year ended
March&nbsp;31, 2003 for the discontinued operations reclassified
during the year ended March&nbsp;31, 2003 was as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="55%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Petrochemicals</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>subsidiaries in</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>North America</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>subsidiaries</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,740</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss from discontinued operations before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(12,776</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,912</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(14,688</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    (Loss) gain on disposal&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,724</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,701</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax benefit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,511</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    (Loss) income from discontinued operations&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(6,329</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,853</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(2,476</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary discontinued operations for the year ended
March&nbsp;31, 2003 were as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Petrochemicals subsidiaries in North America (Transpacific
Glycols, Inc. and Pacific Ammonia Inc.)</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Transpacific Glycols, Inc., a subsidiary partially reported in
both the Chemical and Americas segments, had been engaged in the
sale of ethylene glycol, but ceased its sales operations during
the year ended March&nbsp;31, 2003 due to its declining
performance caused by the overall market conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pacific Ammonia Inc., a subsidiary reported in the Chemical
Segment, which had been engaged in the manufacture and sale of
ammonia primarily on the West Coast of the United States,
suffered from high natural gas costs as its main raw material
ingredient and a relatively weak ammonia price due to a
worldwide oversupply situation. Considering this business
environment, Pacific Ammonia Inc. recognized an impairment loss
of fixed assets during the year ended March&nbsp;31, 2003 based
on the plan to dispose of the operation by sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Other subsidiaries</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The main subsidiary in this category is Bussan Promotion Co.,
Ltd.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company was the sole agent for import and wholesale of
Philip Morris cigarettes in eastern Japan, and was promoting
them to various retailers through Bussan Promotion Co., Ltd., a
subsidiary reported in the Consumer Products&nbsp;&#38; Services
Segment. Philip Morris International Inc., however, changed its
strategy to directly manage their sales promotion operations,
and accordingly, the Company sold all of the shares of Bussan
Promotion Co., Ltd. to FTR HOLDINGS S.A., a member of Philip
Morris Group, in April 2002, resulting in a gain on disposal of
&#165;2,398&nbsp;million for the year ended March&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No revenues and income from discontinued operations before
income taxes were recognized by Bussan Promotion Co., Ltd. for
the year ended March&nbsp;31, 2003.
</DIV>

<P align="center" style="font-size: 10pt;">F-28

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>5.</B></TD>
    <TD>
    <B>MARKETABLE SECURITIES AND OTHER INVESTMENTS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Debt and marketable equity securities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
At March&nbsp;31, 2005 and 2004, the cost, fair value and gross
unrealized holding gains and losses on available-for-sale
securities and held-to-maturity debt securities were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Unrealized holding gains (losses)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Gains</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Losses</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Available-for-sale:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Marketable equity securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>191,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>333,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>143,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,171</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>142,090</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign debentures, commercial paper and other debt securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>306,922</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>306,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Held-to-maturity debt securities, consisting principally of
    foreign debentures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Available-for-sale:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Marketable equity securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>178,609</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>297,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>119,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,029</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>118,409</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign debentures, commercial paper and other debt securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>206,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>206,551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(37</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Held-to-maturity debt securities, consisting principally of
    foreign debentures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The carrying amounts of available-for-sale securities (foreign
debentures, commercial paper and other debt securities), with
original maturities of three months or less, and included in
cash and cash equivalents in the Consolidated Balance Sheets was
&#165;217,988&nbsp;million and &#165;157,996&nbsp;million at
March&nbsp;31, 2005 and 2004, respectively. The carrying amounts
of available-for-sale securities (foreign debentures, commercial
paper and other debt securities) included in investments in and
advances to associated companies in the Consolidated Balance
Sheets was &#165;32,217&nbsp;million at March&nbsp;31, 2005.
</DIV>

<P align="center" style="font-size: 10pt;">F-29

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At March&nbsp;31, 2005 and 2004, the fair value and gross
unrealized holding losses on available-for-sale securities and
held-to-maturity debt securities, aggregated by investment
category and length of time that individual securities have been
in continuous unrealized loss positions, were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Less than 12 months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>12&nbsp;months or more</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unrealized</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unrealized</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>holding losses</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>holding losses</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Available-for-sale:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Marketable equity securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,171</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign debentures, commercial paper and other debt securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Held-to-maturity debt securities, consisting principally of
    foreign debentures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,173</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Available-for-sale:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Marketable equity securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,029</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign debentures, commercial paper and other debt securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(37</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Held-to-maturity debt securities, consisting principally of
    foreign debentures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>17,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,066</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies&#146; investments in available-for-sale securities
in an unrealized holding loss position consisted primarily of
domestic marketable equity securities (approximately 20 issuers)
of customers in various industries, including the retail and
chemical industries. The unrealized losses on these securities
were due principally to deterioration of their business
environment such as sluggish consumption and bad weather for the
retail industry and a temporary decline in the Japanese stock
market in relation to the chemical industry. The severity of
decline in fair value less than cost was 2% to 19% and the
duration of the impairment was less than nine months. The
companies evaluated the near-term prospects of the issuer in
relation to the severity and duration of impairment. Based on
that evaluation and the companies&#146; ability and intent to
hold these investments for a reasonable period of time
sufficient for a forecasted recovery of fair value, the
companies did not consider these investments to be
other-than-temporarily impaired at March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the years ended March&nbsp;31, 2005, 2004 and 2003, losses
of &#165;586&nbsp;million, &#165;1,262&nbsp;million and
&#165;15,573&nbsp;million, respectively, were recognized on
write-downs of available-for-sale securities to reflect the
decline in market value considered to be other than temporary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The portion of net trading losses for the year that relates to
trading securities still held at March&nbsp;31, 2005, 2004 and
2003 were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net trading losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(32</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(136</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-30

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The proceeds from sales of available-for-sale securities and the
gross realized gains and losses on those sales for the years
ended March&nbsp;31, 2005, 2004 and 2003 are shown below:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sales</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>51,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>66,106</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross realized gains</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>9,661</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross realized losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(52</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(239</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,628</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net realized gains</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>9,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,033</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On April&nbsp;1, 2004, in connection with the foundation of
T&#38;D Holdings, Inc., the Company exchanged shares of Taiyo
Life Insurance Company for those of T&#38;D&nbsp;Holdings, Inc.
In accordance with EITF No.&nbsp;91-5, &#147;Nonmonetary
Exchange of Cost-Method Investments,&#148; a non-cash gain of
&#165;1,657&nbsp;million was recorded for the year ended
March&nbsp;31, 2005, and is included in gain on sales of
securities&nbsp;&#151; net in the Statements of Consolidated
Income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2003, the Company
contributed certain available-for-sale securities with a fair
value of &#165;27,343&nbsp;million to an employee retirement
benefit trust and recognized a realized gain of
&#165;15,831&nbsp;million, which is included in gain on
securities contributed to an employee retirement benefit trust
in the Statements of Consolidated Income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On October&nbsp;2, 2002, in connection with the foundation of
Japan Airlines System Corporation, the Company exchanged shares
of Japan Air System Co., Ltd. for those of Japan Airlines System
Corporation. In accordance with EITF No.&nbsp;91-5, a non-cash
gain of &#165;2,055&nbsp;million was recorded for the year ended
March&nbsp;31, 2003, and is included in gain on sales of
securities&nbsp;&#151; net in the Statements of Consolidated
Income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Debt securities classified as available-for-sale and
held-to-maturity at March&nbsp;31, 2005 mature as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Available-for-sale</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Held-to-maturity</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amortized</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Aggregate</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amortized</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Aggregate</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>fair value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>fair value</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Contractual maturities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Within 1&nbsp;year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>234,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>234,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,348</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    After 1&nbsp;year through 5&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>233</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    After 5&nbsp;years through 10&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    After 10&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>306,922</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>306,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,591</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The actual maturities may differ from the contractual maturities
shown above because certain issuers may have the right to redeem
debt securities before their maturity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Investments other than debt and marketable equity
securities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Investments other than investments in debt and marketable equity
securities consisted primarily of non-marketable equity
securities and non-current time deposits and amounted to
&#165;295,564&nbsp;million and &#165;297,492&nbsp;million at
March&nbsp;31, 2005 and 2004, respectively. The estimation of
the corresponding fair values at those dates was not
practicable, as the fair value for all the individual
non-marketable securities held by the companies was not readily
determinable at each balance sheet date.
</DIV>

<P align="center" style="font-size: 10pt;">F-31

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Investments in non-marketable equity securities are carried at
cost; however, if the fair value of an investment has declined
and is judged to be other than temporary, the investment is
written down to its estimated fair value. Losses on write downs
of these investment securities recognized to reflect the
declines in fair value considered to be other than temporary
were &#165;15,958&nbsp;million, &#165;29,804&nbsp;million and
&#165;22,103&nbsp;million for the years ended March&nbsp;31,
2005, 2004 and 2003, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate carrying amount of the companies&#146; cost method
investments totaled &#165;214,126&nbsp;million at March&nbsp;31,
2005. Investments with an aggregate carrying amount of
&#165;171,485&nbsp;million were not evaluated for impairment
because the companies did not identify any events or changes in
circumstances that may have had a significant adverse effect on
the fair value of those investments and the companies determined
that it is not practicable to estimate the fair value of those
investments in accordance with SFAS&nbsp;No.&nbsp;107,
&#147;Disclosures about Fair Value of Financial
Instruments.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>6.</B></TD>
    <TD>
    <B>INVESTMENTS IN AND ADVANCES TO ASSOCIATED COMPANIES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Investments in associated companies (investees owned 20% to 50%,
corporate joint ventures and other investees over which the
companies have the ability to exercise significant influence)
are accounted for under the equity method. In addition,
noncontrolling investments in general partnerships, limited
partnerships and limited liability companies are also accounted
for under the equity method. Such investments include, but are
not limited to, the companies&#146; investments in Valepar S.A.
(18.24%), Japan Australia LNG (MIMI) Pty. Ltd. (50.00%), Mitsui
Oil Exploration Co., Ltd. (44.34%), IPM Eagle LLP (30.00%),
Nihon Unisys, Ltd. (28.91%), Sakhalin Energy Investment Company
Ltd. (25.00%) and United Auto Group, Inc. (15.53%).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The investment in Valepar S.A. is accounted for under the equity
method because of the Company&#146;s ability to exercise
significant influence over operating and financial policies
primarily through board representation and power of veto over
significant operating and financial decisions through the board
of directors. As the sole operating company among the
shareholders, which consist primarily of pension funds and
financial institutions, the Company is expected to capitalize on
its experience and expertise in the iron ore business and
substantively participates in the decision-making processes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies are the second largest shareholder group of United
Auto Group, Inc. (&#147;UAG&#148;) and entered into a
shareholders agreement with its largest shareholder group owning
approximately 41% of its voting shares. Based on a reciprocal
voting provision set forth in the agreement for shareholder
election of the directors of UAG, the companies and its largest
shareholder group constitute a &#147;group&#148; within the
meaning of Section&nbsp;13(d) of the Securities Exchange Act of
1934 and jointly participate in the management of UAG. The
investment in UAG is accounted for under the equity method
because of the companies&#146; ability to exercise significant
influence over operating and financial policies primarily
through board representation by a director and executive vice
president dispatched from the companies. UAG is utilizing the
companies&#146; global network to develop its business
activities outside the United States and, as part of the
process, the companies substantively participate in the
decision-making processes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Associated companies are engaged primarily in the development of
natural resources and the manufacture and distribution of
various products. The major geographic areas of such entities
are Japan, the Americas, Europe, Asia and Oceania.
</DIV>

<P align="center" style="font-size: 10pt;">F-32

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Investments in and advances to associated companies at
March&nbsp;31, 2005 and 2004 consisted of the following:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investments in capital stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>880,609</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>611,397</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>92,610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115,124</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>973,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>726,521</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The carrying value of the investments in associated companies
exceeded the companies&#146; equity in the underlying net assets
of such associated companies by &#165;100,540&nbsp;million and
&#165;84,142&nbsp;million at March&nbsp;31, 2005 and 2004,
respectively. The excess is attributed first to certain fair
value adjustments on a net-of-tax basis at the time of the
initial and subsequent investments in those companies with the
remaining portion considered as equity method goodwill. The fair
value adjustments are generally attributed to property and
equipment which consist primarily of mineral rights amortized
over their respective estimated useful lives, principally 8 to
42&nbsp;years, using either the straight-line or the
unit-of-production method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Investments in common stock of publicly traded associated
companies include marketable equity securities carried at
&#165;117,109&nbsp;million and &#165;85,244&nbsp;million at
March&nbsp;31, 2005 and 2004, respectively. Corresponding
aggregate quoted market values were &#165;169,620&nbsp;million
and &#165;106,516&nbsp;million, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Summarized financial information for associated companies at
March&nbsp;31, 2005 and 2004 and for the years ended
March&nbsp;31, 2005, 2004 and 2003 was as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,702,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,770,593</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and equipment&nbsp;&#151; net of accumulated
    depreciation*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,195,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,036,282</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other assets*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,473,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,087,349</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>9,371,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,894,224</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,974,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,362,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,835,459</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,261,190</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minority interests</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>599,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>376,730</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shareholders&#146; equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,961,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,893,518</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total liabilities and shareholders&#146; equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>9,371,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,894,224</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    The companies&#146; equity in the net assets of associated
    companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>780,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>527,255</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Mineral rights are classified as &#147;Property and
    equipment&nbsp;&#151; net of accumulated depreciation&#148; at
    March&nbsp;31, 2005, which were formerly included in &#147;Other
    assets.&#148; The figures at March&nbsp;31, 2004 have been
    reclassified to conform to the current year presentation.</TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,295,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,212,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,460,933</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,582,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>986,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>730,929</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income before cumulative effect of change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>357,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>195,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>92,593</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>357,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>190,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>92,593</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-33

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies&#146; revenues and purchases from associated
companies included in cost of revenues during the years ended
March&nbsp;31, 2005, 2004 and 2003 were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="67%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>107,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>91,372</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>192,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>143,107</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends received from associated companies for the years ended
March&nbsp;31, 2005, 2004 and 2003 amounted to
&#165;32,817&nbsp;million, &#165;18,714&nbsp;million and
&#165;13,037&nbsp;million, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Consolidated unappropriated retained earnings at March&nbsp;31,
2005 and 2004 included the companies&#146; equity in net
undistributed earnings of associated companies in the amount of
&#165;142,823&nbsp;million and &#165;92,385&nbsp;million,
respectively.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>7.</B></TD>
    <TD>
    <B>ALLOWANCE FOR DOUBTFUL RECEIVABLES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
An analysis of the change in the allowance for doubtful
receivables is as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="63%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Current</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Non-current</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ended March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>110,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>132,596</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Credits charged off</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,604</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(19,241</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22,845</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Provision for doubtful receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,863</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Charged to other accounts*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,682</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,653</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,971</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>100,066</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>122,585</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>139,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>161,029</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Credits charged off</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,230</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(33,584</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(36,814</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Provision for doubtful receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,883</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Charged to other accounts*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,011</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>509</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,502</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>110,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>132,596</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>20,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>139,478</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>160,103</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Credits charged off</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,974</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,163</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,137</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Provision for doubtful receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,665</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Charged to other accounts*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,478</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,398</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>139,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>161,029</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Principally reclassification to discontinued operations and
    effect of changes in foreign exchange rates.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-34

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The recorded investment in impaired loans, as defined in
SFAS&nbsp;No.&nbsp;114, and the allowance for doubtful
receivables related to such loans at March&nbsp;31, 2005 and
2004 were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Allowance</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Allowance</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Impaired</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>for doubtful</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Impaired</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>for doubtful</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>loans</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>receivables</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>loans</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>receivables</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impaired loans with an allowance for doubtful receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>129,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>93,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>158,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>106,242</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impaired loans without an allowance for doubtful receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,919</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>135,724</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>93,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>165,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>106,242</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The average investment in impaired loans and interest income on
impaired loans for the years ended March&nbsp;31, 2005, 2004 and
2003 were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="67%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Average investment in impaired loans</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>150,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>180,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>181,687</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest income recognized on impaired loans</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,701</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,800</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest income on impaired loans has been recognized mainly
using the cash-basis method of accounting during the period that
the loans were impaired.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>8.</B></TD>
    <TD>
    <B>LEASES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Lessor</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies lease real estate, aircraft, ocean transport
vessels, rolling stock and equipment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain leases of aircraft, ocean transport vessels and rolling
stock are classified as direct financing leases or leveraged
leases, and the net investments are included as part of trade
receivables&nbsp;&#151; accounts and non-current receivables,
less unearned interest in the accompanying Consolidated Balance
Sheets. The companies have no general obligation for principal
and interest on notes and other instruments related to
third-party participation in leveraged leases. Such notes and
other instruments have not been included in liabilities but have
been offset against the related lease receivables. The residual
values represent the estimate of the values of the leased assets
at the end of the lease contracts and are initially recorded
based on appraisals and estimates. Realization of the residual
values is dependent on the companies&#146; future ability to
sell the related assets under then prevailing market conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other leases are classified as operating leases and the related
assets are presented as property leased to others&nbsp;&#151; at
cost, less accumulated depreciation in the accompanying
Consolidated Balance Sheets.
</DIV>

<P align="center" style="font-size: 10pt;">F-35

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following comprise the components of the net investment in
direct financing leases as of March&nbsp;31, 2005 and 2004:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total minimum lease payments to be received</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>86,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>73,065</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estimated unguaranteed residual value of leased assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,926</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,632</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less unearned income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(33,690</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(30,317</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investment in direct financing leases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68,296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,380</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less allowance for doubtful receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(890</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(855</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net investment in direct financing leases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>67,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>55,525</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a schedule by years of future minimum lease
payments to be received from direct financing leases as of
March&nbsp;31, 2005:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ending March&nbsp;31:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,901</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,633</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,257</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,333</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,379</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,557</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>86,060</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following represent the components of the net investment in
leveraged leases as of March&nbsp;31, 2005 and 2004:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="74%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total minimum lease payments to be received (net of principal
    and interest on third-party nonrecourse debt)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,634</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,605</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estimated unguaranteed residual value of leased assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,344</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less unearned income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,721</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,115</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investment in leveraged leases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,834</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less allowance for doubtful receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(292</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less deferred tax liabilities arising from leveraged leases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,252</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,627</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net investment in leveraged leases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-36

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following schedule provides an analysis of the
companies&#146; investment in property on operating leases and
property held for lease by classes as of March&nbsp;31, 2005 and
2004:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>depreciation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>depreciation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Real estate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>164,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(59,863</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>104,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>195,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(63,559</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>131,871</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Aircraft</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,737</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,351</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,237</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ocean transport vessels</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,575</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,552</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,670</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Rolling stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,470</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,768</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,429</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,684</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equipment and others</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,549</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,265</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,849</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>267,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(83,848</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>183,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>321,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(91,156</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>230,311</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a schedule by years of minimum future rentals
on noncancelable operating leases as of March&nbsp;31, 2005:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="74%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ending March&nbsp;31:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,029</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,054</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,073</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,082</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,202</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,938</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>49,378</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Lessee</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies lease equipment and others under capital leases.
At March&nbsp;31, 2005, approximately 70% of the capital leases
are with the Company&#146;s associated company, Mitsui
Leasing&nbsp;&#38; Development, Ltd.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following schedule provides an analysis of the
companies&#146; leased assets recorded under capital leases by
classes as of March&nbsp;31, 2005 and 2004:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>depreciation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>depreciation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>28,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(13,651</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>14,373</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>28,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(14,097</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>14,878</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Others</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,958</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,869</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,535</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>34,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(15,609</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>19,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>33,379</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(15,966</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>17,413</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-37

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a schedule by years of future minimum lease
payments under capital leases together with components of the
present value of the net minimum lease payments as of
March&nbsp;31, 2005:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ending March&nbsp;31:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,624</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,094</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,367</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,404</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>829</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,546</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total minimum lease payments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,864</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less amount representing interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,536</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Present value of net minimum lease payments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,328</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less current capital lease obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,363</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term capital lease obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>15,965</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies lease ocean transport vessels, real estate,
aircraft, rolling stock and equipment under operating leases.
Most of the ocean transport vessels, aircraft and rolling stock
under operating leases are subleased to third parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2005, the Company and
certain subsidiaries sold pieces of real estate to third parties
for &#165;17,382&nbsp;million in total and leased them back with
terms ranging up to 10&nbsp;years. The resulting leases were
classified as operating leases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a schedule by years of future minimum rental
payments required under operating leases that have initial or
remaining noncancelable lease terms in excess of one year as of
March&nbsp;31, 2005. Minimum payments have not been reduced by
minimum sublease rentals of &#165;59,008&nbsp;million due in the
future under noncancelable subleases:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="74%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ending March&nbsp;31:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22,159</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,631</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,925</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,233</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,676</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,806</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>105,430</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Rental expenses incurred for operating leases for the years
ended March&nbsp;31, 2005, 2004 and 2003 were
&#165;40,957&nbsp;million, &#165;35,770&nbsp;million and
&#165;35,420&nbsp;million, respectively. Sublease rental income
for the years ended March&nbsp;31, 2005, 2004 and 2003 were
&#165;18,633&nbsp;million, &#165;16,562&nbsp;million and
&#165;20,184&nbsp;million, respectively.
</DIV>

<P align="center" style="font-size: 10pt;">F-38

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>9.</B></TD>
    <TD>
    <B>PLEDGED ASSETS AND FINANCIAL ASSETS ACCEPTED AS COLLATERAL</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Pledged assets</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
At March&nbsp;31, 2005 and 2004, the following assets (exclusive
of assets covered by trust receipts discussed below) were
pledged as collateral for certain liabilities of the companies:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade receivables (current and non-current)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>66,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>47,354</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Inventories</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,073</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,232</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,665</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property leased to others (net book value)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,691</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and equipment (net book value)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,857</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>969</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>195,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>160,609</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The distribution of such collateral among short-term debt,
long-term debt and guarantees of contracts, etc. was as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>27,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22,866</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>123,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113,384</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guarantees of contracts, etc.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,359</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>195,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>160,609</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Trust receipts issued under customary import financing
arrangements (short-term bank loans and bank acceptances) give
banks a security interest in the merchandise imported and/or the
accounts receivable resulting from the sale of such merchandise.
Because of the companies&#146; large volume of import
transactions, it is not practicable to determine the total
amount of assets covered by outstanding trust receipts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the above, the Company has bank borrowings under
certain provisions of loan agreements which require the Company,
upon the request of the bank, to provide collateral, which is
not specified in the loan agreements. See Note&nbsp;13,
&#147;SHORT-TERM AND LONG-TERM DEBT.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Financial assets accepted as collateral</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
At March&nbsp;31, 2005 and 2004, the fair values of financial
assets that the companies accepted as security for trade
receivables and that they are permitted to sell or repledge
consisted of the following:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="78%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Bank deposits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,971</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Promissory notes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,796</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade receivables&nbsp;&#151; accounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stocks and bonds</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,695</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Promissory notes of &#165;2,106&nbsp;million and
&#165;3,554&nbsp;million which have been provided as collateral
were repledged at March&nbsp;31, 2005 and 2004, respectively.
</DIV>

<P align="center" style="font-size: 10pt;">F-39

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There were no financial assets accepted as collateral under
security repurchase agreements at March&nbsp;31, 2005 and 2004.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>10.</B></TD>
    <TD>
    <B>IMPAIRMENT LOSS OF LONG-LIVED ASSETS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies recognized impairment losses of long-lived assets
in accordance with the provisions of SFAS&nbsp;No.&nbsp;144
during the years ended March&nbsp;31, 2005, 2004 and 2003. See
to Note&nbsp;4, &#147;DISCONTINUED OPERATIONS,&#148; for the
impairment loss of long-lived assets reported in discontinued
operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The impairment losses of long-lived assets for the year ended
March&nbsp;31, 2005 consist principally of production facilities
owned by an aluminum smelting subsidiary in the United States,
land held for development and lease owned by the Company, and
gasoline stations, land and buildings for certain businesses
owned by domestic subsidiaries. The impairment losses of
long-lived assets also consist principally of real estate such
as corporate residences and dormitories owned by the Company for
employees and machinery production facilities, golf courses and
gasoline stations owned by domestic subsidiaries for the year
ended March&nbsp;31, 2004, and property leased to others and
real estate owned by subsidiaries for the year ended
March&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The impairments for the year ended March&nbsp;31, 2005 mainly
related to declining profitability resulting from the
deterioration of business environment such as increasing
electricity costs and to a continuous decline in the market
value of land in Japan. The impairments for the year ended
March&nbsp;31, 2004 mainly related to land in Japan which had
experienced significant decreases in market value, and to
production facilities of certain subsidiaries resulting from
operating losses. The impairments for the year ended
March&nbsp;31, 2003 mainly related to operating cutbacks by the
airline industry in the United States resulting from
deterioration of its business environment and to land in Japan
which had experienced significant decreases in the market value.
See to Note&nbsp;25, &#147;EXIT OR DISPOSAL ACTIVITIES,&#148;
for the exit or disposal activities which resulted in
recognition of impairment losses of long-lived assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Impairment losses of long-lived assets recognized by operating
segment for the years ended March&nbsp;31, 2005, 2004 and 2003
were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="68%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Metal Products&nbsp;&#38; Minerals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,029</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Machinery, Electronics&nbsp;&#38; Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,344</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chemical</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Energy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,219</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consumer Products&nbsp;&#38; Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,694</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,187</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Logistics&nbsp;&#38; Financial Markets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Americas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>954</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Overseas Areas</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>348</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,992</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>511</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments and Eliminations*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>23,638</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    &#147;Adjustments and Eliminations&#148; represents impairment
    losses related to assets not allocated to specific operating
    segments.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-40

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The fair value of the assets is calculated based on independent
appraisals, market value or discounted future cash flows
whichever management considers the most appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the impairment losses of long-lived assets based
on SFAS&nbsp;No.&nbsp;144 shown in the above table, the
impairment losses of intangible assets not subject to
amortization based on SFAS&nbsp;No.&nbsp;142 were included in
impairment losses of long-lived assets in the Statements of
Consolidated Income for the years ended March&nbsp;31, 2005 and
2004 as discussed in Note&nbsp;12, &#147;GOODWILL AND OTHER
INTANGIBLE ASSETS.&#148; No impairment loss was recorded for
intangible assets not subject to amortization for the year ended
March&nbsp;31, 2003.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>11.</B></TD>
    <TD>
    <B>ASSET RETIREMENT OBLIGATIONS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies recognized the cumulative effect of the initial
application of SFAS&nbsp;No.&nbsp;143 as a separate line item in
the Statements of Consolidated Income for the year ended
March&nbsp;31, 2004 under cumulative effect of change in
accounting principle (after income tax effect) amounting to
&#165;2,285&nbsp;million (loss) including the Company&#146;s
share of amounts attributable to associated companies. The
cumulative-effect adjustment represents the difference between
the net amount that was recognized in the Consolidated Balance
Sheets upon the retroactive application of
SFAS&nbsp;No.&nbsp;143 as of April&nbsp;1, 2003 and the amounts
recognized in the Consolidated Balance Sheets at that date prior
to the application of SFAS&nbsp;No.&nbsp;143. The
cumulative-effect adjustment resulted in a decrease in
investments in and advances to associated companies by
&#165;2,098&nbsp;million, an increase in equipment and fixtures
by &#165;1,812&nbsp;million (net of accumulated depreciation of
&#165;1,165&nbsp;million), an increase in deferred tax
assets&nbsp;&#151; non-current by &#165;161&nbsp;million, an
increase in long-term debt, less current maturities by
&#165;2,231&nbsp;million and a decrease in minority interests by
&#165;71&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The asset retirement obligations are principally related to the
costs of dismantling and removing mining facilities and gas
production facilities owned by subsidiaries and associated
companies in Australia, which are engaged in mining operations
or oil and gas producing activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The changes in asset retirement obligations for the years ended
March&nbsp;31, 2005 and 2004 were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,328</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,423</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities incurred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,124</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities settled</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,135</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,805</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accretion expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>168</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>418</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,328</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>Note:&nbsp;</TD>
    <TD align="left">
    The balance at the beginning of the year ended March&nbsp;31,
    2004 includes the cumulative effect of change in accounting
    principle.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-41

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The pro forma effects of the retroactive application on net
income and basic and diluted net income per share for the years
ended March&nbsp;31, 2004 and 2003, as if SFAS&nbsp;No.&nbsp;143
had been adopted on April&nbsp;1, 2002, were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>70,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,003</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="79%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic net income per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>44.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>19.59</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted net income per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.61</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Notes:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Pro forma net income for the year ended March&nbsp;31, 2004
    represents reported net income excluding cumulative effect of
    change in accounting principle (after income tax effect) of
    &#165;2,285&nbsp;million (loss) (&#165;1.44&nbsp;per basic share
    and &#165;1.36&nbsp;per diluted share).</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Basic and diluted net income per share presented in the
    Statements of Consolidated Income were &#165;19.68 and
    &#165;18.69, respectively, for the year ended March&nbsp;31,
    2003.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>12.</B></TD>
    <TD>
    <B>GOODWILL AND OTHER INTANGIBLE ASSETS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Intangible assets subject to amortization at March&nbsp;31, 2005
and 2004 consisted of the following:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Gross carrying</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Gross carrying</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amortization</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amortization</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>44,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>35,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>15,151</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unpatented technologies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,742</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,174</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trademarks</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,750</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Patents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,539</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Customer relationships</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>866</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,399</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>113,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>53,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>100,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>46,879</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate amortization expense of intangible assets for the
years ended March&nbsp;31, 2005, 2004 and 2003 was
&#165;12,853&nbsp;million, &#165;11,496&nbsp;million and
&#165;7,430&nbsp;million, respectively. The estimated aggregate
amortization expense of intangible assets at March&nbsp;31, 2005
for each of the next five years is as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="76%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ending March&nbsp;31:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>15,949</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,114</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,670</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,283</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,015</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-42

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total carrying amount of intangible assets not subject to
amortization (excluding goodwill) at March&nbsp;31, 2005 and
2004 consisted of:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="74%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land rights</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,242</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,212</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trademarks</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,386</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,383</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,657</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,252</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Intangible assets subject to amortization acquired during the
year ended March&nbsp;31, 2005 totaled
&#165;21,664&nbsp;million, and consisted primarily of software
of &#165;13,389&nbsp;million and customer relationships of
&#165;4,387&nbsp;million. The weighted average amortization
periods for software and customer relationships are 5&nbsp;years
and 10&nbsp;years, respectively. Acquisition of intangible
assets not subject to amortization during the year ended
March&nbsp;31, 2005 was immaterial.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Intangible assets subject to amortization acquired during the
year ended March&nbsp;31, 2004 totaled
&#165;35,816&nbsp;million, and consisted primarily of unpatented
technologies of &#165;15,658&nbsp;million and software of
&#165;13,581&nbsp;million. The weighted average amortization
periods for unpatented technologies and software are
10&nbsp;years and 5&nbsp;years, respectively. Intangible assets
not subject to amortization acquired during the year ended
March&nbsp;31, 2004 totaled &#165;3,105&nbsp;million, and
consisted primarily of trademarks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with the change in the presentation of mineral
rights for the year ended March&nbsp;31, 2005, the gross
carrying amount and the accumulated amortization of mineral
rights at March&nbsp;31, 2004, the amortization expense for the
years ended March&nbsp;31, 2004 and 2003, and the acquired cost
of mineral rights for the year ended March&nbsp;31, 2004 have
been eliminated to conform to the current year presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The impairment losses recognized for intangible assets subject
to amortization and not subject to amortization (excluding
goodwill) for the year ended March&nbsp;31, 2005 were immaterial.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended March&nbsp;31, 2004, the companies
recognized impairment losses of &#165;1,533&nbsp;million on
intangible assets which are included in impairment loss of
long-lived assets in the Statements of Consolidated Income. The
impairment losses consisted primarily of
&#165;1,034&nbsp;million on the write-down of land rights which
are held by domestic subsidiaries within the Consumer Products
&#38; Services and Energy segments. The impairments of land
rights resulted from a decrease in the fair value. The fair
value for the basis of determining the impairment loss was
calculated based on discounted future cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the intangible assets shown in the above tables,
intangible assets in the Consolidated Balance Sheets at
March&nbsp;31, 2005 and 2004 also included unrecognized prior
service costs totaling &#165;80&nbsp;million and
&#165;112&nbsp;million, respectively, which were recorded under
SFAS&nbsp;No.&nbsp;87 as discussed in Note&nbsp;14,
&#147;PENSION COSTS AND SEVERANCE INDEMNITIES.&#148;
</DIV>

<P align="center" style="font-size: 10pt;">F-43

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The changes in the carrying amount of goodwill by operating
segment for the years ended March&nbsp;31, 2005 and 2004 were as
follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Metal</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Machinery,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consumer</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Electronics&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Minerals</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Information</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Chemical</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Services</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Americas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at April&nbsp;1, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,777</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,985</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(352</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(125</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(100</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(55</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(643</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,509</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,119</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,597</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,711</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,114</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,114</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(169</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(19</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at March&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,614</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>17,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,697</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The impairment losses included in the Machinery, Electronics
&#38; Information Segment for the year ended March&nbsp;31, 2005
consisted primarily of an impairment loss of
&#165;923&nbsp;million for goodwill related to a domestic
subsidiary of the Company. Because the subsidiary experienced a
downturn in profitability due to the deterioration of
competitive environment in the information system development
industry, the carrying amount of the subsidiary exceeded the
fair value of the subsidiary and the impairment loss was
recognized in the amount equal to the excess of the carrying
amount of goodwill over the fair value of goodwill. The fair
value of the subsidiary for the basis of determining the
impairment loss was calculated based on discounted future cash
flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No impairment loss was recorded for goodwill during the year
ended March&nbsp;31, 2004.
</DIV>

<P align="center" style="font-size: 10pt;">F-44

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>13.</B></TD>
    <TD>
    <B>SHORT-TERM AND LONG-TERM DEBT</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Short-term debt</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Short-term debt at March&nbsp;31, 2005 and 2004 were comprised
of the following:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Interest rate*1</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Interest rate*1</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term bank loans and others</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;410,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;401,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Commercial paper</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,643</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>120,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes under medium-term note programme</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>120,796</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>614,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>643,265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    SFAS&nbsp;No.&nbsp;133 fair value adjustment*2</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;615,353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#165;646,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>*1&nbsp;</TD>
    <TD align="left">
    The interest rates represent weighted average rates in effect at
    March&nbsp;31, 2005 and 2004, regardless of borrowing
    currencies, though the range of the interest rates varies by
    borrowing currency.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>*2&nbsp;</TD>
    <TD align="left">
    In accordance with the requirements of SFAS&nbsp;No.&nbsp;133,
    the portion of the companies&#146; fixed-rate debt obligations
    that is designated and effective as a fair value hedge is
    reflected in the Consolidated Balance Sheets as an amount equal
    to the sum of the debt&#146;s carrying value plus a
    SFAS&nbsp;No.&nbsp;133 fair value adjustment representing
    changes recorded in the fair value of the hedged debt
    obligations attributable to movements in the designated
    benchmark interest rates and applicable foreign currency
    exchange rates during the term of the hedge.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unused lines of credit, for short-term financing outside Japan,
aggregated &#165;498,476&nbsp;million at March&nbsp;31, 2005.
Certain foreign subsidiaries compensate banks for these
facilities in the form of commitment fees, which were not
material in each of the past two years.
</DIV>

<P align="center" style="font-size: 10pt;">F-45

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Long-term debt</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Long-term debt at March&nbsp;31, 2005 and 2004 consisted of the
following:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="6" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt with collateral (Note&nbsp;9):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Banks and insurance companies, maturing serially through
    2015&nbsp;&#151; principally 0.7% to 10%</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>38,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>56,112</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Government-owned banks and government agencies, maturing
    serially through 2056&nbsp;&#151; principally 0.7% to 7%</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>60,187</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other, maturing serially through 2018&nbsp;&#151; principally 2%</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,885</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122,184</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="6" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt without collateral:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Banks and others (principally insurance companies):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Principally 0.03% to 6%, maturing serially through 2018</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,518,613</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,461,479</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Principally 0.8% to 13%, maturing serially through 2017 (payable
    in foreign currencies)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>477,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>387,352</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Bonds and notes:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Japanese yen convertible bonds (fixed rate 1.05%, due 2009)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>92,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>92,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Japanese yen bonds with early redemption clause (fixed rate 0.7%
    to 1.4%, due 2013&nbsp;&#151; 2016)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Japanese yen bonds (fixed rate 0.5% to 3.6%, due
    2005&nbsp;&#151; 2019)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250,270</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240,500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Japanese yen bonds (fixed and floating rate: floating rate 1.9%
    to 2.6%, due 2013&nbsp;&#151; 2017)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Japanese yen bonds (fixed and floating rate: fixed rate 2.4% to
    3.3%, due 2014&nbsp;&#151; 2024)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Japanese yen bonds (floating rate 2.1% to 2.7%, due
    2010&nbsp;&#151; 2016)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>87,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reverse dual currency yen/ U.S. dollar bonds (fixed rate 3.0% to
    3.25%, due 2007&nbsp;&#151; 2012)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes under global medium-term note programme (fixed rate 0.2%
    to 4.7%, due 2004&nbsp;&#151; 2014)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,205</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes under euro medium-term note programme (fixed and floating
    rate: fixed rate 0.1% to 7.9%, due 2004&nbsp;&#151; 2024)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>168,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>118,380</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital lease obligations (principally 0.7% to 5.5%, maturing
    serially through 2030)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,328</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,177</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payables, derivative liabilities and others due through
    2019:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest bearing</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,203</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-interest bearing</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>149,893</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>116,441</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,030,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,737,023</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,139,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,859,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="6" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    SFAS&nbsp;No.&nbsp;133 fair value adjustment*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,689</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,196,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,898,896</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="6" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less current maturities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>291,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>357,675</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="6" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt, less current maturities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,904,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,541,221</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-46

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    In accordance with the requirements of SFAS&nbsp;No.&nbsp;133,
    the portion of the companies&#146; fixed-rate debt obligations
    that is designated and effective as a fair value hedge is
    reflected in the Consolidated Balance Sheets as an amount equal
    to the sum of the debt&#146;s carrying value plus a
    SFAS&nbsp;No.&nbsp;133 fair value adjustment representing
    changes recorded in the fair value of the hedged debt
    obligations attributable to movements in the designated
    benchmark interest rates and applicable foreign currency
    exchange rates during the term of the hedge.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies have entered into currency swap agreements and
interest rate swap agreements in connection with certain bonds,
notes and other long-term borrowings. The floating interest
rates for interest rate swap agreements are generally based on
the three-month or six-month LIBOR (London Interbank Offered
Rate). The three-month and six-month LIBORs for U.S.&nbsp;dollar
denominated debt as of March&nbsp;31, 2005 were 3.12% and 3.40%,
respectively. The three-month and six-month LIBORs for
U.S.&nbsp;dollar denominated debt as of March&nbsp;31, 2004 were
1.11% and 1.16%, respectively. (See Note&nbsp;26,
&#147;DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES,&#148; and
Note&nbsp;27, &#147;FINANCIAL INSTRUMENTS.&#148;)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The 1.05% Convertible Bonds due 2009 may be converted into
common stock at &#165;881.00 per share, at the option of the
holder and may be redeemed at the option of the Company at
specified percentages of the principal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indenture, under which the bonds were issued, does not
require maintenance of a prescribed amount of net assets, a
minimum debt/equity ratio or limits on the payment of cash
dividends by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Substantially all short-term and long-term bank borrowings are
made under agreements which, as is customary in Japan, provide
that under certain conditions a bank may require the borrower to
provide collateral (or additional collateral) or guarantors with
respect to the borrowings and that the bank may treat any
collateral, whether furnished as security for short-term or
long-term loans or otherwise, as collateral for all indebtedness
to such bank. Default provisions of certain loan agreements
grant certain rights of possession to the lenders. At
March&nbsp;31, 2005, bank borrowings under certain provisions of
loan agreements which require the Company, upon the request of
the bank, to provide collateral, which is not specified in the
loan agreements, aggregated &#165;43,182&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under certain loan agreements with government-owned banks, the
creditors may require the companies to submit proposals as to
the payment of dividends and other appropriations of earnings
for the creditors&#146; review and approval before presentation
to the shareholders. Certain of those agreements require the
borrower, upon the request of the lender, to reduce outstanding
loans before scheduled maturity dates when the lender considers
that the companies are able to reduce such loans through
increased earnings or through the proceeds from the sale of
common stock or bonds and notes. During the years ended
March&nbsp;31, 2005 and 2004, the companies did not receive any
such requests, and there is no expectation that any such
requests will be made.
</DIV>

<P align="center" style="font-size: 10pt;">F-47

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Maturities of long-term debt outstanding at March&nbsp;31, 2005
were as follows, excluding the effect of the
SFAS&nbsp;No.&nbsp;133 fair value adjustment:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ending March 31:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>259,927</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>368,668</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>343,589</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,862</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>447,045</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,501,261</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,139,352</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>14.</B></TD>
    <TD>
    <B>PENSION COSTS AND SEVERANCE INDEMNITIES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Company and certain subsidiaries have non-contributory
defined benefit pension plans and contributory defined benefit
pension plans, covering substantially all employees other than
directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary pension plan is the Company&#146;s contributory
Corporate Pension Fund (&#147;CPF&#148;) under the Defined
Benefit Corporate Pension Law, which was transferred from the
Company&#146;s contributory defined benefit Japanese government
welfare pension program for its employees (the Employees&#146;
Pension Fund, &#147;EPF&#148;) during the year ended
March&nbsp;31, 2004. The benefits for CPF are based on the
length of service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 1997, the Company merged a
non-contributory defined benefit pension plan (the Tax Qualified
Pension Plan, &#147;TQPP&#148;) into EPF. Only retired employees
with vested benefits as of March&nbsp;31, 1997, remained in the
TQPP. With the enforcement of the Defined Benefit Corporate
Pension Law, the Company merged TQPP, which had remained only
for retired employees with vested benefits, into CPF on
March&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EPF was composed of a substitutional portion of Japanese Pension
Insurance and a corporate portion of a contributory defined
benefit plan. For the former, the benefits were based on a
standard remuneration schedule under the Welfare Pension
Insurance Law and the length of participation. For the latter,
the benefits were based on length of service. EPF was approved
by the Japanese Minister of Health, Labour and Welfare for an
exemption from the obligation to pay benefits for future
employee service related to the substitutional portion on
October&nbsp;1, 2002, and an exemption from the obligation to
pay benefits for past employee service related to the
substitutional portion on January&nbsp;1, 2004. EPF transferred
the benefit obligation and the related government-specified
portion of the plan assets to the Japanese government on
March&nbsp;12, 2004 and completed the entire process of the
transfer of the substitutional portion. In accordance with EITF
No.&nbsp;03-2, &#147;Accounting for the Transfer to the Japanese
Government of the Substitutional Portion of Employee Pension
Fund&nbsp;Liabilities,&#148; the Company recognized (1)&nbsp;the
difference of &#165;17,224&nbsp;million between the accumulated
benefit obligations settled and the assets transferred to the
Japanese government as a government grant for transfer of
substitutional portion of EPF, (2)&nbsp;the proportionate amount
of the net unrealized loss of &#165;10,508&nbsp;million for the
substitutional portion, as settlement loss, and (3)&nbsp;the
difference of &#165;2,183&nbsp;million between the projected
benefit obligations and the accumulated benefit obligations
related to the substitutional portion, as gain on derecognition
of previously accrued salary progression.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The remaining corporate portion of EPF was transferred to the
Company&#146;s CPF.
</DIV>

<P align="center" style="font-size: 10pt;">F-48

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company and certain subsidiaries have unfunded severance
indemnities plans. Benefits under the plans are based on the
level of compensation at retirement, or earlier termination of
employment, and the length of service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company and most subsidiaries use a measurement date of
March&nbsp;31 for their defined benefit pension plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Obligations and funded status</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The following table sets forth the reconciliation of benefit
obligations, plan assets and funded status of the plans:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Change in benefit obligation:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Benefit obligation at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>255,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>286,075</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Service cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,920</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,487</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Plan participants&#146; contributions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>385</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Plan amendments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(342</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,155</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Actuarial loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,610</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Benefits paid from plan assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,799</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,794</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Direct benefit payments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,120</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,739</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Curtailments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(64</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Settlements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(38,057</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions and divestitures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,763</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(935</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Benefit obligation at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>261,197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>255,806</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Change in plan assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fair value of plan assets at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>228,418</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Actual return on plan assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,183</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Employer contribution</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Plan participants&#146; contributions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>385</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Benefits paid from plan assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,799</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,794</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Settlements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18,650</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions and divestitures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,657</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(553</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fair value of plan assets at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>291,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Funded status at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,980</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrecognized prior service cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,413</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,483</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrecognized net actuarial loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,855</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,499</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net amount recognized</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>77,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>59,996</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Amounts recognized in the Consolidated Balance Sheets consist of:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>112</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other assets (prepaid pension costs)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>107,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,872</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued pension costs and liability for severance indemnities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(39,467</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(52,296</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated other comprehensive loss (before income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,308</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net amount recognized</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>77,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>59,996</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-49

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The prior service cost is amortized over the average remaining
service period of employees expected to receive related benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amortization periods of the unrecognized net actuarial loss
are seven years for CPF and the average remaining service period
for other defined benefit pension plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The accumulated benefit obligation for the companies&#146;
defined benefit pension plans as of March&nbsp;31, 2005 and 2004
was &#165;256,692&nbsp;million and &#165;249,595&nbsp;million,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate projected benefit obligation and aggregate fair
value of plan assets for plans with projected benefit
obligations in excess of plan assets were
&#165;62,745&nbsp;million and &#165;20,140&nbsp;million at
March&nbsp;31, 2005 and &#165;92,213&nbsp;million and
&#165;38,273&nbsp;million at March&nbsp;31, 2004. The aggregate
accumulated benefit obligation and aggregate fair value of plan
assets for plans with accumulated benefit obligations in excess
of plan assets were &#165;57,339&nbsp;million and
&#165;18,954&nbsp;million at March&nbsp;31, 2005 and
&#165;86,124&nbsp;million and &#165;38,273&nbsp;million at
March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Components of net periodic pension costs</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Net periodic pension costs of the companies&#146; defined
benefit pension plans for the years ended March&nbsp;31, 2005,
2004 and 2003 included the following components:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Service cost&nbsp;&#151; benefits earned during the period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,582</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest cost on projected benefit obligation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,234</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expected return on plan assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,723</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,013</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,815</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Amortization of unrecognized prior service cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(410</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(137</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(171</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Amortization of unrecognized net actuarial loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,809</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Curtailment gain</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(64</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Settlement loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on derecognition of previously accrued salary progression</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,183</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net periodic pension costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,279</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,639</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Assumptions</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Weighted-average assumptions used to determine the
companies&#146; benefit obligations as of March&nbsp;31, 2005
and 2004 are set forth as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="81%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Rate of increase in future compensation levels</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Weighted-average assumptions used to determine the
companies&#146; net periodic pension costs for the years ended
March&nbsp;31, 2005, 2004 and 2003 are set forth as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expected long-term rate of return on plan assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Rate of increase in future compensation levels</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-50

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies determine the discount rates each year as of the
measurement date, based on a review of interest rates associated
with long-term Japanese government bonds or high-quality
fixed-income corporate bonds. The discount rates determined on
each measurement date are used to calculate the benefit
obligation as of that date, and are also used to calculate the
net periodic pension costs for the upcoming plan year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The rate of increase in future compensation levels was not
applied in determining the projected benefit obligation of CPF
and the corporate portion of EPF which was transferred to CPF,
because the benefit formulas of these plans do not contain
factors relating to compensation levels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company determines the expected long-term rate of return on
plan assets based on the weighted-average rate of return
computed by using the expected long-term rate of return on each
asset class, which is derived from an extensive study conducted
by investment advisors and actuaries on a periodic basis, and
the target allocations for each asset class. The study includes
a review of anticipated future performance with market analysis
of individual asset classes, and also gives appropriate
consideration to actual historical returns achieved by the
plans. The subsidiaries determine the expected long-term rates
of return on plan assets mainly based on the expectations for
future returns by investment advisors and actuaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Plan assets</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies&#146; pension plan weighted-average asset
allocations based on the fair value of such assets as of
March&nbsp;31, 2005 and 2004 are set forth as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Asset category</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Debt securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Life insurance company general accounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and deposits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Equity securities include securities held in the Company&#146;s
employee retirement benefit trust. The fair value of those
securities as of March&nbsp;31, 2005 and 2004 are 31% and 39% of
total fair value of plan assets, respectively. Life insurance
company general accounts are pooled investment portfolios
managed by insurance companies and guarantee a minimum rate of
return.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s investment objective is to build high quality
plan assets, and the investment policy is targeted to ensure
adequate returns to provide future payments of pension benefits
and severance indemnities. The basic strategy is diversified
investment in various asset classes which have different risk
return characteristics. The Company sometimes uses derivative
instruments to hedge the exposure to changes in the fair value
of debt and equity securities, but never uses them for
speculation. The subsidiaries&#146; investment strategies are
mainly based on diversified investment, and are targeted to
stably ensure adequate returns to provide future payments of
pension benefits over the long term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies&#146; weighted-average target allocation of plan
assets as of March&nbsp;31, 2005 is 56% equity securities
(including securities held in the employee retirement benefit
trust), 34% debt securities (including life insurance company
general accounts), 9% cash and deposits and 1% other assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company contributed certain available-for-sale securities to
the employee retirement benefit trust for retirement obligations
during the year ended March&nbsp;31, 2003. As stated in
Note&nbsp;5, &#147;MARKETABLE
</DIV>

<P align="center" style="font-size: 10pt;">F-51

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
SECURITIES AND OTHER INVESTMENTS,&#148; fair value at
contribution of these securities for the year ended
March&nbsp;31, 2003 was &#165;27,343&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The fair value of equity securities of an associated company
included in plan assets is &#165;20,250&nbsp;million (7% of
total fair value of plan assets) and &#165;15,765&nbsp;million
(6% of total fair value of plan assets) at March&nbsp;31, 2005
and 2004, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Cash flows</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Contributions</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies expect to contribute &#165;8,592&nbsp;million to
their defined benefit pension plans for the year ending
March&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Estimated Future Benefit Payments</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The following benefit payments, which reflect expected future
service, as appropriate, are expected to be paid:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ending March 31:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>13,925</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,066</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,160</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,884</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,110</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2011-2015</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78,040</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the above defined benefit pension plans, the
Company provides the &#147;Early Retirement Support Plan&#148;
to eligible employees, which guarantees, prior to normal
retirement age, certain supplemental payments based on
preretirement compensation levels. During the years ended
March&nbsp;31, 2005, 2004 and 2003, the Company recorded
&#165;3,107&nbsp;million, &#165;3,201&nbsp;million and
&#165;12,687&nbsp;million of periodic payments in excess of
previous projections and projected benefits based on factors
including the history of benefit payments as selling, general
and administrative expenses, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHAREHOLDERS&#146; EQUITY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Common stock and capital surplus</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Under the Commercial Code of Japan (the &#147;Code&#148;),
certain issuances of common stock, including conversions of
bonds and notes and exercises of warrants issued, are required
to be credited to the common stock account for at least 50% of
the proceeds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At March&nbsp;31, 2005, 105,306,470 shares of common stock were
reserved for the conversion of outstanding bonds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Code permits, upon approval by the Board of Directors,
transfers of amounts from capital surplus to the common stock
account. The amounts available for transfer are based on capital
surplus as defined by accounting practices prevailing in Japan.
Additional amounts recorded as capital surplus to conform with
U.S. GAAP shall not be transferred to the common stock account
under the Code. Such additional amounts were
&#165;69,049&nbsp;million at March&nbsp;31, 2005 and primarily
relate to accounting for warrants and business combinations.
When debt securities were previously issued with detachable
stock purchase warrants, the portion of the proceeds which was
allocable to the warrants was credited to capital surplus
</DIV>

<P align="center" style="font-size: 10pt;">F-52

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
under U.S. GAAP. In addition, the step acquisition of the shares
held by minority shareholders of a subsidiary by selling
unissued shares of the Company was accounted for by the purchase
method under U.S. GAAP rather than by the pooling of interests
method which was prevailing in Japan when such business
combinations occurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the resolution of the Board of Directors, the
Company made free distributions of common stock in prior years.
Such free distributions did not result in the transfer of
retained earnings to common stock or capital surplus.
Corporations in the United States issuing shares in similar
transactions would be required to account for them as stock
dividends as of the shareholders&#146; record date by reducing
retained earnings and increasing appropriate capital accounts by
an amount equal to the fair value of the shares issued. If such
United States practice had been applied to the above free
distributions of shares made on and after September&nbsp;30,
1986, capital surplus at March&nbsp;31, 2005 would have been
increased by &#165;87,860&nbsp;million with a corresponding
decrease in unappropriated retained earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Retained earnings appropriated for legal reserve</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Code provides that an amount at least equal to 10% of the
aggregate amount of cash dividends and certain other
appropriations of retained earnings associated with cash outlays
applicable to each period be appropriated as a legal reserve
until the total amount of capital surplus and the legal reserve
equals 25% of common stock. The retained earnings so
appropriated may be used to eliminate or reduce a deficit by
resolution of the shareholders or may be transferred to capital
stock by resolution of the Board of Directors. The Code also
provides that to the extent that the sum of capital surplus and
the legal reserve exceeds 25% of common stock, the excess, if
any, is available for appropriations by resolution of the
shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Retained earnings unappropriated</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The amount of retained earnings available for dividends under
the Code is based on the amount of retained earnings recorded in
the Company&#146;s general books of account in accordance with
accepted Japanese accounting practices. The adjustments included
in the accompanying consolidated financial statements for U.S.
GAAP purposes but not recorded in the general books of account
have no effect on the determination of retained earnings
available for dividends under the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Retained earnings, exclusive of retained earnings appropriated
for the legal reserve, shown in the Company&#146;s general books
of account amounted to &#165;217,496&nbsp;million at
March&nbsp;31, 2005. The amount does not include any retained
earnings to be appropriated for the legal reserve as a part of
appropriations of retained earnings associated with cash outlays
but includes &#165;469&nbsp;million restricted as to the payment
of dividends under the Code. See Note&nbsp;13, &#147;SHORT-TERM
AND LONG-TERM DEBT,&#148; for the rights of certain creditors to
review and approve the companies&#146; proposal for the payment
of dividends and other appropriations of earnings. Dividends are
approved by shareholders at a meeting held subsequent to the
fiscal year to which the dividends are applicable. A mid-year
interim dividend may be paid by resolution of the Board of
Directors, subject to limitations imposed by the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Code permits transfers, upon approval of shareholders, of a
portion of unappropriated retained earnings, available for
dividends, to the common stock account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Purchase by the Company of shares</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Code permits the Company to purchase and hold its own
shares. The Company is allowed to decide the total number and
amount of the shares to be acquired, not to exceed the amount of
retained earnings available for dividends, subject to the prior
approval of the shareholders at an ordinary general meeting of
shareholders. In addition, the amendment to the Code, which
became effective on September&nbsp;25, 2003,
</DIV>

<P align="center" style="font-size: 10pt;">F-53

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
permits the Company to purchase its own shares upon the approval
of the Board of Directors, as far as it is permitted under the
Articles of Incorporation, subject to limitations imposed by the
Code. Public companies are generally required to purchase the
shares through market transactions or tender offer and may
dispose of them, subject to the approval of the Board of
Directors, unless otherwise specified in the Code, or as far as
the Articles of Incorporation do not require a resolution of the
shareholders at the shareholders&#146; meeting. As an example of
the disposal of its own shares, the Company sells the shares or
chooses to transfer the shares instead of issuing new shares in
case of merger, stock transfer or exchange, or spin-off. In
addition, the Code enables the Company to retire its own shares
by resolution of the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At the ordinary general meeting of shareholders held on
June&nbsp;24, 2004, it was approved that the Company amended the
Articles of Incorporation to entitle the Board of Directors to
purchase outstanding shares of its own common stock by its
resolution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Accumulated other comprehensive income (loss)</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Changes in each component of accumulated other comprehensive
income (loss)&nbsp;for the years ended March&nbsp;31, 2005, 2004
and 2003 are as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Unrealized Holding Gains and Losses on Available-for-Sale
    Securities:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>69,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>44,246</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pre-tax amount of unrealized holding gains and losses on
    available-for-sale securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>125,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(85,488</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(26,530</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(49,395</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,673</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments for year (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50,815</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pre-tax amount of reclassification adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,409</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(17,240</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,540</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(566</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments for year (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,429</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,137</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,974</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>100,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>69,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,405</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Foreign Currency Translation Adjustments:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(161,454</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(141,053</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(118,669</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pre-tax amount of translation adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(27,098</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(26,957</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,613</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,032</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments for year (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22,560</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(25,925</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pre-tax amount of reclassification adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,721</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(81</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(810</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,180</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments for year (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,541</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(142,787</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(161,454</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(141,053</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-54

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Minimum Pension Liability Adjustment:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(5,743</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(6,731</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(373</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pre-tax amount</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,584</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,367</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,226</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments for year (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,358</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(5,691</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(5,743</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(6,731</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Net Unrealized Gains and Losses on Derivatives:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(3,996</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(2,759</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(2,122</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pre-tax amount of net unrealized gains and losses on derivatives</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,467</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,782</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,094</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,621</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments for year (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,366</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,161</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pre-tax amount of reclassification adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,762</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,186</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,413</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,238</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments for year (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,524</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,252</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(3,996</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(2,759</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Accumulated Other Comprehensive Income (Loss)&nbsp;&#151;
    Total:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(101,464</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(147,138</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(76,918</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pre-tax amount</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78,374</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(108,788</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(26,461</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(40,243</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,568</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive income (loss)&nbsp;for year (after income
    tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(70,220</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(49,551</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(101,464</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(147,138</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-55

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NET INCOME PER SHARE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The following is a reconciliation of basic net income per share
to diluted net income per share for the years ended
March&nbsp;31, 2005, 2004 and 2003:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net income</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Per share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net income</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Per share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net income</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Per share</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(numerator)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(denominator)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(numerator)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(denominator)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(numerator)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(denominator)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Yen</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>In Thousands</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>In Thousands</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Yen</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>In Thousands</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Basic Net Income per Share:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income from continuing operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>120,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,582,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>76.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>74,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,581,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>47.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>37,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,582,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>23.43</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss)&nbsp;from discontinued operations&nbsp;&#151; net
    (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,582,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,700</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,581,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.35</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,937</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,582,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.75</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of change in accounting principle (after
    income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,285</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,581,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.44</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income available to common shareholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,582,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,581,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,582,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19.68</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Effect of Dilutive Securities:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    1.5% Convertible Bonds due 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    1.05% Convertible Bonds due 2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>105,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>105,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>105,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Diluted Net Income per Share:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income from continuing operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,687,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>74,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,686,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,706,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22.17</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss)&nbsp;from discontinued operations&nbsp;&#151; net
    (after income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,687,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,700</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,686,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.19</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,937</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,706,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.48</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of change in accounting principle (after
    income tax effect)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,285</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,686,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.36</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income available to common shareholders after effect of
    dilutive securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,687,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>72.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,686,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>40.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,706,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18.69</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEGMENT INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
SFAS&nbsp;No.&nbsp;131, &#147;Disclosures about Segments of an
Enterprise and Related Information,&#148; requires disclosure of
financial and descriptive information about operating segments,
which are components of an enterprise whose operating results
are regularly reviewed by the enterprise&#146;s chief operating
decision maker in deciding about resources to be allocated to
the segment and assessing its performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The business units of the companies&#146; Head Office, which are
organized based on &#147;products and services,&#148; plan
overall and worldwide strategies for their products and services
and conduct their worldwide operations. The business units also
collaborate with overseas branches and overseas trading
subsidiaries in
</DIV>

<P align="center" style="font-size: 10pt;">F-56

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
planning and executing their strategies for products and
regions. The overseas branches and overseas trading subsidiaries
are separate operating units, which are delegated the business
of their regions as the centers of each particular regional
strategy and operate diversified business together with their
subsidiaries and associated companies in collaboration with the
business units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Therefore, the companies&#146; operating segments consist of
product-focused operating segments comprised of the business
units of the Head Office and region-focused operating segments
comprised of overseas branches and overseas trading
subsidiaries. The companies&#146; operating segments have been
aggregated based on the nature of the products and other
criteria into six product-focused reportable operating segments
and three region-focused reportable operating segments, totaling
nine reportable operating segments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective April&nbsp;1, 2004, with the aim of strengthening
domestic businesses and improving efficiency of operational
resources, the &#147;Domestic Branches and Offices,&#148; which
had been separate operating units until the year ended
March&nbsp;31, 2004, were integrated into related business units
based on the categories of their products and services.
Accordingly, &#147;Domestic Branches and Offices&#148; was
abolished and the components of the reportable segment were
transferred to each product-focused operating segment in the
Head Office. Further, effective April&nbsp;1, 2004, with the aim
of allocating operating resources based on total optimization
and implementing global strategies more quickly and efficiently,
the business units in the Head Office were reorganized. In this
reorganization, the logistics businesses and the financial
businesses, which had previously been included in &#147;Metal
Products &#38; Minerals&#148; and &#147;All Other,&#148; were
aggregated as a new reportable segment &#147;Logistics &#38;
Financial Markets,&#148; in order to provide high-quality,
specialized logistics and financial capabilities to customers
across all product areas. In addition, with the aim of
responding to the rapid expansion in Japan of service industries
such as the knowledge-based industry and the healthcare
industry, and developing new business models based on
identifying consumer needs, Consumer Service Business Unit was
established in &#147;Consumer Products &#38; Services.&#148;
Additionally the media-related businesses oriented to consumers
were transferred to &#147;Consumer Products &#38; Services&#148;
from &#147;Machinery, Electronics &#38; Information.&#148; The
operating segment information for the years ended March&nbsp;31,
2004 and 2003 have been restated to conform to the current year
presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Further, starting from the year ended March&nbsp;31, 2005,
equity in earnings of associated companies is disclosed, since
this item is newly included in the measure of segment
performance reviewed by the chief operating decision maker.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A description of reportable operating segments of the Company
follows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Metal Products &#38; Minerals develops raw material resources of
iron or non-ferrous metals in foreign countries, and
manufactures, sells and trades products in Japan and abroad.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Machinery, Electronics &#38; Information is engaged in the
manufacture, sale and trade of machinery products, leasing,
financing, information related businesses, sale of electronics
products and promotion of certain projects such as plant
constructions and infrastructure buildings in Japan and abroad.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Chemical manufactures, sells and trades chemical products in
Japan and abroad.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Energy develops energy resources overseas and manufactures,
sells and trades oil and gas products in Japan and abroad.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Consumer Products &#38; Services manufactures, constructs, sells
and trades consumer-related products, such as foods, textiles,
general merchandise and houses and provides logistics services
for those businesses in Japan and abroad.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Logistics &#38; Financial Markets engages in logistics services,
insurance and financial businesses in Japan and abroad.
</DIV>

<P align="center" style="font-size: 10pt;">F-57

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Americas, Europe and Other Overseas Areas trade in various
commodities and conduct related business led by overseas trading
subsidiaries or branches located in each region.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Starting from the year ended March&nbsp;31, 2005, the companies
changed the presentation of financing revenues and costs of
certain subsidiaries engaged mainly in external consumer
financing, which were formerly reported as interest expense, net
of interest income. In relation to this change, the figures of
total trading transactions, gross profit, operating income
(loss) and revenues for the years ended March&nbsp;31, 2004 and
2003 have been restated to conform to the current year
presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies&#146; operating segment information and product
information and geographic area information for the years ended
March&nbsp;31, 2005, 2004 and 2003 presented in conformity with
SFAS&nbsp;No.&nbsp;131 are as follows:
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>OPERATING SEGMENT INFORMATION</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Metal</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Machinery,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consumer</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Logistics &#38;</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Electronics &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Financial</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Minerals</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Information</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Chemical</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Energy</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Services</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Markets</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="7" align="left" valign="top">
    <B>Year ended March 31, 2005:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total trading transactions:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    External customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,640,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,720,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,901,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,402,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,633,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>94,354</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intersegment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>239,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>116,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>408,446</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>83,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,172</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,879,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,836,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,310,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,484,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,716,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>105,526</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>137,310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>87,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>72,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>152,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>46,662</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>35,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>32,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,480</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,439</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>46,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>26,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(6,852</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>42,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,835</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets at March&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,227,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,306,359</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>779,930</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>894,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,109,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>405,355</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Overseas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Americas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Europe</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Areas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Eliminations</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ended March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total trading transactions:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    External customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,026,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>403,448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>769,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>13,591,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>25,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,676</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>13,615,047</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intersegment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>494,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>368,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,362,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,165,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,176,270</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,520,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>772,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,131,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16,757,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>35,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(3,177,946</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>13,615,047</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>49,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>20,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>25,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>714,142</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(688</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>725,803</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>14,737</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>235,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(466</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(36,913</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>197,991</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>65,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(474</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>65,893</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,343</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,930</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>13,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>167,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(50,365</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121,136</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets at March&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>445,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>345,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>270,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,784,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,312,547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,503,312</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,593,387</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-58

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 24pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Metal</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Machinery,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consumer</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Logistics &#38;</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Electronics &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Financial</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Minerals</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Information</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Chemical</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Energy</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Services</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Markets</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004 (As&nbsp;restated):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total trading transactions:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    External customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,206,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,640,632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,548,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,401,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,577,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>81,486</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intersegment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>260,323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>415,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>135,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,989</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,466,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,774,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,964,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,501,477</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,713,186</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>107,475</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>77,027</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>128,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>91,094</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>54,616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>135,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>32,293</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>28,715</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>29,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>23,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,370</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,909</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets at March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>994,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,223,610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>624,799</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>610,374</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,079,914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>358,263</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Overseas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Americas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Europe</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Areas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Eliminations</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004 (As&nbsp;restated):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total trading transactions:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    External customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>843,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>342,286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>624,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,266,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>26,954</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(9,488</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,284,111</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intersegment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>448,399</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>335,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,009,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,864,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,873,513</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,291,931</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>677,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,634,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>15,131,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>35,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(2,883,001</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,284,111</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>40,711</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>19,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>604,367</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(885</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>613,943</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,562</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>162,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,902</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(34,240</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>126,847</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>100,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(34,416</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68,387</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets at March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>399,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>247,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>215,185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,753,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,152,005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,189,659</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,716,028</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Metal</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Machinery,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consumer</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Logistics &#38;</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Electronics &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Products &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Financial</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Minerals</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Information</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Chemical</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Energy</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Services</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Markets</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003 (As&nbsp;restated):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total trading transactions:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    External customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,997,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,490,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,365,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,240,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,555,328</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>93,636</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intersegment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>254,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161,982</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>322,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,886</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,861</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,252,809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,652,107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,687,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,281,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,683,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>107,497</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>71,505</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>69,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>53,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>122,632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>33,158</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>14,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>25,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,929</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(9,206</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(3,563</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>9,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,646</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets at March&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>866,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,266,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>572,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>620,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>998,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>273,063</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-59

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 24pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Overseas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Americas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Europe</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Areas</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Eliminations</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003 (As&nbsp;restated):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total trading transactions:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    External customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>786,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>355,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>577,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,461,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>29,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(16,960</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,474,183</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intersegment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>485,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>224,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>729,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,361,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,368,387</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,272,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>579,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,306,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>13,823,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(2,385,347</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,474,183</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>44,584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22,470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>23,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>562,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(3,021</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>569,570</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>9,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>136,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,828</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(32,406</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>101,932</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>55,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,921</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(31,123</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,138</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets at March&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>412,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>218,304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>201,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,430,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,085,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(975,327</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,540,520</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Notes:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    The figures of &#147;Consolidated Total&#148; for the years
    ended March&nbsp;31, 2004 and 2003 have been reclassified to
    conform to the change in current year presentation for
    discontinued operations in accordance with
    SFAS&nbsp;No.&nbsp;144. The reclassification to income (loss)
    from discontinued operation&nbsp;&#151; net (after income tax
    effect) are included in &#147;Adjustments and Eliminations.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    &#147;All Other&#148; includes business activities which
    primarily provide services, such as development and sales of
    systems, financing services, and operations services to external
    customers and/or to the companies and associated companies.
    Total assets of &#147;All Other&#148; at March&nbsp;31, 2005,
    2004 and 2003 consisted primarily of cash and cash equivalents
    and time deposits related to financing activities, and assets of
    certain subsidiaries related to the above services.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Net loss of &#147;Adjustments and Eliminations&#148; includes
    income and expense items that are not allocated to specific
    reportable operating segments, such as certain expenses of the
    corporate departments, and eliminations of intersegment
    transactions.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Net loss of &#147;Adjustments and Eliminations&#148; for the
    year ended March&nbsp;31, 2005 includes
    (a)&nbsp;&#165;21,722&nbsp;million in general and administrative
    expenses of the corporate departments excluding pension costs,
    (b)&nbsp;a charge of &#165;15,292&nbsp;million for the valuation
    allowance for deferred tax assets as a result of change in a
    policy to sell certain investments, and (c)&nbsp;a gain of
    &#165;2,432&nbsp;million for pension related items (all amounts
    are after income tax effects).</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Net loss of &#147;Adjustments and Eliminations&#148; for the
    year ended March 31, 2004 includes
    (a)&nbsp;&#165;14,001&nbsp;million in general and administrative
    expenses of the corporate departments excluding pension costs,
    (b)&nbsp;a charge of &#165;13,247&nbsp;million for pension
    related items, and (c)&nbsp;&#165;4,743&nbsp;million in
    impairment losses of long-lived assets (all amounts are after
    income tax effects).</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Net loss of &#147;Adjustments and Eliminations&#148; for the
    year ended March&nbsp;31, 2003 includes (a)&nbsp;a charge of
    &#165;7,485&nbsp;million for an early retirement support
    program, (b)&nbsp;&#165;5,814&nbsp;million in losses on
    write-down of marketable securities, and
    (c)&nbsp;&#165;3,142&nbsp;million in losses on sale of
    marketable securities (all amounts are after income tax effects).</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Transfers between operating segments are made at cost plus a
    markup.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    Operating income (loss) reflects the companies&#146;
    (a)&nbsp;gross profit, (b) selling, general and administrative
    expenses, (c)&nbsp;provision for doubtful receivables, and
    (d)&nbsp;government grant for transfer of substitutional portion
    of EPF, as presented in the Statements of Consolidated Income.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-60

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>PRODUCT INFORMATION</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 7pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="42" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="42" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="35">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Property and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Iron and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Non-Ferrous</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Electronics &#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>General</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Service</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Steel</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Metals</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Machinery</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Information</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Chemicals</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Energy</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Foods</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Textiles</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Merchandise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Business</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ended March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>407,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>161,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>269,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>144,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>729,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,048,362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>473,573</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>43,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>96,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>153,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,525,733</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004 (As&nbsp;restated):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>312,853</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>157,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>305,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>119,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>520,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>954,556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>389,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>32,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>84,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>106,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,982,936</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003 (As&nbsp;restated):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>281,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>152,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>304,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>108,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>463,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>830,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>393,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>37,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>88,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>123,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,784,571</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Note:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with SFAS&nbsp;No.&nbsp;144, revenues from
discontinued operations are eliminated from each product amount
and &#147;Consolidated Total.&#148; The figures for the years
ended March&nbsp;31, 2004 and 2003 have been reclassified to
conform to the current year presentation.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>GEOGRAPHIC AREA INFORMATION</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>United</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>United</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Japan</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>States</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Kingdom</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>China</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ended March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total trading transactions to external customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,736,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,096,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>200,399</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>608,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,973,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>13,615,047</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004 (As&nbsp;restated):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total trading transactions to external customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,189,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>831,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>159,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>421,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,682,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,284,111</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003 (As&nbsp;restated):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total trading transactions to external customers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,102,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>808,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>154,142</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>350,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,058,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,474,183</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Notes:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Total trading transactions are attributed to countries based on
    the location of customers.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    The Company provides total trading transactions instead of
    revenues, as certain costs related to revenues presented net in
    accordance with EITF No.&nbsp;99-19 are not attributed to
    countries based on the location of customers.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    In accordance with SFAS&nbsp;No.&nbsp;144, total trading
    transactions to external customers from discontinued operations
    are eliminated from each geographic area amount and
    &#147;Consolidated Total.&#148; The figures for the years ended
    March&nbsp;31, 2004 and 2003 have been reclassified to conform
    to the current year presentation.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Total trading transactions to the customers located in China,
    which were previously included in &#147;All Other,&#148; were
    separately presented in consideration of the importance of the
    amount for the year ended March&nbsp;31, 2005. The figures for
    the years ended March&nbsp;31, 2004 and 2003 have been restated
    to conform to the current year presentation.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-61

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 18pt; ">

<TR style="font-size: 1pt;">
    <TD width="46%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>United</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Japan</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>States</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Australia</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>At March 31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-lived assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>431,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>99,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>177,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>137,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>845,863</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    At March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-lived assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>469,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>128,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>95,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>136,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>829,450</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    At March&nbsp;31, 2003:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-lived assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>497,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>113,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>70,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>154,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>835,289</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Note:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Mineral rights are classified to property and
equipment&nbsp;&#151; at cost at March&nbsp;31, 2005, which were
formerly included in intangible assets, less accumulated
amortization. The figures at March&nbsp;31, 2004 and 2003 have
been reclassified to conform to the current year presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There are no individual material customers with respect to
revenues for the years ended March&nbsp;31, 2005, 2004 and 2003.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>18.</B></TD>
    <TD>
    <B>SUPPLEMENTAL INCOME STATEMENT INFORMATION</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Supplemental information related to the Statements of
Consolidated Income is as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="68%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation of property and equipment*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>52,921</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>54,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>50,652</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Research and development expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,415</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advertising expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,915</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,898</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign exchange gains&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,154</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    In accordance with the change in classification of mineral
    rights in the Consolidated Balance Sheets, the figures of
    &#147;Depreciation of property and equipment&#148; for the years
    ended March&nbsp;31, 2004 and 2003 have been reclassified to
    conform to the current year presentation.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>19.</B></TD>
    <TD>
    <B>ISSUANCE OF STOCK BY SUBSIDIARIES AND ASSOCIATED COMPANIES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Mitsui&nbsp;&#38; Associates Telepark Corporation
(&#147;Telepark&#148;), a subsidiary of the Company, which is
principally engaged in sales of mobile devices and fixed
telecommunication lines, issued 8,000 shares of common stock at
&#165;319,600 per share to third parties in a public offering on
April&nbsp;7, 2004 receiving total consideration of
&#165;2,557&nbsp;million. As a result of Telepark&#146;s public
offering, the companies&#146; ownership of voting shares of
Telepark decreased from 98.19% to 88.60%. The companies
recognized a gain of &#165;1,677&nbsp;million on this issuance
as a separate line item in the Statements of Consolidated Income
under gain on issuance of stock by a subsidiary and provided
deferred income taxes of &#165;688&nbsp;million on such gain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At the same time, the companies sold 19,000 shares of
Telepark&#146;s common stock to third parties at &#165;319,600
per share through the stock market, and recorded a gain of
&#165;4,057&nbsp;million on this sale. As a result, the
companies&#146; ownership of voting shares of Telepark further
decreased from 88.60% to 65.41%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Telepark changed its corporate name to Telepark Corp. on
October&nbsp;1, 2004.
</DIV>

<P align="center" style="font-size: 10pt;">F-62

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>20.</B></TD>
    <TD>
    <B>OTHER EXPENSE&nbsp;&#151; NET</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Other expense&nbsp;&#151; net for the years ended March&nbsp;31,
2005, 2004 and 2003 consists of the following:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exploration expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,367</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>932</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring-related charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,131</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment loss of goodwill</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Litigation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,050</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign exchange losses (gains)&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,365</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,523</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>28,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,001</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Note:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with SFAS&nbsp;No.&nbsp;144, the expense and/or
income from discontinued operations, if any, is eliminated from
each line item presented in the above table. The figures for the
years ended March&nbsp;31, 2004 and 2003 have been reclassified
to conform to the current year presentation.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>21.</B></TD>
    <TD>
    <B>INCOME TAXES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Income taxes in Japan applicable to the companies, imposed by
the national, prefectural and municipal governments, in the
aggregate resulted in normal effective statutory tax rates of
approximately 41% for the year ended March&nbsp;31, 2005 and 42%
for the years ended March&nbsp;31, 2004 and 2003, respectively.
Foreign subsidiaries are subject to income taxes of the
countries in which they operate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On March&nbsp;31, 2003, the local tax laws in Japan were
amended, and an enterprise tax on the basis of the size of
business was introduced for the year ended March&nbsp;31, 2005.
As a result, the statutory tax rate for the year ended
March&nbsp;31, 2005 was approximately 41% effective
April&nbsp;1, 2004. The effect of the changes in the tax rates
on the balance of deferred tax assets and liabilities as of
March&nbsp;31, 2003 was insignificant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A reconciliation between the normal statutory tax rate in Japan
applied to income from continuing operations and the effective
income tax rate on income from continuing operations for the
years ended March&nbsp;31, 2005, 2004 and 2003 is summarized as
follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>%</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Normal statutory tax rate in Japan applied to income from
    continuing operations before income taxes, minority interests
    and equity in earnings</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increases (decreases) in tax rate resulting from:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expenses not deductible for tax purposes and income not
    taxable&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Application of lower tax rates to certain taxable income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5.4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5.7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Effect of taxation on dividends from subsidiaries and corporate
    joint ventures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in valuation allowance&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Effective income tax rate on income from continuing operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59.7</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-63

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Amounts provided for income taxes for the years ended
March&nbsp;31, 2005, 2004 and 2003 are allocated as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income taxes on income from continuing operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>103,555</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>47,041</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>38,798</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from discontinued operations&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,283</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,474</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings of associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(161</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(38,568</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>148,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>87,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(11,218</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The tax effects of significant temporary differences and
carryforwards which result in deferred tax assets and
liabilities at March&nbsp;31, 2005 and 2004 are as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Deferred Tax Assets:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued pension costs and liability for severance indemnities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>15,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>25,083</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allowance for doubtful receivables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,977</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,994</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estimated losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,944</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment loss of long-lived assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,746</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss carryforwards of subsidiaries and associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70,584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,528</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized intercompany profit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,107</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,110</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,709</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>214,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,221</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Valuation allowance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(44,915</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(31,245</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax assets&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>169,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>186,976</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Deferred Tax Liabilities:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>96,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>74,428</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investment securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,256</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Undistributed earnings of associated companies other than
    corporate joint&nbsp;ventures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,566</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,089</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>238,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175,339</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net deferred tax (liabilities)&nbsp;assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(69,317</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,637</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-64

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net deferred tax assets or liabilities at March&nbsp;31, 2005
and 2004 are included in the Consolidated Balance Sheets as
follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Assets&nbsp;&#151; Deferred tax assets&nbsp;&#151;
    current</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>46,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,473</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred Tax Assets&nbsp;&#151; Non-current</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,406</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Liabilities&nbsp;&#151; Other current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,802</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,855</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred Tax Liabilities&nbsp;&#151; Non-current</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(143,566</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(47,387</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net deferred tax (liabilities) assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(69,317</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>11,637</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The valuation allowance is provided principally on deferred tax
assets for loss carryforwards of certain subsidiaries where it
is more likely than not that a tax benefit will not be realized.
During the years ended March&nbsp;31, 2005, 2004 and 2003, the
valuation allowances were increased by
&#165;13,670&nbsp;million, increased by &#165;8,390&nbsp;million
and decreased by &#165;290&nbsp;million, respectively. For the
years ended March&nbsp;31, 2005, 2004 and 2003, adjustments of
the beginning-of-the-year balance of the valuation allowances
attributable to continuing operations were
&#165;17,910&nbsp;million (loss), &#165;3,475&nbsp;million
(profit) and &#165;3,072&nbsp;million (profit), respectively.
With respect to the remaining deferred tax assets, the companies
believe it is more likely than not that such benefits will be
realized through the reduction of future taxable income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The tax benefits of operating loss carryforwards attributable to
continuing operations for the years ended March&nbsp;31, 2005,
2004 and 2003 were &#165;8,795&nbsp;million,
&#165;13,493&nbsp;million and &#165;2,204&nbsp;million,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income taxes or foreign withholding taxes are not provided on
undistributed earnings of foreign subsidiaries and foreign
corporate joint ventures which are considered to be indefinitely
reinvested in the operations of such subsidiaries and corporate
joint ventures. At March&nbsp;31, 2005 and 2004, the amounts of
undistributed earnings of such foreign subsidiaries and foreign
corporate joint ventures were &#165;332,986&nbsp;million and
&#165;299,574&nbsp;million, respectively. Determination of the
amount of unrecognized deferred income taxes with respect to
these foreign earnings is not practicable. The domestic
undistributed earnings would not, under present Japanese tax
laws, be subject to additional taxation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At March&nbsp;31, 2005, certain subsidiaries had aggregate
operating loss carryforwards of &#165;108,875&nbsp;million,
which are available to reduce taxable income in subsequent
periods. If not utilized, such loss carryforwards expire as
follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Within 5&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,306</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    After 5 to 10&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,951</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    After 10 to 15&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,521</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    After 15&nbsp;years</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,097</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>108,875</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-65

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income from continuing operations before income taxes, minority
interests and equity in earnings for the years ended
March&nbsp;31, 2005, 2004 and 2003 comprised the following:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>The Company</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>and its domestic</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Foreign</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>subsidiaries</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>subsidiaries</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ended March&nbsp;31, 2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>54,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>120,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>175,644</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>38,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>50,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>88,805</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>54,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>64,990</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income taxes on income from continuing operations for the years
ended March&nbsp;31, 2005, 2004 and 2003 comprised the following:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="51%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>The Company</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>and its domestic</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Foreign</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>subsidiaries</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>subsidiaries</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ended March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>32,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>32,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>65,098</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,457</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>62,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>103,555</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>27,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>17,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>45,016</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,025</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>29,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>17,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>47,041</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended March&nbsp;31, 2003:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>20,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>39,187</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,447</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(389</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>14,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>24,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>38,798</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-66

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>22.</B></TD>
    <TD>
    <B>COMPENSATION AND OTHER CHARGES RELATED TO DPF INCIDENT</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Company discovered during the year ended March&nbsp;31, 2005
that false data of a performance test were produced and
submitted to authorities for diesel particulate filters
(&#147;DPF&#148;s) manufactured by PUREarth Incorporated, a
wholly owned subsidiary of the Company, and sold by the Company.
The DPFs were subsidized by the Tokyo Metropolitan Government
and seven other prefectural and municipal governments, as well
as the Ministry of Land, Infrastructure and Transport, the
Ministry of the Environment, and related industry associations.
The Company sold approximately 21,500 units of the product.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is carrying out a three-part user response plan that
involves: (1)&nbsp;the free replacement of DPFs, (2)&nbsp;the
reimbursement of the amount paid for purchasing the
Company&#146;s DPFs upon their redemption following the
scrapping or resale of vehicles, and (3)&nbsp;support program
for the purchase of alternative vehicles. In addition, the
Company is also proceeding with full compensation of relevant
subsidies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company recorded &#165;36,000&nbsp;million as compensation
and other charges related to DPF incident in the Statements of
Consolidated Income for the year ended March&nbsp;31, 2005,
consisting of a user response charge of approximately
&#165;28,000&nbsp;million and subsidy compensation of
approximately &#165;8,000&nbsp;million. The user response charge
was estimated based on expected costs of each user response plan
reflecting requests from users of the Company&#146;s DPFs. The
subsidy compensation was recorded based on the amounts claimed
by subsidy providers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The outstanding balance of &#165;27,851&nbsp;million at
March&nbsp;31, 2005, which was net of compensation and other
charges related to DPF incident of &#165;36,000&nbsp;million and
the Company&#146;s payments of &#165;8,149&nbsp;million for
subsidy compensation and other related expenses during the year
ended March&nbsp;31, 2005, was recorded in other current
liabilities in the Consolidated Balance Sheets.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>23.</B></TD>
    <TD>
    <B>COMMITMENTS AND CONTINGENT LIABILITIES</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>I.</B></TD>
    <TD>
    <B>LONG-TERM PURCHASE CONTRACTS AND FINANCING COMMITMENTS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies customarily enter into long-term purchase
contracts for certain items, principally chemical materials, oil
products, ocean transport vessels, metals, and machinery and
equipment, either at fixed prices or at basic purchase prices
adjustable to market. In general, customers of the companies are
also parties to the contracts or by separate agreements are
committed to purchase the items from the companies; such
customers are generally large Japanese industrial companies and
shipping firms. Long-term purchase contracts at fixed or basic
purchase prices amounted to &#165;2,393,864&nbsp;million at
March&nbsp;31, 2005. Scheduled deliveries are at various dates
through 2021.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies had financing commitments totaling
&#165;2,728&nbsp;million at March&nbsp;31, 2005, principally for
financing, on a deferred-payment basis, the cost of ocean
transport vessels and equipment to be purchased by their
customers through October 2006.
</DIV>

<P align="center" style="font-size: 10pt;">F-67

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>II.</B></TD>
    <TD>
    <B>GUARANTEES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The table below summarizes the companies&#146; guarantees as
defined in FIN&nbsp;No.&nbsp;45 at March&nbsp;31, 2005 and 2004.
The maximum potential amount of future payments represents the
amounts without consideration of possible recoveries under
recourse provisions or from collateral held or pledged that the
companies could be obliged to pay if there were defaults by
guaranteed parties or there were changes in an underlying which
would cause triggering events under market value guarantees and
indemnification contracts. Such amounts bear no relationship to
the anticipated losses on these guarantees and indemnifications,
and they greatly exceed anticipated losses.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Maximum</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expire</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Recourse</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>potential</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Carrying</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>within</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expire after</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>provisions/</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount of future</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expire no</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1&nbsp;year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1&nbsp;year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>collateral</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>payments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>liabilities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>later than</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Type of guarantees:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financial guarantees:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guarantees for third parties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,251</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>72,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>84,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>22,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>88,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2021</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guarantees for associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2022</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guarantees to financial institutions for employees&#146; housing
    loans</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2029</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>34,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>123,323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>157,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>193,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Performance guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>14,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>33,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>33,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2013</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Market value guarantees:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Obligation to repurchase bills of exchange</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>52,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>53,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>53,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2007</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minimum purchase price guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2013</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Residual value guarantees of leased assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2008</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>52,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>20,886</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>73,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>73,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Derivative instruments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>805,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>398,632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,204,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,204,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>65,869</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-68

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 24pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Maximum</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expire</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Recourse</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>potential</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Carrying</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>within</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expire after</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>provisions/</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount of future</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expire no</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1&nbsp;year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1&nbsp;year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>collateral</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>payments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>liabilities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>later than</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Type of guarantees:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financial guarantees:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guarantees for third parties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>26,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>93,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>119,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>31,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>143,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2021</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guarantees for associated companies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,947</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,343</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2022</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guarantees to financial institutions for employees&#146; housing
    loans</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2029</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>44,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>155,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>200,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>257,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Performance guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>26,094</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2013</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Market value guarantees:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Obligation to repurchase bills of exchange</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,655</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,951</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,951</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2006</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minimum purchase price guarantees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2013</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Residual value guarantees of leased assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2008</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,655</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>19,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>61,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>61,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Derivative instruments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>271,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>37,353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>309,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>309,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>(1)&nbsp;Financial guarantees</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies provide various types of guarantees to the benefit
of third parties and related parties principally to enhance
their credit standings, and would be required to execute
payments if a guaranteed party failed to fulfill its obligation
with respect to a borrowing or trade payable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Categories of financial guarantees are as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Guarantees for third parties</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies guarantee, severally or jointly with others,
indebtedness of certain customers and suppliers in the
furtherance of their trading activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Guarantees for associated companies</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies, severally or jointly with others, issue
guarantees for associated companies for the purpose of
furtherance of their trading activities and credit enhancement
of associated companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Guarantees to financial institutions for employees&#146;
housing loans</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
As a part of the benefits program for its employees, the Company
issues guarantees to financial institutions for employees&#146;
housing loans. The maximum duration of the guarantees is
25&nbsp;years. The Company obtains a mortgage on the
employees&#146; assets, if necessary.
</DIV>

<P align="center" style="font-size: 10pt;">F-69

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At March&nbsp;31, 2005 and 2004, the following table sets forth
the major parties who have received the companies&#146;
financial guarantees. The amounts shown below were calculated by
offsetting the recourse provisions and collateral against
outstanding balance of the guarantee provided to each guaranteed
party.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guaranteed party:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    POWEREDCOM</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>14,276</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Nippon Asahan Aluminium</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,116</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Usinas Siderurgicas de Minas Gerais</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Petro21 Intertrade Company</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,861</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Project Finance BLRE</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,619</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Siam Cement</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,432</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Modec Venture 11</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Qatar LNG Investment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,193</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Bontang Train G Project Finance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,706</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Leeward Navigation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,592</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Others</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,275</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>126,063</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;31, 2004:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guaranteed party:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    POWEREDCOM</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>19,640</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hutchison 3G UK</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,302</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Usinas Siderurgicas de Minas Gerais</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,195</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sanha Fpso</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,256</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Qatar LNG Investment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,062</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Project Finance BLRE</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,372</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Telefonos De Mexico</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,342</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Siam Cement</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,129</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Nippon Asahan Aluminium</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,862</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vinyl Chloride (Malaysia)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,805</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Others</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,512</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>159,477</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>(2)&nbsp;Performance guarantees</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Main items of performance guarantees are contractual guarantees
of Toyo Engineering Corporation regarding plant construction
contracts executed under the name of the guaranteed party in the
Middle East and other regions. The Company has pledged bank
guarantees and performance bonds to the project owners, and in
case that Toyo Engineering Corporation failed to fulfill the
contractual obligation, the project owners would execute bank
guarantees and performance bonds to claim compensation for
damages.
</DIV>

<P align="center" style="font-size: 10pt;">F-70

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>(3)&nbsp;Market value guarantees</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Obligation to repurchase bills of exchange</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In connection with export transactions, the Company issues bills
of exchange, some of which are discounted by its negotiating
banks. If a customer failed to fulfill its obligation with
respect to the bills, the Company would be obligated to
repurchase the bills based on the banking transaction agreement.
The outstanding guarantees and the maximum potential amount of
future payments is represented by the aggregate par value of the
bills discounted by the banks, and the recourse provisions and
collateral are represented by the amount backed by letters of
credit from the issuing banks of the customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Minimum purchase price guarantees</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies provide marketing services of aircraft for
domestic and overseas airline companies, and as a part of such
businesses, the companies issue market value guarantees of the
aircraft for certain customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Residual value guarantees of leased assets</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
As lessees in operating lease contracts, certain subsidiaries
have issued residual value guarantees of the leased aircraft and
ocean transport vessels, and on the date of expiration of
operating lease contracts, such subsidiaries will either
purchase the leased assets at a fixed price or be responsible
for making up any shortfall between an actual sales price and
the guaranteed price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>(4)&nbsp;Derivative instruments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Certain derivative contracts, including written put options and
credit default swaps, meet the accounting definition of
guarantees under FIN&nbsp;No.&nbsp;45. While the companies do
not specifically identify whether the counterparties of such
derivative contracts have underlying assets and liabilities, the
companies disclose all the derivative contracts that could meet
the definition under FIN&nbsp;No.&nbsp;45.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies have written put options as a part of their
various derivative transactions related to energy, non-ferrous
metals and grain. The aggregation of notional amounts computed
based on the strike prices and quantities of written options are
disclosed as the total amount outstanding and the maximum
potential amount of future payments. The carrying amount of
liabilities is represented by the fair value of such written
options recorded in the consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies manage the market and credit risks on these
derivative instruments by monitoring fair values against loss
limits and credit lines, and generally the maximum potential
amount of future payments as stated above greatly overstates the
companies&#146; exposure to market and credit risks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>(5)&nbsp;Indemnification contracts</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Indemnification issued through corporate reorganization</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies divested certain of their businesses through a
sale to a third-party purchaser and a spin-off to an associated
company. In connection with these transactions, the companies
have provided certain indemnities and the terms and conditions
of indemnifications differ by contracts. The maximum potential
amount of future payments could not be quantified because the
limits of those indemnifications are often indefinite. At
March&nbsp;31, 2005 and 2004, the companies recognized
liabilities of &#165;147&nbsp;million and
&#165;882&nbsp;million, respectively, for estimated losses for
their indemnifications where the companies&#146; obligations are
probable and estimable.
</DIV>

<P align="center" style="font-size: 10pt;">F-71

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Joint obligation under membership agreement in commodity
exchanges</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies are members of major commodity exchanges in Japan
and overseas. In connection with these memberships, the
companies provide guarantees to the exchanges. Under the
membership agreements, if a member becomes unable to satisfy its
obligations to the exchange, the other members would be required
to meet such shortfalls apportioned among the non-defaulting
members in the prescribed manner. The companies&#146; maximum
potential amount of future payments related to these joint
obligations is not quantifiable and the probability of being
required to make any payments under these obligations is remote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>(6)&nbsp;Product warranties</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Certain subsidiaries provide product warranties, in relation to
their sales of assets, including machinery and equipment and
residential houses, for the performance of such products during
specified warranty periods, and they are responsible for mending
or payments of compensation against the claims by the customers
regarding defects in performance or function. Estimated warranty
costs are accrued at the time the products are sold based on the
historical claim experiences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A tabular reconciliation of changes in such liabilities for the
product warranties for the years ended March&nbsp;31, 2005, 2004
and 2003 is as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,356</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments made in cash or in kind</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(562</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(486</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(419</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrual for warranties issued during the year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>956</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in accrual related to pre-existing warranties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(736</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(718</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(763</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,130</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LITIGATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Methionine litigation</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Company and two of its subsidiaries, together with other
third-party methionine manufacturers, were named as defendants
in class action lawsuits in the United States, filed by direct
and indirect customers of methionine. In these cases,
manufacturers of methionine allegedly violated federal and/or
state antitrust laws by conspiring to fix the prices of
methionine. The lawsuits sought compensatory and treble damages
in unspecified amounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May 2002, the Company and the subsidiaries reached an
agreement for settlement with the class action plaintiffs
constituted by direct customers. Under this settlement, Novus
International, Inc., the Company&#146;s 65%-owned subsidiary,
paid U.S.$37.8&nbsp;million as a settlement amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November 2002, the Company and the subsidiaries reached an
agreement for settlement with the plaintiffs who opted out of
that class action. Under this settlement, Novus International,
Inc. paid U.S.$58.2&nbsp;million as a settlement amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This did not affect the Company&#146;s consolidated results of
operations for the years ended March&nbsp;31, 2005, 2004 and
2003, since Novus International, Inc. had previously recorded an
estimated provision for the full settlement amount.
</DIV>

<P align="center" style="font-size: 10pt;">F-72

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other related lawsuits are still pending, but management
believes that there is less than a reasonable possibility that
the pending lawsuits would materially affect the consolidated
results of operations of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Choline chloride litigation</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Company&#146;s wholly owned U.S. subsidiary, Bioproducts,
Inc., which had been producing and selling choline chloride, an
ingredient of animal feed and pet foods, was named as a
defendant in the lawsuits in the United States, together with
other third-party choline chloride manufacturers. In these
cases, manufacturers of choline chloride allegedly violated
U.S.&nbsp;antitrust laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although the Company and its wholly owned U.S.&nbsp;subsidiary,
Mitsui USA, were neither a manufacturer nor a seller of choline
chloride in the U.S.&nbsp;market, they were also named as
defendants in class action lawsuits based on the
plaintiffs&#146; allegation that the Company and Mitsui USA were
involved in the violation of the antitrust laws. During the
course of legal proceedings, the Company and Mitsui USA have
consistently denied any wrongdoing. However, in the trial before
Federal District Court of the District of Columbia in June 2003,
the jury rendered a verdict stating that the defendants
participated in the violation of the antitrust laws. The Company
and Mitsui USA considered undertaking the legal proceedings
necessary to overrule the verdict, but given the circumstances,
it was determined that a settlement with the class action
plaintiffs would be in the best interest of the Company and all
of its stakeholders, and entered into an agreement for
settlement with the class action plaintiffs by paying
U.S.$53.0&nbsp;million as a settlement amount. The settlement
had been subject to court approval, which was obtained on
April&nbsp;27, 2005. This amount was recorded as other
expense&nbsp;&#151; net in the Statements of Consolidated Income
for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company, Mitsui USA and Bioproducts, Inc. were also named as
defendants in other lawsuits made by the plaintiffs who opted
out of that class action, but entered into an agreement for
settlement with most of the plaintiffs in February 2004. Under
this settlement, the Company, Mitsui USA and Bioproducts, Inc.
were released from the legal proceedings by paying the opt-out
plaintiffs U.S.$73.5&nbsp;million as a settlement amount. This
amount was paid in February 2004 and was recorded as other
expense&nbsp;&#151; net in the Statements of Consolidated Income
for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For other related lawsuits that are still pending, although
there can be no assurance of the ultimate results, management
believes that there is less than a reasonable possibility that
losses in addition to amounts that have been reserved for
possible litigation losses will occur, and that the amount of
any such additional losses would not have a material impact on
the consolidated financial position, results of operations or
cash flows of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Other matters</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Various other claims and legal actions are pending against the
companies in respect of contractual obligations and other
matters arising out of the conduct of the companies&#146;
business. Appropriate provision has been recorded for the
estimated loss on claims and legal actions including those
mentioned above. In the opinion of management, any additional
liability will not materially affect the consolidated financial
position, results of operations, or cash flows of the Company.
</DIV>

<P align="center" style="font-size: 10pt;">F-73

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VARIABLE INTEREST
ENTITIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies are involved with VIEs which mainly engage in
leasing and financing activities within the Machinery,
Electronics &#38; Information and Energy segments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The VIEs that have been consolidated by the companies in
accordance with FIN&nbsp;No.&nbsp;46R are described as follows
(excluding VIEs of which the companies also hold a majority
voting interest):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As lessees in operating lease contracts concluded with lessors
that have been established for those lease contracts in Europe
and Latin America, certain subsidiaries have issued residual
value guarantees of the leased vessels. On the date of
expiration of operating lease contracts, such subsidiaries will
either purchase the leased assets at a fixed price or be
responsible for making up any shortfall between an actual sales
price and the guaranteed value. The lessors of the leased
vessels are VIEs and the companies have consolidated the lessors
as the primary beneficiary. Total assets of the lessors as of
March&nbsp;31, 2005 and 2004 were &#165;20,240&nbsp;million and
&#165;19,878&nbsp;million, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A portion of the leased assets, which are consolidated, is
collateral for the VIE&#146;s obligations. The carrying amounts
of those assets as of March&nbsp;31, 2005 and 2004 were
&#165;6,984&nbsp;million and &#165;7,542&nbsp;million,
respectively, and were classified as property leased to
others&nbsp;&#151; at cost, less accumulated depreciation in the
Consolidated Balance Sheets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The creditors or beneficial interest holders of the consolidated
VIEs do not have recourse to the general credit of the
companies, except for the aforementioned residual value
guarantees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the VIEs that are not consolidated because the
companies are not the primary beneficiary, but in which the
companies have significant variable interests, are described as
follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies are involved with and have significant variable
interests in a number of VIEs that have been established to
finance crude oil and liquefied natural gas (&#147;LNG&#148;)
producing plants and equipment or to finance subordinated debts
by providing guarantees or subordinated loans to the VIEs. Those
VIEs provide financing for customers located principally in
Latin America and Middle East in the form of leases and loans.
Total assets of the VIEs as of March&nbsp;31, 2005 and 2004 were
&#165;1,117,752&nbsp;million and &#165;839,521&nbsp;million,
respectively, and the maximum exposure to loss as a result of
the companies&#146; involvement with the VIEs as of
March&nbsp;31, 2005 and 2004 were &#165;83,464&nbsp;million and
&#165;47,434&nbsp;million, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of maximum exposure to loss represents a loss that
the companies could incur from the variability in value of the
leased assets, from financial difficulties of the customers or
from other causes without consideration of possible recoveries
through insurance and the like. In addition, the amount bears no
relation to the loss anticipated to be incurred from the
companies&#146; involvement with the VIEs and is considered to
exceed greatly the anticipated loss.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>25.</B></TD>
    <TD>
    <B>EXIT OR DISPOSAL ACTIVITIES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Company focuses on the maximization of its consolidated
corporate value. To achieve this objective, the Company is
trying to strengthen its consolidated capabilities through
optimal group management. The Company actively restructures its
businesses to make them more efficient by regularly reassessing
the business environment and operational objectives of each of
its businesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to these restructurings, the companies have disposed
of certain long-lived assets based on reviews of whether the
companies should keep holding those assets from the standpoint
of profitability. For the year ended March&nbsp;31, 2005, the
companies recorded total exit or disposal costs of
&#165;4,161&nbsp;million, which are defined by
SFAS&nbsp;No.&nbsp;146, &#147;Accounting for Costs Associated
with Exit or Disposal Activities.&#148;
</DIV>

<P align="center" style="font-size: 10pt;">F-74

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The costs consisted of a contract termination cost of
&#165;1,950&nbsp;million, losses on disposal and impairment of
long-lived assets of &#165;1,680&nbsp;million, and other
associated costs of &#165;531&nbsp;million. These exit or
disposal costs were recorded principally in the Consumer
Products&nbsp;&#38; Services Segment of
&#165;1,950&nbsp;million, the Energy Segment of
&#165;609&nbsp;million, the Europe Segment of
&#165;531&nbsp;million and the Americas Segment of
&#165;462&nbsp;million for the year ended March&nbsp;31, 2005.
For the year ended March&nbsp;31, 2004, the companies recorded
total exit or disposal costs defined by SFAS&nbsp;No.&nbsp;146
of &#165;18,432&nbsp;million, which consisted of losses on
disposal and impairment of long-lived assets of
&#165;10,458&nbsp;million, contract termination costs of
&#165;4,537&nbsp;million, and other associated costs of
&#165;3,437&nbsp;million. These exit or disposal costs were
recorded principally in the Machinery, Electronics &#38;
Information Segment of &#165;9,461&nbsp;million, the Energy
Segment of &#165;3,742&nbsp;million, the Chemical and Americas
segments of &#165;3,054&nbsp;million for the year ended
March&nbsp;31, 2004. During the year ended March&nbsp;31, 2003,
the exit or disposal activities were immaterial, except for the
exit activities completed by petrochemicals subsidiaries in
North America which are disclosed in Note&nbsp;4,
&#147;DISCONTINUED OPERATIONS.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each exit or disposal activity defined by SFAS&nbsp;No.&nbsp;146
commenced and was substantially completed within the same year.
The ending balances of liabilities for the exit or disposal
costs were immaterial at March&nbsp;31, 2005 and 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary exit or disposal activity for the year ended
March&nbsp;31, 2005 was as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company had compensated losses on defects arising from the
ceramic building materials and fiberboard business in the
Consumer Products&nbsp;&#38; Services Segment, which were sold
in October 2001, pursuant to the indemnification agreement
between the Company and the buyer of the businesses as of 2001.
During the year ended March&nbsp;31, 2005, the Company
terminated the agreement as a result of the negotiation with the
buyer. In connection with this termination of the agreement, the
Company recorded an associated cost of &#165;1,950&nbsp;million
in other expense&nbsp;&#151; net in the Statements of
Consolidated Income for the year ended March&nbsp;31, 2005 and
reversed the remaining liability previously recorded under the
indemnification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary exit or disposal activities for the year ended
March&nbsp;31, 2004 were as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NBI Co., Ltd. (former Toyo Valve Co., Ltd.), a subsidiary
reported in the Machinery, Electronics&nbsp;&#38; Information
Segment, has been engaged in the manufacture and sale of valves
and system equipment. On March&nbsp;31, 2004, it sold its valve
business to KITZ Material Corporation, a subsidiary of KITZ
Corporation which engages in the manufacture and sale of valves
for construction facilities and industrial plants. The decision
to sell the valve business was made as a result of the
continuing oversupply of valves within the valve industry in
Japan due to deterioration in capital investment. As a result of
this disposal activity, the companies recorded
&#165;157&nbsp;million in loss on disposal or sales of property
and equipment&nbsp;&#151; net, &#165;4,127&nbsp;million in
impairment loss of long-lived assets, and other associated costs
of &#165;1,747&nbsp;million in other expense&nbsp;&#151; net in
the Statements of Consolidated Income for the year ended
March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui Bussan Machinery Co., Ltd., a subsidiary reported in the
Machinery, Electronics &#38; Information Segment, has been
engaged in the sale and leasing of machine tools and
construction and industrial machinery. Because of its
unprofitable performance in the shrinking Japanese construction
and industrial machinery markets, the Company has decided to
exit from the construction and industrial machinery businesses,
as they have been evaluated as businesses with low historical
profitability and future growth potential compared to the
machine tools business. As a result of this exit decision, the
companies recorded &#165;150&nbsp;million in impairment loss of
long-lived assets, lease termination and asset disposal costs of
</DIV>

<P align="center" style="font-size: 10pt;">F-75

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&#165;1,957&nbsp;million in other expense&nbsp;&#151; net, and
other associated costs of &#165;216&nbsp;million in selling,
general and administrative in the Statements of Consolidated
Income for the year ended March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mitsui Oil &#38; Gas Co., Ltd. and Kokusai Oil &#38; Chemical
Co., Ltd., subsidiaries reported in the Energy Segment, are
engaged in the import and domestic sale of petroleum products.
In order to maintain their competitiveness in gasoline station
operations, they have relocated stations, introduced
self-service stations, and established multifunctional
value-added stations, such as stations with convenience stores.
These subsidiaries have also disposed of and/or combined
previously existing stations and streamlined their distribution
processes. In connection with such restructuring and
streamlining efforts, the subsidiaries disposed of certain
unprofitable gasoline stations, which resulted in recording
&#165;1,742&nbsp;million in loss on disposal or sales of
property and equipment&nbsp;&#151; net and other associated
costs of &#165;2,000&nbsp;million in other expense&nbsp;&#151;
net in the Statements of Consolidated Income for the year ended
March&nbsp;31, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Global Octanes Corporation, a subsidiary partially reported in
both the Chemical and Americas segments, Global Octanes
Investment Inc., a subsidiary reported in the Chemical Segment,
and Global Octanes Holding Inc., a subsidiary reported in the
Americas Segment had managed Global Octanes Texas Limited
Partnership, which had been engaged in manufacture and sale of
MTBE, as its partners. These subsidiaries, however, disposed of
the operations, since the future demand for MTBE in the United
States was expected to decline. As a result of these disposal
activities, the companies recorded impairment loss of long-lived
assets and other assets of &#165;3,054&nbsp;million (before
income tax) in loss from discontinued operations&nbsp;&#151; net
(after income tax effect) in the Statements of Consolidated
Income for the year ended March&nbsp;31, 2004. Refer to
Note&nbsp;4, &#147;DISCONTINUED OPERATIONS,&#148; for further
discussion on discontinued operations.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>26.</B></TD>
    <TD>
    <B>DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies are exposed to market risks related to foreign
currency exchange rates, interest rates and commodity prices in
the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to offset or reduce these risks, the companies use
derivative instruments, such as foreign exchange forward
contracts, currency swap agreements, interest rate swap
agreements, commodity future, forward, option and swap
contracts, to hedge the exposure to changes in the fair value or
expected future cash flows of recognized assets and liabilities,
unrecognized firm commitments and forecasted transactions. The
companies also use non-derivative financial instruments, such as
foreign-currency-denominated debt, to hedge the foreign currency
exposure in the net investment in a foreign operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Foreign currency exchange rate risk hedging
activities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies use derivative instruments, such as foreign
exchange forward contracts, currency swap agreements and
interest rate and currency swap agreements, to fix the expected
future cash flows from foreign-currency-denominated receivables
and payables resulting from selling and purchasing activities in
currencies other than the local currency and long-term financing
transactions as part of the companies&#146; global operations in
many countries. The companies also use non-derivative financial
instruments, such as foreign-currency-denominated debt, in order
to hedge the foreign currency exposure in the net investment in
a foreign operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Interest rate risk hedging activities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies use interest rate swap agreements and interest
rate and currency swap agreements to diversify the sources of
fund raising, reduce fund-raising costs, fix the expected future
cash flows from long-term financial assets and liabilities with
floating interest rates and reduce the exposure to changes in
the fair value of long-term financial assets and liabilities
with fixed interest rates.
</DIV>

<P align="center" style="font-size: 10pt;">F-76

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Commodity price risk hedging activities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies use derivative instruments, such as commodity
future, forward, option and swap contracts, to reduce the
exposure to changes in the fair value of inventories and
unrecognized firm commitments and to fix the expected future
cash flows from forecasted transactions in marketable
commodities, such as non-ferrous metals, crude oil and
agricultural products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Risk management policy</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies have strictly segregated the trading sections from
the sections that record the results and positions of derivative
instruments and are responsible for cash settlement and account
confirmation with counterparties. Risk management sections
classify the derivative transactions into trading transactions
and hedging transactions. The distinction between trading and
hedging transactions is strictly managed by affirming the
correspondence with the hedged items for transactions for
hedging purposes. Furthermore, these risk management sections
comprehensively monitor, evaluate and analyze the positions of
derivative instruments and report the results periodically to
the Company&#146;s executive officers in charge of risk
management. Based on these reports, the executive officers
assess derivative instruments and the market risks surrounding
these instruments, and establish the companies&#146; policy
regarding derivative instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Fair value hedges</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Changes in the fair value of derivative instruments designated
as hedging the exposure to changes in the fair value of
recognized assets or liabilities or unrecognized firm
commitments are recorded in earnings together with changes in
the fair value of the corresponding hedged items.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The net gain or loss recognized in earnings representing the
amount of the hedges&#146; ineffectiveness and the component of
the derivative instruments&#146; gain or loss excluded from the
assessment of hedge effectiveness were immaterial for the years
ended March&nbsp;31, 2005, 2004 and 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of net gain or loss recognized in earnings when a
hedged firm commitment no longer qualifies as a fair value hedge
was immaterial for the years ended March&nbsp;31, 2005, 2004 and
2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Cash flow hedges</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Changes in the fair value of foreign exchange forward contracts,
currency swap agreements and interest rate and currency swap
agreements designated as hedging instruments to hedge the
exposure to variability in expected future cash flows of
recognized assets or liabilities, unrecognized firm commitments
and forecasted transactions denominated in foreign currencies
are initially recorded as other comprehensive income. The
amounts in accumulated other comprehensive income are
reclassified into earnings when earnings are affected by the
hedged items.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in the fair value of interest rate swap agreements
designated as hedging instruments to reduce the exposure to
variability in expected future cash flows of floating-rate
financial assets and liabilities are initially recorded as other
comprehensive income. The amounts in accumulated other
comprehensive income are reclassified into earnings as interest
expense when earnings are affected by the hedged items.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Changes in the fair value of commodity forward and swap
contracts designated as hedging instruments to hedge the
exposure to variability in expected future cash flows of the
marketable commodities are initially recorded as other
comprehensive income. The amounts in accumulated other
comprehensive income are reclassified into earnings as sales of
products or cost of products sold when earnings are affected by
the hedged transactions.
</DIV>

<P align="center" style="font-size: 10pt;">F-77

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The ineffective portion of the hedging instruments&#146; gain or
loss and the component of the derivative instruments&#146; gain
or loss excluded from the assessment of hedge effectiveness are
reported in earnings immediately. If the hedged forecasted
transaction will not occur by the end of the originally
specified time period, gain or loss on the hedging instrument
reported in accumulated other comprehensive income is
reclassified into earnings. These amounts were immaterial for
the years ended March&nbsp;31, 2005, 2004 and 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The estimated net amount of the existing gains or losses in
accumulated other comprehensive income at March&nbsp;31, 2005
that is expected to be reclassified into earnings within the
next 12&nbsp;months is a net gain of &#165;217&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The maximum length of time over which the companies are hedging
their exposure to the variability in expected future cash flows
for forecasted transactions (excluding those forecasted
transactions related to the payment of variable interest on
existing financial instruments) is 26&nbsp;months. Foreign
exchange forward contracts are used as hedging instruments for
the forecasted transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Hedges of the net investment in a foreign operation</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The foreign currency transaction gain or loss on the
non-derivative financial instrument that is designated as, and
is effective as, hedging instruments to hedge the foreign
currency exposure of a net investment in a foreign operation is
recorded as foreign currency translation adjustments within
other comprehensive income to the extent it is effective as a
hedge. The net amount of gains or losses included in the foreign
currency translation adjustments was immaterial for the years
ended March&nbsp;31, 2005 and 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Derivative instruments for trading purposes and risk
management policy</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Company and certain subsidiaries use derivative instruments
such as foreign exchange forward contracts, interest rate swap
agreements and commodity future, forward, swap and option
contracts for trading purposes. The Company&#146;s executive
officers in charge of risk management have set strict position
and loss limits for these instruments. Independent back offices
and middle offices strictly separated from trading sections
(front offices) monitor, evaluate and analyze the position of
trading transactions and market risks. Those results are
periodically reported to the executive officers. Among others,
VaR (Value at Risk: Statistical measure of the potential maximum
loss in the fair value of a portfolio resulting from adverse
market movements in the underlying risk factors such as foreign
currency exchange rates, interest rates and commodity prices,
over a defined period, within a certain confidence level) is
used to measure the market risks of derivative instruments for
trading purposes.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>27.</B></TD>
    <TD>
    <B>FINANCIAL INSTRUMENTS</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FAIR VALUE OF FINANCIAL INSTRUMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with the requirements of SFAS&nbsp;No.&nbsp;107,
the companies have provided the following fair value estimates
and information about valuation methodologies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Quoted market prices, where available, are used to estimate fair
values of financial instruments. However, quoted market prices
are not available for a substantial portion of the financial
instruments. Accordingly, fair values for such financial
instruments are estimated using discounted cash flow analysis or
other valuation techniques.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Current financial assets other than marketable securities
and current financial liabilities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The carrying amount is believed to approximate the fair value of
the majority of these instruments because of their short
maturities.
</DIV>

<P align="center" style="font-size: 10pt;">F-78

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<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Marketable securities and other investments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
See Note&nbsp;5, &#147;MARKETABLE SECURITIES AND OTHER
INVESTMENTS.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Non-current receivables and advances to associated
companies</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The fair values of non-current receivables, including fixed
rate, long-term loans receivable, are estimated by discounted
cash flow analysis, using interest rates currently being offered
for loans or accounts receivable with similar terms to borrowers
or customers of similar credit quality and remaining maturities.
It is believed that the carrying amounts of loans with floating
rates approximate the fair value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Long-term debt</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The fair values for long-term debt, except for debt with
floating rates whose carrying amounts approximate fair value,
are estimated by discounted cash flow analysis, using rates
currently available for similar types of borrowings with similar
terms and remaining maturities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Financial guarantees and financing commitments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The fair values of financial guarantees are estimated based on
the present values of expected future cash flows, considering
the remaining terms of the arrangements and the
counterparties&#146; credit standings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The companies have not estimated the fair values of financing
commitments because management does not believe it is
practicable to estimate the fair values due to uncertainty
involved in attempting to assess the likelihood and timing of
commitments being drawn upon, coupled with the lack of an
established market. However, management believes the likelihood
is remote that material payments will be required under these
financing commitments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Currency and interest rate swap agreements</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The fair values of currency and interest rate swap agreements
are estimated by discounted cash flow analysis, using rates
currently available for similar types of swap agreements at the
reporting date. Currency swap agreements include certain
derivatives with both foreign exchange and interest rate
exposures. Fair values of those agreements consist of foreign
exchange and interest rate factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Foreign exchange forward contracts</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The fair values of foreign exchange forward contracts are
estimated based on market prices for contracts with similar
terms.
</DIV>

<P align="center" style="font-size: 10pt;">F-79

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The estimated fair values of certain financial instruments and
derivative financial instruments at March&nbsp;31, 2005 and 2004
were as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Carrying</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Carrying</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair value</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financial Assets (other than Derivative Financial Instruments):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current financial assets other than marketable securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,510,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,510,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,108,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,108,795</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current receivables and advances to associated companies
    (less allowance for doubtful receivables)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>625,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>626,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>477,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>485,434</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financial Liabilities (other than Derivative Financial
    Instruments):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current financial liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,730,348</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,730,348</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,381,894</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,381,894</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt (including current maturities)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,140,057</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,146,342</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,826,102</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,877,995</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Derivative Financial Instruments (Assets):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest rate swap agreements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54,398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54,398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,378</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Currency swap agreements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,714</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign exchange forward contracts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,540</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Derivative Financial Instruments (Liabilities):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest rate swap agreements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,043</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,043</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,825</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,825</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Currency swap agreements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,113</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,113</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,227</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,227</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign exchange forward contracts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,084</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,084</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,878</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,878</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CONCENTRATION OF CREDIT RISK</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies&#146; global operations include a variety of
businesses with diverse customers and suppliers which reduces
concentrations of credit risks. The companies deal with
selective international financial institutions to minimize the
credit risk exposure of derivative financial instruments. Credit
risk represents the likelihood that the counterparties may be
unable to meet the terms of the agreements. Management does not
expect any losses as a result of counterparty default on
financial instruments. Credit risk is managed through credit
line approval by management and by periodically monitoring the
counterparties.
</DIV>

<P align="center" style="font-size: 10pt;">F-80

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mitsui&nbsp;&#38; Co., Ltd. and subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUPPLEMENTAL CASH FLOW
INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Supplemental information related to the Statements of
Consolidated Cash Flows is as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="62%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash paid during the year for:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>45,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>58,235</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>55,211</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income taxes (Note&nbsp;21)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,002</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-cash investing and financing activities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exchange of shares in connection with a business combination of
    investees (EITF No.&nbsp;91-5) (Note&nbsp;5):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fair market value of shares received</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,110</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cost of shares surrendered</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,635</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of subsidiaries (Note&nbsp;3):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fair value of assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,683</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fair value of liabilities assumed</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,336</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition costs of subsidiaries</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,347</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-cash acquisition cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,982</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,621</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,259</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,139</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisitions of subsidiaries, net of cash acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,859</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,208</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidation of VIEs related to the implementation of
    FIN&nbsp;No.&nbsp;46R (Note&nbsp;24):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets recorded</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total liabilities recorded</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Contribution of securities to an employee retirement benefit
    trust (Notes&nbsp;5 and&nbsp;14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,343</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT EVENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
On June&nbsp;24, 2005, the shareholders approved the payment of
a cash dividend to shareholders of record on March&nbsp;31, 2005
of &#165;10&nbsp;per share or a total of
&#165;15,824&nbsp;million at the Company&#146;s ordinary general
meeting of shareholders.
</DIV>

<P align="center" style="font-size: 10pt;">F-81

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES
(UNAUDITED)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
In accordance with Statement of Financial Accounting Standards
(&#147;SFAS&#148;) No.&nbsp;69, &#147;Disclosures about Oil and
Gas Producing Activities,&#148; this section provides
supplemental information on oil and gas exploration and
producing activities of the companies in five separate tables.
Tables&nbsp;1 through&nbsp;3 provide historical cost information
pertaining to costs incurred for property acquisitions,
exploration and development; capitalized costs; and results of
operations. Tables&nbsp;4 and&nbsp;5 present information on the
companies&#146; estimated net proved reserve quantities and
standardized measure of estimated discounted future net cash
flows related to proved reserves. The amounts for investments
that are accounted for by the equity method are separately
presented as &#147;Associated Companies,&#148; for which the
companies&#146; share of the investees&#146; information on oil
and gas producing activities is presented in the following
tables. The &#147;Consolidated Companies&#148; column includes
activities in &#147;Oceania&#148; (Australia and New Zealand)
and &#147;Middle East&#148; (Qatar and Oman). The
&#147;Associated Companies&#148; column includes activities in
&#147;Oceania&#148; (Australia) and &#147;Others&#148;
(Sakhalin/ Russia and Thailand). The &#147;Oceania&#148; of
&#147;Associated Companies&#148; column of the following tables
includes information on liquefied natural gas (&#147;LNG&#148;)
producing activities as an integral part of natural gas
producing activities.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>TABLE 1.&nbsp;</B></TD>
    <TD>
    <B>COSTS INCURRED FOR PROPERTY ACQUISITION, EXPLORATION AND
    DEVELOPMENT*1,*2,*3</B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="46%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Associated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Consolidated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition of Proved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>20,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,267</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition of Unproved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,403</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exploration</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,023</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,909</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>119,271</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Costs Incurred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>65,621</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>92,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>169,964</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2004:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition of Proved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,015</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition of Unproved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,553</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,553</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exploration</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,377</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,419</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Costs Incurred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>52,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>76,364</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2003:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition of Proved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>15,986</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>17,474</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition of Unproved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>441</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exploration</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,719</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Costs Incurred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>49,034</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>*1&nbsp;</TD>
    <TD align="left">
    Includes costs incurred whether capitalized or expensed.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>*2&nbsp;</TD>
    <TD align="left">
    Excludes the cumulative-effect adjustment of
    &#165;5,821&nbsp;million for the initial application of
    SFAS&nbsp;No.&nbsp;143, &#147;Accounting for Asset Retirement
    Obligations,&#148; from the costs incurred for the year ended
    March&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>*3&nbsp;</TD>
    <TD align="left">
    Includes capitalized asset retirement costs incurred in
    accordance with SFAS&nbsp;No.&nbsp;143 for the years ended
    March&nbsp;31, 2005 and 2004.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-82

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>TABLE 2.&nbsp;</B></TD>
    <TD>
    <B>CAPITALIZED COSTS RELATED TO OIL AND GAS PRODUCING
    ACTIVITIES</B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Consolidated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Associated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proved Properties*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>60,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>26,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>126,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>277,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>490,618</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unproved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,164</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross Capitalized Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>87,121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>126,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>281,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>521,782</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated Depreciation, Depletion, Amortization and Valuation
    Allowances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175,236</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Capitalized Costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>72,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>20,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>57,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>196,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>346,546</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2004:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proved Properties*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>23,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>118,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>185,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>349,438</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unproved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,977</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,905</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross Capitalized Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>118,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>190,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>356,343</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated Depreciation, Depletion, Amortization and Valuation
    Allowances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>158,189</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Capitalized Costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>9,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>20,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>55,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>112,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>198,154</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2003:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16,652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>81,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>95,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>215,069</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unproved Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,424</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross Capitalized Properties</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>248,493</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated Depreciation, Depletion, Amortization and Valuation
    Allowances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>116,856</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Capitalized Costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>5,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>38,621</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>69,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>131,637</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Includes capitalized asset retirement costs in accordance with
    SFAS&nbsp;No.&nbsp;143.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-83

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>TABLE 3.&nbsp;</B></TD>
    <TD>
    <B>RESULTS OF OPERATIONS FOR OIL AND GAS PRODUCING
    ACTIVITIES*</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The companies&#146; results of operations from oil and gas
producing activities are shown in the following table. In
accordance with SFAS&nbsp;No.&nbsp;69, income taxes are based on
statutory tax rates. Interest income and expense are excluded
from the results reported.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="46%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Associated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Consolidated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales to Unaffiliated Enterprises</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>29,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>30,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>63,122</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Transfers to Affiliated Enterprises</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,791</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,149</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>89,271</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Production Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,572</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exploration Expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,119</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation, Depletion, Amortization, Accretion and Valuation
    Allowances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,562</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,919</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income Tax Expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,537</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Results of Operations for Oil and Gas Producing Activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(1,147</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>6,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>16,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>30,124</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2004:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales to Unaffiliated Enterprises</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>30,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>21,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>53,203</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Transfers to Affiliated Enterprises</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>4,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,086</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,929</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,471</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75,132</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Production Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,088</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exploration Expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>242</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,818</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation, Depletion, Amortization, Accretion and Valuation
    Allowances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>597</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,473</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income Tax Expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,573</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Results of Operations for Oil and Gas Producing Activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>2,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>12,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>19,304</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2003:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales to Unaffiliated Enterprises</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>28,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>19,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>57,478</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Transfers to Affiliated Enterprises</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,390</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,868</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Production Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,885</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exploration Expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>489</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,781</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation, Depletion, Amortization and Valuation Allowances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>530</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,984</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,289</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income Tax Expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,248</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Results of Operations for Oil and Gas Producing Activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>9,945</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>3,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>18,665</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Excludes the cumulative-effect adjustment of
    &#165;2,214&nbsp;million for the initial application of
    SFAS&nbsp;No.&nbsp;143 from the results of operations for the
    year ended March&nbsp;31, 2004.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-84

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>TABLE 4.&nbsp;</B></TD>
    <TD>
    <B>PROVED RESERVE QUANTITY INFORMATION</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The following table describes proved oil and gas reserves and
changes thereto for the years ended March&nbsp;31, 2005, 2004
and 2003. The definitions used herein are in accordance with
SFAS&nbsp;No.&nbsp;25, &#147;Suspension of Certain Accounting
Requirements for Oil and Gas Producing Companies.&#148;
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Proved Developed and Undeveloped Reserves:</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Millions of Barrels</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Billions of Cubic Feet</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Crude Oil, Condensate and Natural Gas Liquids*1</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Natural Gas*1*3</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Associated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Associated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Reserves at April&nbsp;1, 2002</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,374</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes Attributable to:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revision of Previous Estimates (includes improved recovery)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Extensions and Discoveries</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Production</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(41</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(24</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(65</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Reserves at March&nbsp;31, 2003</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,421</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes Attributable to:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revision of Previous Estimates (includes improved recovery)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(282</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(280</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Extensions and Discoveries</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>813</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Production</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(45</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(29</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(74</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Reserves at March&nbsp;31, 2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,922</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes Attributable to:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revision of Previous Estimates (includes improved recovery)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(32</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(35</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(26</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Extensions and Discoveries</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>479</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Production</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(49</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(92</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Reserves at March&nbsp;31, 2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>771</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,308</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Proved Developed Reserves*2:</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reserves at April&nbsp;1, 2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>436</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reserves at March&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>422</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reserves at March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Reserves at March&nbsp;31, 2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>513</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>*1&nbsp;</TD>
    <TD align="left">
    1 barrel of crude oil&nbsp;= 5,800 cubic feet of natural gas</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>*2&nbsp;</TD>
    <TD align="left">
    The proportion of Proved Developed Reserves to Proved Developed
    and Undeveloped Reserves is about 25% as of March&nbsp;31, 2005
    and relatively low. The expected costs to develop these
    undeveloped reserves are estimated to be
    &#165;313,911&nbsp;million in total as of March&nbsp;31, 2005,
    which is included in &#147;Future Development Cost&#148; in
    Table 5. The major undeveloped reserves are attributable to an
    associated company in Russia and an associated company in
    Australia. It is expected to commence the production of crude
    oil in 2006 and LNG in 2007, for the associated company in
    Russia. In relation to the associated company in Australia, the
    production of crude oil and LNG has already commenced at the
    existing facilities. The drilling of additional development
    wells will be performed over the project life according to the
    drilling program of the project.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>*3&nbsp;</TD>
    <TD align="left">
    The proved gas reserves are restricted to those volumes that are
    related to firm sales commitments.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-85

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>TABLE 5.&nbsp;</B></TD>
    <TD>
    <B>STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS
    RELATED TO PROVED OIL AND GAS RESERVES</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The standardized measure of discounted future cash flows,
related to preceding proved oil and gas reserves, is calculated
in accordance with SFAS&nbsp;No.&nbsp;69. Estimated future cash
inflows from production are computed by applying year-end prices
to year-end quantities of estimated net proved reserves. Future
development and production costs are those estimated future
expenditures necessary to develop and produce year-end estimated
proved reserves based on year-end cost indices, assuming
continuation of year-end economic conditions. Estimated future
income taxes are calculated by applying appropriate year-end
statutory tax rates. Discounted future net cash flows are
calculated using a discount factor of 10&nbsp;percent. The
information provided does not represent management&#146;s
estimate of the companies&#146; expected future cash flows or
value of proved oil and gas reserves. Estimates of proved
reserve quantities shall change over time as new information
becomes available. Moreover, probable and possible reserves,
which may become proved in the future, are excluded from the
calculations. The arbitrary valuation prescribed under
SFAS&nbsp;No.&nbsp;69 requires assumptions as to the timing of
future development and production costs. The calculations are
made as of each fiscal year-end and should not be relied upon as
an indication of the companies&#146; future cash flows or value
of their oil and gas reserves.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>1)&nbsp;</I></B></TD>
    <TD>
    <B><I>Standardized Measure of Discounted Future Net Cash
    Flows</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Consolidated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Associated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>At March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Cash Inflows from Production</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>206,903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>180,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>392,005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,021,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,800,491</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Production Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(39,241</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(20,760</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(161,141</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(240,064</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(461,206</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Development Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(42,915</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,467</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(98,020</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(267,650</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(418,052</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Income Taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(37,675</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(80,860</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(62,292</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(141,239</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(322,066</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Undiscounted Future Net Cash Flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>87,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>372,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>599,167</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    10% Annual Discount for Timing of Estimated Cash Flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(35,103</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(27,902</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(28,197</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(275,684</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(366,886</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Standardized Measure of Discounted Future Net Cash Flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>51,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>41,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>42,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>96,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>232,281</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>At March&nbsp;31, 2004:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Cash Inflows from Production</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>36,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>138,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>382,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>656,697</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,213,817</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Production Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(20,177</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(20,641</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(226,059</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(145,972</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(412,849</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Development Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,067</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,850</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(228,608</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(247,665</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Income Taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,085</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(58,820</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(51,950</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(98,338</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(211,193</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Undiscounted Future Net Cash Flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,931</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>99,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>183,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>342,110</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    10% Annual Discount for Timing of Estimated Cash Flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,539</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,446</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(39,289</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(211,595</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(273,869</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Standardized Measure of Discounted Future Net Cash Flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>7,392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>28,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>60,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>(27,816</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68,241</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-86

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Consolidated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Associated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Middle East</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Oceania</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Others</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>At March&nbsp;31, 2003:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Cash Inflows from Production</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>51,459</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>124,006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>795,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>307,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>1,278,696</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Production Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,526</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,462</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(348,748</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(76,675</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(468,411</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Development Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,246</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,206</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15,476</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(41,685</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(73,613</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Future Income Taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,773</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50,141</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(119,352</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(60,375</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(237,641</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Undiscounted Future Net Cash Flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>312,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>499,031</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    10% Annual Discount for Timing of Estimated Cash Flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,774</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18,320</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(191,033</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(67,421</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(282,548</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Standardized Measure of Discounted Future Net Cash Flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>10,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>23,877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>121,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>61,398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>216,483</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>2)&nbsp;</I></B></TD>
    <TD>
    <B><I>Details of Changes for the Year</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="34" align="center" nowrap><B>Millions of Yen</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="34" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Consolidated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Associated Companies</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Worldwide</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Present Value at April 1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>35,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>34,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>8,951</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>32,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>182,466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>125,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>216,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>134,516</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales/ Transfers of Oil and</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gas Produced, Net of Production Costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,282</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,046</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,256</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50,417</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(38,998</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(36,727</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(66,699</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(51,044</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(48,983</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Development Costs Incurred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,259</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>96,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>119,271</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchases of Reserves in Place</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,728</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,635</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Extensions and Discoveries</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>124,122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>119,609</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>135,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>136,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Changes in Prices, Development and Production Cost</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,475</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(37,454</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(253,034</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,650</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,421</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(255,509</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,506</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revisions of Previous Quantity*1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,837</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(33,933</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(37,158</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(33,933</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(39,995</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64,001</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accretion of Discount</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,452</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Changes in Income Taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,387</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(137</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,127</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,076</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,548</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,203</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Others*2</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,129</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(44</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50,871</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(62,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,159</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Changes for the Year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,066</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>106,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(150,025</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>164,040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(148,242</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>81,967</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Present Value at March&nbsp;31</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>93,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>35,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>34,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>138,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>32,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>182,466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>232,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>68,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&#165;</TD>
    <TD align="right" valign="bottom" nowrap>216,483</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>*1&nbsp;</TD>
    <TD align="left">
    Includes amounts resulting from changes in the timing of
    production.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>*2&nbsp;</TD>
    <TD align="left">
    Main portion of &#147;Others&#148; is foreign currency
    translation adjustments.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-87
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SIGNATURE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of Section&nbsp;12 of the
Securities Exchange Act of 1934, the registrant hereby certifies
that it meets all of the requirements for filing on
Form&nbsp;20-F and that it has duly caused and authorized the
undersigned to sign this annual report on its behalf.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 48pt; ">

<TR style="font-size: 1pt;">
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="44%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MITSUI&nbsp;&#38; CO., LTD.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Date: September&nbsp;26, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    by</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    /s/ Kazuya Imai</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Kazuya Imai<BR>
    Senior Executive Managing Officer and<BR>
    Chief Financial Officer</TD>
</TR>

</TABLE>
</CENTER>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INDEX OF EXHIBITS</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Document</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Articles of Incorporation of Mitsui&nbsp;&#38; Co., Ltd., as
    of June&nbsp;24, 2005 (English-language translation).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.2*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Share Handling Regulation of Mitsui&nbsp;&#38; Co., Ltd., as
    amended on June&nbsp;24, 2004 (English-language translation).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.3*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Rules of the Board of Directors of Mitsui&nbsp;&#38; Co.,
    Ltd., as amended on April&nbsp;1, 2004 (English-language
    translation).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    The Rules of the Board of Corporate Auditors of
    Mitsui&nbsp;&#38; Co., Ltd., as amended on September&nbsp;8,
    2004 (English-language translation).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD align="left" valign="top" nowrap>.1**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Deposit Agreement, dated October&nbsp;1, 1982 among
    Mitsui&nbsp;&#38; Co., Ltd., Citibank, N.A., and holders of ADRs
    and European Depositary Receipts.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>8</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    List of Subsidiaries of Mitsui&nbsp;&#38; Co., Ltd.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>11</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Code of Ethics for Senior Financial Officers and Professionals.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>11</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Business Conduct Guidelines for Employees and Officers of
    Mitsui&nbsp;&#38; Co., Ltd.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>12</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certification of the principal executive officer of
    Mitsui&nbsp;&#38; Co., Ltd. required by Rule&nbsp;13a-14(a).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>12</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certification of the principal financial officer of
    Mitsui&nbsp;&#38; Co., Ltd. required by Rule&nbsp;13a-14(a).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>13</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certification required by Rule&nbsp;13a-14(b) and
    Section&nbsp;1350 of Chapter&nbsp;63 of Title&nbsp;18 of the
    United States Code.</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>*&nbsp;</TD>
    <TD align="left">
    Incorporated by reference to the corresponding exhibit to our
    annual report on Form&nbsp;20-F <BR>
     (File No.&nbsp;0-9929) filed on September&nbsp;30, 2004.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    Incorporated by reference to the corresponding exhibit to our
    annual report on Form&nbsp;20-F <BR>
     (File No.&nbsp;0-9929) filed on September&nbsp;27, 2002.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have not included as exhibits certain instruments with
respect to our long-term debt, the amount of debt authorized
under each of which does not exceed 10% of our total assets, and
we agree to furnish a copy of any such instruments to the
Securities and Exchange Commission upon request.
</DIV>
</BODY>
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MITSUI & CO.,LTD.
Table of Contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 20-F
o
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g)
    OF THE SECURITIES EXCHANGE ACT OF 1934
OR
þ
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended March 31, 2005
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
OR
o
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
For the transition period
    from           to
Commission file number 0-9929
MITSUI BUSSAN KABUSHIKI KAISHA
(Exact name of Registrant as specified in its charter)
MITSUI & CO., LTD.
(Translation of Registrant's name into English)
JAPAN
(Jurisdiction of incorporation or organization)
2-1, OHTEMACHI 1-CHOME, CHIYODA-KU, TOKYO 100-0004, JAPAN
(Address of principal executive offices)
Securities registered or to be registered pursuant to
Section 12(b) of the Act.
None
Securities registered or to be registered pursuant to
Section 12(g) of the Act.
Common Stock
(Title of class)
Securities for which there is a reporting obligation pursuant
to Section 15(d) of the Act.
None
Indicate the number of outstanding shares of each of the
issuer's classes of capital or common stock as of the close
of the period covered by the annual report.
As of March 31, 2005, 1,582,210,630 shares of
common stock were outstanding including
7,359,040 shares represented by an aggregate of 367,952
American Depositary Shares.
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes
þ
No
o
Indicate by check mark which financial statement item the
registrant has elected to follow.
Item 17
o
Item 18
þ
If this is an annual report, indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of
the Exchange Act).
Yes
o
No
þ
Table of Contents
Certain References and Information
As used in this report, "Mitsui" is used to refer to
Mitsui & Co., Ltd. (Mitsui Bussan Kabushiki Kaisha),
"we", "us", and "our" are used to
indicate Mitsui & Co., Ltd. and subsidiaries, unless
otherwise indicated. "Share" means one share of
Mitsui's common stock, "ADS" means an American
Depositary Share representing 20 shares, and
"ADR" means an American Depositary Receipt evidencing
one or more ADSs. Also, "dollar" or "$"
means the lawful currency of the United States of America, and
"yen" or "¥" means the lawful currency
of Japan.
All financial statements and information contained in this
annual report have been prepared in accordance with accounting
principles generally accepted in the United States, or
U.S. GAAP, except where otherwise noted.
A Cautionary Note on Forward-Looking Statements
This annual report includes forward-looking statements based on
our current expectations, assumptions, estimates and projections
about our business, our industry and capital markets around the
world. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
"may", "expect", "anticipate",
"estimate", "plan" or similar words. The
forward-looking statements in this annual report are subject to
various risks, uncertainties and assumptions. These statements
discuss future expectations, identify strategies, contain
projections of results of operations or of our financial
position, or state other forward-looking information. Known and
unknown risks, uncertainties and other factors could cause our
actual operating results to differ materially from those
contained or implied in any forward-looking statement. Our
expectations expressed in these forward-looking statements may
not turn out to be correct, and our actual results could
materially differ from and be worse than our expectations.
Important risks and factors that could cause our actual results
to differ materially from our expectations are discussed in this
"Item 3.D. Risk Factors" or elsewhere in this
annual report and include, without limitation:
•
changes in economic conditions that may lead to unforeseen
    developments in markets for products handled by us;
•
fluctuations in currency exchange rates that may cause
    unexpected deterioration in the value of transactions;
•
adverse political developments in the various jurisdictions
    where we operate, which among things, may create delays or
    postponements of transactions and projects;
•
changes in laws, regulations or policies in any of the countries
    where we conduct our operations; and
•
significant changes in the competitive environment.
We do not assume, and specifically disclaim, any obligation to
update any forward-looking statements which speak only as of the
date made.
2
TABLE OF CONTENTS
Page
PART I
4
Item 1. Identity of Directors, Senior
    Management and Advisers
4
Item 2. Offer Statistics and Expected
    Timetable
4
Item 3. Key Information
4
A. Selected Financial Data
4
B. Capitalization and Indebtedness
6
C. Reasons for the Offer and Use of
    Proceeds
6
D. Risk Factors
6
Item 4. Information on the Company
13
A. History and Development of the
    Company
13
B. Business Overview
19
C. Organizational Structure
57
D. Property, Plants and Equipment
60
Item 5. Operating and Financial Review
    and Prospects
73
A. Operating Results
73
B. Liquidity and Capital Resources
120
C. Research and Development
131
D. Trend Information
132
E. Off-balance Sheet Arrangements
132
F. Tabular Disclosure of Contractual
    Obligations
133
Item 6. Directors, Senior Management
    and Employees
134
A. Directors and Senior Management
134
B. Compensation
146
C. Board Practices
147
D. Employees
154
E. Share Ownership
154
Item 7. Major Shareholders and Related
    Party Transactions
155
A. Major Shareholders
155
B. Related Party Transactions
156
C. Interests of Experts and Counsel
157
Item 8. Financial Information
157
A. Consolidated Statements and Other
    Financial Information
157
B. Significant Changes
159
Item 9. The Offer and Listing
159
A. Offer and Listing Details
159
B. Plan of Distribution
161
C. Markets
161
D. Selling Shareholders
161
E. Dilution
161
F. Expenses of the Issue
161
Item 10. Additional Information
161
A. Share Capital
161
B. Memorandum and Articles of
    Association
161
C. Material Contracts
169
D. Exchange Controls
169
E. Taxation
170
F. Dividends and Paying Agents
173
G. Statement by Experts
173
H. Documents on Display
173
I. Subsidiary Information
174
Item 11. Quantitative and Qualitative
    Disclosures about Market Risk
174
Item 12. Description of Securities
    Other Than Equity Securities
177
PART II
177
Item 13. Defaults, Dividend Arrearages
    and Delinquencies
177
Item 14. Material Modifications to the
    Rights of Security Holders and Use of Proceeds
177
Item 15. Controls and Procedures
177
Item 16. [Reserved]
178
Item 16A. Audit Committee Financial
    Expert
178
Item 16B. Code of Ethics
178
Item 16C. Principal Accountant Fees
    and Services
178
Item 16D. Exemptions from the Listing
    Standards for Audit Committees
179
Item 16E. Purchases of Equity
    Securities by the Issuer and Affiliated Purchasers
179
PART III
181
Item 17. Financial Statements
181
Item 18. Financial Statements
181
Item 19. Exhibits
181
EX-1.1 THE ARTICLES OF INCORPORATION OF MITSUI & CO.,LTD.,AS OF JUNE 24, 2005(ENGLISH-LANGUAGE TRANSLATION).
EX-1.4 THE RULES OF THE BOARD OF CORPORATE AUDITORS OF MITSUI & CO.,LTD.,AS AMENDED ON SEPTEMBER 8, 2004(ENGLISH-LANGUAGE TRANSLATION).
EX-8.1 LIST OF SUBSIDIARIES OF MITSUI & CO.,LTD.
EX-11.1 CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS AND PROFESSIONALS.
EX-11.2 BUSINESS CONDUCT GUIDELINES FOR EMPLOYEES AND OFFICERS OF MITSUI & CO.,LTD.
EX-12.1 CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER OF MITSUI & CO.,LTD. REQUIRED BY RULE 13A-14(A).
EX-12.2 CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER OF MITSUI & CO.,LTD. REQUIRED BY RULE 13A-14(A).
EX-13.1 CERTIFICATION REQUIRED BY RULE 13A-14(B) AND SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE.
3
Table of Contents
PART I
Item 1.
Identity of Directors, Senior Management and Advisers.
Not applicable.
Item 2.
Offer Statistics and Expected Timetable.
Not applicable.
Item 3.
Key Information.
A.
Selected Financial Data.
The selected consolidated income statement data for the years
ended March 31, 2005, 2004 and 2003 and the selected
consolidated balance sheet data as of March 31, 2005 and
2004 below are derived from our audited consolidated financial
statements prepared in accordance with U.S. GAAP, which are
included elsewhere in this annual report. The selected
consolidated income statement data for the years ended
March 31, 2002 and 2001 and balance sheet data as of
March 31, 2003, 2002 and 2001 are derived from our
previously published audited consolidated financial statements
prepared in accordance with U.S. GAAP, which are not
included in this annual report. The consolidated financial
statements as of March 31, 2005 and 2004 and for the years
ended March 31, 2005, 2004 and 2003 have been audited by
Deloitte Touche Tohmatsu, independent auditors, whose report is
filed as part of this annual report.
The selected consolidated financial statements have been
prepared in accordance with U.S. GAAP and should be read in
conjunction with, and are qualified in their entirety by
reference to "Item 5. Operating and Financial Review
and Prospects," and our consolidated financial statements
and notes thereto included elsewhere in this annual report.
In Billions of Yen, Except Amounts per Share and Common Stock Data
As of or for the Years Ended March 31,
2005
2004
2003
2002
2001
Consolidated Income Statement Data:
Results of Operations:
Revenues
(2)(3)
¥
3,526
¥
2,983
¥
2,785
¥
2,487
¥
2,366
Gross
    Profit
(2)(3)
726
614
570
545
560
Equity in Earnings of Associated
    Companies
(3)
66
40
15
24
7
Income from Continuing Operations
(3)
120
74
37
60
58
Net Income
121
68
31
55
52
Free Cash
    Flows
(4)
(24
)
(34
)
48
51
141
Income from Continuing Operations per
    Share
(3)
:
Basic
76.10
47.04
23.43
37.97
37.16
Diluted
71.70
44.44
22.17
35.63
34.88
Net Income per Share:
Basic
76.55
43.25
19.68
34.97
37.16
Diluted
72.12
40.89
18.69
32.85
30.63
Cash Dividends Declared per Share
9
8
8
8
8
Cash Dividends Declared per Share in
    U.S. Dollars
(1)
$
0.09
$
0.07
$
0.07
$
0.06
$
0.07
4
Table of Contents
In Billions of Yen, Except Amounts per Share and Common Stock Data
As of or for the Years Ended March 31,
2005
2004
2003
2002
2001
Consolidated Balance Sheet Data:
Financial Position at Year-End:
Total Assets
¥
7,593
¥
6,716
¥
6,541
¥
6,668
¥
6,710,
Total Shareholders' Equity
1,123
963
862
915
834
Long-term Debt, less Current Maturities
2,905
2,541
2,500
2,620
2,709
Return on Equity
11.6
%
7.5
%
3.5
%
6.3
%
6.3
%
Common Stock
192
192
192
192
192
Other Information at Year-End:
Common Stock:
Number of Shares Outstanding (in Thousands)
1,582,211
1,581,013
1,581,377
1,583,180
1,583,675
Number of Shareholders
107,034
109,722
115,267
118,700
127,137
(1)
The U.S. dollar amounts represent translations of the
    Japanese yen amounts at the rates in effect on the respective
    dividend payment dates.
(2)
For the year ended March 31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as "Interest expense, net of
    interest income." The prior year figures have been restated
    to conform to the current year presentation.
(3)
In accordance with Statement of Financial Accounting Standards
    No. 144, "Accounting for the Impairment or Disposal of
    Long-Lived Assets," the prior year figures relating to
    discontinued operations have been reclassified.
(4)
Free Cash Flows represents the sum of net cash provided by
    operating activities and net cash used in investing activities.
    See Item 5. B. "Liquidity and Capital
    Resources — Use of Non-GAAP Financial Measures."
Exchange Rate Information
The information below with respect to exchange rates is based on
the official noon buying rates for Japanese yen of the Federal
Reserve Bank of New York. These rates are provided solely for
the convenience of the reader and are not the exchange rates
used by us in the preparation of our consolidated financial
statements included in this annual report.
The Federal Reserve Bank of New York official noon buying rate
for Japanese yen on September 16, 2005 was
¥111.38 = U.S.$1.00. The following table provides the
high and low official rates for each of the previous six months.
Yen per U.S. Dollar
High
Low
August 2005
¥
112.12
¥
109.37
July 2005
113.42
110.47
June 2005
110.91
106.64
May 2005
108.17
104.41
April 2005
108.67
104.64
March 2005
107.49
103.87
5
Table of Contents
The following table provides the average exchange rate for each
of the last five fiscal years. We have calculated these average
rates by using the rate on the official noon buying rates for
Japanese yen of the Federal Reserve Bank of New York on the last
business day of each month during the relevant fiscal year.
Yen per U.S. Dollar
Years Ended March 31,
Average Rate
2005
¥
107.28
2004
112.75
2003
121.10
2002
125.64
2001
111.65
Fluctuations in the exchange rate between the yen and the
U.S. dollar will affect the U.S. dollar equivalent of
the yen-denominated prices of our shares and, as a result, will
affect the market prices of our ADSs in the United States.
B.
Capitalization and Indebtedness.
Not required.
C.
Reasons for the Offer and Use of Proceeds.
Not applicable.
D.
Risk Factors.
You should carefully consider the risks and uncertainties
described below and the other information in this annual report,
including the discussion in "Item 5. Operating and
Financial Review and Prospects," as well as our
consolidated financial statements and related notes included
elsewhere in this annual report.
The decrease in the volume of trade and the flow of goods
    and materials resulting from the worldwide economic downturn may
    adversely impact our business, results of operations and
    financial condition.
We provide global import and export services for our customers
in various countries in a wide range of business transactions.
We are also involved in the financing of and investing in
various business activities worldwide including, but not limited
to, the procurement of raw materials and industrial equipment,
manufacturing a wide range of commodities and providing
logistics services.
Our global business activities, including our trading
activities, are affected by the economic conditions both
globally and regionally. Among other locations, we are
vulnerable to downward economic trends in Japan and China. An
economic downturn may cause a reduction in the flow of goods and
materials, a decline in private consumption and fixed
investment, and subsequently a decrease in demand of our
customers for our products and services, which may have an
adverse impact on our business, results of operations and
financial condition.
Fluctuations in commodity prices can adversely affect our
    results of operations and financial condition.
We are engaged in trade and, as the case may be, production of a
variety of commodities in the global commodities market
including metal, energy, chemical and agricultural products. Our
activities in these commodities in particular, have a
significant impact on our business operations. Commodity prices
are highly volatile and subject to cyclical fluctuations due to
factors beyond our control, including periods of excess supply
due to increased industrial production, decreased demand due to
weakening economic conditions, inventory cutbacks by customers,
and exchange rate movements. As a result, unexpected
6
Table of Contents
movements in commodity prices may adversely affect our business,
operating results and financial condition. For example:
•
declines in commodity prices may result in a decrease in sales
    of those commodities in which we act as a principal or a
    decrease in sales of services in which we act as an agent. For
    instance, the operating results of the Energy Segment, which
    reflect annual production from our oil and gas activities, are
    sensitive to the price of crude oil. A decline of
    U.S.$1 per barrel in the price of crude oil adversely
    affects the revenues and equity in earnings of associated
    companies of this segment and results in a decrease in the
    segment's annual net income of approximately
    ¥1 billion as of the year ended March 31, 2005;
•
because we are engaged in spot and derivative trading of
    commodities, unexpected changes in price may result in trading
    losses; and
•
as we invest a substantial amount of money in the production of
    commodities, a prolonged or cyclical decline in the price of
    commodities can have a long term adverse effect on our results
    of operations and financial condition and make it increasingly
    difficult for us to recover our capital investments or to divest
    our interests at prices acceptable to us, if at all.
For further information about the impact by commodity price
fluctuations on our business and results of operations for the
year ended March 31, 2005 and in the future, see
"Item 5.A. Operating Results."
Exchange rate fluctuations may adversely affect our
    operating results.
We are exposed to risks associated with foreign currency
exchange rate fluctuations. Although our reporting currency is
the Japanese yen, a significant portion of our business
operations, consolidated revenues and operating expenses is
denominated in currencies other than the Japanese yen. As a
result, appreciation or depreciation in the value of other
currencies as compared to the Japanese yen could result in
material transactional gains or losses. As most of revenues,
costs of revenues, and selling, general and administrative
expenses incurred from regular business activities at overseas
subsidiaries and associated companies are quoted in the
U.S. dollar, the Australian dollar, the Euro, or other
currencies, our net income may be affected by the fluctuations
of these currencies and we are exposed to translation risk in
our assets and liabilities denominated in foreign currencies. In
addition, exchange rate fluctuations may reduce the value of
investment in overseas subsidiaries and associated companies and
adversely affect our accumulated other comprehensive income. As
a result, exchange rate fluctuations may negatively affect our
operating results.
See "Item 3.A. Selected Financial Data —
Exchange Rate Information", "Item 5.A. Operating
Results" and "Item 5. B. Liquidity and Capital
Resources."
We are subject to significant counterparty credit risk
    from various companies or projects with which we do business or
    to which we lend.
We are exposed to significant counterparty credit risks. For
example:
•
We provide vendor financing services and also act as guarantors
    to banks that provide financing to our customers. In addition,
    many of our customers purchase products and services from us on
    credit. At March 31, 2005, current trade receivable (less
    unearned interest and allowance for doubtful
    receivables — current) were
    ¥2,488.9 billion, representing 32.8% of our total
    assets and the recognized losses for doubtful
    receivables — current for the year ended
    March 31, 2005 and the balance of the allowance for
    doubtful receivables — current were
    ¥6.3 billion and ¥22.5 billion, respectively;
•
We engage in significant project financing activities as a
    lender or guarantor whereby we assume repayment risk; and
•
We have counterparty payment risks from various derivative
    transactions we enter into as part of our hedging activities.
7
Table of Contents
Our management policy for credit exposure cannot eliminate
entirely the risks relating to the possibility of our customers
experiencing financial difficulties. Moreover, we may experience
difficulty in collecting payments from our counterparties if:
•
liquidity crises arise in Japan or elsewhere in the world;
•
real estate prices or stock prices in Japan or other markets
    decline sharply, thereby adversely affecting the liquidity of
    our counterparties; or
•
the number of corporate bankruptcies in Japan increases.
Changes in interest rates could have an adverse effect on
    our operating results.
We are exposed to risks associated with interest rate
fluctuations, which may affect our overall operational costs and
the value of our financial assets and liabilities, particularly,
our debt obligations, which are primarily debt raised in the
capital markets and bank loans. We utilize various financial and
derivative instruments which are sensitive to interest rate
changes. An increase in interest rates, especially in Japan and
the United States, may adversely affect our results of
operations.
See Item 5.B. "Liquidity and Capital
Resources — Funding Sources."
If the value of assets for which we act as lessor, such as
    real property and equipment, aircraft, ocean transport vessels
    and rolling stock decline, we may be forced to write down the
    value of these assets.
Assets for which we act as lessor, such as real property,
aircraft, ocean transport vessels, rolling stock and equipment,
are exposed to potential significant impairment losses due to
the decline in the value of these assets. As of March 31,
2005, the value of these assets in which we act as lessor,
presented on our Consolidated Balance Sheets as "Property
leased to others — at cost, less accumulated
depreciation," was ¥183.2 billion. The carrying
amounts of certain assets in which we act as lessor are affected
by certain factors which are beyond our control such as their
global supply and demand, prevailing interest rates, prices of
relevant products and services and regional and/or global
cyclical trends. There can be no assurance that adjustments for
impairment losses with respect to such assets will not be made.
Any adjustments may have an adverse effect on our financial
condition and results of operations.
For information on our accounting policies and estimates with
respect to impairment on long-lived assets, see "Critical
accounting policies and estimates" of "Item 5.A.
Operating Results."
Declines in the market value of equity and/or debt
    securities in Japan may decrease the value of our pension assets
    which in turn may increase the cost of satisfying our unfunded
    pension obligations.
Declines in the market value of Japanese government bonds, other
debt securities and marketable equity securities in Japan would
reduce the value of our pension plan assets. Decline in the
value of our pension plan assets or increase in our unfunded
pension obligations could adversely affect our results of
operations and financial condition.
See "Item 5.A. Operating Results" and
Note 14, "PENSION COSTS AND SEVERANCE
INDEMNITIES," to our consolidated financial statements.
Our liquidity could be adversely affected by a downgrade
    in our credit ratings, significant changes in the lending or
    investment policies of our creditors or investors.
A downgrade in our credit ratings or a significant change in the
lending or investment policies of our creditors or investors
could result in an increase in our interest expense and could
adversely impact our ability to access the debt markets, and
could have an adverse effect on our financial position and
liquidity.
For information on our funding sources and credit ratings, see
"Item 5.B. Liquidity and Capital Resources."
8
Table of Contents
Due to our significant investments in marketable equity
    securities of Japanese issuers, a substantial decline in the
    Japanese stock market as experienced in the past could
    negatively affect our investment portfolio.
A significant portion of our investment portfolio consists of
marketable equity securities of Japanese issuers. At
March 31, 2005, our marketable equity securities of
Japanese issuers were carried at a fair value of
¥292.5 billion, representing 45.7% of the fair value
of our total available-for-sale securities and 3.9% of our total
assets. The Japanese equity securities market has experienced a
decline in recent years. Both for the year ended March 31,
2005 and 2004, losses on available-for-sale securities were not
significant, but for the year ended March 31, 2003 our
Statements of Consolidated Income reflected valuation losses on
available-for-sale securities of ¥15.6 billion,
principally on the stocks of banking institutions reflecting the
overall decline in stock prices in Japan. While we periodically
review our equity portfolio, volatility and decline in the
Japanese equity securities market could negatively impact the
value of our investment portfolio and our results of operations
and financial condition.
For information on our accounting policies and estimates with
respect to impairment on marketable securities, see
"Critical Accounting Policies and Estimates" of
"Item 5.A. Operating Results."
Some of our operations are concentrated in a limited
    number of regions or countries, which could harm our business
    and results of operations if activity levels in these regions or
    countries decline.
We are engaged in various types of businesses worldwide which
expose us to risks associated with fluctuations in commodity
prices, the supply and demand of commodities, foreign exchange
rates and interest rates, in addition to risks associated with
regional political and economic instabilities. Furthermore, some
of our business activities may be exposed to concentration risk
in particular industries located in specific regions or
countries which international financial institutions, government
financing agencies and rating agencies assign or assigned in the
past the status of relatively high risk regions or countries.
For example:
•
In Russia and Brazil, our interests in the exploration,
    development and production of minerals and energy resources are
    increasing.
•
In Indonesia, we actively participate in infrastructure projects
    including the operation of power plants.
As a result, declining levels of trading activities or asset
volumes in specific sectors in certain regions or countries
could have a disproportionately negative effect on our business,
financial condition and results of operations.
We may not be able to successfully restructure or
    eliminate unprofitable or underperforming subsidiaries or
    associated companies in a timely manner and any efforts to do so
    may not lead to improved results of operations.
We are continuously restructuring our underperforming
businesses. To implement this procedure, we have introduced a
quantitative monitoring system to assess the performance of our
subsidiaries and associated companies. If we fail to
successfully eliminate or restructure our underperforming
subsidiaries and associated companies in a timely manner or if
these efforts fail to improve our business operations as
contemplated, we may become less efficient compared to our
competitors who are mainly other major Japanese general trading
companies, and our results of operations may be adversely
affected.
9
Table of Contents
Our alliances by forming joint ventures with, and
    strategic investments in, third parties may not result in
    successful operations.
We participate in various businesses directly or indirectly
through joint ventures or by making strategic investments in
other companies and business enterprises. The outcome of these
joint ventures and strategic investments is unpredictable
because:
•
the operational success is critically dependent on factors that
    are beyond our control such as the financial condition and
    performance of the partner companies or the strategic
    investees; or
•
with respect to certain associated companies, we may fail to
    exercise adequate control over the management, operations and
    assets of the companies in which we invested or may fail to make
    major decisions without the consent of other shareholders or
    participants due to lack of common business goals and strategic
    objectives with our alliance partners.
Any occurrence of these events could have a material adverse
effect on our business, results of operations or financial
condition.
Our businesses in exploration, development and production
    of mineral resources and oil and gas may not develop in line
    with assumed costs and schedules, and are subject to the risks
    associated with estimating reserves and the operating
    performance of third party operators.
Reflecting rising prices of mineral resources and oil and gas in
recent years, exploration, development and production of mineral
resources and oil and gas are gaining in importance to our
operating results. Mining and oil and gas projects involve
risks, for example:
•
development of projects may face schedule delays or cost
    overruns due to difficulties in technical conditions,
    procurement of materials, financial conditions and government
    regulations;
•
reserves are estimated based on available geological, technical,
    contractual and economic information, therefore actual
    development and production may significantly differ from
    originally estimated reserves; and
•
reserve replacement, on which future production will depend, may
    not be successfully implemented due to uncertainties such as
    failures in exploration or negotiations for acquisitions of
    known reserves with their owners.
We participate as a non-operator in many of these projects.
Under these circumstances, we carefully consider the business
potential and profitability of projects based on the information
and data provided by third party operators, who substantially
control operations of such projects including decision-making in
the course of development and production. In addition to the
above-mentioned risks, third party operators' failure in
managing those projects may adversely affect our operating
results and financial condition.
Intense competition from other Japanese general trading
    companies could have an adverse effect on our results of
    operations.
The markets for many of the products and services we provide are
highly competitive. Our primary competition is with other
Japanese general trading companies which engage in similar
business activities in various fields. Our competitors may have:
•
stronger business associations and relationships with our
    customers, suppliers and business partners in both domestic and
    global markets; or
•
stronger global network and regional expertise, diversified
    global customer bases, greater financial engineering skills and
    market insights.
Unless we can successfully continue to meet the changing needs
of our customers by providing them with innovative and
integrated services in a cost effective manner, we may lose our
market share or relationships with our existing customers in
certain of our operating segments. Failure to successfully
10
Table of Contents
compete with our competitors may have an adverse effect on our
business, financial condition and results of operations.
We may lose the opportunities of entry to new business
    areas because of the limitation of required human
    resources.
In response to the maturation of consumption in Japan and other
developed countries, we have been focusing on entering new
consumer oriented businesses. Additionally, we are undertaking a
reorganization of our traditional businesses in industrial
products and raw materials to better reflect the globalization
of the economy and the rapid progress of information technology
("IT"). To meet these goals, we have been investing
human resources in these new business areas, who are capable of
carrying out business plans and managing other personnel.
However, in certain business areas, we may have a shortage of
required human resources, which can cause a loss of
opportunities to start new businesses, which may adversely
affect our future business, operating results and financial
condition.
Restrictions under environmental laws and regulations and
    any accidents relating to our use of hazardous materials could
    negatively affect our business, results of operations and
    financial condition.
We are involved in various projects and business transactions
worldwide that are subject to extensive environmental laws and
regulations. In particular, our Metal Products &
Minerals Segment and Energy Segment may be adversely affected by
present or future environmental regulations or enforcements in
connection with our exploration, development and production
activities. For example, we are subject to complex sets of
environmental regulations in Australia, Brazil, Russia, and the
Middle East. These laws and regulations may:
•
require us to perform site clean-ups;
•
require us to curtail or cease certain operations;
•
impose fines and payments for significant environmental damage;
•
require us to install costly pollution control
    equipment; and
•
require us to modify our operations.
Newly enacted environmental laws and regulations or changes
therein and protests by environmental groups may materially
impact the progress of these projects.
Mitsui is a shareholder of Coronet Industries Inc.
("Coronet"), a former manufacturer of animal feed
supplements. Coronet has been working with the
U.S. Environmental Protection Agency ("EPA") and
the State of Florida on an investigation of environmental
conditions and former operations at its facility in Florida. In
addition, Coronet has been named as a defendant in two civil
actions initiated by residents living near the plant. Mitsui, as
well as its United States subsidiary, Mitsui & Co.
(U.S.A.), Inc., have been named as defendants in one of these
actions. These actions are both at their early stages.
We are subject to extensive laws and regulations in Japan
    and other countries throughout the world. Changes in these laws
    and regulations could adversely affect our results of
    operations.
Our business operations are subject to extensive laws and
regulations in Japan and other countries throughout the world.
Our operations are subject to laws and regulations governing,
among other things, tariffs, business and investment approvals,
import and export (including restrictions based on
national-security interests), antitrust, consumer and commercial
restrictions, currency exchange control, and environmental
protection. Moreover, many of our infrastructure projects in
developing countries are subject to less developed legal
systems. As a result, our costs may increase due to factors such
as the lack of a comprehensive set of laws and regulations, an
unpredictable judicial system based on inconsistent
11
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application and interpretation of laws and regulations, and
changing practices of regulatory and administrative bodies. For
example, we are subject to sudden and unpredictable changes to:
•
tariffs for products and services that we provide;
•
technical specifications with respect to environmental
    regulations;
•
income tax and duty rates; and
•
foreign exchange controls with respect to repatriation of
    investments and dividends.
Furthermore, many of our oil and gas and mining operations are
located in politically or economically unstable parts of the
world including the Middle East, Russia and India. Although we
are involved in the exploration, development and production
activities through various contractual arrangements in these
regions, there is no assurance that the contracts will be upheld
or extended when they expire. Moreover, there can be no
assurance that the regulatory bodies of these areas will not
unilaterally interfere and alter the contractual terms of our
oil and gas operations involving production rates, pricing
formulas, royalties, environmental protection cost and land
tenure. If these regulatory bodies unilaterally alter such
contractual terms or if we are unable to comply with any new
laws and regulations, our business, operating results and
financial condition could be adversely affected. Furthermore, we
could incur substantial additional costs to comply with any new
laws and regulations.
See "Item 4.B. Business Overview —
Government Regulations."
Employee misconduct could adversely affect our results of
    operations and reputation.
Due to our size, as well as the operational and geographic
breadth of our activities, our day-to-day operations are
necessarily de-centralized. As a result, we cannot fully ensure
that our employees comply with all applicable laws and
regulations as well as our internal policies. For example, our
employees may engage in unauthorized trading activities and
exceed the allotted market risk exposure for various commodities
or extend an unauthorized amount of credit to a client, which,
in either case, may result in unknown losses or unmanageable
risks. Moreover, our employees could engage in various
unauthorized activities prohibited under the laws of Japan or
other jurisdictions, to which we are subject, including export
regulations, anticorruption laws, antitrust laws and tax
regulations. There can be no assurance that the efforts we
undertake to ensure employees' compliance with applicable
laws and regulations as well as our internal policies will
succeed in preventing misconduct by our employees. Depending on
its nature, employees' misconduct could have negative
effects on our results of operations and reputation.
See "Compensation and other charges related to DPF
incident" of "Item 5.A. Operating Results."
Because of daily price range limitations under Japanese
    stock exchange rules, you may not be able to sell your shares of
    our common stock at a particular price on any particular trading
    day, or at all.
Stock prices on Japanese stock exchanges are determined on a
real-time basis by the equilibrium between bids and offers.
These exchanges are order-driven markets without specialists or
market makers to guide price formation. To prevent excessive
volatility, these exchanges set daily upward and downward price
range limitations for each stock, based on the previous
day's closing price. Although transactions may continue at
the upward or downward limit price if the limit price is reached
on a particular trading day, no transactions may take place
outside these limits on these exchanges. Consequently, an
investor wishing to sell at a price above or below the relevant
daily limit on these exchanges may not be able to effect a sale
at such price on a particular trading day, or at all.
See "Item 10.B. Memorandum and Articles of
Association — Daily Price Fluctuation Limits under
Japanese Stock Exchange Rules."
12
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As a holder of ADSs, you will have fewer rights than a
    direct shareholder and you will have to act through the
    depositary to exercise those rights.
The rights of shareholders under Japanese law to take actions,
including voting shares, receiving dividends and distributions,
bringing derivative actions, examining our accounting books and
records and exercising appraisal rights are available only to
holders recorded on our register of shareholders. Because the
depositary, through its custodian agents, is the recorded holder
of the shares underlying the ADSs, only the depositary can
exercise those rights in connection with the deposited shares.
The depositary will make efforts to vote the shares underlying
your ADSs as instructed by you and will pay to you the dividends
and distributions collected from us. However, as an ADS holder,
you will not be able to bring a derivative action, examine our
accounting books and records or exercise appraisal rights except
through and with the consent of the depositary.
Item 4.
Information on the Company.
A.
History and Development of the Company.
History
Mitsui Bussan Kabushiki Kaisha ("Mitsui & Co.,
Ltd." in English) was incorporated on July 25, 1947,
as Daiichi Bussan Kabushiki Kaisha, a corporation (
Kabushiki
Kaisha
) under the Commercial Code of Japan with common
stock of ¥195,000. We were originally listed on the Tokyo
Stock Exchange in May 1949.
Our registered office is located at 2-1, Ohtemachi 1-chome,
Chiyoda-ku, Tokyo 100-0004, Japan. Mitsui's telephone
number is +81-3-3285-1111.
Since our establishment, our business lines have involved
trading in a variety of commodities, including the import of raw
materials and the export of industrial products. As we grew in
tandem with the Japanese postwar economic recovery, we expanded
into overseas activities, such as the establishment of
Mitsui & Co. (Australia) Ltd. in 1956. During the
1950s, Daiichi Bussan Kabushiki Kaisha was formed through the
merger of various trading companies. On February 16, 1959,
that entity took our present name, after having attained the
status of being one of the largest general trading companies,
and a history closely connected to the development of foreign
trade in postwar Japan. An example of a business activity which
introduced innovative industrial systems to Japan in our early
days was the establishment of Nippon Remington Univac Kaisha
Ltd. (currently Nihon Unisys Ltd.), a domestic computer related
joint venture with Sperry Rand Corporation of the United States,
in 1958.
During the 1960s, the Japanese government promoted trade with
foreign countries and deregulated Japanese capital markets,
which led to high growth of the Japanese economy. We played a
pivotal role in promoting the growth of certain basic industries
by supplying foods, industrial raw material and energy such as
oil and coal from abroad. This included the development of
mineral resources overseas, nurturing markets for Japanese
exports and introducing various new technologies. We established
Mitsui & Co. (U.S.A.), Inc. in April 1966, and Mitsui
Knowledge Industry Co., Ltd. in October 1967. In May 1963,
we issued American Depositary Shares which were subsequently
listed on The NASDAQ National Market in February 1971.
In the 1970s, as the world economy weathered two oil crises, we
began to diversify the source of natural resources including
development of liquefied natural gas ("LNG")
resources. During this time, the export of industrial plant from
Japan, mainly to oil producing countries, drastically increased
and we organized and supported projects by arranging finance and
on occasion establishing markets for products.
During this period, we suffered losses with respect to a joint
venture project we entered into in connection with Iranian
petrochemicals. These losses were a result of the petrochemical
manufacturing complex being damaged by military attacks, causing
the project to finally be dissolved in 1991.
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Also during the 1970s, we entered into new industries. For
example, in 1971 we established Mitsui Leasing &
Development, our associated company in the leasing industry, and
in 1972 we purchased an equity interest in Mikuni Coca-Cola
Bottling Co., Ltd. in the beverage industry.
In the 1980s, Japan's industrial structure moved
increasingly towards the production of high-value-added products
such as products related to information technology
("IT") and new materials used for high tech products.
Consequently, we began extending our business field to target
these new markets. Most notable were the semiconductor materials
and carbon fiber fields promoted mainly by our chemical related
divisions.
In the late 1990s, the Asian economies experienced a financial
crisis. Although the appreciation in real estate and stocks
prior to the crisis created a temporary economic boom in Japan,
their eventual collapse resulted in a wide-ranging economic
slowdown. These conditions necessitated the reorganization of
our profit structures and the development of new businesses.
At the same time, however, there was also a rapid development of
information infrastructure worldwide, reflecting the
deregulation of the communication sector proceeding from the
1980s in Japan and other countries, and the spread of new
technology such as the Internet accelerated communication among
market participants in real time and at reduced costs. From the
late 1980s, we made investments in IT and communication
businesses including in common carriers such as Tokyo
Telecommunication Network Co., Inc (currently POWEREDCOM, Inc.),
JSAT Corporation, a communications satellites company, and
broadcasting companies such as SKY Perfect Communications Inc.
Recent Developments
We have had concerns that the above-mentioned innovations in
global communication might detract from the advantages we have
gained from having a global network with many business hubs in
the form of overseas offices, overseas subsidiaries and
associated companies. We also have additional concerns that our
traditional intermediary services as agent have been diminishing
in relevance reflecting global competition among our customers
and suppliers who are taking advantage of increasingly efficient
business methods. In this environment, in order to provide a
variety of solutions for our customers, we are increasing our
comprehensive strength by integrating the resources that we have
accumulated through our business history as follows:
•
We are establishing more diversified and stable supply sources
    of mineral and energy resources through our global alliances
    with worldwide partners represented by the acquisition of shares
    of Valepar S.A. (the controlling shareholder of Companhia Vale
    do Rio Doce ("CVRD"), a Brazilian mineral resource
    producer) in September 2003 and the final investment decision in
    the second phase of development of the crude oil and LNG
    producing Sakhalin II Project jointly promoted with Royal
    Dutch/ Shell Group and Mitsubishi Corporation in May 2003. See
    "Item 4.B. Business Overview — Metal
    Products & Minerals Segment — Iron &
    Steel Raw Materials Unit" and "Item 4.B. Business
    Overview — Energy Segment."
•
We are increasing our involvement in the power generation
    businesses. In December 2004, in partnership with International
    Power plc, a U.K. electric utility company, we completed
    the acquisition of international power generation portfolio of
    Edison Mission Energy in the United States pursuant to a share
    purchase agreement concluded by the three parties, which
    resulted in the acquisition of nine power plants by the
    partnership as of March 2005.
•
In the food business, aiming to respond to changing demands of
    consumers in Japan by upgrading our logistics infrastructure, we
    made an equity infusion into MITSUI FOODS CO., LTD. (formerly
    Sanyu Koami Co., Ltd.), a nationwide wholesaler and the
    core of our domestic food distribution business. Additionally,
    in May 2003, we acquired a majority interest in Mitsui
    Norin Co., Ltd., a producer and seller of raw tea leaves in
    Japan. Furthermore, all the business units are establishing a
    supply chain management ("SCM") system in order to
    integrate our information and logistics services with those of
    our customers. See "Item 4.B. Business Overview."
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•
In March 2004, we increased our equity ownership in the United
    Auto Group, an auto dealer in the United States, with the goal
    of developing our automobile retail operations worldwide.
•
We are also actively pursuing new technologies and materials.
    For example, we are promoting research and development such as
    carbon nanotubes and zeolite membrane. See "Item 5.C.
    Research and Development, Patents and Licenses, etc."
Our Organizational Structure for the Year Ended
    March 31, 2003
In April 2002, we implemented an introduction of five major
operating groups (the "Five Major Operating Groups
Structure") which consisted of:
•
Metal Products & Minerals Group;
•
Machinery, Electronics & Information Group;
•
Chemical Group;
•
Energy Group; and
•
Consumer Products & Services Group
within the head corporate office of Mitsui (the "Head
Office"). This Five Major Operating Groups Structure
delegated greater authority to the chief of each of the five
operating groups for his or her business decisions, investments
and reorganizations with respect to his or her group.
Our Organizational Structure for the Year Ended
    March 31, 2004
In April 2003, the Five Major Operating Groups Structure was
abolished to further increase operational and organizational
efficiency. We simplified our overall operational structure
whereby the Chief Operating Officer of each of the 18 business
units reported directly to the Chief Executive Officer of Mitsui
without having to report to other management layers of the Head
Office. As a result of this reorganization, we increased our
operational efficiency with respect to, but not limited to:
•
company wide evaluation of business opportunities;
•
re-allocation of assets and human resources; and
•
analysis and selection of investment opportunities.
Despite this reorganization, there was no change in our product
and service focused business activities for the year ended
March 31, 2004. That was, as a result of the aggregation of
our operating segments (i.e., business units) based on the
nature of each of the 18 business units' products, services
and other criteria, our products and services based reportable
segments for the year ended March 31, 2004 consisted of the
same five products and services based reportable segments as
those of the year ended March 31, 2003. Moreover, for the
year ended March 31, 2004, there was no reorganization with
respect to our four region-focused reportable operating
segments. Accordingly, for the year ended March 31, 2004,
we had nine reportable operating segments which consisted of
five product and service focused reportable operating segments
and four region-focused reportable operating segments. See
"Item 4.B. Business Overview — Products and
Services and Principal Activities by Reportable Operating
Segments."
Our Organizational Structure for the Year Ended
    March 31, 2005
As of April 1, 2004, we made further changes to our
operating structure by reorganizing business units in the Head
Office. See "Item 4.B. Business Overview —
Products and Services and Principal Activities by Reportable
Operating Segments — Reorganization of Business Units
in the Head Office and Change in the Reportable Segments for the
Year Ended March 31, 2005."
Since the year ended March 31, 2004, we have conducted a
comprehensive review of the performance and viability of our all
subsidiaries and associated companies. They have been subject to
a company-wide
15
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evaluation process held twice a year in which management have
screened them against nine metrics including profit after cost
of capital. As a result of these reviews, subject to definitive
plan for the companies from which we decided to exit, we have
withdrawn from approximately 60 subsidiaries and associated
companies during the year ended March 31, 2005 and 100 in
the year ended March 31, 2004.
Our global strategy focuses on Asia where the market is
expanding mainly around China and the Association of Southeast
Asian Nations ("ASEAN") free trade region. Greater
China, which includes mainland China, Hong Kong and Taiwan, will
play an even more significant role in the world trade now that
China and Taiwan are members of the World Trade Organization
("WTO"). We have been channeling human resources to
these regions, forging strategic alliances with leading
companies and creating a broad spectrum of new businesses. For
more information on our activities in these areas, see
"B. Business Overview — Products and
Services and Principal Activities by Reportable Operating
Segments" below. For example, in order to develop new
business opportunities emerging with the development of network
economies based around China, ASEAN and India, we introduced an
Asian Managing Directorship system. Starting in April 2005, the
Regional Managing Director, Asia took full control with broad
authority and responsibility to manage our businesses throughout
Asia excluding Japan.
Capital Expenditures
Our capital expenditures including investments in debt
securities, property and equipment and leased assets amounted to
¥526 billion, ¥491 billion and
¥396 billion for the years ended March 31, 2005,
2004 and 2003, respectively. A breakdown of our capital
expenditures is provided below.
Billions of Yen
Years Ended
March 31,
2005
2004
2003
Investments in and advances to associated companies
¥190
¥203
¥64
Acquisitions of available-for-sale securities
91
131
154
Acquisitions of held-to-maturity debt securities
2
0
4
Acquisitions of other investments
68
47
40
Additions to property leased to others and property and equipment
170
113
123
Acquisitions of subsidiaries, net of cash acquired
5
(3
)
11
Total
¥526
¥491
¥396
See "Item 5.B. Liquidity and Capital Resources"
for further information.
16
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Investments in and advances to associated companies and
acquisitions of subsidiaries include the following:
Investment
Years Ended
Amount
March 31,
Investee
Country
(Billions of Yen)
2005
Sakhalin Energy Investment Company Ltd.
Associated company
Bermuda (United Kingdom)
82
IPM Eagle LLC
Associated company
United Kingdom
62
Quintiles Transnational Japan K.K.
Associated company
Japan
9
CornerStone Research & Development, Inc.
Subsidiary
United States
9
2004
Valepar S.A.
Associated company
Brazil
97
Sakhalin Energy Investment Company Ltd.
Associated company
Bermuda (United Kingdom)
57
2003
Sakhalin Energy Investment Company Ltd.
Associated company
Bermuda (United Kingdom)
15
NextCom K.K.
Associated company
(1)
Japan
12
Mitsui E&P Middle East B.V.
Subsidiary
Netherlands
11
(1)
Nextcom K.K. became a subsidiary as a result of the business
    combination which was taken place in the year ended
    March 31, 2005. See Note 3, "BUSINESS
    COMBINATIONS," to our consolidated financial statements.
For the year ended March 31, 2005, additions to property
leased to others and property and equipment included rolling
stock leased to railway companies mainly in the Unites States
and European countries of ¥9 billion and ocean vessels
chartered to global shipping companies of ¥7 billion.
For the year ended March 31, 2004, additions to property
leased to others and property and equipment included aircraft
leased to global airline companies of ¥10 billion and
ocean vessels chartered to global shipping companies of
¥7 billion.
Except for acquisitions of available-for-sale securities,
capital expenditures are usually financed by external sources,
such as commercial banking institutions. For the year ended
March 31, 2005, acquisitions of available-for-sale
securities included acquisitions of debt securities amounting to
¥39 billion by Mitsui and ¥30 billion mainly
by domestic financial subsidiaries Bussan Credit
Co., Ltd.(*) whose principal business consists of providing
financial services to our subsidiaries and associated companies
and Bussan Capital Corp. whose principal business consists of
securities investment and commercial finance to the parties
other than our subsidiaries and associated companies,
respectively. For the year ended March 31, 2004,
acquisitions of available-for-sale securities included
acquisitions of debt securities amounting to
¥65 billion by Bussan Credit Co., Ltd.(*)
On July 29, 2004, we announced that in partnership with
International Power plc, a United Kingdom electric utility
company, we entered into a share purchase agreement with Edison
Mission Energy in the United States to acquire its international
power generation portfolio. Mitsui and International Power plc
jointly established IPM Eagle LLC in December 2004 when the
closing of the above-mentioned purchase agreement was completed.
Mitsui's equity share in IPM Eagle LLC is 30% for which
Mitsui paid ¥62 billion. As of March 31, 2005,
IPM Eagle LLC owned nine power plants acquired from Edison
Mission Energy's international power generation portfolio.
With respect to Sakhalin II Project, for the year ended
March 31, 2005, we made additional investments of
¥82 billion to Sakhalin Energy Investment Company Ltd.
leaving outstanding investments
(*)
Bussan Credit Co., Ltd. changed its corporate name to
    Mitsui & Co. Financial Services Ltd. in April 2005.
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of ¥172 billion as of March 31, 2005. See
"Item 4.B. Business Overview — Energy
Segment." The ¥172 billion investments have been
financed by external banking sources.
On May 14, 2004, we executed a sales and purchase agreement
with Woodside Energy Ltd. in Australia to acquire a 40% interest
in each of the WA-28-L production license and WA-271-P
exploration permit areas in offshore Western Australia. The
total consideration for the acquisition was
U.S.$464.5 million. Woodside Energy Ltd., which owns the
remaining 60% interest of these license and permit and acts as
the operator, announced the development of the Enfield oil
project on March 19, 2004 and development activities are
already under way. The total development expenditure of the
Enfield oil project prior to the expected commencement of oil
production in 2006 is budgeted at approximately
U.S.$1 billion, of which we will incur in proportion to our
40% interest. For the year ended March 31, 2005, we paid
for ¥64 billion for the acquisition of mineral rights
and other fixed assets in relation to this project.
On September 2, 2003, we acquired 15% ownership interest
(or 18.24% in terms of voting share as of March 31, 2005)
of Valepar S.A. in Brazil for U.S.$830 million and sold our
shares in Caemi Mineração e Metalurgia S.A. in
Brazil for U.S.$426 million. See "Item 4.B.
Business Overview — Metal Products & Minerals
Segment — Iron & Steel Raw Materials
Unit." The capital required for the acquisition of Valepar
S.A. has been financed by external banking sources.
Divestitures including that of the matured debt securities
amounted to ¥287 billion, ¥333 billion and
¥324 billion for the years ended March 31, 2005,
2004 and 2003, respectively. A breakdown of our divestitures is
provided below.
Billions of Yen
Years Ended
March 31,
2005
2004
2003
Sales of investments in and collection of advances to associated
    companies
¥
53
¥
68
¥
10
Proceeds from sales of available-for-sale securities
22
51
66
Proceeds from maturities of available-for-sale securities
57
110
145
Proceeds from maturities of held-to-maturity debt securities
3
15
11
Proceeds from sales of other investments
73
29
30
Proceeds from sales of property leased to others and property
    and equipment
79
60
62
Total
¥
287
¥
333
¥
324
With respect to the sales of available-for-sale securities for
the years ended March 31, 2005, 2004 and 2003, the table
below provides a list of some of our significant investees in
which we sold our equity interests.
Years Ended
Amount
March 31,
Investee
Country
(Billions of Yen)
2005
Vodafone K.K.
Japan
15
2004
SKY Perfect Communications Inc.
Japan
12
2003
Sumitomo Mitsui Banking Corporation
Japan
11
JSAT Corporation
Japan
6
Mitsui Trust Holdings, Inc.
Japan
2
For the year ended March 31, 2005, cash inflows of
¥15 billion was provided from the sale of shares in
Vodafone K.K., a Japanese cell-phone carrier, in response to a
tender offer. For the year ended March 31, 2004, we
obtained U.S.$426 million from the sale of our investment
in Caemi Mineração e Metalurgia S.A., an associated
company.
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For the year ended March 31, 2005, sales of property leased
to others and property and equipment included sales of aircraft
leased to global airline companies, ocean vessels chartered to
worldwide shipping companies and rolling stock leased to the
railway companies mainly in the United States amounted to
¥17 billion. For the year ended March 31, 2004,
sales of property leased to others and property and equipment
included sales of aircraft leased to global airline companies of
¥21 billion and ocean vessels chartered to worldwide
shipping companies of ¥6 billion.
Furthermore, for the year ended March 31, 2005, we sold
property and equipment and obtained proceeds of:
•
¥10.8 billion from the sale of our office building in
    the United Kingdom; and
•
¥12.8 billion from the sale of Mitsui's corporate
    residences and dormitories in Japan.
With the exception of the proceeds from maturities of
(i) available-for-sale securities and
(ii) held-to-maturity debt securities, proceeds were mainly
used for repayment of outstanding debts. The proceeds from
maturities of (i) available-for-sale securities and
(ii) held-to-maturity debt securities amounted to
¥60 billion and ¥125 billion for the years
ended March 31, 2005 and 2004 were used for general
corporate purposes. See "Item 5.B. Liquidity and
Capital Resources" for further discussion.
B.
Business Overview.
Throughout this "B. Business Overview," we describe
the domicile of our subsidiaries and associated companies, in
parentheses following names of those companies. For example,
Arcadia Petroleum Ltd. (United Kingdom) means that the
company's name is Arcadia Petroleum Ltd. and that it is
domiciled in the United Kingdom.
Nature of Our Operations and Principal Activities
We are a general trading company engaged in a range of global
business activities including general worldwide trading of
various commodities, arranging financing for customers and
suppliers in connection with our trading activities, organizing
and coordinating industrial projects, participating in financing
and investing arrangements, assisting in the procurement of raw
materials and equipment, providing new technologies and
processes for manufacturing, and coordinating transportation and
marketing of finished goods. Our trading activities include the
sale, distribution, purchase, marketing and supply of wide
variety of products including iron and steel, non-ferrous
metals, machinery, electronics, chemicals, energy-related
commodity and products, food products, textiles, general
merchandise and real estate. We also participate in the
development of natural resources such as oil, gas, iron and
steel raw materials. In addition, we engage in strategic
business investments whereby we invest our own capital and
provide management expertise in the development of joint
ventures and new enterprises in certain industries such as
information technology ("IT") and biotechnology. We
also provide financial services whereby we assist our customers
in minimizing their risk exposures associated with their
businesses through the use of derivatives and other hedging
instruments.
While we continue to diversify our activities, our core activity
remains the provision of transaction services. Specifically, we
act as an intermediary between buyers and sellers engaging in
import, export, offshore and domestic trading activities. For
example, we develop markets overseas for exporters and locate
raw materials or product sources that meet the needs of
importers. To facilitate smooth customer transactions, we draw
upon our various capabilities such as market information
analysis, credit supervision, financing and transportation
logistics.
In addition to our Head Office, Mitsui had 19 branches and
offices located in Japan and 155 branches, offices and trading
subsidiaries located in other parts of the world as of
July 1, 2005. They provide market information to each other
and cooperate in developing various business opportunities. Each
of our subsidiaries has its own marketing strategy based on its
particular business activities and customer relationships.
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Seasonality of Our Business Activities
The trading of individual products such as heating oil, foods
and textiles is influenced by seasonal factors. For example,
heating oil is traded more frequently in winter than in summer
months. In addition, revenues of MITSUI FOODS CO, LTD., our food
wholesale subsidiary, increases from October to December and
decreases from January to March, reflecting seasonal demand in
Japan. However, the seasonality of any product either
individually or in the aggregate does not significantly affect
our consolidated financial position and results of operations.
Dependence on Patents and Licenses and Industrial, Commercial
    or Financial Contracts
We have various patents and licenses as well as industrial,
commercial and financial contracts (including contracts with
customers or suppliers) to conduct our business. These patents,
licenses or contracts either individually or in the aggregate
are not material to our business operations or results of
operations.
Marketing Channels
Marketing channels vary by commodity, customer and region. We
have established subsidiaries and associated companies for
promotion and distribution in response to individual business
environment.
See "Products and Services and Principal Activities by
Reportable Operating Segments" below. Special sales methods
including financial arrangement provided by our Machinery,
Electronics & Information Segment and development of
SCM system conducted by various operating segments are also
described therein.
Competitive Position
Our main competitors are other Japanese general trading
companies. Moreover, all of our potential business partners
could also be competitors. To ensure our competitiveness, we
strive to continue to successfully meet the changing needs of
our customers worldwide. Analysis of competitive position by
operating segment is provided in "Products and Services and
Principal Activities by Reportable Operating Segments"
below and also see "Item 3.D. Risk Factors."
Government Regulations
Our business activities are subject to various governmental
regulations in the countries in which we operate. These
regulations generally relate to obtaining business and
investment approvals, and meeting the requirements of export
regulations including those related to national security
considerations, tariffs, antitrust, consumer and business
taxation, exchange controls and environmental laws and
regulations. Certain of our business transactions such as our
activities in the energy, mining, telecommunications, financing,
food, consumer products, machinery, chemicals, etc. are
regulated and subject to the relevant laws and regulations. See
"Item 3.D. Risk Factors."
Regulations
with Respect to the Exploration and Production of Oil, Gas, and
Mineral Resources
We are involved in various projects involving exploration for
and production of crude oil, natural gas, iron raw material and
non-ferrous metals in many different countries in which we
participate as a minority stakeholder and non-operator. These
exploration and production activities are subject to a broad
range of local laws and regulations, which affect virtually all
aspects of these activities. Contractual arrangements in
connection with our oil, gas and mining activities, such as
leases, licenses and production agreements are generally entered
into with a government entity or a government owned company. See
"Item 4.B. Business Overview — Metal
Products & Minerals Segment and Energy Segment."
To date, changes in governmental laws and regulations have not
had a material adverse effect on our oil, gas and mining
projects. Some of our oil, gas and mineral projects are located
in politically and economically stable regions, such as
Australia, where the legal systems are relatively developed.
However,
20
Table of Contents
we also hold interests in oil, gas and mineral resources in
regions where legal systems are less developed. These
investments may be adversely impacted by factors such as a lack
of comprehensive sets of laws and regulations, an unpredictable
judicial system based on inconsistent application and
interpretation of laws and regulations, and constantly changing
practices of regulatory and administrative bodies.
Governmental
Regulations with Respect to Infrastructure Projects
We are engaged in various infrastructure projects worldwide.
These include construction of power plants, oil and gas
pipelines, telecommunications and broadcasting systems, cargo
transportation systems, and public transit systems in developing
countries. In these projects, we are subject to extensive laws
and regulations with respect to technical specifications,
environmental protection, pricing, labor, taxation, foreign
exchange and other matters. We commonly enter into contractual
arrangements with government owned companies that are subject to
their own sets of laws and regulations. Changes in laws and
regulations after the commencement of projects may result in
lengthy delays which can negatively impact our cash flows and
hinder the repatriation of capital from such projects.
Governmental
Regulations with Respect to Human Health and Environment
We are subject to extensive laws and regulations worldwide with
respect to human health and the environment. Regulations
governing food products for human consumption are complex,
detailed and stringent. For instance, in Japan, our food related
operations are under the supervision of the Ministry of
Agriculture, Forestry and Fisheries, and the Ministry of Health,
Labor and Welfare. We are subject to the Food Safety Basic Law,
which codifies the safety standard for food products. For
example, it determines the threshold amount at which harmful
substances such as pesticide residues are considered to be
unacceptable. We must expend significant resources to comply
with these regulations not only in Japan but in all
jurisdictions where we engage in food-related operations.
We are also subject to complex environmental laws and
regulations worldwide. For example, in Japan, when trading,
storing or transporting chemical products or disposing of wastes
and by-products from our industrial plants, we are required to
notify the local regulators and/or obtain approvals or licenses.
Any violation of laws and regulations may not only result in
severe fines and penalties, but the regulators may require us to
curtail or even cease operations, install expensive pollution
control systems, and comply with enhanced notification
obligations.
Products and Services and Principal Activities by Reportable
    Operating Segments
The Establishment of the Five Major Operating Groups
    Structure for the Year Ended March 31, 2003
We had undertaken a management reorganization in our Head Office
that included introduction of the Five Major Operating Groups
Structure in April 2002. The five operating groups, which were
organized based on our "products and services,"
planned overall and worldwide strategies for their products and
services and conducted their worldwide operations. A discrete
set of financial information was available for each of the five
operating groups and each of the five operating results were
regularly reviewed by the Chief Executive Officer. As such, each
of the five operating group was determined to be an
"operating segment" for financial reporting purposes
for the year ended March 31, 2003. The five operating
groups also collaborated with branches and offices that are
located in Japan and overseas countries and with overseas
trading subsidiaries in planning and executing their strategies
for products or regions.
For the year ended March 31, 2003, the branches, offices
and overseas trading subsidiaries were separate operating units,
which were delegated the responsibilities of managing the
businesses of their regions as the centers of each particular
regional strategy and operate diversified businesses together
with their subsidiaries and associated companies in
collaboration with the five operating groups. Therefore, a
discrete set of financial information was also available for
each of the regional operating units without any overlap with
the financial information of each of the five products and
services based operating groups. The operating results of each
of our regional operating units were regularly reviewed by the
Chief
21
Table of Contents
Executive Officer independent of the operating results of each
of the five products and services based operating groups, and
accordingly, each regional operating unit was also determined to
be an "operating segment" for financial reporting
purposes. Thus, for the year ended March 31, 2003, our
operating segments were comprised of products and services
focused operating segments and region-focused operating
segments. Our reportable operating segments as of March 31,
2003 were comprised of those listed below:
•
Our five products and services focused operating segments were
    Metal Products & Minerals; Machinery,
    Electronics & Information; Chemical; Energy; and
    Consumer Products & Services; and
•
Our four region-focused operating segments were Domestic
    Branches and Offices; Americas; Europe; and Other Overseas Areas.
Each of the five products and services based operating groups in
our Head Office have business units. The business units, which
are further divided into specialized divisions, provide more
focused products and services.
Abolishment of the Five Major Operating Groups Structure for
    the Year Ended March 31, 2004
We abolished the Five Major Operating Groups Structure on
April 1, 2003, to further increase operational efficiency
with a system in which the Chief Operating Officer of each of
the 18 business units directly reports the unit's operating
results to the Chief Executive Officer based on the unit's
discrete set of financial information. Therefore, for the year
ended March 31, 2004, each of the 18 business units was
determined to be an "operating segment" for financial
reporting purposes. Despite this reorganization, there was no
change in our product and service focused business activities
for the year ended March 31, 2004. Accordingly, as a result
of the aggregation of our operating segments (i.e., the 18
business units) based on the nature of each of the 18 business
units' products, services and other criteria, our products
and services based reportable segments consisted of the same
five reportable segments as for the year ended March 31,
2003.
There was no reorganization with respect to our four
region-focused reportable operating segments for the year ended
March 31, 2004. Each of our region-focused reportable
operating segments still consisted of region-specific branches,
offices and overseas trading subsidiaries, that remain
independent from the five product and service focused reportable
operating segments in the Head Office. As such, despite the
restructuring, for the year ended March 31, 2004, we had
the same nine reportable operating segments which consisted of
five products and services focused reportable operating segments
and four region-focused reportable operating segments as was the
case for the year ended March 31, 2003.
Reorganization of Business Units in the Head Office and
    Change in the Reportable Segments for the Year Ended
    March 31, 2005
Effective April 1, 2004, with the aim of improving
operating efficiency and further facilitating our exploration of
global business opportunities, the business units in the Head
Office were reorganized as below:
•
The Domestic Branches and Offices Segment was abolished. As a
    result, the operating results previously reported by the
    Domestic Branches and Offices Segment are now reviewed by each
    of Chief Operating Officers of the related business units in the
    Head Office based on the categories of their products and
    services.
•
Reorganizations of the 18 business units were implemented
    whereby we integrated business units within the same five
    products and services focused reportable operating segments. For
    example, we combined the former Iron & Steel Raw
    Materials Unit and the former Non-Ferrous Metals Unit into the
    Iron & Steel Raw Materials and Non-Ferrous Metals
    Business Unit. Additionally, media related businesses such as
    broadcasting and content businesses previously included in the
    Machinery, Electronics & Information Segment were
    transferred to the Consumer Products & Services
    Segment. Furthermore, we introduced two new business units whose
    business activities
22
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were in most cases previously reported in "All Other"
    as businesses handled outside the five products and services
    based reportable segments. The first is the Transportation
    Logistics Business Unit which engages in logistics services. The
    other is the Financial Markets Business Unit which engages in
    financial services, including businesses previously handled in
    the Metal Products & Minerals Segment, such as
    commodity trading. As a result, the Transportation Logistics
    Business Unit and the Financial Markets Business Unit have
    comprised a new reportable segment, the Logistics &
    Financial Markets Segment.
Thus, for the year ended March 31, 2005, we had nine
reportable operating segments which consisted of six products
and services focused reportable operating segments and three
region-focused reportable operating segments listed as below:
•
Our six products and services focused operating segments were:
Metal
Products & Minerals;
Machinery,
Electronics & Information;
Chemical;
Energy;
Consumer
Products & Services; and
Logistics &
Financial Markets.
•
Our three region-focused operating segments were:
Americas;
Europe; and
Other Overseas Areas.
Gross Profit, Operating Income (Loss) and Net Income (Loss) by
reportable operating segment for the years ended March 31,
2005, 2004 and 2003 were as
follows
(1)(2)(3)(4)(5)
:
Gross Profit:
In Billions, Except Percentages
Years Ended March 31,
2005
2004
2003
Metal Products & Minerals
¥
121.4
16.7
%
¥
77.0
12.5
%
¥
71.5
12.6
%
Machinery, Electronics & Information
137.3
18.9
128.7
21.0
121.1
21.3
Chemical
87.1
12.0
91.1
14.8
69.3
12.2
Energy
72.6
10.0
54.6
8.9
53.8
9.4
Consumer Products & Services
152.6
21.0
135.9
22.1
122.6
21.5
Logistics & Financial Markets
46.7
6.4
32.3
5.3
33.1
5.8
Americas
49.9
6.9
40.7
6.6
44.6
7.8
Europe
20.7
2.9
20.0
3.3
22.5
4.0
Other Overseas Areas
25.8
3.6
24.1
3.9
23.5
4.1
All Other
12.3
1.7
10.4
1.7
10.6
1.9
Adjustments and Eliminations
(0.6
)
(0.1
)
(0.9
)
(0.1
)
(3.0
)
(0.6
)
Consolidated Total
¥
725.8
100.0
%
¥
613.9
100.0
%
¥
569.6
100.0
%
23
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Operating Income (Loss)*:
In Billions, Except Percentages
Years Ended March 31,
2005
2004
2003
Metal Products & Minerals
¥
68.1
34.4
%
¥
28.7
22.6
%
¥
24.7
24.2
%
Machinery, Electronics & Information
31.4
15.9
29.4
23.2
14.1
13.8
Chemical
24.6
12.4
31.4
24.8
18.3
18.0
Energy
35.5
17.9
21.7
17.1
25.7
25.2
Consumer Products & Services
32.0
16.2
23.3
18.4
21.2
20.8
Logistics & Financial Markets
18.5
9.3
10.4
8.2
10.9
10.7
Americas
14.7
7.4
8.5
6.7
9.5
9.3
Europe
2.4
1.2
3.0
2.4
4.2
4.1
Other Overseas Areas
8.2
4.1
6.6
5.2
7.6
7.5
All Other
(0.5
)
(0.2
)
(1.9
)
(1.5
)
(1.8
)
(1.8
)
Adjustments and Eliminations
(36.9
)
(18.6
)
(34.3
)
(27.1
)
(32.5
)
(31.8
)
Consolidated Total
¥
198.0
100.0
%
¥
126.8
100.0
%
¥
101.9
100.0
%
*
Operating income (loss) reflects our (a) Gross Profit,
    (b) Selling, general and administrative expenses,
    (c) Provision for doubtful receivables and
    (d) Government grant for transfer of substitutional portion
    of EPF, as presented in the Statements of Consolidated Income.
Net Income (Loss):
In Billions, Except Percentages
Years Ended March 31,
2005
2004
2003
Metal Products & Minerals
¥
47.0
38.8
%
¥
24.2
35.4
%
¥
16.1
51.8
%
Machinery, Electronics & Information
26.4
21.8
5.9
8.6
(9.2
)
(29.6
)
Chemical
(6.9
)
(5.7
)
11.4
16.7
(3.6
)
(11.6
)
Energy
42.8
35.3
24.4
35.7
23.0
74.0
Consumer Products & Services
16.9
14.0
18.9
27.6
9.6
30.9
Logistics & Financial Markets
11.8
9.7
4.8
7.0
4.7
15.1
Americas
12.3
10.2
0.2
0.3
3.3
10.5
Europe
2.9
2.4
0.7
1.0
2.8
9.0
Other Overseas Areas
13.8
11.4
10.4
15.2
8.6
27.7
All Other
4.4
3.7
1.9
2.8
6.9
22.2
Adjustments and Eliminations
(50.3
)
(41.6
)
(34.4
)
(50.3
)
(31.1
)
(100.0
)
Consolidated Total
¥
121.1
100.0
%
¥
68.4
100.0
%
¥
31.1
100.0
%
24
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Notes:
(1)
The figures of "Consolidated Total" for the years
    ended March 31, 2004 and 2003 have been reclassified to
    conform to the change in current year presentation for
    discontinued operations in accordance with Statement of
    Financial Accounting Standards ("SFAS") No. 144,
    "Accounting for the Impairment or Disposal of Long-Lived
    Assets."
(2)
"All Other" includes business activities which
    primarily provide services, such as development and sales of
    systems, financing services, and operations services to external
    customers, and/or to us and associated companies.
(3)
Net loss of "Adjustments and Eliminations" includes
    income and expense items that are not allocated to specific
    reportable operating segments, such as certain expenses of the
    corporate departments, and eliminations of intersegment
    transactions.
(4)
Transfers between operating segments are made at cost plus a
    markup.
(5)
Starting from the year ended March 31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as interest expense, net of
    interest income. In relation to this change, the figures of
    gross profit and operating income (loss) for the years ended
    March 31, 2004 and 2003 have been restated to conform to
    the current year presentation.
25
Table of Contents
Metal Products & Minerals Segment
The Metal Products & Minerals Segment is engaged in the
overseas development and raw material trading of iron, steel and
non-ferrous metals, and in the domestic and global
manufacturing, sale and trading of iron, steel and non-ferrous
metal products.
Gross profit and net income for this segment for the year ended
March 31, 2005 were ¥121.4 billion or 16.7% and
¥47.0 billion or 38.8% of our consolidated total,
respectively.
This segment is composed of the Iron & Steel Products
Business Unit and the Iron & Steel Raw Materials and
Non-Ferrous Metals Business Unit, and has 45 subsidiaries
including:
•
in the Iron & Steel Products Business Unit, Mitsui
    Bussan Construction Materials Co., Ltd. (Japan), Tsuda
    Corporation (Japan), Regency Steel Asia Pte Ltd.
    (Singapore); and
•
in the Iron & Steel Raw Materials and Non-Ferrous
    Metals Business Unit, Mitsui Bussan Raw Materials Development
    Corp. (Japan), Mitsui Iron Ore Development Pty. Ltd.
    (Australia), Mitsui Itochu Iron Pty. Ltd. (Australia), Sesa Goa
    Limited (India), Mitsui Coal Holdings Pty. Ltd. (Australia),
    Japan Collahuasi Resources B.V. (Netherlands) and Mitalco Inc.
    (the Unites States).
This segment has 48 associated companies including:
•
in the Iron & Steel Products Business Unit, Nippon
    Steel Trading Co., Ltd. (Japan), Shanghai Bao-Mit Steel
    Distribution Co., Ltd. (China) and Thai Tinplate Manufacturing
    Co., Ltd. (Thailand); and
•
in the Iron & Steel Raw Materials and Non-Ferrous
    Metals Business Unit, Valepar S.A. (Brazil) and BHP Mitsui Coal
    Pty., Ltd. (Australia).
An overview of each business unit within the segment is provided
as follows:
Iron & Steel Products Business Unit
Iron and steel products are used in a wide range of industries
including the automobile, electronics, transportation,
construction and energy sectors. We have served our customers in
these industries worldwide and provided support services for
Japanese steel mills. Through the collaboration with 24
subsidiaries and 26 associated companies owned by this business
unit, the Iron & Steel Products Business Unit conducts
manufacturing, trading, marketing, processing and distribution
of:
•
steel sheet for automobile and electric appliances, steel plates
    for shipbuilding and heavy electric machinery, galvanized steel
    products and tin material and products;
•
steel products for oil and gas projects including oil well tube
    and line pipe;
•
wire rod, specialty steel and bearing;
•
steel bars and other steel construction materials; and
•
semi-finished items including steel slabs to be processed into
    steel plates and steel billets to be processed into steel bars
    and wire rods.
To extend the above-mentioned activities, this business unit has
also made investments in subsidiaries and associated companies
including coil centers as bases for processing and distribution,
electrical furnace steel makers as manufacturing bases and steel
product trading companies.
In the steel products business, both manufacturers and users are
large-scale and sophisticated organizations. As simple
intermediation between these entities no longer serves their
needs, the business unit has developed its services based on
supply chain management ("SCM") by making use of IT and
26
Table of Contents
logistics expertise. Through working closely with manufacturers
and users, we optimize distribution and inventory control, thus
sharing with customers the benefit of associated cost
reductions. For example:
•
We have recently established steel service centers, galvanized
    steel plants and tin-plating facilities at our subsidiaries
    and/or joint ventures with Japanese and overseas business
    partners in order to meet the rising demand from manufacturers
    of automobiles, electric appliances and heavy electric machinery
    that have transplanted their production centers to the United
    States, Southeast Asia and China. In 2002, we participated in
    Shanghai Bao-Mit Steel Distribution Co., Ltd. (China), a joint
    venture with Shanghai Baosteel Group Corporation, a Chinese iron
    and steel manufacturing company, in order to build a network of
    steel products service centers in China. Through this associated
    company, we have been promoting the integration of service
    centers within China in order to improve operational efficiency,
    and we are actively pursuing additional investments.
•
We frequently draw upon the unit's logistics expertise in
    delivering a wide range materials and products in large volume
    under optimized schedule along with expertise in project
    financing. We also take advantage of the business relationships
    and marketing channels of other business units in the fields of
    energy, industrial plants, shipping and machinery. This enabled
    us to be involved in various industrial projects including the
    construction of oil and gas pipeline projects such as the
    West-East Natural Gas Pipeline project in China and the steel
    structure for the Bangkok Second International Airport Terminal.
During the year ended March 31, 2004, we acquired Regency
Steel Asia Pte Ltd. (Singapore), a wholesaler of steel products.
This acquisition was made with the aim to expand global
wholesale operations in the rapidly growing steel products
markets in Asia.
As mentioned above, the businesses of the Iron & Steel
Products Business Unit are highly sensitive to worldwide demand
of steel products, especially in Asia including China. At the
same time, this business unit concentrates on achieving low-cost
operations in domestic market which is already mature through
spin-off and other business reorganizations. In addition, we
have been strengthening our ties with domestic electrical
furnace steel makers and wholesalers through collaboration in
sales of products, procurement of raw materials and equity
investment.
Our major competitors in Japan and overseas are other Japanese
trading companies. In their efforts to achieve low-cost
operations through economy of scale, some of our competitors
have consolidated and established joint ventures, such as
Marubeni-Itochu Steel Inc. and Metal One Corporation. In order
to remain competitive as well as pursue our strategic goals, we
utilize the Iron & Steel Products Business Promotion
Division which specializes in making investments in
steel-related enterprises in response to the need for joint
investment amongst steel users and steel manufacturers in Japan
and overseas and with the aim of participating in the
development of new products.
Iron & Steel Raw Materials and Non-Ferrous Metals
    Business Unit
Effective April 1, 2004, the former Iron & Steel
Raw Materials Unit and the former Non-Ferrous Metals Unit were
combined to begin operations as the Iron & Steel Raw
Materials and Non-Ferrous Metals Business Unit. This combination
has allowed us to pursue our strategic goals to both integrate
and expand our overseas acquisition network of iron and steel
raw materials and non-ferrous mineral interests.
Through collaboration with the 21 subsidiaries and 22 associated
companies owned by this business unit, the Iron & Steel
Raw Materials and Non-Ferrous Metals Business Unit is engaged in
various business activities including:
•
trading, investment, logistics management and transportation
    services related to iron and steel raw materials, such as iron
    ore, coal, steel scrap, ferro-alloys and other minerals; and
•
trading, investment, transportation and processing of
    non-ferrous metal ores and ingots such as: copper, lead, zinc,
    tin, nickel, aluminum, magnesium, cobalt, titanium, other
    non-ferrous metals; sales and marketing of semi-fabricated
    non-ferrous products such as construction materials; and agent
    activities in the nuclear fuel import business.
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Table of Contents
In iron and steel raw materials field, this business unit acts
as an agent for various major Japanese steel makers for their
procurement of iron ore, coal, steel scrap and ferro-alloys. For
example, we provide Japanese steel makers with various services
in their negotiation and execution of iron and steel raw
material procurement contracts as well as information related to
worldwide suppliers of iron and steel raw materials obtained
through our overseas network. In response to the global trend of
eliminating intermediaries with respect to trading activities,
we are expanding and promoting our investment and participation
in mining projects in alliances with mining companies worldwide.
We participate in joint ventures with various iron ore and coal
mining companies located in Australia, Brazil and India in order
to secure stable supplies of those materials. For example:
•
In August 2002, we completed the construction of the West
    Angelas iron ore mine in Australia (as a part of the Robe River
    Joint Venture with Rio Tinto), which began shipments of iron ore
    to customers worldwide. In Australia, we also have a
    participating interest in Mount Newman Joint Venture and other
    joint ventures with BHP Billiton.
•
In September 2003, we purchased a 15% ownership interest (or
    18.24% in terms of voting shares as of March 31, 2005), of
    Valepar S.A. (Brazil), the controlling shareholder of Companhia
    Vale do Rio Doce ("CVRD") in Brazil. CVRD is a mining
    enterprise with operations that include mining of iron ore and
    other raw non-ferrous metals.
•
We own a 51% interest in Sesa Goa Limited (India), which
    produces iron ore and coke in India.
•
In April 2002, we entered into a strategic alliance with Anglo
    American Plc to develop the Moura and German Creek coalmines in
    Australia, which provides us with a solid foundation for future
    growth in the coal business. We also have participating
    interests in other coal mining joint ventures including South
    Walker Creek Joint Venture and Bengalla Joint Venture with BHP
    Billiton and Rio Tinto, respectively.
We are also engaged in steel scrap stock inventory operations in
the West Coast of the United States. Reflecting the demand
growth, especially from Asia, this steel scrap export terminal
has been getting increasingly important, which is owned and
operated by Pacific Coast Recycling, LLC. Pacific Coast
Recycling, LLC is wholly owned by our subsidiary Raw Materials
Development Co. (the United States).
The revenues from mineral producing activities accounts for a
significant portion of this business unit. The table below sets
forth the break down of revenues of the Iron & Steel
Raw Materials and Non-Ferrous Metals Business Unit.
Revenues
Billions of Yen
Revenues from Sales
Revenues from Sales of Products
of Services
Commissions and
Revenues from Mineral
Revenues from Sales of
Trading Margins on
Years Ended March 31,
Producing Activities
Other Products(*)
Intermediary Services
Total Revenues
2005
¥
88.0
¥
134.3
¥
18.5
¥
240.8
2004
49.9
136.4
16.9
203.2
2003
34.7
113.7
15.6
164.0
(*)
Revenues from sales of other products mainly consist of sales of
    scrap metals and non-ferrous metals such as copper and aluminum.
We have entered into new joint venture projects to meet the
increasing demand for iron and steel raw materials in Japan and
abroad. For example, in January 2003, we established POSCO
Terminal Co., Ltd., a joint venture with POSCO (a steel maker in
Republic of Korea), whereby providing logistics services related
to transactions involving iron and steel raw materials for our
various customers in Asia. We are also enhancing our involvement
in the recycling business and the greenhouse gas emission
reduction trading business.
28
Table of Contents
The following tables provide information on our investments in
iron ore and coal resource projects. In September 2003, we sold
our interest in Caemi Mineração e Metalurgia S.A.,
which had been our associated company until the year ended
March 31, 2003. Accordingly, in the table below, we did not
include mining information attributable to Caemi
Mineração e Metalurgia S.A. For information on our
production and reserve amounts in connection with our mining
activities, See "Item 4.D. Property, Plants and
Equipment — Mining Activities."
IRON ORE
Mitsui's
Other Major Participants
Joint Venture or
Mitsui's Subsidiary or
Name of
Percentage of
and Their Percentages of
Investee
(1)
Associated Company
(2)
Mines
(3)
Location
Ownership
Ownership
Robe River Iron
Associates
Mitsui Iron Ore
Pannawonica
Pilbara Region,
33.00%
Rio Tinto
53.00%
Development Pty. Ltd.
West Angelas
Western Australia
Nippon Steel
10.50%
Sumitomo Metal Industries
3.50%
Mount Newman Joint
Venture
Mitsui Itochu Iron Pty. Ltd.
Mount
Whaleback
Pilbara Region,
Western Australia
7.00%
BHP Billiton
Itochu
85.00%
8.00%
Yandi Joint Venture
Mitsui Iron Ore Development Pty. Ltd.
Marillana
Creek
Pilbara Region,
Western Australia
7.00%
BHP Billiton
Itochu
85.00%
8.00%
Mount Goldsworthy
Joint Venture
Mitsui Iron Ore Development Pty. Ltd.
North Area
(Yarrie)
(Nimingarra)
Area C
Pilbara Region,
Western Australia
7.00%
BHP Billiton
Itochu
85.00%
8.00%
Sesa Goa Limited
Sesa Goa Limited
Codli
Sonshi
Goa, India
51.00%
(publicly listed company)
Chitrandurga
Hopset
Karnataka, India
COAL
Mitsui's
Other Major Participants
Joint Venture or
Mitsui's Subsidiary or
Name of
Percentage of
and Their Percentages of
Investee
(1)
Associated Company
(2)
Mines
(3)
Location
Ownership
Ownership
BHP Mitsui Coal
Pty. Ltd.
BHP Mitsui Coal Pty.
Ltd.
Riverside
South Walker  Creek
Queensland, Australia
20.00%
BHP Billiton
80.00%
Bengalla Joint Venture
Mitsui Coal Holdings
Pty. Ltd.
Bengalla
New South Wales, Australia
10.00%
Rio Tinto
Wesfarmers
Taiwan Power
40.00%
40.00%
10.00%
Kestrel Joint Venture
Mitsui Coal Holdings
Pty. Ltd.
Kestrel
Queensland, Australia
20.00%
Rio Tinto
80.00%
Moura Joint Venture
Mitsui Coal Holdings
Pty. Ltd.
Moura
Queensland, Australia
49.00%
Anglo American
51.00%
German Creek Joint
Venture
Mitsui Coal Holdings
Pty. Ltd.
German Creek
Queensland, Australia
30.00%
Anglo American
70.00%
(1)
The term "Investee" refers only to Sesa Goa Limited
    and BHP Mitsui Coal Pty. Ltd.
(2)
"Mitsui's Subsidiary or Associated Company"
    indicates names of the companies through which we own our
    interests in the joint ventures or the investee. Sesa Goa
    Limited is a Mitsui's subsidiary in which it directly owns
    a 51% voting share. BHP Mitsui Coal Pty. Ltd. is a Mitsui's
    associated company in which it directly owns a 20% voting share.
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(3)
"Name of Mines" indicates the names of principal
    producing mines.
(4)
In addition to the above-mentioned coal mining projects, through
    Mitsui Coal Holdings Pty. Ltd., we have small interests in two
    projects in Australia mainly promoted by Anglo American, namely,
    Moranbah North Joint Venture in Queensland and Drayton Joint
    Venture in New South Wales. Our percentage of ownership and
    annual production capacity of Moranbah North Joint Venture and
    Drayton Joint Venture are 4.75%, 3.9 million tons and
    3.83%, 5.1 million tons, respectively.
In non-ferrous metals field, we have been engaged in trading of
copper, nickel, cobalt, aluminum ingots and other non-ferrous
metal materials. We are also expanding and promoting our
investments and participation in various non-ferrous metals
mining and smelting projects to secure stable sources of supply.
For example:
•
We participate in Compania Minera Dona Ines de Collahuasi SCM
    (Chile), a copper mine development company, in which we hold a
    7.43% interest. The project, which commenced its commercial
    production in 1998, has been developed jointly with Anglo
    American Plc and Falconbridge Ltd. and has annual production
    capacity of about 500,000 tons of copper per annum. In addition,
    we have a 1.25% interest in Minera Los Pelambres in Chile whose
    production capacity is about 360,000 tons of copper per annum.
•
We own an undivided interest in both Eastalco and Intalco,
    aluminum smelting companies in the United States, providing
    access to 147,000 tons of aluminum ingots annually. Combining
    the metal taken from these companies with other sources, we have
    the capability to supply 220,000 tons of aluminum ingots
    annually. Those primary aluminum ingots are sold to the
    customers in Japan and the United States.
•
We participated in a nickel-cobalt mining and refining project
    at Rio Tuba area in the Republic of Philippines which has been
    developed jointly with Sumitomo Metal Mining Co., Ltd., Sojitz
    Corporation (formerly Nissho Iwai Corporation) and a local
    partner. This project is expected to produce nickel-cobalt mixed
    sulfide through a high-pressure acid leaching process, an
    advanced processing technology for nickel production. In
    addition, in April 2005, we, jointly with Sumitomo Metal Mining
    Co., Ltd., concluded an agreement for participation in the Goro
    Nickel Development Project in New Caledonia, which had been
    promoted by Inco Limited.
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Machinery, Electronics & Information
    Segment
The Machinery, Electronics & Information Segment
consists of three business units as follows:
•
Power, Transportation & Plant Projects Business Unit;
•
Machinery Business Unit; and
•
Information, Electronics and Telecommunication Business Unit.
Gross profit and net income for this segment for the year ended
March 31, 2005 were ¥137.3 billion or 18.9% and
¥26.4 billion or 21.8% of our consolidated total,
respectively.
Effective April 1, 2004, the consumer-oriented and
media-related businesses which had been included in the former
Information Business Unit were transferred to a newly
established Consumer Service Business Unit in the Consumer
Products & Services Segment.
The Machinery, Electronics & Information Segment are
engaged in, among other things, the following businesses:
manufacturing, global marketing and sales, financing, leasing
and services involving electric machinery, industrial plants and
systems, transportation equipment and systems, construction
equipment, telecommunication systems, motor vehicles, marine and
aerospace systems. This segment is also involved in IT and
electronics related solutions business, marketing and sales of
IT and electronics related products, components and materials,
software and various services. Services provided by each of our
business units are sold primarily to industrial customers,
including original equipment manufacturers, industrial end
users, utility companies, construction companies and
distributors.
While traditional trading and sales activities continue to be
important to the Machinery, Electronics & Information
Segment, the business units in this segment are also
diversifying their business operations in response to changing
global market demands. In infrastructure projects, for example,
not only are we engaged in the sale of equipment used for such
projects, but we are now beginning to participate in potential
projects from the early stages whereby we:
•
assess the commercial and technical feasibility of the projects;
•
design projects utilizing our financial, legal and industrial
    skills;
•
select and invite capable partners; and
•
arrange and/or assist the syndication of financing.
Moreover, we have also been increasing our equity investments in
some projects, especially in power generation projects in the
Power, Transportation & Plant Projects Business Unit.
With respect to our IT business, rapid innovations in technology
and corresponding changes in the technology market have resulted
in new business opportunities. As such, we are concentrating on
value-added services to our customers and satisfying emerging
market needs in the business domains such as network integration
and systems integration services; and mobile communication
business.
The Machinery, Electronics & Information Segment holds
90 subsidiaries such as Mitsui Bussan Plant & Project
Corp. (Japan), Mitsui Rail Capital Holdings, Inc. (the United
States) in the Power, Transportation & Plant Projects
Business Unit; Lepta Shipping Co., Ltd. (Liberia), Toyota Chile
S.A. (Chile), Mitsui Automotive Europe B.V. (Netherlands), Tombo
Aviation Inc. (the United States) in the Machinery Business
Unit: and Telepark Corp. (Japan), NextCom K.K. (Japan), TOYO
Officemation, Inc. (Japan) and Xion Electronics, Inc. (Japan) in
the Information, Electronics and Telecommunication Business Unit.
Additionally it has 77 associated companies such as
P.T. Paiton Energy (Indonesia), Shin Nippon Air
Technologies Co., Ltd. (Japan) in the Power,
Transportation & Plant Projects Business Unit; Komatsu
Australia Pty. Ltd. (Australia), Kioritz Corporation (Japan) and
Toyota Canada Inc. (Canada) in the Machinery Business Unit; and
Nihon Unisys, Ltd. (Japan), Moshi Moshi Hotline, Inc. (Japan) in
the Information, Electronics and Telecommunication Business Unit.
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Power, Transportation & Plant Projects Business
    Unit
Effective April 1, 2004, the former Telecommunications,
Transportation & Industrial Systems Business Unit was
abolished and the transportation businesses which had been
included in the unit were transferred to the Power,
Transportation & Plant Projects Business Unit.
The business activities of the Power, Transportation &
Plant Projects Business Unit together with 30 subsidiaries and
24 associated companies cover a wide range of involvement in
project implementation and related services, including:
•
energy related projects such as oil and gas development
    projects, oil refineries, LNG manufacturing facilities, and
    pipelines;
•
electric power projects such as power plants, power transmission
    and substation facilities;
•
water supply projects such as desalination plant, wastewater
    processing facilities and water supply and sewerage facilities;
•
transportation related business such as railway rolling stock
    and railway facilities and systems;
•
social infrastructure projects such as construction of airport,
    port facilities, road and other public facilities;
•
basic industry projects such as iron, non-ferrous metals,
    chemical plants; and.
•
environment-related projects such as waste disposal and
    recycling plants.
We are undertaking a number of projects that may stimulate
economic growth mainly in developing countries and countries
rich in natural resources. We focus on the needs of those
countries and apply our project engineering capabilities and
expert knowledge in financing, logistics, taxation and legal
affairs, so as to devise optimal solutions that address complex
and multifaceted issues that those nations are facing. This
business unit often arranges financing for projects by
international financial institutions and export credit agencies
worldwide. Moreover, it sometimes provides loans or issues
guarantees on behalf of the project owners.
The following are examples of the types of projects and our
activities where this unit renders services mainly as an agent
in securing the contract, arranging financing and executing the
contract:
•
In the Commonwealth of Independent States ("CIS") and
    the Middle East, we were engaged in the structuring and the
    arrangement of debt and equity project financing for various
    natural gas energy projects. Together with export credit
    agencies and commercial banks, we also extended loans to project
    participants.
•
We acted as the Engineering, Procurement and Construction
    ("EPC") contractor for various oil and gas production
    projects and for the construction of infrastructure facilities
    including power plants and petrochemical plants whereby we
    procured manufacturing equipment from Japanese and overseas
    subcontractors.
•
For gas pipeline projects such as Cabiunas and Malhas which were
    promoted by Petrobras in Brazil, we were engaged in the
    structuring and the arrangement of debt, equity and lease
    financing. We also extended loans to the project participants.
•
In a lead-free gasoline production project in Indonesia known as
    the Blue Sky Project, we were engaged in the structuring and the
    arrangement of debt and equity project financings. We also
    extended loans to the project participants.
•
As the primary EPC contractor, we are constructing the 790
    megawatt Council Bluffs Energy Center Unit 4 coal fired power
    plant in Iowa, the United States, whereby we have subcontracted
    to Japanese and the United States subcontractors.
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•
For the Taiwan High Speed Rail project, we are a commercial
    leader of a consortium consisting of Japanese railway car
    manufacturers and general trading companies, which supplied
    rolling stock and transportation facilities.
The Power, Transportation & Plant Projects Business
Unit is increasing activities which facilitate the
implementation of projects. These activities go beyond the
conventional EPC approach of acting as an intermediary between
project owners and sub-contractors on a back-to-back base.
Instead, these activities often involve arrangement of
sophisticated financing schemes, risk sharing through equity
participation and operation and maintenance of plant and
facilities after their construction completion. Based on this
concept, the unit is promoting investments in certain related
infrastructure projects including the acquisition of independent
power producer ("IPP") overseas. For example:
•
In December 2004, we, together with International Power plc,
    completed the acquisition of the international power generation
    portfolio (nine power plants in total 4,514 megawatt as of
    March 2005) of MEC International BV, a Dutch holding
    company owned by Edison Mission Energy, and in July 2005
    acquired additionally the Saltend 1,200 megawatt combined cycle
    power plant from Calpine Corporation. We established IPM Eagle
    LLP (United Kingdom) jointly with International Power plc to
    hold and manage these power generation businesses;
•
We have formed a joint venture with Calpine Corporation to
    construct, own and operate the 1,005 megawatt combined
    cycle power plants called Greenfield Energy Center which has
    secured a 20 year Clean Energy Supply contract with Ontario
    Power Authority of Ontario, Canada; and
•
We own a 36.324% interest in P.T. Paiton Energy
    (Indonesia), an Indonesian power producer, which owns a 1,230
    megawatt coal fired power plant in East Java, Indonesia.
    P.T. Paiton Energy sells electricity to
    P.T. Perusahaan Listrik Negara, an electric utility company
    owned by the Indonesian government, under a power purchase
    agreement. In December 2002, an amendment to the original power
    purchase agreement became effective, thereby resolving a series
    of disputes between P.T. Paiton Energy and
    P.T. Perusahaan Listrik Negara, which were caused in large
    part by the regional financial crisis in Asia, particularly, in
    Indonesia in 1997.
Reflecting these developments, the combined power generation
capacities for Mitsui's equity share in various power
projects as of the end of August 2005 in operation and under
construction were 2,515 megawatt and 801 megawatt,
respectively. As well as the above-mentioned projects, these
power generation capacities included those of Umm Al Nar in the
United Arab Emirates, Loy Yang A and Tarong North Power Station
in Australia and Valladolid III in Mexico.
In other types of projects, in January 2005, Mitsui acquired a
25% interest in the LNG terminal in Altamira, Mexico, which had
been owned by Royal Dutch Shell (75%) and Total (25%). The
facility is expected to start operations in late 2006, supplying
up to 5 billion cubic meters per annum of natural gas for
15 years under a contract with Comisión Federal de
Electricidad, a state power company.
Environmental issues are world concerns. Our initiatives in this
field include creating and implementing recycling systems for
automobiles, electric appliances and plastic bottles made from
polyethylene terephthalate. In our overseas markets, we are
engaged in the construction of waste processing facilities and
other environment-related projects.
Our major competitors include other Japanese general trading
companies, international financial institutions, global
engineering companies and construction companies.
Machinery Business Unit
Effective April 1, 2004, industrial system businesses
formerly included in the former Telecommunications,
Transportation & Industrial Systems Business Unit were
transferred to the Machinery Business Unit.
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The Machinery Business Unit, together with 42 subsidiaries and
41 associated companies, is engaged in the following business
activities:
•
import and export, assembly and manufacturing, distribution and
    dealership of motor vehicles, motor cycles and their parts;
    retail finance and automobile auction business;
•
sales and trading of tanker, LNG carrier, container vessel,
    cargo vessel; operation of own vessel; chartering vessel; and
    ocean vessel related finance;
•
trading of aircraft and helicopter, leasing of aircraft, and
    trading of other products such as defense related equipment,
    aerospace system and aircraft engine; and
•
trading of industrial machinery including mining and
    construction equipment, production equipment and machining tool.
Motor vehicles business is a major part of operations in this
business unit. This business unit has a long track record of
exporting and marketing Japanese automobiles and has developed
networks of our subsidiaries and associated companies as import
wholesalers, dealers and assembler for Japanese vehicles in many
regions of the world. For example, we have been exporting
Toyota, Subaru and motor vehicles of other Japanese
manufacturers to various countries worldwide including Canada
(Toyota), Chile (Toyota), Peru (Toyota), Italy (Subaru), Germany
(Subaru and Yamaha), Thailand (Hino) and Malaysia (Daihatsu).
In recent years, the relocation of Japan's automobile
production centers from the domestic market to other countries
has been accelerated, and we have diversified our activities
with the strategic allocation of our financial and human
resources to prioritized areas of our motor vehicles business
worldwide, such as logistics service of manufacturing
components, retail operations, retail finance and auction
businesses. For example:
•
We have operated a subsidiary P.T. Bussan Auto Finance
    (Indonesia), a retail finance company for Yamaha motorcycles
    since 1997;
•
We have been handling the logistics operations of automobile
    parts for Toyota's manufacturing operations in North
    America and Europe;
•
We have increased our ownership in United Auto Group, Inc.
    ("UAG"), an automobile dealership group in the United
    States, to about 15.5% and by combining what we learned from our
    involvement in UAG with our knowledge of the global market, we
    continue to explore other opportunities to expand into retail
    dealership operations in developing market such as Russia, China
    and India; and
•
We have also invested in an auction business for used cars as a
    business partner of Japan Automobile Auction, Inc.
    ("J.A.A."), an auction trader in Japan. In order to
    establish ourselves in the automobile auction business, together
    with J.A.A., we established an automobile auction joint venture
    company in Germany.
Our vessel and marine project related activities include
marketing newly built commercial vessels to ship owners and
operators in Japan and overseas, operating vessels, acting as a
broker for the sale and purchase of second hand vessels and for
chartering vessels, and marketing equipment for vessels to
shipbuilding companies.
Along with these operations, we are engaged in energy-related
marine projects, including the joint ownership and operation of
Floating Storage and Offloading ("FSO") and Floating
Production Storage and Offloading ("FPSO") facilities,
and LNG vessels. In addition, we arrange various types of
financing for our customers such as syndicated loans involving
international financial institutions, export credit agencies and
other financial institutions for large scale transactions. We
also provide direct loans to some of our clients.
In connection with our other business activities, we own and
operate commercial vessels.
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In our aerospace systems related activities, we provide and
arrange operating leases and finance leases to various airlines
worldwide and are engaged in the sale and purchase of aircraft
through our subsidiaries Tombo Aviation Inc. (the United States)
and Tombo Capital Corporation (Japan). As an agent in Japan for
Airbus, we are engaged in marketing Airbus aircraft, including
the A380 super jumbo, to Japanese airlines. Along with these
activities, our subsidiary Mitsui Bussan
Aerospace Co., Ltd. (Japan) represents Bell Helicopter
and, to date, has sold a total of 1,400 units in Japan. We
are actively introducing and marketing new types of aircraft,
including tiltrotor types.
With respect to distribution activities in our industrial system
business, we are engaged in the distribution of construction
machinery and mining equipment such as dump trucks and hydraulic
shovels through Komatsu Australia Pty Ltd. (Australia), our
associated company acquired in 2001, is one of important
operation in this field. Furthermore, we are also pursuing
construction machinery and mining equipment distribution in
other regions such as North and South America. We are also
actively engaged in export of high-precision machine tools and
manufacturing equipment as well as control systems. The other
important business is distribution of outdoor power equipment
and utility equipment in North America.
The business sectors in which the above divisions are engaged
are highly competitive. Competitors include, but are not limited
to, other Japanese general trading companies, international
financial institutions and manufacturers.
Information, Electronics and Telecommunication Business
    Unit
Effective April 1, 2004, the former Information Business
Unit and the former Electronics Business Unit were combined to
begin operations as the Information, Electronics and
Telecommunication Business Unit.
The Information, Electronics and Telecommunication Business Unit
is involved in information technology services and solutions.
These are delivered through the unit's 18 subsidiaries
and 12 associated companies established by products and
services in the following five major fields:
•
network and systems integration ("NI/ SI") businesses;
•
business process outsourcing services;
•
mobile communication businesses;
•
semiconductors related businesses; and
•
display related businesses.
The major activities in the above-mentioned business areas of
this unit are as follows:
•
We provide integrated hardware and software solutions such as
    system building, network infrastructure devices, enterprise
    applications and network security service. These solutions are
    provided through subsidiaries and associated companies such as
    NextCom K.K. (Japan) and Nihon Unisys, Ltd. (Japan).
    In December 2004, NextCom K.K., a formerly associated
    company, BSI Co., Ltd., a software development and
    marketing subsidiary, and ADAM NET Ltd., a data
    telecommunications equipment marketing subsidiary, merged to
    seek synergies of comprehensive information technology services.
    NextCom K.K. remains as the surviving company among them and
    became a subsidiary. For more information, see Note 3,
    "BUSINESS COMBINATIONS," to our consolidated financial
    statements. Nihon Unisys, Ltd. is a publicly listed company in
    Japan in which Mitsui and Unisys Corporation in the United
    States hold a 28.91% each of voting stocks as of March 31,
    2005;
•
We are focusing on business process outsourcing services as the
    crucial business fields, through our subsidiary TOYO
    Officemation, Inc. (Japan). While it has been engaged in
    distribution of information processing devices such as optical
    character reader ("OCR") and information input device.
    Recently, it has focused on enterprise information management
    such as customer information input, management and operation;
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•
We are promoting various mobile communication businesses through
    alliances with domestic cell phone service providers and
    manufacturers. In 1990s we had established three regional
    companies in Japan that were engaged in sales agency of
    telecommunications line and related businesses. They were
    consolidated in one company as Mitsui & Associates
    Telepark Corporation (Japan) in April 2001 that changed
    corporate name as Telepark Corp. (Japan) in October 2004.
    Telepark Corp. is one of the major distributors of cell phones
    in Japan and sold 3.1 million cell phones for the year
    ended March 31, 2005. Telepark Corp. went public in Japan
    in April 2004;
•
While Bussan Microelectronics Corp. had been our core
    semiconductor trading subsidiary, we acquired another trading
    company, TEKSEL Co., Ltd., to broaden our customer base and
    product portfolio in 2002. To maximize synergies of the combined
    operations, in 2002 we established Xion Holdings, Inc.(*)
    (Japan) as a holding company for these two subsidiaries. And in
    2004 in partnership with World Peace Group, a large scale
    distributor of electronic components and computer products who
    has its headquarter in Taipei and has various marketing channels
    in Asian countries, we established TEKSEL WPG Ltd. (Hong Kong)
    in order to provide semiconductor related products and services
    mainly for Japanese customers who are shifting their production
    to China; and
•
The shift of electronic device production to China has
    intensified since 2002, prompting our Information, Electronics
    and Telecommunication Business Unit to allocate additional human
    and capital resources to bolster our Chinese business. We
    concluded a broad strategic partnership agreement with SVA
    (GROUP) CO., LTD., a Chinese electronics manufacturer,
    and set up a joint venture company in Shanghai to market the
    strategic products of SVA (GROUP) CO., LTD. in China
    and worldwide.
Our unit is dependent on the operating results of our
subsidiaries and associated companies, most of which are located
in Japan, where technological development is rapid and
competition is fierce. We also rely on our investments in
overseas technology, business models and business partners,
which enable us to provide competitive services and solutions in
the domestic market. Thus, considerable part of this business
unit's function involves business incubation for of IT
related products and services.
Chemical Segment
The operations of our Chemical Segment include production,
trading and development of chemical products both in Japan and
overseas. We also promote development of new technologies in the
fields of nanotechnology and biotechnology.
Gross profit and net loss for this segment for the year ended
March 31, 2005 were ¥87.1 billion or 12.0% of our
consolidated total gross profit and ¥6.9 billion loss,
respectively.
The Chemical Segment consists of Organic Chemicals Business Unit
and Plastics & Inorganic Chemicals Business Unit. The
Chemical Segment has 49 subsidiaries including Novus
International, Inc. (the United States), P.T. Kaltim Pasifik
Amoniak (Indonesia), Mitsui Bussan Solvent &
Coating Co., Ltd. (Japan) in Organic Chemicals Business
Unit and Nippon Trading Co., Ltd.(Japan), Daito Chemical
Co., Ltd. (Japan) at Plastics & Inorganic
Chemicals Business Unit, and 52 associated companies such
as Honshu Chemical Industry Co., Ltd. (Japan) and Agro
Kanesho Co., Ltd. (Japan) at Organic Chemicals Business
Unit and Advanced Composites Inc. (the United States) in
Plastics & Inorganic Chemicals Business Unit.
Effective April 1, 2004, the business units in this segment
were reorganized, and these changes are referred to in the
following discussion of each business unit.
(*)
Xion Holdings, Inc. changed its corporate name to Xion
    Electronics, Inc. in January 2005.
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Organic Chemicals Business Unit
Effective April 1, 2004, the former Performance Chemicals
Unit and the former Petrochemicals Unit were integrated into a
single business unit named the Organic Chemical Business Unit.
Together with 25 subsidiaries and 24 associated
companies, the Organic Chemicals Business Unit is engaged in
sales, trade and production of following commodities and related
activities:
•
petrochemical products such as Olefins, Aromatics, Styrene
    Monomer, Vinyl Chloride Monomer;
•
synthetic fiber intermediates such as Para-Xylene, Terephthalic
    Acid, Ethylene Glycol, Acrylonitrile;
•
industrial chemicals such as Phenol, Bis-Phenols, Acetone,
    Acetic Acid;
•
Methanol and Ammonia;
•
specialty chemicals such as polyurethane raw materials,
    detergent intermediates, oleo chemicals, functional dyes and
    natural chemicals;
•
life science products such as pharmaceutical products and
    intermediates, feed additives, food ingredients and development
    of biotechnology business;
•
agriscience products such as agricultural chemicals and
    intermediates, natural agricultural chemicals and biological
    agricultural chemicals; and
•
fertilizer and its raw materials including phosphate and
    promotion of greenery, agriculture and environmental business.
In petrochemical products areas, the unit's main activities
involve trading of the above-mentioned products in Japan and
worldwide through business relationships with manufacturers and
customers such as Mitsui Chemicals, Inc., Toray Industries,
Inc., Tosoh Corporation, The Dow Chemical Company,
BP p.l.c., and Bayer Aktiengesellschaft.
We have invested in manufacturing facilities and logistic
facilities such as tank terminals in Houston, the United States;
Ningbo, China; Bangkok, Thailand; Johor, Malaysia; and Merak,
Indonesia. In addition, we have about 20% equity share in the
joint venture of International Methanol Company in Saudi Arabia
which commenced commercial operation with a production capacity
of 1 million ton per annum of methanol at the end of 2004
and have an ammonia producing subsidiary P.T. Kaltim
Pasifik Amoniak (Indonesia) which has a production capacity of
0.7 million ton per annum of Ammonia. We have also invested
in shipping companies in Japan, primarily in our subsidiary,
Daiichi Tanker Co., Ltd. (Japan) which has special type chemical
tanker fleets. For several years, the petrochemical industry has
seen fierce international competition, and major Japanese
petrochemical manufacturers have shifted their production to
Asian countries to expand their activities in growing Asian
market. This unit provides global and integrated logistics
services to such Japanese and overseas petrochemical companies
including operations by our own chemical tankers.
This business unit has been successful in earning revenues by
increasing market shares in certain products such as Olefins and
Styrene Monomer. Moreover, the steady growth of demand for
petrochemicals in the world, especially in China and other Asian
countries is driving earnings for this unit. On the other hand,
for the year ended March 31, 2003, the unit discontinued
operations at North American petrochemical manufacturing
subsidiaries Trans Pacific Glycols Inc. and Pacific Ammonia
Inc., which suffered from weak market conditions and high
natural gas costs in North America. For more information, see
Note 4, "DISCONTINUED OPERATIONS," to our
consolidated financial statements.
During the past several years, most worldwide petrochemical
companies have been struggling to survive through drastic
restructurings which include the reorganization of their sales
structures and mergers and acquisitions. However, despite the
difficult environment for participants in the petrochemical
market, we believe that we remain competitive with other
Japanese general trading companies and plan to strengthen our
market position by expanding our trade volume and market share.
Our sales channels to
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various customers in diverse geographic areas enable us to make
geographical and/or time swap arrangements. Our global logistics
services network, which we consider to be better organized than
those of other Japanese general trading companies, function as a
competitive advantages in gaining more business transactions.
In the field of life science, we handle pharmaceutical products,
pharmaceutical intermediate and raw materials, food and feed
additives such as amino acids and enzymes. Novus International,
Inc. (the United States), a feed additive manufacturing
subsidiary, produces and sells amino acids. In addition, we
focus on pharmaceutical manufacturing processes as represented
by Beta-Chem, Inc. (Japan), a subsidiary in which we increased
our investment to expand the scope of that company's
operations. We are also involved in research, development and
marketing in the field of biotechnology and agricultural
chemicals. In Singapore, we established Pharma Logicals Research
Pte. Ltd., an operation to research antibodies, as a joint
venture with Chugai Pharmaceutical Co., Ltd. and the Central
Institute for Experimental Animals.
In the field of agricultural chemicals, we have been
concentrating our effort on the distribution of agricultural
chemical products through our subsidiary, Certis
Europe B.V. (Netherlands), which operates mainly in
Benelux, France and the UK. In 2002, in order to bolster our
global sales network to Germany which is the second biggest
agricultural chemical market in Europe, we acquired
Spiess-Urania Chemicals GmbH (Germany) in January 2003.
In the field of fertilizer, we are engaged in import, export and
offshore transactions involving various types of fertilizers and
phosphoric acid derivatives such as Di Ammonium Phosphate.
In addition, we are actively involved in procurement of basic
raw materials for fertilizer, which are produced in certain
limited areas of the world, in order to secure stable supply of
those materials to our customers, mainly Japanese chemical
companies. For example, we import basic raw material phosphate
rock from China and South Africa for a Japanese manufacturer,
Toyo Phosphoric Acid, Inc. (Japan), a subsidiary of Mitsui
Chemicals, Inc., in which we have minor equity share of 17%.
We look to expand our operations in China, which is
strategically important for the future of this business unit.
For example, in the Life Science Division, we invested in a
local amino acid manufacturer in China. In the field of sorbitol
food additives, we concluded a memorandum of understanding for
the creation of a joint venture with Hong Kong's Global
Bio-chem Technology Group Co., Ltd. The production plant
started operations in July 2005.
In the growing biochemical market, while we are strengthening
ties with chemical companies worldwide, other Japanese general
trading companies could also be potential competitors. To
maintain our competitiveness, specialized knowledge for each
market and the capability to find the best technological and
logistical solution is essential.
Plastics & Inorganic Chemicals Business
    Unit
Effective April 1, 2004, the former Inorganic Chemicals
Unit and the former Plastics Unit were integrated into a single
business unit named the Plastics & Inorganic Chemicals
Business Unit.
This business unit has 24 subsidiaries and 28 associated
companies and is engaged in sales, trade and production of the
following commodities and related activities:
•
basic inorganic materials such as sulfur, sulfuric acid, salt,
    titanium ore and iodine;
•
inorganic products such as soda ash, caustic soda, catalyst,
    industrial gas and titanium oxide;
•
electronic materials such as electrolytic copper foil, optical
    fiber, and high-purity chemicals employed in semiconductor
    production;
•
plastic materials and products such as polyvinyl chloride,
    elastomers, polyolefin, ABS resin, engineering plastics,
    polystyrene, plastic food containers, wrapping materials,
    industrial films and carbon fiber;
•
additives of plastic such as elasticizer, stabilizer and
    pigment; and
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•
SCM related businesses for production and distribution of office
    automation equipment, cell phone and electric appliances.
In inorganic raw materials field, this business unit operates
logistics systems and SCM systems for various industries in
Japan and overseas. For example, we export sulfur, a byproduct
of petroleum refining, to Asian countries, by operating
specialized tankers.
In order to overcome various unfavorable economic conditions
such as depletion in the supply of mineral resources or an
increase in acquisition cost of raw materials from our existing
suppliers, we have been seeking opportunities to participate in
new supply sources. We reallocated resources by restructuring
logistics operations, and built up our capabilities in sulfur,
soda ash, and fiberglass materials in Asia, primarily in China.
In China, we expanded operations at our salt farm, which
complements our existing sea salt joint venture in Shark Bay,
Australia which supplies industrial salt to Japan and other
Asian markets.
Among new technologies, we anticipate that nanotechnology in
particular could be applicable to many fields as below.
•
A subsidiary, Bussan Nanotech Research Institute Inc.
    (Japan)(*), succeeded in developing technology to produce
    high-quality carbon nanotubes, and completed construction of its
    prototype facility. It has drawn attention and generated
    expectations for the creation of new business opportunities,
    which include use in development of new and high performance
    plastic materials by compounding nanotubes with plastics and in
    semiconductors to take advantage of their high degree of
    conductivity.
•
We have been developing and promoting the commercialization of
    ethanol separation technology by using zeolite membranes, which
    will improve the energy efficiency of biomass ethanol production.
This business unit produced and sold proprietary diesel
particulate filters ("DPF"s) for buses and trucks,
which were later found out to be non-conforming to regulatory
standards of the Tokyo Metropolitan Government and seven other
municipal governments. With regard to DPF data falsification
discovered during the year ended March 31, 2005 and
Mitsui's responsive measures, see Item 5.A.
"Operating Results- Compensation and other charges related
to DPF incident."
In Plastics field, this business unit traditionally handles
various kinds of raw plastic materials and plastic products in
domestic and overseas markets. This business unit also handles
newly developed electronic materials and products as well as SCM
services. We expanded SCM services for printers and liquid
crystal display panels as well as reinforced our resin compound
operations in China, Southeast Asia, the United States and
Europe.
With the focus of economic activity shifting to Asia, this
business unit enhanced its business in China. In 2003, we
established Mitsui Plastics Trading (Shanghai) Co., Ltd.,
an engineering plastics sales company and Mitsui e-Film (Suzhou)
Mfg. Co., Ltd., a manufacturing company engaged in
processing films for liquid crystal display applications in
Suzhou. In 2004, we established Mitsui International Logistics
and Trade (Suzhou) Co., Ltd., which provides logistics
services as an export/import trading company in the Suzhou
Industrial Zone, one of China's national development
regions. It handles specialty chemicals, gases, parts, and other
materials used in semiconductors and liquid crystal displays.
This unit also set up a chemical etching company in Singapore,
Mitsui Electronics Asia Pte. Ltd., for a liquid crystal
display panel project.
In the plastic materials and products market where the scope of
their usage is expanding, other Japanese general trading
companies are our competitors. To maintain our competitiveness,
specialized
(*)
Carbon Nanotech Research Institute Inc. was merged with
    Bio Nanotec Research Institute Inc. and Device Nanotech
    Research Institute Inc. to form the newly established Bussan
    Nanotech Research Institute Inc. in April 2004.
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knowledge for each market and the capability to find the best
technological and logistical solutions is essential.
Energy Segment
The Energy Segment is engaged in trading, manufacturing,
development and distribution of various energy-related products
including: crude oil and petroleum products such as gasoline,
naphtha, jet fuel, kerosene, diesel oil, fuel oil, asphalt,
petroleum coke, lubricants and liquefied petroleum gas
("LPG"), as well as natural gas and LNG.
This segment consists of one business unit, the Energy Business
Unit, which has 7 business divisions as well as
23 subsidiaries such as Mitsui Oil Co., Ltd. (Japan),
Mitsui Liquefied Gas Co., Ltd. (Japan), Kokusai Oil &
Chemical Co., Ltd. (Japan) and Mitsui Oil (Asia) Pte. Ltd.
(Singapore), Arcadia Petroleum Ltd. (United Kingdom), Mitsui
E&P Middle East B.V. (Netherlands) and Mittwell Energy
Resources Pty., Ltd (Australia), and
12 associated companies such as Mitsui Oil Exploration
Co., Ltd. (Japan), Kyokuto Petroleum Industries, Ltd.
(Japan), Japan Australia LNG (MIMI) PTY. Ltd.
(Australia) and Sakhalin Energy Investment Company Ltd.
(Bermuda).
Gross profit and net income for this segment for the year ended
March 31, 2005 were ¥72.6 billion or 10.0% and
¥42.8 billion or 35.3% of our consolidated total,
respectively.
We are one of the world's major oil traders based on our
total trading volume of crude oil and petroleum products
(excluding derivative products) which for the year ended
March 31, 2005 amounted to approximately one third of
Japan's total imports of 5.1 million barrels per day
on a consolidated basis. We are also engaged in domestic
marketing and refining of oil and gas related products through
Kyokuto Petroleum Industries, Ltd., a refinery jointly owned
(50:50) by a subsidiary of ExxonMobil Corp. and Mitsui
Oil & Gas Co., Ltd, our subsidiary.
The Energy Business Unit is engaged in numerous LNG, natural gas
and oil development projects that require long lead-times for
their development and implementation. We are involved in four
LNG projects that are in operation:
•
Abu Dhabi Gas Liquefaction Limited in Abu Dhabi, in which we
    hold a 15% interest in LNG production and exporting activities,
    and which has some 5 million tonnes per annum LNG
    production capacity;
•
Northwest Shelf JV ("NWS JV") in Australia, in which
    we hold an 8.33% interest in LNG production and exporting
    activities, and which has some 11.7 million tonnes per
    annum production capacity;
•
Qatar Liquefied Gas Company Ltd. in Qatar, in which we hold a
    7.5% interest in LNG production and exporting activities, and
    which has some 9.6 million tonnes per annum production
    capacity; and
•
Oman LNG L.L.C. in Oman, in which we hold a 2.77% interest in
    LNG production and exporting activities, and which has some
    6.6 million tonnes per annum production capacity.
Equatorial Guinea LNG is the most recent project that we have
decided to participate in. Mitsui holds an 8.5% interest in the
project company, which is constructing a liquefaction plant with
over 3.4 million tonnes per annum capacity. Production is
expected to start in the forth quarter of 2007.
We participate in oil and gas related joint venture activities
typically as a "non-operator" minority equity holder.
We have yet to accumulate sufficient technical knowledge and
expertise to act as an operator of oil and gas projects.
Operators are generally responsible for the entire operational
aspects which include the exploration, development and
production of oil and gas resources. Therefore, given our
non-operator status, we have limited or no control over the
manner in which operations are conducted including the timing
and scheduling of the development, the capital expenditures,
production of the reserves, and the safety and environmental
standards used in connection with these joint ventures.
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However, it is our strategy as a general trading company to seek
to diversify our investments in various countries and broad
range of projects rather than acting as operators on few
specific projects.
In 2002, the NWS JV was awarded the supply contract for the
first LNG terminal in China, to be located in the Guangdong
province in southeast China. The contract volume is
3.3 million tonnes per annum and first deliveries are
scheduled for 2006. Also in the NWS JV, the fourth LNG producing
train began production in August 2004 and we made a final
investment decision for the fifth LNG producing train in June
2005, which has a capacity of 4.2 million tonnes per year
and is scheduled to begin in the latter half of 2008. In Qatar,
the debottlenecking work on the existing LNG facilities has been
completed since May 2005 and production capacities shall be
9.6 million tonnes per annum from 2006. These new LNG
producing capacities will supply both existing and new
customers. An "LNG producing train" is a set of
facilities in a liquefaction plant to produce LNG from natural
gas. "Debottlenecking" refers to additional investment
and modification work on the existing LNG producing plants or
trains to increase their production capacity through eliminating
the bottleneck in existing plants or trains that restrict
production capacity.
In the Sakhalin II project, we hold a 25% interest in
Sakhalin Energy Investment Company Ltd. (Bermuda). Since 1999,
seasonal oil production continued from the Molikpaq facility on
the Astokhskoye field, offshore Sakhalin Island. In addition,
Sakhalin Energy Investment Co., Ltd. announced on May 15,
2003, that it would begin the second phase of development of the
Sakhalin II Project. This announcement marked the beginning
of the full-scale development of the Piltun-Astokhskoye oil
field aimed at year-round crude oil production, and the Lunskoye
gas field, including construction of a two-train LNG plant in
the south of Sakhalin Island for export to the Asia Pacific LNG
markets based on long-term contracts. At its peak, the facility
is expected to produce 60 million barrels per annum of
crude oil and 9.6 million tonnes per annum of LNG. On
July 14, 2005, we announced that it received an interim
report from Sakhalin Energy Investment Co., Ltd. which was
addressed to shareholders of the Sakhalin II project,
namely, Royal Dutch/ Shell Group, Mitsui and Mitsubishi
Corporation, relating to the possibility of changes in the total
budget of the development plan for Phase 2 of the
Sakhalin II Project, as well as the scheduled timing for
the first delivery of LNG. The report indicates, as provisional
estimates, that there would be the possibility that the total
budget for the project could be of the order of
U.S.$20 billion and the first delivery of LNG would take
place in mid 2008. Originally, the total budget for the
Phase 2 development was expected to be approximately
U.S.$10 billion with the first delivery of LNG expected to
take place in 2007.
We continue putting high priority on expanding our oil and gas
equity reserves together with our associated company Mitsui Oil
Exploration Co., Ltd. (Japan). Identifying, exploring and
developing oil and gas reserve prospects are key factors to
success in this area. Our principal strategic region for this
business remained Australia, South East Asia and the Middle East.
During the year ended March 31, 2005, continuous near field
exploration activities together with water-flood operation
resulted in higher than budgeted oil production at Block 9
oil fields in Oman and final investment decisions to develop
Casino Gas & Condensate Field offshore South Australia
and Cliff Head Oil Field offshore Western Australia were made by
the respective joint ventures.
As a result, our oil and gas reserves increased to
592 million barrels of oil equivalent (boe) at the end
of March 2005, after offsetting the decrease through production
of 30 million boe of equity barrels during the year ended
March 31, 2005. As of March 31, 2005, the proportion
of proved developed reserves to proved developed and undeveloped
reserves is about 25 percent and relatively low. See
"Item 4.D. Property, Plants and Equipment —
Oil and Gas Producing Activities" and "Supplemental
Information on Oil and Gas Producing Activities" to the
consolidated financial statements included elsewhere in this
annual report.
The development of Enfield Oil Field located in the North West
Shelf area in Australia has progressed as per the schedule and
the budget and we expect the field comes on stream later in
2006. A study to select the optimum development concept for
Vincent Oil Field located in the same block as
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Enfield is under way with a view to expediting a final
investment decision and start up of oil production from the
field.
On June 17, 2005, Mitsui Oil Exploration Co., Ltd. entered
into a Stock Purchase Agreement with Pogo Producing Company of
the United States of America and their affiliate Pogo Overseas
Production B.V. ("Pogo") to purchase Pogo's
Thailand assets jointly with PTTEP Offshore Investment Company
Limited(PTTEPO), a wholly-owned subsidiary of PTT Exploration
and Production Public Company Limited of Thailand. Pogo's
Thailand assets consist of a 46.34% interest in the B8/32
Concession and the adjacent Block 9A Concession located in
the Gulf of Thailand. The purchase price is
U.S.$820 million in cash, of which Mitsui Oil Exploration
Co., Ltd. will contribute approximately 40% and PTTEPO
approximately 60% with Mitsui Oil Exploration Co., Ltd. and
PTTEPO each acquiring interests in the assets in the same
proportions.
We are also exploring various emerging business opportunities in
the energy industry, including electricity, retailing,
environment-related businesses, gas to liquids ("GTL")
and di-methyl ether ("DME"). We are involved in the
electricity retail business through our associated company, GTF
Institute Co., Ltd. (Japan), in which we hold a 40% interest.
Following growth in the electricity sales since its commencement
in 2002, GTF Institute Co., Ltd. decided to expand its capacity
to 110 megawatt from the existing 45 megawatt and the
construction will be completed in June 2006.
The international markets for crude oil and petroleum products
are highly competitive and volatile, as these commodities are
traded on exchanges such as NYMEX in New York, IPE in
London, and TOCOM in Tokyo. In the worldwide trading business,
we compete with international oil companies, national oil
companies in oil producing countries and oil trading companies,
including Japanese trading companies. In maintaining our
competitive edge under these circumstances, it is critical for
us to maintain good relationships with suppliers and customers
as well as to mitigate price risks by utilizing hedging tools
such as the futures markets. We are also active in seeking to
secure long-term offtake contracts of petroleum and gas products
such as fuel oil and condensate to be sold to Japanese utility
and refining companies. Long-term offtake contracts are sales
and purchase contracts for various commodities, such as
petroleum products, entered into by suppliers and buyers, or
"offtakers", of such products for one or more years.
Concurrent with the offtake contracts, the sellers of such
products usually enter into financing arrangements whereby the
sales proceeds from such products are used to finance a related
project. For example, on March 25, 2003, the Energy Segment
entered into an offtake contract with PERUSAHAAN PERTAMBANGAN
MINYAK DAN GAS BUMINEGRA ("PERTAMINA"), the national
oil and gas company of Indonesia, and committed itself to
"lift and pay" for petroleum products for a period of
time. Concurrently, our Electric Machinery, Plant &
Project Business Unit was engaged in the structuring and the
arrangement of debt financing with various lenders to provide a
U.S.$200 million loan to PERTAMINA which would be utilized
to build a facility at its existing Balongan Refinery to produce
about 50,000 barrels per day of unleaded gasoline.
PERTAMINA will supply us with the petroleum products from its
existing refineries and the proceeds from the sales of these
products will be used as the source of debt service for the
U.S.$200 million loan.
In the domestic refining and marketing business for oil and gas
related products, we face severe competition from domestic oil
refining and distributing companies due to the structural
surplus situation of refining capacities in Japan. Kyokuto
Petroleum Industries, Ltd. and Mitsui Oil Co., Ltd.,
Mitsui Liquefied Gas Co., Ltd., our core associated company
and subsidiaries, respectively, for domestic oil and gas
refining and marketing business activities, are in relatively
sound financial situations owing to the extensive restructuring
of inefficient assets and work force, and are pursuing efficient
and competitive operations.
Japanese Government regulations stipulate that sulfur content
must be reduced to 10 parts per million ("ppm")
for environmental control from 2007 for gas oil and 2008 for
gasoline. Major Japanese oil refineries and distributors
voluntarily started to supply the 10 ppm standard products from
January 2005 before the restriction is introduced. To keep a
competitive position in the market, Kyokuto Petroleum
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Industries, Ltd. has determined to invest in new equipment to
strengthen the removal of sulfur and is proceeding for the
completion of gas oil equipment in April 2005 and gasoline in
March 2007.
With respect to the oil and gas exploration and production
("E&P") business, the key to success is to
constantly increase or at least maintain certain volumes of oil
and gas reserve prospects as is the common practice with
international oil and gas companies. However, despite our
management's intensive focus on expanding our E&P
business activities, our oil and gas reserves are still far less
than that of national oil companies of oil producing countries
and major oil and gas companies. Other Japanese companies that
participate in E&P activities do not commonly disclose their
proved oil and gas reserves. Based on the limited proved oil and
gas reserves information of other Japanese E&P companies
that are publicly available, we believe that we have higher
amounts of proved oil and gas reserves in general compared to
most of the Japanese E&P companies. Accordingly, we believe
that we are competitive with other Japanese E&P companies.
With respect to our LNG related operations, we have entered into
various long term sales contracts, based on take or pay
conditions, with customers such as Japanese utility companies.
We believe the LNG business has been undergoing gradual but
structural changes since the late 1990s's as follows:
•
Exploration and development of natural gas and production of LNG
    require significant capital and financial commitments. Moreover,
    this involves a broad range of logistical and technological
    expertise ranging from linking suppliers to distributors and
    consumers while developing plants in order to efficiently
    extract and liquefy the natural gas for transportation and then
    re-gasifying the LNG. Up until the mid-1990's, purchase
    commitments by buyers with full "take or pay"
    obligations for a period of 20 years or more had been an
    essential element for equity holders, distributors and sellers
    of LNG projects to make the capital and financial commitment to
    build LNG production facilities. These equity investors had
    resisted making a capital and financial commitment without being
    able to fully securing stable long-term purchase commitments. In
    recent years, however, equity holders of several LNG projects
    have been making investments without fully securing long-term
    purchase commitments from buyers.
•
Due to technological innovations in the last decade, LNG
    producers have successfully reduced capital costs with respect
    to the construction of LNG production plants and LNG vessels.
    Technological innovation has also enabled the producers to
    increase the design capacities of LNG production plants and LNG
    vessels allowing them to benefit from economies of scale. These
    technological developments allow LNG to be more competitive with
    other types of energy sources.
•
In response to the needs of LNG buyers to adjust the supply and
    demand balance for LNG, the spot LNG market has been expanding,
    whereby the percentage of spot trades in the worldwide LNG
    contracts rose to 11.6% in 2004 from 1.3% in 1992.
•
In addition to traditional core LNG markets in Japan, Republic
    of Korea and Taiwan, the market is rapidly expanding in Europe
    and the United States. At the same time, new markets have been
    emerging in countries such as China and India due to an
    increasing demand for electricity. Considering the sizable
    economies of these countries and the increasing popularity of
    LNG as "clean energy", the LNG market has been
    developing rapidly worldwide.
The recent structural changes in the LNG industry, including
those mentioned above, continue to have a mixed effect on our
business operations. For example, due to the reduction in
capital costs from technological innovations, the emergence of
the spot LNG market and other factors, not only has the LNG
industry become more competitive among the existing
energy-related companies, but it has also seen an increase of
new entrants.
Consumer Products & Services Segment
The Consumer Products & Services Segment is engaged in
trading activities of and related investments in various types
of consumer-related products such as foods, textile and fashion
and general merchandise as well as real estate development and
provision of services for supporting retailers such as
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merchandising, logistics and inventory management in Japan and
various other overseas markets all over the world.
Gross profit and net income for this segment for the year ended
March 31, 2005 were ¥152.6 billion or 21.0% and
¥16.9 billion or 14.0% of our consolidated total,
respectively.
This segment is comprised of the Foods & Retail
Business Unit, the Lifestyle Business Unit and the Consumer
Service Business Unit, and owns 77 subsidiaries including
MITSUI FOODS CO., LTD. (Japan), Wilsey Foods Inc. (the
United States), Mitsui Norin Co., Ltd. (Japan), DAI-ICHI
BROILER CO., LTD. (Japan), Retail System Service
Co., Ltd. (Japan) in the Foods & Retail Business
Unit, Mitsui Bussan Inter-fashion Ltd. (Japan) in the
Lifestyle Business Unit, Bussan Real Estate Development
Co., Ltd. (Japan) and Mitsui Bussan House-Techno, Inc.
(Japan) in the Consumer Service Business Unit, and
77 associated companies including Mikuni Coca-Cola
Bottling Co., Ltd. (Japan), Shin Mitsui Sugar Co.,
Ltd. (Japan)(*), KADOYA SESAME MILLS INCORPORATED (Japan) in the
Foods & Retail Business Unit,, ALCANTARA S.p.A.
(Italy), Nippon Brunswick Co., Ltd. (Japan) in the
Lifestyle Business Unit, AIM Services Co., Ltd. (Japan) and
Sumisho & Mitsuibussan Kenzai Co., Ltd. (Japan) in
the Consumer Service Business Unit.
Effective April 1, 2004, the business units in this segment
were reorganized, and these changes are referred to in the
following discussion of each business unit.
Foods & Retail Business Unit
Effective April 1, 2004, the Retail Unit and the Foods Unit
were integrated into a single business unit and renamed the
Foods & Retail Business Unit. Some of the business
affairs were transferred to the newly established Consumer
Service Business Unit.
Together with 38 subsidiaries and 32 associated
companies, the Foods & Retail Business Unit engages in:
•
Import and domestic/offshore trade of wheat, barley, soybeans,
    corn, fats and oils, raw sugar, and rice;
•
Import and domestic/offshore trade of processed foods such as
    canned products, frozen foods and condiments, liquor, beverages
    such as coffee, tea and juice, dairy products, and foodstuffs
    such as marine products, animal products and vegetables;
•
Import and domestic trade of packaging, wrapping materials, and
    miscellaneous daily goods;
•
Manufacturer of beverages, beverage ingredients, boilers, and
    sugar-based products;
•
Domestic distribution and sales through the nationwide
    wholesaler subsidiary MITSUI FOODS CO., LTD. (Japan); and
•
Support services, such as supply chain management, for example
    logistics management, and product planning and development for
    retailers.
The Foods & Retail Unit is involved in a wide range of
fields comprising a value chain of foods, from the global
procurement of foodstuffs and the production of food products to
the traffic and wholesale of foods, packaging materials, and
sundry goods.
We purchase grain, oilseeds, and raw sugar from the United
States, Canada, Brazil, and Australia and sell them in Japan and
other Asian countries to secure a source of foodstuffs and a
stable supply. We sell coffee to Japan and the United States
from production areas primarily in Brazil. We purchase raw
materials for beverages, such as tea leaves and juice, marine
products, animal products, and dairy products from major supply
sources around the world and deliver them primarily to Japan. We
are also engaged in
(*)
Shin Mitsui Sugar Co., Ltd. (Japan) changed its corporate name
    to Mitsui Sugar Co., Ltd. (Japan) in April 2005.
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domestic broiler chicken raising, processing, and sales through
a subsidiary DAI-ICHI BROILER CO., LTD. (Japan).
Mitsui has positioned the United States as its main base of
operations and the core of its global food supply strategy.
•
In the cereals and grains area, we have formed a joint venture,
    United Harvest, LLC, with CHS Inc., an agricultural
    cooperative in the United States. Our exports of wheat from the
    United States are among the best, amounting to approximately
    four million tons per annum.
•
Ventura Foods, LLC, another joint venture formed with
    CHS Inc., is one of the largest suppliers of cooking oils
    for the institutional market in the United States. We invest in
    this company through WILSEY FOODS, INC.
Outside the United States, we are working to strengthen our
positions primarily in Brazil and China. In Brazil, we sell
coffee beans domestically through our subsidiary Mitsui
Alimentos Ltda, a coffee exporting and roasting company, which
provides stable supplies to our worldwide customers. We have
also begun to purchase soybeans in a joint venture with
CHS Inc. in the same region. In China, we began to purchase
juice and tea leaves as well as broiler chicken raising,
processing, and sales activities.
In food-manufacturing operations, during the year ended
March 31, 2004, we increased our equity stake in Mitsui
Norin Co., Ltd. (Japan), which is one of the major
manufacturers of tea leaves in Japan, and made it our subsidiary
with the intention of positioning it as a core company in our
beverage business, realizing synergies with our existing network
for procurement of raw materials and domestic distribution. For
more information, see Note 3, BUSINESS COMBINATIONS, to our
consolidated financial statements.
Our strength in the foodstuffs field lies in overseas
procurement of food products. For example, our import of grain,
oilseeds, and tea leaves to Japan maintains a large share in
Japan due to our long relationships with overseas suppliers and
major buyers in Japan. Moreover, as demonstrated by our alliance
with CHS Inc. in the United States, we constantly endeavor to
form alliances with reliable partners in other regions,
strengthen overseas product procurement capabilities and expand
our position in major overseas production areas.
Competition varies depending on products in the upstream areas,
but is generally based on price or quality of products. Many
Japanese general trading companies, international producers, and
traders are competitors to varying degrees with respect to most
of the food products we handle.
MITSUI FOODS CO., LTD. plays a vital role in this unit's
wholesale operations. It is expanding its business activities to
include general merchandise stores, supermarkets, convenience
stores, and catering and restaurant chains throughout Japan,
focusing on processed food and liquor transactions. The
Foods & Retail Business Unit is developing and
strengthening its nationwide distribution chain focused on
MITSUI FOODS CO., LTD., including investments and business
tie-ups from the parent company with regional wholesalers.
In the foodstuffs distribution field, the needs for reduced
distribution costs, secure temperature-controlled supply, and
faster delivery are becoming more sophisticated and diverse. To
meet these changes, the Foods & Retail Business Unit is
engaging in wholesale transactions with and providing support
services to retailers. This includes:
•
inventory management and procurement of foodstuffs, processed
    foods, and packaging based on sales information obtained from
    retailers, which enables more efficient and less expensive
    distribution from manufacturers to retailer stores and cost
    reductions; and
•
proposals for developing new products and services, and support
    in the form of traceability for securing food safety.
Mitsui maintains and strengthens a comprehensive alliance with
the Ito-Yokado Group, one of Japan's leading diversified
retailers. The Ito-Yokado Group operates shopping malls, general
merchandise
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stores, supermarkets, convenience stores such as 7-Eleven,
restaurant chains such as Denny's, and financial service
companies such as the IYBank, and has recently opened a
SEVEN-ELEVEN (BEIJING) in April 2004.
Mitsui offers the following supply services to the Ito-Yokado
Group through our domestic subsidiaries, such as MITSUI
FOODS CO., LTD., Retail System Service Co., Ltd. and
VENDOR SERVICE CO., LTD.
•
supply sundry goods and consumables, such as processed food,
    liquor, fast food, toys, and games, to more than ten thousand
    7-Eleven stores in Japan;
•
supply food materials, containers, and packaging materials to
    vendors who supply boxed lunches, pre-cooked meals, and
    processed food to 7-Eleven stores in Japan;
•
supply various temperature-controlled products to 7-Eleven
    stores in Japan; and
•
supply cold products through the affiliate company Beijing
    Sanxin Refrigeration Logistics Co., Ltd. to 7-Eleven stores
    in Beijing.
To strengthen our business ties with the Ito-Yokado Group, the
Foods & Retail Business Unit began purchasing
Ito-Yokado shares in April 2005. As of the end of August 2005,
we have purchased ¥10 billion of Ito-Yokado Co.,
Ltd. shares and ¥40 billion of Seven-Eleven Japan Co.,
Ltd. shares. The Ito-Yokado Group will establish a new holding
company (Seven & I Holdings Co., Ltd) on
September 1, 2005, and the shares that we acquired are
equal to roughly 1.2% of Seven & I Holdings Co.,
Ltd. outstanding shares.
Our competitors in the wholesale and retail businesses are
mainly general trading companies in Japan. In the traffic area,
our competitors are also traffic companies that operate
third-party logistics. In domestic wholesaling, there is fierce
competition among suppliers, and we are making efforts to
increase revenues and reduce logistics costs by achieving better
economies of scale through mergers and acquisitions on occasion.
Our success depends on the following critical factors:
•
IT and logistics technology ("LT") know-how for
    providing high-quality and low-cost services;
•
capital strength to withstand the acquisition of fixed assets
    and the purchases of businesses required for distribution and
    otherwise demonstrating our business capabilities;
•
quick decision-making and execution in marketing and
    investing; and
•
the ability to procure a wide variety of products in all regions
    by maintaining our credibility and a good reputation in the
    market.
Lifestyle Business Unit
Effective April 1, 2004, the former Textile &
Fashion Unit and the former General Merchandise Unit were
integrated into a single business unit named the Lifestyle
Business Unit.
Together with 17 subsidiaries and 29 associated
companies, the Lifestyle Business Unit is engaged in domestic,
import, export and offshore trading and manufacturing of the
following materials and products, as well as related services
and investments:
•
apparel and non-apparel textile materials such as fibers, yarns
    and fabrics; and technical collaboration in these products field;
•
apparel products, related product development and manufacturing
    of those products; and brand merchandise-related businesses
    including equity participation;
•
non-apparel products such as interior and furniture, general
    merchandise and consumer goods; and
•
industrial materials such as paper and pulp.
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In the fashion product field, including apparel products, we
actively provide innovative services to accommodate new
developments in the fashion and apparel markets. Our main
business activities are divided into two categories:
•
original equipment manufacturing ("OEM") business for
    domestic apparel manufacturers; and
•
business transactions involving branded luxury and accessible
    luxury products from Europe and the United States for the
    Japanese market.
In the field of apparel and OEM, we play active roles at various
stages in the value chain including design, planning and
procurement of materials as well as sewing and processing. To
meet our goals of minimizing costs and enhancing quality, we
work with apparel makers and related companies on an ongoing
basis to select the optimal materials and processing centers
from the wide variety of choices available in Japan Europe, the
Americas, Asia and other areas.
We regard China as an important manufacturing base and also a
significant consumer market as well. To further strengthen our
OEM business capabilities and our provision of support services
such as manufacturing or exhibition management, we utilize our
subsidiaries and associated companies such as Mitsui Bussan
Inter-Fashion Ltd. (Japan) and Alta Moda
International Ltd. (Hong Kong).
In the OEM business for domestic apparel manufacturers, we have
alliance partners with respect to various goods. In this line of
business, our competitors include other apparel traders, because
apparel manufacturers tend to form partnerships with several
apparel traders in parallel. As such, we strive to provide a
higher quality of support services for OEM than those of our
competitors to attract apparel manufacturer customers.
With respect to brand merchandise-related businesses in Japan,
we are engaged in both license and import business transactions
involving internationally well-known branded merchandise from
Europe and the United States such as Burberry, Paul Stuart,
Pierre Cardin, Trussardi, Valentino, Max Mara, Mango, Etro and
Juicy Couture. In the case of license agreements, we enter into
with the respective European and American licensors, we
sublicense certain rights including, but not limited to,
marketing and manufacturing rights to apparel makers and
wholesalers, while we retain the exclusive distributorship
rights. We, if necessary, establish joint venture subsidiaries
with such European and American brand owners to control license
arrangements or to distribute imported products in order to
establish well controlled nationwide sales network composed of
wholesalers, department stores, specialty-stores or our own
retail outlets.
In brand merchandise-related businesses, our competitors are
other general trading companies and apparel specialty traders
including Itochu Corporation and Mitsubishi Corporation. The
keys to maintain our competitiveness are to raise the value of
the brand which we promote in the market and to increase the
number of valuable brands we deal with.
In general merchandise and consumer goods fields, this business
unit is engaged in the trading, production, processing and
distribution of various merchandise goods such as general
household and consumer goods, light industrial machinery and
supplies, medical equipment and office automation systems as set
forth below:
•
We supply a wide range of top-quality consumer goods imported
    from around the world, which include high-quality Sonicare
    ultrasonic toothbrushes, Brunswick bowling equipment and
    systems, MAGLITE handy flashlights, and top-of-the-line Lladro
    porcelain;
•
We trade woodchip and pulp, furthermore, we develop several
    afforestation projects in Australia, some of which are jointly
    promoted with several Japanese partners including paper
    manufacturing companies; and
•
As for paper and ceramic products, we closely partner with
    Japanese manufacturers and participate in joint venture
    production operations in China to sell products there and export
    them from China, as well as handling products in and from Japan.
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In the business area of consumer-related goods such as sporting
and leisure goods, continuous changes in lifestyles worldwide
require new business models which reflect such changes.
Accordingly, we seek to locate new materials and new suppliers,
arrange effective distribution methods and develop attractive
brand names. Such efforts are realized through a combination of
our human and organizational network and industrial expertise.
Consumer Service Business Unit
Effective April 1, 2004, the former Service Business Unit
was integrated into the Consumer Service Business Unit along
with other consumer oriented businesses which had previously
been included in the Information Business Unit and the Foods
Unit. The former Service Business Unit was established for the
year ended March 31, 2003 to build new business models that
extend beyond our traditional strengths in trading and
distribution and to focus on services to consumers as earnings
sources. Major business areas of this unit including
22 subsidiaries and 16 associated companies consist of the
following:
•
real estate development including construction, sale and leasing
    of houses, condominiums and office buildings and related
    construction material businesses and development of commercial
    facilities;
•
media-related service business including broadcasting, content
    service, television shopping channels, software service,
    amusement business and Internet-based marketing service;
•
outsourcing services including catering, uniform rental,
    building maintenance, and temporary personnel service, child
    care service;
•
medical service and health care related businesses such as
    nursing care-related services, clinic facilities and medical
    related information service.
In real estate development businesses, our core area is
development of condominium and commercial property in the Tokyo
metropolitan area and construction and marketing of high-end
home units, which are sold by Mitsui Bussan House-Techno, Inc.
(Japan) under the Mitsui House brand. MBK Real Estate Ltd. (the
United States) handles the sale of unit houses in the southern
California market, as well as commercial property on the west
coast of the United States. In the related business activities,
our associated company Sumisho & Mitsuibussan Kenzai
Co., Ltd. (Japan) supplies construction materials in the
domestic market. In March 2005 we jointly established
Mall & SC Development, Inc. (Japan) with Ito-Yokado
Co., Ltd. to pursue the development and management of shopping
malls and shopping centers.
In media-related service business, as a consumer service and
content provider, we provide television shopping services
operated by QVC Japan, Inc. (Japan), a joint venture with
QVC Inc., and an entertainment and educational channel for
children and parents operated by Kid's Station Inc.
(Japan), our wholly-owned subsidiary, both of which are
delivered over cable or digital satellite broadcast networks
In the outsourcing businesses, our catering service business is
active through AIM Services Co., Ltd. (Japan), a joint
venture with ARAMARK Corporation in the United States, which
provides food and catering services in Japan. In July 2002, AIM
Services acquired Atlas Corporation, which has a majority stake
in MEFOS Co., Ltd., a provider of hospital cafeteria food
services in Japan.
We are also in the process of cultivating new opportunities in
medical services through our subsidiary, Medivance Co. (Japan),
Ltd. And this segment made 5% equity participation in and formed
an alliance with Duskin Co., Ltd., which is engaged in cleaning
services, food services and nursing care services nationwide.
Logistics & Financial Markets Segment
The Logistics & Financial Markets Segment is engaged in
transportation and logistics services, insurance and financial
business in Japan and abroad. Effective from April 1, 2004
the Logistics & Financial Markets Segment was
established by reallocating relevant businesses which had
formerly been included in the Metal Products & Minerals
Segment and the All Other Segment, with the aim to providing
high-quality, specialized logistics and financial capabilities
to customers across all product areas.
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Gross profit and net income for this segment for the year ended
March 31, 2005 were ¥46.7 billion or 6.4% and
¥11.8 billion or 9.7% of our consolidated total,
respectively.
This segment is composed of the Financial Markets Business Unit
and the Transportation Logistics Business Unit, and has
30 subsidiaries including:
•
in the Financial Markets Business Unit, Mitsui & Co.
    Energy Risk Management Ltd. (United Kingdom), Mitsui &
    Co. Precious Metals, Inc. (United States), Mitsui Bussan Futures
    Ltd. (Japan); and
•
in the Transportation Logistics Business Unit, Nitto Logistics
    Co., Ltd. (Japan), Mitsuibussan Insurance and
    Consulting Co., Ltd. (Japan), Tri-Net (Japan) Inc. (Japan).
This segment has 7 associated companies including Mitsui
Leasing & Development, Ltd. (Japan) and Quintiles
Transnational Japan K.K. (Japan) in the Financial Markets
Business Unit.
Financial Markets Business Unit
The Financial Markets Business Unit was established by
integrating the relevant divisions such as the Commodity
Trading & Risk Management Division, the Treasury
Division and the Corporate Development Division, which had been
included in the Metal Products & Minerals Segment and
the All Other Segment. This business unit has
18 subsidiaries and 3 associated companies and is engaged
in following business activities:
•
dealing in derivative financial instruments such as foreign
    exchange and financial futures; and trading of and investment in
    debt and equity securities;
•
trading in precious metals, non-ferrous metals listed on the
    London Metal Exchange and derivative commodity instruments for
    energy, agricultural foods and other commodities;
•
financial equity investments including principal investment and
    venture capital operation;
•
real estate investment trusts ("REIT") related business
•
development, origination and sales of financial products;
    investment in and portfolio management of financial
    products; and
•
leasing business
Mitsui and its subsidiaries such as Mitsui & Co.
Precious Metals, Inc. (United States) are engaged in trading and
brokerage in precious metals, non-ferrous metals listed on the
London Metal Exchange and derivative commodity instruments for
energy, agricultural foods and other commodities. We are also
engaged in sales and marketing of various derivative and
financial instruments of our own development to investors and
market participants. Mitsui & Co., Energy Risk
Management Ltd. (United Kingdom), which we established in March
2002, enjoyed growth in derivative trading operations, mainly of
crude oil and natural gas related commodities. Japan Alternative
Investment Co., Ltd. (Japan) began operations in April
2002, acting as a placement agent for alternative investment
products, such as hedge funds, private equity funds and
commodity funds. Mitsui Bussan Futures Ltd. (Japan) is a
domestic subsidiary engaged in the future commodities brokering
including precious metals and other commodities such as foods
and oil products.
In June 2004, Mitsui and Quintiles Transnational Corp.
agreed on Mitsui taking a 20% shareholding in Quintiles
Transnational Japan K.K. (Japan), in a transaction designed
to accelerate the growth of Quintiles Transnational
Japan K.K.. Quintiles Transnational Corp. is a major
worldwide company in the outsourcing service business in the
pharmaceutical industry. This transaction fits well with our
goal of investing in first-class international companies in the
healthcare and outsourcing service industries and, in
particular, enhancing those companies' Japanese operations.
This business unit is also engaged in venture capital business
through subsidiaries such as MVC Corporation (Japan).
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In July 2004, this business unit formed
Mitsui & Co., Logistics Partners Ltd. (Japan), as
an asset management company for real estate investment trusts
that are specialized in the management of investments in
warehouses and distribution centers. In May 2005, we completed
listing of Japan's first logistics facilities related REIT,
Japan Logistics Fund Inc., with the asset size of
approximately ¥26 billion on the Tokyo Stock Exchange.
This business unit has 40.63% participating interest in Mitsui
Leasing & Development, Ltd. (Japan), a leasing company
with its strengths in leasing of information-processing
equipments and large scale equipments, as well as industrial
machinery, aircrafts and ocean vessels.
Transportation Logistics Business Unit
The Transportation Logistics Business Unit, which had formerly
been included in the All Other Segment, was established and
included in the Logistics & Financial Markets Segment
as a profit center in April 2004 with the aim to providing
sophisticated, high value added logistics services to customers
leveraging its longstanding experiences in offering such
services groupwide. This business unit also seeks for the
development of new business domain through integrating
logistics, financial and information technology.
Together with 12 subsidiaries and 4 associated
companies, this business unit is engaged in the following
business activities:
•
international and domestic transport services including
    transportation of plants and other special cargos, tramper
    shipping, and airfreight;
•
warehousing and port services; operation, construction and
    management of warehouses and harbor facilities;
•
insurance agency and consultation for insurance;
•
solution providing service on logistics including SCM; and
•
REIT and other liquidating businesses related to logistics
    related facilities.
In international and domestic transport services field, we have
established 5 core subsidiaries including Tri-Net (Japan) Inc.,
which cover our operations in Japan, Americas, Europe, South
East Asia, and China, respectively. Each of those subsidiaries
collaborates with the Head Office and trading subsidiaries
worldwide of Mitsui, and provides international transportation
services mainly using marine containers. They also provide
international combined transportation services by integrating
different modes of transportation such as land, sea and air. In
tramper business, they provide transportation services for power
and chemical plant projects and bulky cargoes such as coal,
grain and fertilizers.
In the field of warehousing and port service related business
within Japan, Nitto Logistics Co., Ltd. (Japan) plays a
core role. For example, it conducts joint operation with a
domestic specialty store retailer of private label apparel for
outsourced production and inventory management, it provides
information processing function so that its customers optimize
their logistics transactions.
This business has a subsidiary Mitsuibussan Insurance and
Consulting Co., Ltd. (Japan) as an insurance agency. In
addition, the business unit has acquired insurance companies for
captive insurance and operates subsidiaries which are engaged in
this business field, including Insurance Company of Trinet
(USA), Inc. This business unit also maintains consultation
service on a variety range of insurance issues, by taking
advantage of experience and know-how in risk management of this
business unit.
In collaboration with the Financial Markets Business Unit, this
business unit promotes business of REIT for logistics-related
real estate properties. This unit intends to increase the assets
for such REIT program, seeking opportunities of development of
facilities, brokerage in properties and tenant.
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Americas Segment
The Americas Segment trades in various commodities and conducts
related business led by overseas trading subsidiaries in North,
Central and South America. Mitsui & Co. (U.S.A.),
Inc., or Mitsui U.S.A., manages the business of the segment as
the center of the regional strategy.
Gross profit and net income for this segment for the year ended
March 31, 2005 were ¥49.9 billion or 6.9% and
¥12.3 billion or 10.2% of our consolidated total,
respectively.
This segment consists of 10 trading subsidiaries including
Mitsui U.S.A., Mitsui & Co. (Canada) Ltd., Mitsui
Brasileira Importacao e Exportacao S.A., Mitsui Chile
Ltda., and other 35 subsidiaries owned by mainly Mitsui
U.S.A. including Mitsui Steel Development Co., Inc., Portac
Inc., Channel Terminal Corp., Westport Petroleum Inc.,
Mitsui Tubular Products, Inc. and Mitsui Comtek Corp. and
3 associated companies including TAMCO.
Mitsui U.S.A. is our largest overseas subsidiary, and carries
out many diversified business activities together with our
subsidiaries and associated companies in collaboration with the
operating segments of the Head Office in Japan. Mitsui U.S.A.
has been leading our entry in the U.S. market, and we
believe that Mitsui U.S.A. is one of the major exporters of
American products.
Mitsui U.S.A. has its corporate head office in New York City.
Other offices are located in Chicago, Cleveland, Detroit,
Houston, Los Angeles, Nashville, Portland, San Francisco,
Seattle and Washington, D.C. Business activities of Mitsui
U.S.A.'s major operating divisions are as below:
•
The Iron & Steel Products Division maintains alliances
    with steel mills, steel processors, and customers in the U.S.
    and other countries. Working closely with solution providers, it
    specializes in SCM of steel products, manages inventory and
    process arrangements. This division has been focusing on
    business activities through subsidiaries and associated
    companies such as Mitsui Steel, Inc. for steel products sales
    and demand chain management ("DCM") services, Mitsui
    Steel Development Co., Inc. which holds Mi-Tech Steel Inc.
    (steel service center), PK U.S.A., Inc. (automotive steel
    stamping), Hannibal Industries, Inc. (steel tube and pallet rack
    manufacturing); Mitsui Tubular Products, Inc. (steel pipe
    sales), and TAMCO (steel bar manufacturing and sales).
•
The Iron & Raw Materials and Non-Ferrous Metals
    Division specializes in iron and steel raw materials, coal,
    primary aluminum, aluminum alloy, copper cathode, and
    non-ferrous materials. The division is supported by
    relationships with subsidiaries jointly held with the Head
    Office, for example, Raw Materials Development Co., Ltd. and
    Mitalco Inc. both in which the division has equity share of 20%.
•
The Power, Transportation & Plant Projects Division
    deals in power, energy, transportation, and industrial and
    infrastructure projects in the Americas through close
    coordination with the Head Office. In addition, subsidiaries
    such as Hydro Capital Corp. for waste water treatment
    projects in Mexico and MIT Wind Power, Inc. for wind power
    generation in Texas are engaged in this business field.
•
The Machinery Division deals in motor vehicles, ship and marine
    projects, aircraft and construction and industrial machinery.
    The Division works closely with United Auto Group, Hino Motors,
    Chevron, Modec International, Embraer, JetBlue and Komatsu.
    Particularly, its activities are seen in investment to
    distribution & retails of automobile/construction
    machinery/outdoor power equipment, newbuilding ship tonnage
    provider to oil major/shipping companies, aircraft leasing for
    the growing regional airlines.
•
The Organic Chemicals Division and the Plastics &
    Inorganic Chemicals Division are engaged in the domestic and
    international trade of various organic and inorganic chemicals
    and chemical intermediates, plastic resins, compounds and final
    products, pharmaceutical intermediates, food additives,
    fertilizer and crop protection chemicals, and petrochemicals.
    This division has extended business activities thorough
    subsidiaries such as Bioproducts, Inc. Recent development of this
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division toward a new business is an acquisition of CornerStone
    Research & Development Inc., which focuses on
    processing and packaging of healthcare foods and chemicals.
•
The Energy Division specializes in global trading of petroleum
    products, including crude oil, heavy oil and petroleum coke, as
    well as importation of LNG. This division has a subsidiary
    Westport Petroleum, Inc. in which Mitsui U.S.A. has 65.0% equity
    share and the remaining share is owned by the Head office.
    Westport Petroleum, Inc. is engaged in sales, trading and
    commercial and operational services to the energy industry with
    respect to pipeline and cargo trading of gasoline, jet fuel,
    diesel, refinery feedstocks, cutterstocks, bunker fuel, and fuel
    oils throughout the United States and major international energy
    markets. These transactions by Westport Petroleum, Inc. account
    for one of major part of our revenues from sales of products
    groupwide.
•
The food division deals in grain, coffee, meats, vegetables,
    eggs, juices, dairy products, frozen foods, feedstuff, edible
    oils and canned foods. Notably, this division has a subsidiary
    United Grain Corp, which is engaged in export facility operation
    for wheat and barley.
•
The Life commerce division focuses on consumer-oriented business
    development. This division has a subsidiary Portac, Inc. a
    lumber mill, which produces dimension lumber and specialty items
    for U.S consumption and export. In other area, the division has
    an equity share in MBK Real Estate Ltd., a real estate
    subsidiary jointly held with the Head Office and engaged in
    development and homebuilding services
Europe Segment
Europe Segment trades in various commodities and conducts
related businesses led by overseas trading subsidiaries in
Europe and Africa. Mitsui & Co. Europe PLC
("Mitsui Europe") is authorized to manage the business
of this segment as the center of its regional strategy. Also,
this segment is responsible for carrying out diversified
business activities together with its affiliated companies in
collaboration with the operating segments of the Head Office.
Gross profit and net income for this segment for the year ended
March 31, 2005 were ¥20.7 billion or 2.9% and
¥2.9 billion or 2.4% of our consolidated total,
respectively.
As of March 31, 2005, this segment consists of 12 trading
subsidiaries including Mitsui Europe, Mitsui & Co. UK
PLC, Mitsui & Co. Deutschland GmbH,
7 subsidiaries including Cohen & Wilks
International Ltd. (United Kingdom) and
Plalloy MTD B.V. (Netherlands) and 8 associated
companies including Companhia Industrial De Resinas Sinteticas
(Portugal).
Mitsui Europe, our wholly-owned subsidiary with its head office
in London, manages the overall business activities in Western
Europe, Africa, Central and Eastern Europe through its
8 operating subsidiaries, 13 branch offices and
liaison offices. Mitsui Europe collaborates with our
subsidiaries and associated companies of other operating
segments.
In April 2005, this segment reorganized its internal structure.
Before the change, each of those operating subsidiaries had
independently reported to the Managing Director of Mitsui
Europe, whereby their business plans and operations had been
inclined to be narrowed by limitation of borders of countries.
In order to accelerate business development based on a product
strategy that encompasses the whole of Europe, this segment
introduced a Business Division System within Europe, in which
Divisional Operating Officers oversee the operations by products
and services in the region and directly report to Managing
Director of Mitsui Europe.
Recently, the major parts of business in this segment have been
sales and trading in steel products, chemicals and machinery.
For example, this segment has provided assistance services for
SCM of steel products procured by Norsk Hydro ASA. In chemical
business, this segment has been engaged in sales and trade in
various chemical products and materials supported by our global
network and relationship with large scale manufactures including
Bayer Aktiengesellschaft. In machinery business, for
Mitsui's
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worldwide power plant and industrial plant and transportation
projects, this segment has provided assistance service in
collaboration with European manufacturers such as Siemens
Aktiengesellschaft.
Over the years, in Central and Eastern Europe, we have
established trading subsidiaries and representative offices to
expand business opportunities in the region, and continuously
participated in joint ventures, mainly with Japanese
manufactures. Along with enlargement of European Union, Japanese
automobile, electric and chemical manufactures are rushing to
set up operations in the region. We are also collaborating with
them by taking advantage of our business bases.
We are starting joint operation with Arcelor S.A., a European
steel maker, to supply steel sheet to the Japanese automobile
and automobile parts manufacturers.
Other Overseas Areas Segment
This segment includes all of our region-based subsidiaries,
liaison offices and affiliated companies excluding those in our
Americas and Europe Segments. The subsidiaries, liaison offices
and affiliated companies in this segment are located primarily
in China, the member countries of ASEAN, Oceania, the Middle
East, Southwest Asia and CIS. The Overseas Areas Segment is
engaged in business activities that are essentially similar to
that of Mitsui. We conduct business activities in all industry
sectors based on our specialized knowledge particular to that
region.
In order to develop new business opportunities emerging with the
development of network economies based around China, ASEAN and
India, we introduced an Asian Managing Directorship system.
Thus, since April 2005, the Regional Managing Director, Asia has
had full control with broad authority and responsibility to
manage our businesses throughout Asia excluding Japan.
Gross profit and net income for this segment for the year ended
March 31, 2005 were ¥25.8 billion or 3.6% and
¥13.8 billion or 11.4% of consolidated total,
respectively.
China
China has been a focus of recent global attention as an
attractive market, with 9.5% and 9.3% growth in gross domestic
product in 2004 and 2003, respectively, as a result of accession
to the WTO and a growing reputation as an efficient and cost
effective manufacturer of goods. Based on our assessment that
there is a tremendous potential in Greater China which includes
mainland China, Hong Kong and Taiwan, we have considerably
increased our presence in the market there. We have been
increasing our operations in, and shifting management resources
to, Greater China in order to expand and strengthen our business
operations involving products such as automobiles, consumer
products, IT, electronics, energy, and metals, while reinforcing
our transportation and logistics services.
Our presence in China is comprised of eight local subsidiaries,
including Mitsui & Co., (China) Ltd., an investing
company in Beijing and six subsidiaries in China's bonded
areas including Mitsui & Co. (Shanghai) Ltd. as
well as Mitsui & Co. (Hong Kong) Ltd. In addition,
we have established representative offices in 12 cities in
China as of March 2005. In accordance with agreements made when
joining the WTO, the Chinese government has pledged to ease
restrictions on trading and domestic sales by foreign companies,
and the relevant laws and regulations are being revised.
In April 2003, we realigned our operations in China with the aim
of creating a streamlined system to manage our business in
China, including Hong Kong. The realignment included
establishing three operating units in Beijing, Shanghai and Hong
Kong, each reporting to our single General Representative in
China. By centralizing decision-making authority for our Chinese
operations, we expect the new structure to be better equipped to
respond to and effectively address new business opportunities.
For information on business in China promoted by the business
units of the Head Office or joint ventures in China, see the
above-mentioned activities of each business unit.
Mitsui & Co., (China) Ltd.
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has made investment jointly with the business units of the Head
Office in critical joint ventures in China. Among others, we
place a high priority on establishment of logistic network
within China. For example:
•
In March 2003, we entered into a comprehensive strategic
    alliance with China Postal Logistics Co., Ltd. Through this
    alliance, we are now in a position to utilize the facilities and
    distribution networks of China's postal service, the China
    State Post Bureau.
•
Through Mitsui International Logistics and Trade (Suzhou) Co.,
    Ltd., which is referred in the business activities of the
    Plastics & Inorganic Chemicals Business Unit, we also
    became the first trading company to gain the right to conduct
    imports and exports under our own name outside a bonded area. We
    plan to use this subsidiary to handle merchandise flows to and
    from China, mainly to serve the Chinese bases of Japanese
    companies. Mitsui & Co., (China) Ltd. has minority
    share in this subsidiary.
ASEAN Region
In the ASEAN region, overseas offices including Singapore
Branch, Kuala Lumpur Branch and Manila Branch, trading
subsidiaries including Mitsui & Co., (Thailand) Ltd.,
Mitsiam International Ltd. (Thailand), PT Mitsui Indonesia
(Indonesia) and associated companies jointly collaborate with
the Head Office and engage in various business activities
involving, amongst other things, chemical and metal products and
industrial type projects. Such industrial projects are referred
in the business activities of the Power,
Transportation & Plant Project Business Unit above.
With the Head Office, these branches and trading subsidiaries
jointly establish various subsidiaries and participate in joint
ventures formed with the third parties.
Oceania
In Australia, Mitsui & Co. (Australia) Ltd. is active
in the development of minerals such as iron ore and coal, energy
and agricultural exports in collaboration with corresponding
operating segments mainly in the Head Office. As described in
the Metal Products & Minerals Segment and the Energy
Segment above, Australia is a critical geographic area in our
corporate strategy. Mitsui & Co. (Australia) Ltd.
participates in Mitsui Iron Ore Development Pty. Ltd.
(Australia) and Mitsui Coal Holdings Pty. Ltd. (Australia) with
equity share of 20% and 30%, respectively.
The Middle East
In the Middle East we have established trading subsidiaries of
Mitsui & Co., Middle East Ltd. (United Arab
Emirates), Mitsui and Co.(Middle East) B.S.C.(c) (Bahrain),
Mitsui and Co., Iran Ltd. (Iran) and Mitsui and Co. Kuwait
W.L.L.(Kuwait). Mitsui & Co., Middle East Ltd. owns
offices in United Arab Emirates, Qatar and Oman. Mitsui has 10
representative offices in the Middle East countries including
Saudi Arabia. These trading subsidiaries and offices in the
Middle East are collaborating with the Head Office primarily in
the field energy development and production and projects of
petrochemical plants and power plants.
Southwest Asia
Our operations in India were traditionally handled by branch
offices in New Delhi, Calcutta, Madras and Bombay and were
concentrated primarily in exporting commodities, such as iron
ore, finished iron and steel products, textiles, and marine
products, to Japan and other areas of the world. However, with
the increasing deregulation of the Indian economy, in March 2003
we established Mitsui & Co., India Pvt. Ltd. Through
Mitsui & Co., India Pvt. Ltd, we expect not only to
engage in import and export-related transactions but also to
pursue investment opportunities in domestic distribution
channels.
54
Table of Contents
All Other Segment
The operations of the All Other Segment include development and
marketing of systems, financing services, office services and
other services to external customers, and/or to us, and
associated companies.
Gross profit and net income for this segment for the year ended
March 31, 2005 were ¥12.3 billion or 1.7% and
¥4.4 billion or 3.7% of our consolidated total,
respectively.
The All Other Segment has 16 subsidiaries and 1 associated
company. The activities of major subsidiaries in this segment
are as the following:
•
Bussan Credit Co., Ltd. (Japan)(*) is engaged in financial
    services such as commercial loan and cash management service,
    mainly provided to domestic subsidiaries and associated companies
•
Mitsui Knowledge Industry Co., Ltd. (Japan) is engaged in
    planning, development, maintenance and operation of computer
    systems
•
Mitsui & Co., Asia Investment Ltd. (Singapore) is
    engaged in-house financial services in the South East Asian
    region.
(*)
Bussan Credit Co., Ltd. (Japan) changed its corporate name to
    Mitsui & Co. Financial Services Ltd. in April 2005.
Principal Markets
We are involved in the worldwide trading of various commodities.
The following table provides a breakdown of our revenues by
commodity type for the years ended March 31, 2005, 2004 and
2003.
In Billions of Yen
Years Ended March 31,
2004
2003
2005
(As Restated)
(As Restated)
Revenues
(1),(2)
Distribution by Commodity:
Iron and Steel
¥
407.1
¥
312.9
¥
281.8
Non-Ferrous Metals
161.4
157.2
152.1
Machinery
269.2
305.0
304.8
Electronics & Information
144.8
119.8
108.1
Chemicals
729.1
520.1
463.4
Energy
1,048.4
954.6
831.0
Foods
473.6
389.5
393.2
Textiles
43.0
32.8
37.9
General Merchandise
96.1
84.8
88.8
Property and Service Business
153.0
106.2
123.5
Consolidated Total
¥
3,525.7
¥
2,982.9
¥
2,784.6
Notes:
(1)
Starting from the year ended March 31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as interest expense, net of
    interest income. In relation to this change, the figures of
    revenues for the years ended March 31, 2004 and 2003 have
    been restated to conform to the current year presentation.
55
Table of Contents
(2)
In accordance with SFAS No. 144, revenues from
    discontinued operations are eliminated from each product amount
    and "Consolidated Total." The figures the years ended
    March 31, 2004 and 2003 have been reclassified to conform
    to the current year presentation.
The following table shows our total trading transactions in each
of our major markets for the years ended March 31, 2005,
2004 and
2003.
(1)(2)(3)
In Billions of Yen
Years Ended March 31,
2004
2003
2005
(As Restated)
(As Restated)
Japan
¥
7,736.5
¥
7,189.3
¥
7,102.7
United States
1,096.3
831.6
808.3
United Kingdom
200.4
159.7
154.1
China
608.1
421.2
350.9
All Other
3,973.7
3,682.3
3,058.2
Consolidated Total
¥
13,615.0
¥
12,284.1
¥
11,474.2
Notes:
(1)
Total trading transactions is a voluntary disclosure and
    represents the gross transaction volume or the nominal aggregate
    value of the sales contracts in which we act as principal and
    transactions in which we serve as agent. Total trading
    transactions is not meant to represent sales or revenues in
    accordance with U.S. GAAP. Total trading transactions
    should not be construed as equivalent to, or a substitute or
    proxy for, revenues, or as an indicator of our operating
    performance, liquidity or cash flows generated by operating,
    investing or financing activities. A substantial part of total
    trading transactions represents transactions in which title to
    and payment for the goods pass through us without physical
    acquisition and delivery through our inventories. We have
    included the information concerning total trading transactions
    because it is used by similar Japanese trading companies as an
    industry benchmark, and we believe it is a useful supplement to
    results of operations data as a measure of our performance
    compared to other similar Japanese trading companies. Total
    trading transactions is included in the measure of segment
    profit and loss reviewed by the chief operating decision maker.
    See Notes 2, "BASIS OF FINANCIAL STATEMENTS AND
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES" and 17,
    "SEGMENT INFORMATION" accompanying the consolidated
    financial statements for further discussion.
(2)
Starting from the year ended March 31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as interest expense, net of
    interest income. In relation to this change, the figures of
    total trading transactions for the years ended March 31,
    2004 and 2003 have been restated to conform to the current year
    presentation.
(3)
Total trading transactions are attributed to countries based on
    the location of customers.
(4)
In accordance with SFAS No. 144, total trading
    transactions to external customers from discontinued operations
    are eliminated from each geographic area amount and
    "Consolidated Total." The figures for the years ended
    March 31, 2004 and 2003 have been reclassified to conform
    to the current year presentation.
(5)
Total trading transactions to the customers located in China,
    which were previously included in "All Other," were
    separately presented in consideration of the importance of the
    amount for the year ended March 31, 2005. The figures for
    the years ended March 31, 2004 and 2003 have been restated
    to conform to the current year presentation.
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Table of Contents
C.
Organizational Structure.
We are a global general trading company and we conduct our
business with our subsidiaries and associated companies. As of
March 31, 2005, we had 427 subsidiaries and 296 associated
companies that are accounted for by the equity method.
The table below provides information on our significant
subsidiaries as of March 31, 2005. We have supplementarily
provided voting power where it differs from ownership interest.
Ownership
Voting
Country of
Interest
Power
Operating Segment
Company
Incorporation
Principal Business
(%)
(%)
Metal Products & Minerals
Mitsui Iron Ore Development Pty. Ltd.
Australia
Mining and sales of Australian iron ore
100.00
Sesa Goa Limited
India
Mining and sales of Indian iron ore and processing and sales of
    coke
51.00
Mitsui Itochu Iron Pty. Ltd.
Australia
Mining and sales of Australian iron ore
70.00
Mitsui Coal Holdings Pty. Ltd.
Australia
Investments in Australian coal business
100.00
Japan Collahuasi Resources B.V.
Netherlands
Investments in a copper mine in Chile
61.90
Raw Materials Development Co., Ltd.
United States
Investments in ferrous raw materials business
100.00
Mitsui Bussan Raw Materials Development Corp.
Japan
Wholesale of ferrous and non- ferrous scrap and ferroalloys
100.00
Mitalco Inc.
United States
Aluminum smelting
100.00
Mitsui & Co. Metals Ltd.
Japan
Copper and aluminum metals marketing
100.00
Mitsui Bussan Construction Materials Co., Ltd.
Japan
Sales of construction materials and semi-assembled steel products
100.00
Tsuda
    Corporation
(1)
Japan
Wholesale of steel products
100.00
Regency Steel Asia Pte Ltd.
Singapore
Wholesale and retail sale of steel products
85.00
Machinery, Electronics & Information
MBK Project Holdings Ltd.
Japan
Investments in manufacturers of plant-related materials and
    equipment
100.00
Mitsui Rail Capital Holdings, Inc.
United States
Freightcar leasing and management
100.00
Mitsui Power Ventures Limited
United Kingdom
Investments in power generation business
100.00
Mitsui Bussan Plant & Project Corp.
Japan
Sales of chemical plants and heavy machinery equipment
100.00
Clio Marine Inc.
Liberia
Shipping business
100.00
Mitsui Bussan Transportation System Co.,
    Ltd.
(2)
Japan
Monorail, new transportation systems and railway-related
    machinery
100.00
Toyota Chile S.A.
Chile
Import and sales of automobiles and auto parts in Chile
100.00
P.T. Bussan Auto Finance
Indonesia
Motorcycle retail finance
90.00
CM Pacific Maritime Corporation
Liberia
Shipping business
100.00
Mitsui Automotive Europe B.V.
Netherlands
Investments in automotive related companies and trades of
    automobiles
100.00
Lepta Shipping Co., Ltd.
Liberia
Shipping business
100.00
Tombo Aviation Inc.
United States
Purchase, sales and leasing of aircraft
100.00
Mitsui Bussan Aerospace Co., Ltd.
Japan
Sales of helicopters and defence related systems
100.00
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Table of Contents
Ownership
Voting
Country of
Interest
Power
Operating Segment
Company
Incorporation
Principal Business
(%)
(%)
Tombo Capital Corporation
Japan
Purchase, sales and leasing of aircraft
100.00
Telepark
    Corp.
(3)
Japan
Sales of mobile phones and related telecommunication services
65.41
Xion Electronics,
    Inc.
(4)
Japan
Investments in semiconductor device sales companies
100.00
Toyo Officemation, Inc.
Japan
Design, operation and maintenance of information systems
100.00
NextCom K.K.
Japan
Network integrator focused on multi-vendor and in-house
    developed solutions
47.72
47.46
Chemical
P.T. Kaltim Pasifik Amoniak
Indonesia
Production and sales of anhydrous ammonia
55.00
Novus International, Inc.
United States
Production, marketing and sales of various feed supplements
65.00
Fertilizantes Mitsui S.A. Industria e Comercio
Brazil
Production and sales of fertilizers
100.00
Nikken Fine Chemicals Co., Ltd.
Japan
Production and sales of sorbitol and related organic chemical
    products
100.00
Mitsui Bussan Agro Business Co., Ltd.
Japan
Development and sales of fertilizers and agricultural products
100.00
MITSUI BUSSAN SOLVENT & COATING CO., LTD.
Japan
Domestic sales, export and import, off-shore trade of solvents
    and coating materials
100.00
Daito Chemical Co., Ltd.
Japan
Production and sales of industrial chemicals
70.00
Mitsui Bussan Plastics Co., Ltd.
Japan
Wholesale of raw materials and products of plastics
100.00
Nippon Trading Co., Ltd.
Japan
Sales of plastics and chemicals
48.34
48.82
Bussan Nanotech Research Institute
    Inc.
(5)
Japan
Research and development of nano- products
100.00
Energy
Mittwell Energy Resources Pty., Ltd.
Australia
Sales of crude oil and condensate, development of Casino gas
    field in Australia
100.00
Wandoo Petroleum Pty Ltd
Australia
Exploration, development and production of oil and natural gas
70.00
100.00
Mitsui E&P Australia Pty Limited
Australia
Exploration and development of oil and natural gas
100.00
Mitsui E&P Middle East B.V.
Netherlands
Exploration, development and production of oil and natural gas
77.89
60.00
Mitsui Gas Development Qatar B.V.
Netherlands
Development and production of natural gas and condensate
100.00
Mitsui LNG Nederland B.V.
Netherlands
Investments in Qatar LNG project
100.00
Mitsui & Co. (E&P) B.V.
Netherlands
Exploration, development, production and investments in oil and
    natural gas resources
100.00
Arcadia Petroleum Ltd.
United Kingdom
Physical and future trading of crude oil
100.00
Mitsui Oil Co., Ltd.
Japan
Sales of petroleum products in Japan
89.93
Endeavour Resources Limited
United Kingdom
Investments in Japan Australia LNG (MIMI) Pty. Ltd.
100.00
Mitsui Sakhalin Holdings B.V.
Netherlands
Investments in Sakhalin Energy Investment
100.00
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Table of Contents
Ownership
Voting
Country of
Interest
Power
Operating Segment
Company
Incorporation
Principal Business
(%)
(%)
Mitsui Oil (Asia) Pte. Ltd.
Singapore
Physical and future trading of crude oil and petroleum products
100.00
Mitsui Liquefied Gas Co., Ltd.
Japan
Sales of liquefied petroleum gas in Japan
89.93
Overseas Petroleum Corporation
Japan
Exploration, development and investments in oil and gas
96.55
Consumer Products & Services
Mitsui Norin Co., Ltd.
Japan
Manufacture and sales of food products
51.85
87.63
MITSUI FOODS CO., LTD.
Japan
Wholesale of foods and beverages
99.87
WILSEY FOODS, INC.
United States
Investments in processed oil food company
90.00
DAI-ICHI BROILER CO., LTD.
Japan
Production, processing, and sales of broilers
72.33
Retail System Service Co., Ltd.
Japan
Sales of sundries and foodstuff to retailers
100.00
Mitsui Bussan Inter-fashion Ltd.
Japan
Planning and management of production and distribution of apparel
100.00
Bussan Real Estate Development Co., Ltd.
Japan
Real estate sales, leasing and management
100.00
MBK Laguna Inc.
United States
Investments in real estate-related businesses
100.00
Mitsui Bussan House-Techno, Inc.
Japan
Housing business
100.00
Logistics & Financial Markets
Mitsui & Co. Energy Risk Management Ltd.
United Kingdom
Energy derivatives dealing
100.00
Mitsui & Co. Precious Metals, Inc.
United States
Trading of precious metals
100.00
Mitsui Bussan Futures Ltd.
Japan
Future commodities brokering
100.00
Nitto Logistics Co., Ltd.
Japan
Warehousing, customs clearance and real estate leasing
100.00
Bussan Capital Corp.
Japan
Securities investment, commercial finance and related activities
100.00
Mitsuibussan Insurance and Consulting Co., Ltd.
Japan
Property and casualty insurance consignment and agency services
100.00
Tri-Net (Japan) Inc.
Japan
International integrated transportation services
100.00
Tri-Net Logistics (Asia) Pte. Ltd.
Singapore
International integrated transportation services
100.00
Americas
Mitsui & Co. (U.S.A.), Inc.
United States
Trade
100.00
Mitsui & Co. (Canada) Ltd.
Canada
Trade
100.00
Mitsui Brasileira Importação e Exportação
    S.A.
Brazil
Trade
100.00
Mitsui Steel Development Co., Inc.
United States
Investments in steel-related businesses
100.00
Mitsui Steel, Inc.
United States
Wholesale and SCM service of steel products
100.00
Channel Terminal Corp.
United States
Investments in tank leasing business
100.00
Champions Pipe & Supply, Inc.
United States
Sales of steel pipes
94.00
Mitsui Tubular Products, Inc.
United States
Sales of steel pipes
100.00
Mitsui Auto Steel Canada Inc.
Canada
Warehouse services for storage and handling of auto steel
100.00
Mitsui Comtek Corp.
United States
Electronics and IT-related business
100.00
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Table of Contents
Ownership
Voting
Country of
Interest
Power
Operating Segment
Company
Incorporation
Principal Business
(%)
(%)
CornerStone Research & Development, Inc.
United States
Processing and packaging of healthcare foods and supplements
100.00
Westport Petroleum, Inc.
United States
International trading of petroleum products and crude oil
100.00
Portac, Inc.
United States
Manufacture of lumber and lumber products
100.00
Europe
Mitsui & Co. Europe PLC
United Kingdom
Management of business in Europe and Africa
100.00
Mitsui & Co. UK PLC
United Kingdom
Trade
100.00
Mitsui & Co. International (Europe) B.V.
Netherlands
Investments and financial services
100.00
Mitsui & Co. Deutschland GmbH
Germany
Trade
100.00
Mitsui & Co. Benelux S.A./N.V.
Belgium
Trade
100.00
Mitsui & Co. France S.A.S.
France
Trade
100.00
Mitsui & Co. Italia S.p.A.
Italy
Trade
100.00
Other Overseas Areas
Mitsui & Co. (Hong Kong) Ltd.
Hong Kong, China
Trade
100.00
Mitsui & Co. (Shanghai) Ltd.
China
Trade
100.00
Mitsui & Co. (Taiwan) Ltd.
Taiwan
Trade
100.00
Mitsui & Co. (Thailand) Ltd.
Thailand
Trade
100.00
Mitsiam International Ltd.
Thailand
Trade
52.91
55.00
Mitsui & Co. (Australia) Ltd.
Australia
Trade
100.00
Mitsui & Co. (Middle East) E.C.
Bahrain
Trade
100.00
All Other
Bussan Credit Co.,
    Ltd.
(6)
Japan
Financial services
100.00
Mitsui Knowledge Industry Co., Ltd.
Japan
Planning, development, maintenance and operation of computer
    systems
67.35
67.37
Mitsui & Co., Asia Investment Ltd.
Singapore
Financial services
100.00
(1)
Changed its corporate name to SINTSUDA CORPORATION in April 2005
(2)
Changed its corporate name from Bussan Transportation System
    Co., Ltd. in July 2004
(3)
Changed its corporate name from Mitsui & Associates
    Telepark Corporation in October 2004
(4)
Changed its corporate name from Xion Holdings, Inc. in January
    2005
(5)
Changed its corporate name from Carbon Nanotech Research
    Institute Inc. in April 2004
(6)
Changed its corporate name to Mitsui & Co. Financial
    Services Ltd. in April 2005
D.
Property, Plants and Equipment.
The following table provides a list of our principal property,
plants and equipment as of March 31, 2005.
Property, Plants and
Equipment Description
Size or Annual
(Holder or Lessee Other than Mitsui)
Location
Production Capacity
User of Property
(Sft: Square feet,
Mt: Metric Ton)
In Japan:
Mitsuibussan Building
Tokyo
1,321,572 Sft
Office use (Corporate Headquarters)
Osaka Mitsuibussan Building
Osaka
463,404 Sft
Office use
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Table of Contents
Property, Plants and
Equipment Description
Size or Annual
(Holder or Lessee Other than Mitsui)
Location
Production Capacity
User of Property
(Sft: Square feet,
Mt: Metric Ton)
Nagoya Mitsuibussann Building
Nagoya
152,471 Sft
Office use
Hibiya Central Building
Tokyo
509,841 Sft
Office building for lease
Bussan Building Annex
Tokyo
210,705 Sft
Office building for lease
Company Housing & Dormitory
Chiba
39,331 Sft
Employees' residential facility
Human Resource Development Center
Shizuoka
25,372 Sft
Training facility
Land and equipment (Mitsui Liquefied Gas Co., Ltd.)
Ishikawa
852,072 Sft
Liquefied petroleum gas terminal
Wakamatsu Building & Shinsuna Bayside Building (Bussan
    Real Estate Development Co., Ltd.)
Tokyo
172,406 Sft
Office building for lease
Land (MITSUI FOODS Co., LTD)
Saitama
71,171 Sft
Distribution center
Land and equipment (DAI-ICHI BROILER CO., LTD.)
Aomori
46,102 Sft
Broiler processing factory
Land and equipment (Mitsui Norin Co., Ltd.)
Yamanashi
339,871 Sft
Tea leaf processing factory
Sun East Shinonome Building & Sun East Tatsumi Building
    (Nitto Logistics Co., Ltd.)
Tokyo
129,221 Sft
Office use and office building for lease
Tojin Building (TOSHIN SOKO KAISHA, LTD.)
Tokyo
26,759 Sft
Office use and office building for lease
Overseas:
Office Space (Mitsui & Co. (U.S.A.), Inc.)
United States
199,524 Sft
Office space leased from others
Equipment (Mitsui Coal Holdings Pty. Ltd.)
Australia
7,760,000 Mt
Mining equipment for coal
Land and plants (Mitalco Inc.)
United States
465,098 Sft
Aluminium smelting factory
Equipment (Mitsui Iron Ore Development Pty. Ltd.)
Australia
21,099,000 Mt
Mining equipment for iron ore
Equipment (Mitsui-Itochu Iron Pty. Ltd.)
Australia
2,449,000 Mt
Mining equipment for iron ore
Equipment (Sesa Goa Limited)
India
2,573,000 Mt
Mining equipment for iron ore
Land and plants (P.T. Kaltim Pasifik Amoniak)
Indonesia
579,397 Sft
Ammonia manufacturing plant
Land and plants (Novus International, Inc.)
United States
636,826 Sft
Methionine production facility
Shopping centers (MBK Newport Inc.)
United States
186,237 Sft
Leasing asset
Chemical tank yard (Mitsui & Co. (U.S.A.), Inc.)
United States
11,495,355 Sft
Chemical tank
(1)
Information on our mining activities related to Mitsui Coal
    Holdings Pty. Ltd., Mitsui Iron Ore Development Pty. Ltd., and
    Mitsui Itochu Iron Pty. Ltd. that are located in Australia is
    shown in "Iron and Steel Raw Materials Unit" of
    "B. Business Overview" in this Item and
    "Mining Activities" below.
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Table of Contents
In addition to the above, our major assets leased to others as
of March 31, 2005 were as below:
•
Clio Marine Inc. (Liberia), Lepta Shipping Co., Ltd. (Liberia)
    and LPG Transport Service Ltd. (Bermuda) own ocean vessels
    leased to foreign and domestic shipping companies whose combined
    book value amounting to ¥26 billion;
•
Mitsui Rail Capital Holdings, Inc. (the United States) owns
    rolling stock mainly leased to railway companies in the Unites
    States amounting to ¥8 billion as book value; and
•
Tombo Aviation Inc. (the United States) and Tombo Capital
    Corporation (Japan) own aircraft leased to foreign and domestic
    airline companies amounting to ¥25 billion as book
    value of the total of two companies.
For information on our oil and gas producing activities, see
"Supplementary Information on Oil and Gas Producing
Activities (Unaudited)" to the consolidated financial
statements included elsewhere in this annual report.
A portion of the land, buildings and equipment owned by us is
subject to mortgages or other liens. As of March 31, 2005,
the aggregate amount of such mortgages or other liens was
¥31.5 billion. We know of no material defect in our
title to neither of any of the properties nor of any material
adverse claim with respect to them, either pending or
contemplated.
We consider our offices and other facilities to be well
maintained and believe that our plant capacity is adequate for
our current requirements. For the information on plans to
construct, expand or improve facilities, in particular those
related to mineral resource projects and oil and gas projects,
see relevant descriptions in "Item 4.A. History and
Development of the Company — Capital
Expenditure," "Metal Products & Minerals
Segment" and "Energy Segment" of
"Item 4.B. Business Overview" and "Mining
activities" below in this section.
We do not believe there are any material environmental issues
that would affect the utilization of our assets.
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Table of Contents
Mining Activities
The information regarding our mining activities are provided
below.
IRON ORE
Name of Joint Venture or
Investee
(1)
Entity by which Mitsui Participates in the Mining Activity
and its Ownership Interest
Area of Mining Operation (Region, State, Country)
Type of
Name of
Mineral
Fe Basis
Means of Access to the
Type of
Mines
(2)
Location
Resources
(3)
(%)
Property
Title/Lease
Mine
Power Source
Robe River Iron Associates
Mitsui Iron Ore Development Pty. Ltd. (33%)
Pilbara Region, Western Australia, Australia
Mesa J
Near Pannawonica, 200 km southwest of Cape Lambert
Pisolite
57.1
Railway and port in Cape Lambert (owned by Robe River Iron
    Associates and operated by Pilbara Iron Pty Ltd.)
Agreements for life of mine with Government of Western Australia
Open pit
Supplied by Pilbara Iron Pty Ltd.
West Angelas
West Angelas, 330 km southeast of Cape Lambert
Marra
Mamba
62.2
Same as above
Same as above
Open pit
Same as above
Mount Newman Joint Venture
Mitsui Itochu Iron Pty. Ltd. (10%) (Mitsui share of Mitsui
    Itochu Iron Pty. Ltd. is 70%)
Pilbara Region, Western Australia, Australia
Mt. Whaleback
Near the town of Newman, 426 km south of Port Headland
Brockman
Marra
Mamba
62.2
62.6
Railway (owned and operated by Mount Newman Joint Venture) and
    port in Port Headland (owned and operated by Mount Newman Joint
    Venture)
Mineral lease granted in 1967 under the Iron Ore (Mount Newman)
    Agreement Act 1964 scheduled to expire in 2009 with rights for
    successive renewals for 21 years
Open pit
Supplied by Alinta Ltd. (partially owned by the state)
Yandi Joint Venture
Mitsui Iron Ore Development Pty. Ltd. (7%)
Pilbara Region, Western Australia, Australia
Marillana Creek
92 km north of Newman, 310 km south of Port Headland
Channel Iron  Deposit
57.6
Rail spur (owned by Yandi Joint Venture) connected to the main
    Newman/ Hedland line (owned and operated by Mount Newmani Joint
    Venture) and port inn Port Hedland (ownd and operated by Mount
    Newman Joint Venture)
Mining lease granted in 1991 under the Iron Ore (Marillana
    Creek) Agreement Act 1991 scheduled to expire in 2012 with the
    right to extend for additional 42 years
Open pit
Supplied by Alinta Ltd. (partially owned by state)
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Table of Contents
Type of
Name of
Mineral
Fe Basis
Means of Access to the
Type of
Mines
(2)
Location
Resources
(3)
(%)
Property
Title/Lease
Mine
Power Source
Mount Goldsworthy Joint Venture
Mitsui Iron Ore Development Pty. Ltd. (7%)
Pilbara Region, Western Australia, Australia
North Area
(Yarrie)
(Nimingarra)
210 km east of Port Headland
Nimingarra
61.9
Railway (owned and operated by Mount Goldsworthy Joint Venture)
    and port in Port Headland (owned and operated by Mount
    Goldsworthy Joint Venture)
Multiple mineral leases under the Iron Ore (Mount Goldsworthy)
    Agreement Act 1964 and the Iron Ore (Goldsworthy—
    Nimingarra) Agreement Act 1972. The last one expires in 2014,
    with rights of renewal over these leases for successive 21-year
    periods.
Open pit
Supplied by Alinta Ltd. (partially owned by state)
Area C
120 km northwest of Newman, 37  km southwest of Yandi
Marra
Mamba
62.2
Rail spur (owned by Goldsworthy Joint Venture) connecting to the
    Yandi spur line (owned by Yandi Joint Venture) and then onto the
    main Newman/ Hedland line (owned and operated by Mount Newman
    Joint Venture) and port in Port Hedland (owned and operated by
    Goldsworthy Joint Venture)
Same as above
Open pit
Supplied by Alinta Ltd. (partially owned by state)
Sesa Goa Limited
Sesa Goa Limited (51%)
Goa and Karnataka, India
Codli
Goa, India
Fines/Lumps
54.0
Barge and port in Mormugao
Combination of own lease and sub lease
Open pit
Supplied by state
Sonshi
Goa, India
Fines/Lumps
54.0
Barge and port in Mormugao
Combination of own lease and sub lease
Open pit
Supplied by state
Chitradurga
Karnataka, India
Fines/Lumps
60.0
Railway, truck and shipping facility at Mormugao and Chennai
Combination of own lease and sub lease
Open pit
Supplied by state
Hospet
Karnataka, India
Fines/Lumps
60.0
Railway, truck and shipping facility at Mormugao and Chennai
Combination of own lease and sub lease
Open pit
Supplied by state
(1)
The term "Investee" refers only to Sesa Goa Limited.
(2)
"Name of Mines" indicates the names of principal
    producing mines.
(3)
"Pisolite", "Marra Mamba",
    "Brockman", "Channel Iron Deposit" and
    "Nimingarra" refer to the types of iron ore that are
    found in the Pilbara region of Western Australia.
64
Table of Contents
COAL
Name of Joint Venture or Investee
Entity by which Mitsui Participates in the Mining Activity
and its
Ownership Interest
(2)
Area of Mining Operation (Region, State, Country)
Name of
Type of
Means of Access to
Type of
Power
Mines
(3)
Location
Resources
the Property
Title/Lease
Mine
Source
BHP Mitsui Coal Pty. Ltd.
BHP Mitsui Coal Pty.
    Ltd.
(1)
(20%)
Queensland, Australia
Riverside
In the Bowen Basin, 145 km west of Mackay
Metallurgical coal
Railway (Queensland Rail) and port in Mackay
Leases granted by State and renewable subject to State's
    discretion
Open pit
State owned grid
South Walker Creek
In the Bowen Basin, 145 km west of Mackay
Metallurgical coal
Same as above
Same as above
Open pit
State owned grid
Bengalla Joint Venture
Mitsui Coal Holdings Pty. Ltd. (10%)
New South Wales, Australia
Bengalla
West of Muswellbrook in the Upper Hunter Valley
Metallurgical coal and thermal coal
Railway and port at Newcastle
Leases granted by State
Open pit
State owned grid
Kestrel Joint Venture
Mitsui Coal Holdings Pty. Ltd. (20%)
Queensland, Australia
Kestrel
In the Bowen Basin, 300 km west of Rockhampton
Metallurgical coal and thermal coal
Railway and port at Gladstone
Leases granted by State
Underground
State owned grid
Moura Joint Venture
Mitsui Coal Holdings Pty. Ltd. (49%)
Queensland, Australia
Moura
In the Bowen Basin 185 km southwest of Gladstone
Metallurgical coal and thermal coal
Railway and port at Gladstone
Leases granted by State
Open pit
State owned grid
German Creek Joint Venture
Mitsui Coal Holdings Pty. Ltd. (30%)
Queensland, Australia
German Creek
In the Bowen Basin, 250 km southwest of Mackay
Metallurgical coal
Railway and port at Gladstone
Leases granted by State
Underground
State owned grid
(1)
"BHP Mitsui Coal Pty. Ltd." indicates the name of the
    company established by BHP Billiton plc and Mitsui.
(2)
BHP Mitsui Coal Pty. Ltd. is our associated company in which
    Mitsui has 20% interest. Mitsui Coal Holdings Pty. Ltd. is our
    subsidiary which owns interests in Bengalla Joint Venture,
    Kestrel Joint Venture, Moura Joint Venture and German Creek
    Joint Venture.
(3)
"Name of mines" indicates the names of principal
    producing mines.
65
Table of Contents
A brief history and the present condition of each of the
above-mentioned mines, including the current state of
development, if applicable, are provided below.
IRON ORE
Name of Joint Venture or Investee
Entity by which Mitsui Participates in the Mining Activity
and its Ownership Interest
Area of Mining Operation (Region, State, Country)
Robe River Iron Associates
Mitsui Iron Ore Development Pty. Ltd. (33%)
Pilbara Region, Western Australia, Australia
Mesa J
The development of Robe River project began in 1962(*) near
    Pannawonica. The Robe River project was commissioned and the
    first shipment was made in 1972. Iron ore reserves at the
    Mesa J production Base provide the cornerstone of
    Pannawonica's sinter fines and lump output. Development of
    Mesa J began in 1992, and all mine administration,
    workshops, warehousing and other support facilities were
    integrated there in 1994. Process Plant 1 was commissioned in
    1999 and Process Plant 2 in 2001. The plant processes
    clay-contaminated pisolite, sub-grade material which was once
    discarded, to reduce contaminants and retain on-specification
    ore. Total material hauled at Mesa J is between 65 and
    75 million tonnes per year. From this production base, the
    joint venture produces approximately 32 million tonnes of
    iron ore each year.
West Angelas
The development of West Angelas began in 1998. Mining of ore
    commenced in March 2002. The West Angelas deposits contain Marra
    Mamba type iron ore with higher iron content than Robe
    River's Mesa J mine. The West Angelas operation is
    comprised of an open pit mine; a crushing and screening ore
    processing plant producing lump and sinter fines iron ore, as
    well as stockpiling, reclaiming and train-loading facilities.
    Expansion of West Angelas mine is well advanced to increase its
    capacity from its current 20 million tonnes per year to
    25 million tonnes per year by the third quarter of 2005.
(*)
The Robe River project was originally started by Cleveland
    Cliffs Iron Company, an iron and steel producer in the United
    States. Since then, there were major changes in ownership before
    Rio Tinto took a 53% stake in Robe River Iron Associates in 2000.
Mount Newman Joint Venture
Mitsui Itochu Iron Pty. Ltd. (10%) (Mitsui share of Mitsui
Itochu Iron Pty. Ltd. is 70%)
Pilbara Region, Western Australia, Australia
Mount  Whaleback
The joint venture began production in 1969 at the Mount
    Whaleback ore body. Today, production continues to be sourced
    from the major Mount Whaleback ore body and is complemented by
    production from other ore bodies. The facilities at Mount
    Whaleback include primary and secondary crushing plants with a
    nominal capacity of 35 million tonnes of product per year,
    a heavy media beneficiation plant with an annual capacity of
    8 million tonnes and a train-loading facility. The mining
    plant and port facilities were originally built in the late
    1960's and have been maintained and enhanced many times
    since then. The Rapid Growth Project 2 ("RGP2") was
    approved in October 2004. The project comprises increases in
    mine, rail and port capacity through the development of Ore
    Body 18, purchases of additional rolling stock and a new
    car dumper at Finucane Island. Engineering activities are well
    advanced, tendering procurement processes are underway and
    initial site activities have commenced. The project will
    increase installed capacity at Western Australian Iron Ore to
    118 million tonnes per annum by the second half of 2006.
    Development costs are estimated at U.S.$575 million.
    (Mitsui share U.S.$40 million).
Yandi Joint Venture
Mitsui Iron Ore Development Pty. Ltd. (7%)
Pilbara Region, Western Australia, Australia
Marillana Creek
Development of the ore body began in 1991. This included
    construction of a rail connection to the existing Newman/
    Headland rail line, crushing and screening facilities with an
    annual capacity of 10 million tonnes, ore stacker, mine
    load-out tunnel, and on-site administration infrastructure. The
    mine's first shipment of iron ore was in March 1992.
    Following a number of modifications between 1994 and 2003,
    Yandi's capacity has been increased to 42 million
    tonnes per year, including both fine and lump ores.
66
Table of Contents
Mount Goldsworthy Joint Venture
Mitsui Iron Ore Development Pty. Ltd. (7%)
Pilbara Region, Western Australia, Australia
North Area
(Yarrie)
(Nimingarra)
Mount Goldsworthy was commissioned in 1966 in North Area. The
    original Goldsworthy mine was closed in 1982 and mining
    operations ceased at Shay Bay in 1993. Since then, mining has
    continued from the adjacent Nimingarra mine and Yarrie mine.
Area C
The Area C Mine is operated by the Mount Goldsworthy Joint
    Venture under the POSMAC JV arrangement. Area C Mine is
    located near the mines operated by the Yandi Joint Venture and
    it was officially opened in October 2003. First ore was railed
    from Area C to Port Headland in August 2003, with the first
    shipment of ore departing the port in September 2003.
    Area C represents the largest undeveloped Marra Mamba
    resource in the Pilbara region. The project involves developing
    mine infrastructure and a rail spur link to the existing Yandi/
    Newman railway.
Sesa Goa Limited
Sesa Goa Limited (51%)
Goa and Karnataka, India
Codli
Sonshi
Sesa Goa Limited commenced operations in 1954 in North Goa,
    India. Sesa Goa's main mining operations are at the Codli
    and Sonshi mines. Goan ore tends to be relatively high in
    alumina content, and most Goan ore is beneficiated to raise the
    iron content. We acquired 51% interest in Sesa Goa in 1996.
Chitradurga
Hospet
The main operation in Karnataka is at Chitradurga mine. A second
    mine is located at Hospet. These mines are equidistant from the
    part of Mormugao and Chennai and ore can be shipped from either
    port.
COAL
Name of Joint Venture or Investee
Entity by which Mitsui Participates in the Mining Activity
and its Ownership Interest
Area of Mining Operation (Region, State, Country)
BHP Mitsui Coal Pty. Ltd.
BHP Mitsui Coal Pty. Ltd. (20%)
Queensland, Australia
Riverside
In 1983, the joint venture commissioned the Riverside mine.
    Riverside mine produces metallurgical coal and has a production
    capacity of three million tonnes per year. Reserves from
    Riverside were depleted in March 2005.
South Walker Creek
South Walker Creek became operational in 1998. It produces
    pulverized coal injection fuel and minor quantities of by-
    product energy coal. South Walker Creek has a production
    capacity of four million tonnes per year. Exploration has
    increased the reserve base in the past year. BHP Mitsui Coal
    holds undeveloped leases in the Bowen Basin (principally, the
    areas of Wards Well, Poitrel, Kemmis-Walker and Nebo West).
Bengalla Joint Venture
Mitsui Coal Holdings Pty. Ltd. (10%)
New South Wales, Australia
Bengalla
Development consent was granted in 1996 and production commenced
    in 1999. Coal & Allied, Rio Tinto's subsidiary in
    Australia, acquired its interest in Bengalla in 2001. Its coal
    preparation plant has a washing capacity of 8 million
    tonnes per year giving nominal product of 6.6 million
    tonnes per year. Its plant equipment consists of three stage
    double roll crushers, dense medium cyclones, spirals, a froth
    flotation unit, screen bowl centrifuges and automatic
    stackers/reclaimers.
67
Table of Contents
Kestrel Joint Venture
Mitsui Coal Holdings Pty. Ltd. (20%)
Queensland, Australia
Kestrel
The Kestrel Coal mine, previously known as Gordonstone Mine
    commenced operation in 1992. Coal is extracted by underground
    mining. The mine has two longwall units that are operated
    alternately to minimize downtime and ensure seamless production
    and reliability. The Kestrel Preparation Plant has been designed
    to allow the mine to produce low ash coking coal and high energy
    thermal coal. Production in 2004 was 3.3 million tonnes
    saleable high quality coking coal and export thermal coal, and
    the production is expected to rise to 5.5 million tonnes in
    a few years.
Moura Joint Venture
Mitsui Coal Holdings Pty. Ltd. (49%)
Queensland, Australia
Moura
The Moura Mine commenced operation in 1961. Since 1994, all
    production at Moura has been from its surface operation.
    Production tonnage has been increasing steadily throughout the
    years. Originally the mine was operated by BHP Mitsui Coal Pty
    Ltd, and after a few changes of ownership, Anglo Coal acquired a
    51% share in 2002. In September 2003, the adjacent Theodore
    deposit was developed which further expanded its capacity. Anglo
    Coal Australia and Mitsui Coal Holdings intend to recapitalise
    their existing operations at the Moura mine and to establish two
    additional operations on adjacent tenures. The new and expanded
    operations will be known as the Dawson Complex. Joint
    venture's capital expenditure is estimated in excess of
    U.S.$600 million and will include a new coal preparation
    plant, additional mining equipment, a coal conveying system for
    transporting coal, rail load out facilities and administration
    buildings. The additional coal will be made available for the
    market in 2007, and consequently annual production will increase
    from existing 7.0 million tonnes to 12.7 million
    tonnes of metallurgical and thermal coals.
German Creek Joint Venture
Mitsui Coal Holdings Pty. Ltd. (30%)
Queensland, Australia
German Creek
Open pit mining commenced in 1981. Underground mining in the
    Central Colliery area started in 1984, while underground mining
    in the Southern Colliery area began in 1988. Grasstree is a new
    underground mine being developed within our existing German
    Creek operations lease area. This mine will produce hard coking
    coal for our export markets. The mine construction commenced in
    2001, underground development work is now underway and the
    project is on schedule to commence full production in 2006. Lake
    Lindsay is a potential new open cut mine adjacent to German
    Creek. Exploration and feasibility studies are currently
    underway to bring this new mine to production in 2006, gradually
    increasing up to full production in 2009.
68
Table of Contents
Production Tonnage
IRON ORE
In Thousands of Tonnes
Year Ended March 31,
2005
2004
2003
Joint Venture or Investee and
Mitsui's Subsidiary or
Total
Mitsui's
Total
Mitsui's
Total
Mitsui's
Name of Mines
Associated Company
Location
Production
Share
Production
Share
Production
Share
Robe River Iron Associates
Mitsui Iron Ore Development Pty. Ltd.
Pilbara Region, Western Australia
Pannawonica
31,024
10,238
30,240
9,979
31,155
10,281
West Angelas
19,560
6,455
14,181
4,680
7,342
2,423
Mount Newman Joint Venture
Mitsui Itochu Iron Pty. Ltd.
Pilbara Region, Western Australia
Mt. Whaleback
34,991
2,449
36,333
2,543
30,348
2,124
Yandi Joint Venture
Mitsui Iron Ore Development Pty. Ltd.
Pilbara Region, Western Australia
Marillana Creek
40,898
2,863
40,548
2,838
35,410
2,479
Mount Goldsworthy Joint Venture
Mitsui Iron Ore Development Pty. Ltd.
Pilbara Region, Western Australia
North Area
(Yarrie)
(Nimingarra)
5,292
370
7,006
490
8,101
567
Area C
16,753
1,173
3,736
262
—
—
Sesa Goa Limited
Sesa Goa Limited
India
Codli, Sonshi
Goa
2,983
1,521
2,941
1,500
2,402
1,225
Chitradurga, Hospet
Karnataka
2,063
1,052
1,556
794
1,255
640
TOTAL
153,564
26,121
136,541
23,086
116,013
19,739
Production Tonnage
COAL
In Thousands of Tonnes
Year Ended March 31,
2005
2004
2003
Joint Venture or Investee and
Mitsui's Subsidiary or
Total
Mitsui's
Total
Mitsui's
Total
Mitsui's
Name of Mines
Associated Company
Location
Production
Share
Production
Share
Production
Share
BHP Mitsui Coal Pty. Ltd.
Mitsui Iron Ore Development Pty. Ltd.
Queensland, Australia
Riverside
3,323
665
2,641
528
3,402
680
South Walker Creek
3,658
732
3,927
785
3,341
668
Bengalla Joint Venture
Mitsui Coal Holdings Pty. Ltd.
New South Wales, Australia
5,312
531
6,203
620
5,385
539
Kestrel Joint Venture
Mitsui Coal Holdings Pty. Ltd.
Queensland, Australia
3,282
656
3,322
664
4,091
818
Moura Joint Venture
Mitsui Coal Holdings Pty. Ltd.
Queensland, Australia
7,023
3,441
5,964
2,922
5,845
2,786
German Creek Joint Venture
(1)
Mitsui Coal Holdings Pty. Ltd.
Queensland, Australia
5,782
1,735
5,422
1,627
2,905
872
TOTAL
28,380
7,760
27,479
7,146
24,969
6,363
(1)
Reflects production tonnage from our participation since July
    2002.
69
Table of Contents
Reserve Tonnage
IRON
ORE
(1)
In Millions of Tonnes
Year Ended March 31,
2005
2004
2003
Joint Venture or Investee and
Total
Mitsui's
Total
Mitsui's
Total
Mitsui's
Name of Mines
Mitsui's Subsidiary or Associated Company
Location
Reserve
Share
Reserve
Share
Reserve
Share
Robe River Iron Associates
(2)
Mitsui Iron Ore Development Pty. Ltd.
Pilbara Region, Western Australia
Pannawonica
172
57
200
66
230
76
West Angelas
418
138
440
145
455
150
Mount Newman Joint Venture
(3)
Mitsui Itochu Iron Pty. Ltd.
Pilbara Region, Western Australia
Mt. Whaleback
955
67
1,026
72
1,193
84
Yandi Joint
    Venture
(3)
Mitsui Iron Ore Development Pty. Ltd.
Pilbara Region, Western Australia
Marillana Creek
901
63
641
45
687
48
Mount Goldsworthy Joint
    Venture
(3)
Mitsui Iron Ore Development Pty. Ltd.
Pilbara Region, Western Australia
North Area
13
1
21
2
28
2
(Yarrie)
(Nimingarra)
Area C
499
35
204
14
209
15
Sesa Goa Limited
Sesa Goa Limited
India
Codli, Sonshi
Goa
55
28
55
28
53
27
Chitradurga, Hospet
Karnataka
30
15
20
10
20
10
TOTAL
3,043
404
2,607
382
2,875
412
(1)
Reserve of Robe River Iron Associates is proved + probable
    marketable reserve. ("Marketable reserve" is tonnage
    after accounting for extraction and beneficiation losses.)
    Reserve amounts of Mt. Newman, Yandi, Mt. Goldsworthy
    and Sesa Goa consist of proved + probable recoverable
    reserve. ("Recoverable reserve" is tonnage after
    accounting for extraction losses.)
(2)
Reserves of Robe River Iron Associates indicate reserves as of
    the end of December 2004, 2003 and 2002, respectively. 2005
    reserves mean reserves as of the end of December 2004.
(3)
Reserves of Mount Newman Joint Venture, Yandi Joint Venture and
    Mount Goldsworthy Joint Venture indicate reserves as of the end
    of June 2004, 2003 and 2002, respectively. 2005 reserves means
    reserves as of the end of June 2004.
COAL
(1)
In Millions of Tonnes
Year Ended March 31,
2005
2004
2003
Joint Venture or Investee and
Mitsui's Subsidiary or
Total
Mitsui's
Total
Mitsui's
Total
Mitsui's
Name of Mines
Associated Company
Location
Reserve
Share
Reserve
Share
Reserve
Share
BHP Mitsui Coal Pty. Ltd.
Mitsui Iron Ore Development Pty. Ltd.
Queensland, Australia
Riverside
3
1
5
1
7
1
South Walker Creek
92
18
96
19
60
12
Bengalla Joint Venture
Mitsui Coal Holdings Pty. Ltd.
New South Wales, Australia
161
16
166
17
185
19
Kestrel Joint Venture
Mitsui Coal Holdings Pty. Ltd.
Queensland, Australia
120
24
123
25
127
25
Moura Joint Venture
Mitsui Coal Holdings Pty. Ltd.
Queensland, Australia
208
102
132
65
97
48
German Creek Joint Venture
(2)
Mitsui Coal Holdings Pty. Ltd.
Queensland, Australia
78
23
90
27
111
33
TOTAL
662
184
612
154
587
138
70
Table of Contents
(1)
Proved + Probable Marketable Reserve ("Marketable
    Reserve" is tonnage after accounting for extraction and
    processing and preparation losses.)
(2)
Reflects production tonnage from our participation since July
    2002 onwards.
We own 15% profit share of Valepar S.A., which owns 34% of
profit share of the common stock and preferred stock of
Companhia Vale do Rio Doce ("CVRD"). Accordingly,
CVRD's 5.1% (34% × 15%) of its production and
reserve amounts are indirectly attributable to us. The following
table provides iron ore production and reserve amounts of CVRD
and Mitsui's share of the production and reserve amounts of
CVRD.
Production Tonnage (for the year ended December 31)
Millions of Tonnes
2004
2003
2002
Total
Mitsui's
Total
Mitsui's
Total
Mitsui's
Production
Share
Production
Share
Production
Share
211.3
10.8
188.3
9.6
168.7
8.6
Proven and Probable Reserves (as of December 31)
Millions of Tonnes
2004
2003
2002
Total
Mitsui's
Total
Mitsui's
Total
Mitsui's
Reserve
Share
Reserve
Share
Reserve
Share
6,869.1
350.3
4,926.20
251.6
4,458.60
227.7
71
Table of Contents
Oil and Gas Producing Activities
The following table shows crude oil, condensate, natural gas
liquids and natural gas production from our reserves for the
three fiscal years indicated:
Production Information
Millions of Barrels
Billions of Cubic Feet
Crude Oil, Condensate and
Natural Gas Liquids
(1)
Natural Gas
(1)
Middle
Middle
Year Ended March 31,
East
Oceania
Others
Worldwide
East
Oceania
Others
Worldwide
2005
3
6
5
14
9
49
34
92
2004
2
8
5
15
—
45
29
74
2003
3
8
4
15
—
41
24
65
The following tables show proved reserves and proved developed
reserves of crude oil, condensate, natural gas liquids and
natural gas as of the ending date of three fiscal years
indicated:
Proved Reserve Information:
Proved Reserves
Millions of Barrels
Billions of Cubic Feet
Crude Oil, Condensate and
Natural Gas Liquids
(1)
Natural Gas
(1)
Middle
Middle
Year Ended March 31,
East
Oceania
Others
Worldwide
East
Oceania
Others
Worldwide
At March 31, 2005
24
78
92
194
75
840
1393
2,308
At March 31, 2004
23
49
127
199
84
873
965
1,922
At March 31, 2003
28
52
71
151
—
1,200
221
1,421
Proved Developed
    Reserves
(2)
Millions of Barrels
Billions of Cubic Feet
Crude Oil, Condensate and
Natural Gas Liquids
(1)
Natural Gas
(1)
Middle
Middle
Year Ended March 31,
East
Oceania
Others
Worldwide
East
Oceania
Others
Worldwide
At March 31, 2005
24
20
18
62
75
356
82
513
At March 31, 2004
23
21
19
63
84
330
69
483
At March 31, 2003
28
26
18
72
—
364
58
436
(1)
1 barrel of crude oil = 5,800 cubic feet of natural gas
(2)
The proportion of Proved Developed Reserves to Proved Developed
    and Undeveloped Reserves is about 25 percent as of
    March 31, 2005 and relatively low. The expected costs to
    develop these undeveloped reserves are estimated to be
    ¥314 billion in total as of March 31, 2005. The
    major undeveloped reserves are attributable to an associated
    company in Russia and an associated company in Australia. It is
    expected to commence the production of crude oil in 2006 and LNG
    in 2007, for the associated company in Russia. In relation to
    the associated company in Australia, the production of crude oil
    and LNG has already commenced at the existing facilities. The
    drilling of additional development wells will be performed over
    the project life according to the drilling program of the
    project.
Information on our oil and gas producing activities is shown in
the "Supplemental Information on Oil and Gas Producing
Activities (Unaudited)" to the consolidated financial
statements included elsewhere in this annual report. And also
see "Operating and Financial Review and
Prospects — Operating Results by Operating
Segment — Results of Operations for the Year
Ended 31, 2005 — Energy Segment."
72
Table of Contents
Item 5.
Operating and Financial Review and Prospects
A.
Operating Results
You should read the following discussion and analysis of our
financial condition and results of operations together with
"Selected Financial Data" and our consolidated
financial statements, that appear elsewhere in this annual
report. This discussion and analysis contains forward-looking
statements that involve risks, uncertainties and assumptions.
Our actual results may differ materially from those anticipated
in these forward-looking statements.
As used in this Operating and Financial Review and Prospects,
"Mitsui" is used to refer to Mitsui & Co.,
Ltd. (Mitsui Bussan Kabushiki Kaisha), and "we,"
"us," and "our" are used to indicate
Mitsui & Co., Ltd. and subsidiaries, unless otherwise
indicated.
In the Consolidated Financial Statements and accompanying Notes
to Consolidated Financial Statements, the "Company" is
used to refer to Mitsui & Co., Ltd., and the
"companies" is used to refer to Mitsui & Co.,
Ltd. and subsidiaries, unless otherwise indicated.
All references to "Note" throughout the Operating and
Financial Review and Prospects relate to the Notes to
Consolidated Financial Statements contained elsewhere in this
Annual Report.
Throughout the Operating and Financial Review and Prospects, we
describe the domicile of our subsidiaries and associated
companies, in parentheses following names of those companies.
For example, Arcadia Petroleum Ltd. (United Kingdom) means that
the company's name is Arcadia Petroleum Ltd. and that it is
domiciled in the United Kingdom.
Operations of a subsidiary that either have been disposed of or
are classified as held for sale have been accounted for as
discontinued operations under accounting principles generally
accepted in the United States of America
("U.S. GAAP") This means that income statement
and cash flow information are reclassified for all years
presented to separate the discontinued operations from our
continuing operations. This presentation is required by
U.S. GAAP and facilitates historical and future trend
analysis of our continuing operations.
Subsequent to the issuance of the consolidated financial
statements for the year ended March 31, 2004, we decided to
classify financing revenues and costs of certain subsidiaries
engaged mainly in external consumer financing from interest
expense, net of interest income to other sales and cost of other
sales, respectively. This change reflects the growing financing
operations of the subsidiaries and has been made to more fairly
present their financing transactions in the Statements of
Consolidated Income. Specifically, we reclassified the financing
revenues and costs from interest expense, net of interest income
to other sales and cost of other sales, respectively, and
restated the Statements of Consolidated Income for the prior
years to conform to the current year presentation.
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Key Performance Measures Under Management's
Discussion
Although our operating results and financial condition are
influenced by various factors, management believes that as of
the end of the fiscal year under review the following indicators
can be usefully employed to discuss trends in our performance
and financial condition.
Gross Profit, Operating
Income* and Equity in Earnings of Associated Companies
We undertake worldwide trading in various commodities, involving
diversified risk-return profiles, from conventional intermediary
services as agent to development and production of mineral
resources and energy. In this context, changes in the amounts of
gross profit, operating income and equity in earnings of
associated companies by operating segment reflect the overall
progress of our businesses, and greatly affect the amount of net
income in the Statements of Consolidated Income. For further
information, please refer to the table of "Operating
segment information" and subsequent discussions in
"Operating Results by Operating Segment" in this
Operating and Financial Review and Prospects.
Trends in the Price of and
Supply-Demand for Mineral Resources and Energy
Our operating results are influenced by conditions of various
commodity markets. In recent years, our operating results have
been influenced by supply-demand balance and price fluctuations
for mineral resources and energy that have been driven
principally by expanding demand from China, and the importance
of our mineral resources and energy operations in our overall
operating results has increased. For further information
regarding trends and prospects in this field, please refer to
the sections relating to the Metal Products & Minerals
Segment and the Energy Segment in "Operating Results by
Operating Segment."
Investment Plans and
Financial Leverage
We are engaged in expanding our investments in core areas such
as development projects of mineral resources and energy and
infrastructure projects including power generation and also in
developing and strengthening new businesses in consumer-oriented
and other growing key areas. Based on our Medium-Term Strategic
and Financial Plan ending March 2006 as announced in May 2004,
each of our operating segments is expanding these business
investments. Mitsui is monitoring and managing our financial
leverage with a view of securing efficient return on equity as
well as maintaining and improving credit ratings and obtaining a
stable supply of funding in order to secure the capital
resources required for these investments and to refinance our
interest-bearing debt. For further discussion on these
investments and related financial policies, please refer to
"B. Liquidity and Capital Resources" in this Operating
and Financial Review and Prospects.
*
Operating Income
Operating
income is included in the measure of segment performance
reviewed by the chief operating decision maker. Operating income
is comprised of our (a) gross profit, (b) selling,
general and administrative expenses, (c) provision for
doubtful receivables and (d) government grant for transfer
of substitutional portion of the Employee Pension Fund
("EPF"), as presented in the Statements of
Consolidated Income.
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Results of Operations
Summary of Operations for the Year Ended March 31,
    2005
Operating Environment
The global economy continued the steady improvement that began
in the middle of the year ended March 31, 2004. Principal
developments in the economic environment that influenced our
results of operations during the year ended March 31, 2005
included the following:
•
The global economy expanded steadily, driven by growth in the
    United States as well as emerging countries in Asia,
    particularly China, and other regions. Contributing factors
    included higher consumption and housing investment resulting
    from historically low interest rates as well as acceleration of
    demand for motor vehicles and firm infrastructure developments
    in emerging economies.
•
These factors contributed to a substantial increase in global
    trade, supported by very strong demand from Asia, particularly
    China, and spurred the rising trend in commodity prices such as
    crude oil, iron ore, coal and non-ferrous metals since the
    previous fiscal year.
•
The Japanese economy continued to recover in the first half of
    the year under review, underpinned by strong exports to
    high-growth areas of Asia, and higher capital expenditure as
    corporate earnings improved in Japan. In the second half of the
    fiscal year, however, economic recovery slowed down especially
    in the manufacturing section in response to inventory
    adjustments in the home electronic equipment and IT-related
    markets as well as concerns about oil price rise.
•
The Bank of Japan continued its quantitative easing policy, and
    short-term interest rates remained very low. In the United
    States, meanwhile, the Federal Reserve Board ("FRB")
    began progressively raising interest rates beginning in June
    2004 in order to restrain inflationary expectations.
Summary of Operations for
the Year Ended March 31, 2005
For the year ended March 31, 2005, we recorded net income
of ¥121.1 billion, an increase of
¥52.7 billion, or 77.0%, from ¥68.4 billion
recorded for the year ended March 31, 2004. As outlined
below, gross profit and equity in earnings of associated
companies made significant contributions, while the increase in
net other income and expenses was relatively small.
•
Gross profit increased by ¥111.9 billion, or 18.2%, to
    ¥725.8 billion for the year ended March 31, 2005,
    compared with ¥613.9 billion for the year ended
    March 31, 2004. Overseas subsidiaries in the Metal
    Products & Minerals Segment generated higher gross
    profit due to price rises and increased shipments of iron ore
    and coal while gross profit grew in the Energy Segment supported
    by higher crude oil prices. In addition, market transactions in
    areas such as commodity derivatives and oil trading performed
    well.
•
Net other income and expenses increased ¥25.1 billion,
    or 4.8%, to ¥550.2 billion for the year ended
    March 31, 2005, compared to ¥525.1 billion for
    the year ended March 31, 2004.
—
Compensation and other charges related to DPF incident of
    ¥36.0 billion was recorded for user response plans
    including free product replacement and compensation for relevant
    subsidy providers relating to diesel particulate filters
    ("DPF"s), which is discussed in "Discussion and
    Analysis of Operating Results for the Year Ended March 31,
    2005 — Compensation and Other Charges Related to DPF
    incident" below.
—
Selling, general and administrative expenses increased
    ¥24.5 billion in the year ended March 31, 2005,
    largely because there was no government grant for the transfer
    of the substitutional portion of the Employee Pension Fund
    ("EPF", compared to ¥17.2 billion recorded
    in the year ended March 31, 2004.
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—
With regard to loss on write-down of securities and other
    expense — net, the figures recorded in these
    categories for the year under review reflect the absence of
    large one-time expenses such as those recorded in the year ended
    March 31, 2004 of ¥21.7 billion for the
    write-down of securities relating to investment in the Japanese
    telecommunications carrier POWERDCOM, Inc. and
    ¥13.7 billion for the settlement of an antitrust
    lawsuit filed against a feed ingredient manufacturing subsidiary
    Bioproducts, Inc. (the United States).
•
Equity in earnings of associated companies rose by
    ¥25.8 billion, or 64.3%, to ¥65.9 billion
    for the year ended March 31, 2005, compared with
    ¥40.1 billion for the year ended March 31, 2004.
    As was the case with gross profit, this reflected the strong
    performance of associated companies in the Metal
    Products & Minerals Segment and the Energy Segment that
    benefited from the rise in commodity prices.
Due to the increase in gross profit and equity in earnings of
associated companies outlined above, net income for the year
ended March 31, 2005 from overseas subsidiaries and
associated companies reached ¥117.9 billion,
significantly higher than the ¥53.5 billion recorded
for the year ended March 31, 2004.
The impact of foreign currency exchange fluctuations on net
income for the year ending March 2006 will depend on the net
income denominated in local currencies of overseas subsidiaries
and associated companies; however, based on net income in the
business plans of these companies covering the year ending March
2006, yen's appreciation by ¥1 against
1 U.S. dollar would have the net effect of reducing
net income by approximately ¥1.3 billion.
During the year ended March 31, 2005 the U.S. dollar
continued to weaken against the yen, against a background of
worsening current account and federal deficits and higher oil
prices. The average U.S. dollar-yen exchange rate during
the year ended March 31, 2005 was
¥107.60 = U.S.$1, representing yen appreciation
of ¥5.16, or 4.6%, over the average rate during the year
ended March 31, 2004 of ¥112.76 = U.S.$1.
Discussion and Analysis of Operating Results for the Year
    Ended March 31, 2005
Revenues
In accordance with U.S. GAAP, revenues are reported based
on the gross amount billed to a customer or on the net amount
retained (that is, the amount billed to a customer less the
amount paid to a supplier). Revenues are reported based on gross
amounts for transactions where we have the related risks and
rewards such as transactions where we are a primary obligor in
the arrangement, and/or assume general inventory risk without
any significant mitigation of our risk level. Revenues are
reported based on net amounts where we assume a low degree of
related risks and rewards, effectively acting as an agent for
the applicable products or services. A typical example is a
transaction where we receive a commission or fee at a fixed rate
based on transaction volume or amount.
We classified our revenues into sales of products, sales of
services and other sales with the corresponding costs of
revenues.
Sales of Products
Sales of products include the sale of various products as a
principal in transactions, the manufacture and sale of a wide
variety of products such as metals, chemicals, food and
machinery, the development, production and sale of natural
resources such as coal, iron ore, oil and gas, and the
development and sale of real estate.
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During the year ended March 31, 2005, sales of products
were ¥2,980.8 billion, an increase of
¥490.8 billion, or 19.7%, from the
¥2,490.0 billion recorded for the year ended
March 31, 2004. The major reasons classified by products
are as follows:
•
Revenues from sales of chemicals rose ¥208.2 billion
    principally because of increases in Mitsui's sales of
    petrochemical products, reflecting higher prices for petroleum
    products due to higher crude oil prices, and increases in volume
    driven by the strong demand in China and other Asian countries.
•
Revenues from sales of energy increased by
    ¥86.3 billion. The average crude oil price (basis of
    Japan Crude Cocktail) during the year ended March 31, 2005
    was U.S.$36 per barrel, compared to U.S.$29 for the year
    ended March 31, 2004, driven by strong demand from China
    and uncertainty in supply from the Middle East and other areas.
    In this environment, revenues from sales of crude oil and oil
    products increased at Westport Petroleum Inc. (the United
    States) and revenues increased domestically as oil product sales
    companies, Mitsui Oil Co., Ltd. (Japan) and Kokusai
    Oil & Chemical Co., Ltd. (Japan) were able to transfer
    higher crude oil cost in their wholesale and retail pricing.
•
Revenues from sales of iron and steel increased
    ¥85.3 billion. In the year ended March 31, 2005,
    with long-term contract prices for iron ore 18.6% higher than in
    the year ended March 31, 2004, subsidiaries in mineral
    resource business such as Sesa Goa Limited (India) and Mitsui
    Iron Ore Development Pty. Ltd. (Australia) achieved higher
    revenues. Also, supported by a strong market for steel products
    in North America, China and elsewhere in Asia, Champions
    Pipe & Supply, Inc. (the United States), engaged in oil
    pipe sales, recorded higher revenues.
Sales
of Services
Sales of services include the revenues from trading margins and
commissions related to various trading transactions in which we
act as a principal or an agent. Specifically, we charge a
commission for the performance of various services such as
logistic and warehouse services, information and communication
services and technical support. For some back-to-back sales and
purchase transactions of products, we act as a principal and
record the net amount of sales and purchase prices as revenues.
We also facilitate conclusion of the contracts between
manufacturers and customers and deliveries of the products
between suppliers and customers.
For the year ended March 31, 2005, sales of services were
¥435.2 billion, an increase of
¥10.7 billion, or 2.5%, from ¥424.5 billion
for the year ended March 31, 2004. Principal reasons for
this increase included higher revenues from information and
communications services accompanying the acquisition of former
associated company NextCom K.K. (Japan) during the year ended
March 31, 2005, and strong performance in cell phone sales
at Telepark Corp. (Japan).
Other Sales
Other sales principally include the revenues from derivative
commodity instruments and derivative financial instruments held
for trading purposes, the revenues from leasing activities of
real estate, aircraft, ocean transport vessels, rolling stock
and equipment and the revenues from external consumer financing.
For the year ended March 31, 2005, other sales were
¥109.8 billion, an increase of
¥41.4 billion, or 60.5%, from ¥68.4 billion
for the year ended March 31, 2004, which was primarily
attributable to:
•
Derivative trading revenues were ¥45.4 billion for the
    year ended March 31, 2005, an increase of
    ¥27.2 billion from ¥18.2 billion for the
    year ended March 31, 2004. The principal reasons for this
    increase were strong crude oil trading performance at Arcadia
    Petroleum Ltd. (United Kingdom) and strong energy derivatives
    trading at Mitsui & Co. Energy Risk Management Ltd.
    (United Kingdom) in the context of extremely high volatility in
    the crude oil market; and
•
Leasing revenues were ¥55.4 billion for the year ended
    March 31, 2005, an increase of ¥13.2 billion from
    ¥42.2 billion for the year ended March 31, 2004.
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Gross Profit
Gross Profit Classified by Category of Revenues
For the year ended March 31, 2005, gross profit
("GP") was ¥725.8 billion, an increase of
¥111.9 billion, or 18.2%, from
¥613.9 billion for the year ended March 31, 2004.
The GP ratio (the ratio of GP to revenues) for the year ended
March 31, 2005 was 20.6%, in line with the year ended
March 31, 2004. Changes in GP and GP ratio classified by
category of revenues are set forth below:
Billions of Yen
Years Ended March 31,
2004
2005
As Restated
Change
GP
GP Ratio
GP
GP Ratio
GP
GP Ratio
Gross profit from sales of products
¥296.6
10.0
%
¥197.4
7.9
%
¥ 99.2
2.1
%
Gross profit from sales of services
366.2
84.1
%
383.1
90.2
%
(16.9
)
(6.1
)%
Gross profit from other sales
63.0
57.4
%
33.4
48.8
%
29.6
8.6
%
Total
¥725.8
20.6
%
¥613.9
20.6
%
¥111.9
0.0
%
The GP ratio from sales of products for the year ended
March 31, 2005 was 10.0%, an increase of 2.1 points
compared to the year ended March 31, 2004. This increase
was mainly due to the rate of increase in revenue at our natural
resources development subsidiaries outpacing the rate of
increase in costs of revenues, due to the surge in prices for
natural resources. In particular, Sesa Goa Limited (India) and
Mitsui Iron Ore Development Pty. Ltd. (Australia), both of which
are engaged in the development and production of iron ore, saw
significant increases in gross profit driven by rising prices of
iron ore, as did Mitsui Coal Holdings Pty. Ltd. (Australia)
which is engaged in the development and production of
metallurgical coal and thermal coal. In the product of energy,
gross profit increased at Mitsui E&P Middle East B.V.
(Netherlands) which is engaged in development and production of
crude oil in Oman due to a major rise in crude oil prices.
The GP ratio from sales of services for the year ended
March 31, 2005 was 84.1%, a decrease of 6.1 points
compared to the year ended March 31, 2004. This decrease
was mainly due to a relative increase in transactions where the
total billed amounts were reported as revenues, compared to
transactions where the net amount of sales and purchase prices
were reported as revenues with GP ratio of 100%. Specifically,
NextCom K.K. (Japan), formerly an associated company, became a
subsidiary in the third quarter of the year ended March 31,
2005, which resulted in an increase in the transactions for
which gross billed amounts are reported as revenue in network
configuration, operation and maintenance services. Also at
Mitsui, an increase in such transactions was recorded in the
logistic services business. Moreover, at Mitsui and many of its
subsidiaries, transactions reported based on net amounts, where
we assume a low degree of related risks and rewards declined
relatively.
The GP ratio in other sales for the year ended March 31,
2005 was 57.4%, an increase of 8.6 points compared to the year
ended March 31, 2004. This increase was mainly due to a
major increase in revenues from derivative commodity instruments
held for trading purpose reported in net amount, principally an
increase in revenues from crude oil trading at Arcadia Petroleum
Ltd. (United Kingdom), energy derivative transactions at
Mitsui & Co. Energy Risk Management Ltd. (United
Kingdom), and commodities derivative and foreign exchange
transactions at Mitsui, generally driven by the extremely high
volatility in the crude oil markets.
Gross Profit Classified by Operating Segment
For the year ended March 31, 2005, the growth in gross
profit was attributable to the operating segments as set forth
below:
•
The Metal Products & Minerals Segment recorded
    significant increases, as the market for metal raw materials and
    products rose on strong demand from Asia, particularly China,
    along with an
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increase in transaction volume. For the year ended
    March 31, 2005, iron ore prices under long term contracts
    rose 18.6%. Sesa Goa Limited (India) and Mitsui Iron Ore
    Development Pty. Ltd. (Australia) recorded major increases. And
    Mitsui Coal Holdings Pty. Ltd. (Australia), which is involved in
    the development of metallurgical coal and thermal coal, also
    increased gross profit. Steel products operations for the year
    ended March 31, 2005 generally maintained similar levels of
    transaction volume to the year ended March 31, 2004, amid
    price rises and tight demand, with higher gross profit at Mitsui
    and at domestic and overseas subsidiaries.
•
In the Energy Segment, Arcadia Petroleum Ltd. (United Kingdom)
    generated significant profit increases as a result of focusing
    on crude oil trading after reporting losses on petroleum product
    trading in the year ended March 31, 2004. Mitsui E&P
    Middle East B.V. (Netherlands), which is engaged in crude oil
    production in Oman, and Mittwell Energy Resources Pty. Ltd.
    (Australia), our crude oil and condensate focused subsidiary,
    saw increased gross profit reflecting rising oil prices.
•
The Consumer Products & Services Segment was firm on
    the sale of large-scale commercial facilities and residential
    subdivisions by MBK Real Estate Ltd. (the United States), along
    with Mitsui's commodity trading including grain and raw
    sugar. Moreover, as Mitsui Norin Co., Ltd. (Japan) became a
    subsidiary from the second quarter of the year ended
    March 31, 2004, gross profit for the year ended
    March 31, 2005 — the first year of a full-year
    contribution — rose ¥5.1 billion compared to
    the year ended March 31, 2004.
•
In the Logistics & Financial Markets Segment,
    Mitsui & Co. Energy Risk Management Ltd. (United
    Kingdom) generated increases in energy derivative trading
    reflecting the extremely high volatility in the crude oil
    market. Mitsui's commodities derivative and foreign
    exchange transactions also produced good results.
•
In the Americas Segment, there were broad expansions in gross
    profit at steel product subsidiaries including Mitsui Steel
    Development Co., Inc. (the United States) driven by active
    demand and firm market prices. Portac, Inc. (the United States),
    our lumber and lumber products subsidiary, also saw increased
    gross profit on surging lumber prices.
Gross profit rose ¥19.9 billion for subsidiaries
acquired or established from the second quarter of the year
ended March 31, 2004 to the end of the year ended
March 31, 2005 compared to the year ended March 31,
2004. Those subsidiaries include NextCom K.K. (Japan), formerly
an associated company which has become a subsidiary in the third
quarter of the year ended March 31, 2005, and Mitsui Norin
Co. Ltd. (Japan) as mentioned above.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the year ended
March 31, 2005 were ¥518.9 billion, an increase
of ¥24.5 billion, or 5.0%, from
¥494.4 billion for the year ended March 31, 2004.
The main reasons for this change are listed below:
•
Personnel expenses were ¥257.3 billion for the year
    ended March 31, 2005, a decrease of ¥3.3 billion
    from ¥260.6 billion for the year ended March 31,
    2004. Personnel expenses at Mitsui improved significantly
    because of a ¥19.2 billion reduction in amortization
    of unrecognized net actuarial loss, and operating results for
    the year ended March 31, 2005 were not impacted by a
    ¥10.5 billion settlement loss recorded during the year
    ended March 31, 2004 in relation to the completion of the
    transfer to the Japanese government of the substitutional
    portion of the Mitsui Employee Pension Fund ("EPF").
    Meanwhile, there was a considerable increase in personnel
    expenses mainly at overseas subsidiaries. Especially, personnel
    expenses at Mitsui & Co. Energy Risk Management Ltd.
    (United Kingdom) and Arcadia Petroleum Ltd. (United Kingdom), on
    the back of major increases in gross profit from commodities
    trading, rose ¥4.6 billion and ¥3.6 billion,
    respectively, due to large increases in performance linked
    bonuses to traders.
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•
Communication and information expenses were
    ¥38.6 billion for the year ended March 31, 2005,
    an increase of ¥5.2 billion over
    ¥33.4 billion for the year ended March 31, 2004.
    This increase resulted from the introduction of a new enterprise
    resource planning system and implementation of a total overhaul
    of office automation equipment in Mitsui.
•
Selling, general and administrative expenses other than
    personnel and communication and information expenses were
    ¥176.7 billion in the year ended March 31, 2005,
    an increase of ¥22.1 billion from
    ¥154.6 billion for the year ended March 31, 2004.
    There was an increased expense of ¥7.4 billion at
    domestic subsidiaries, mainly due to the ¥3.0 billion
    increases at the above-mentioned Mitsui Norin Co., Ltd. (Japan).
    Telepark Corp. (Japan) also recorded an increase of
    ¥1.9 billion reflecting the expanded cell phone
    business. Overseas subsidiaries recorded an increase of
    ¥7.9 billion, including ¥1.0 billion at
    P.T. Bussan Auto Finance (Indonesia), reflecting an
    expansion in business activities. There was also an increased
    expense of ¥6.4 billion including office
    administration costs and various stamp duties.
In the same manner as gross profit, selling, general and
administrative expenses rose ¥14.6 billion at
subsidiaries acquired or established from the second quarter of
the year ended March 31, 2004 to the end of the year ended
March 31, 2005.
Provision for Doubtful Receivables
Provision for doubtful receivables for the year ended
March 31, 2005 was ¥8.9 billion, a reduction of
¥1.0 billion, or 10.1%, from ¥9.9 billion
for the year ended March 31, 2004. In both the years ended
March 31, 2005 and 2004, provision for doubtful receivables
consisted mainly of individually small provisions for a number
of customers. Of those, the major provisions for doubtful
receivables in the year ended March 31, 2005 included a
¥0.9 billion provision for a machinery-related
domestic customer, while overseas there was a
¥0.8 billion provision for an overseas customer of
Mitsui & Co. Energy Risk Management Ltd. (United
Kingdom).
The major provisions for doubtful receivables for the year ended
March 31, 2004 included provisions against overseas
customers for machinery related transactions, and provisions for
domestic and overseas customers in the steel products business.
Interest Expense, Net of Interest Income
Interest income for the year ended March 31, 2005 was
¥35.5 billion, an increase of ¥5.5 billion,
or 18.3%, from the ¥30.0 billion for the year ended
March 31, 2004. Interest expenses were
¥43.6 billion, an increase of ¥7.7 billion,
or 21.4%, from ¥35.9 billion for the year ended
March 31, 2004. As a result, interest expense, net of
interest income was ¥8.1 billion, an increase of
¥2.2 billion, or 37.3%, from ¥5.9 billion
for the year ended March 31, 2004. A breakdown of the
principal changes for the year ended March 31, 2005 is as
follows:
•
At Mitsui Sakhalin Holdings B.V. (Netherlands), investments
    increased to Sakhalin Energy Investment Company Ltd. (Bermuda),
    and interest expenses rose ¥1.8 billion on the
    resultant increase in borrowings; and
•
Interest expenses at Mitsui & Co. (U.S.A) Inc. (the
    United States) rose ¥1.7 billion reflecting a rise in
    U.S. dollar interest rate.
Interest rate trends for the year ended March 31, 2005 for
the Japanese yen and U.S. dollar, the major currencies in
which we have borrowings, are as follows:
•
The average of the month-end Japanese yen three-month LIBOR
    remained 0.05%, roughly unchanged from the 0.06% during the year
    ended March 31, 2004, as the Bank of Japan maintained its
    existing very low interest rate policy. The average interest
    rate on 10-year Japanese Government Bonds was 1.52%, rising from
    the 1.16% during the year ended March 31, 2004, as
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yields slipped gradually in line with the emergence of
    perceptions of a slowing in the business cycle, after a rise to
    1.9% in June 2004 on the back of an improvement in global
    business sentiment; and
•
The average of the month-end U.S. dollar three-month LIBOR
    during the year ended March 31, 2005 was 2.13%, up from the
    1.16% during the year ended March 31, 2004, reflecting the
    gradual rise in the Federal Funds target rate to 3.0% by the FRB
    in the period between June 2004 and May 2005, even as the FRB
    maintained its easing stance.
Dividend Income
Our dividend income for the year ended March 31, 2005 was
¥24.6 billion, an increase of ¥6.2 billion,
or 33.7%, from ¥18.4 billion for the year ended
March 31, 2004. Dividends from LNG projects in the Middle
East (Abu Dhabi, Oman and Qatar) were ¥12.8 billion, a
¥4.7 billion increase from the ¥8.1 billion
for the year ended March 31, 2004, reflecting their strong
performance due to higher oil prices.
Government Grant for Transfer of Substitutional Portion of
    EPF
On March 12, 2004, Mitsui completed the transfer of the
substitutional portion of EPF, which is a defined benefit
pension program established under the Welfare Pension Insurance
Law, to the Japanese government. As a result, in the year ended
March 31, 2004 a government grant for transfer of the
substitutional portion of EPF of ¥17.2 billion was
recorded. The grant represents the difference between the
accumulated benefit obligations settled with regard to the
substitutional portion and the related government-specified
portion of the plan assets that were transferred. For
information concerning the accounting for the transfer of the
substitutional portion of EPF, see Note 14, "PENSION
COSTS AND SEVERANCE INDEMNITIES."
Gain on Sales of Securities — Net
The net realized gain on sales of securities for the year ended
March 31, 2005 was ¥34.9 billion, an increase of
¥7.4 billion, or 26.9% from ¥27.5 billion
for the year ended March 31, 2004.
The following is a breakdown of main points related to net gains
on sales of securities for the year ended March 31, 2005.
•
In the Machinery, Electronics & Information Segment, we
    reported a ¥7.2 billion gain on the sale of shares in
    Vodafone K.K., a Japanese cell-phone carrier, in response to a
    tender offer, and a ¥4.1 billion gain in
    Mitsui & Associates Telepark Corporation (Japan), a
    subsidiary engaged in sales of mobile devices and fixed
    telecommunication lines, following its initial public offering
    and listing on the second section of the Tokyo Stock Exchange.
    (Mitsui & Associates Telepark Corporation changed its
    name to Telepark Corp. in October 2004.) Also in December 2004,
    in connection with the merger of a formerly associated company
    (equity method investee) NextCom K.K. (public company in
    Japan), a software development and marketing subsidiary BSI Co.,
    Ltd. (non-public company), and a data telecommunications
    equipment marketing subsidiary ADAM NET Ltd. (non-public
    company), Mitsui was allotted shares in NextCom K.K. in exchange
    for shares in two subsidiaries and recorded a
    ¥3.7 billion gain from the exchange of shares of those
    two subsidiaries to the extent of the share-down;
•
In the Consumer Products & Services Segment, we
    recorded a combined ¥4.0 billion gain on sales of
    shares of netprice, ltd. and VeriTrans, Inc. when they were
    listed on domestic stock exchanges; and
•
In the Chemical and the Other Overseas Areas Segments, we sold
    shares in Bangkok Polyethylene Public Company Limited, a maker
    of high density polyethylene, and recorded a gain of
    ¥3.9 billion.
In the year ended March 31, 2004, we recorded a gain of
¥6.7 billion from the sale of shares of SKY Perfect
Communications Inc. in the Consumer Products & Services
Segment, a gain of ¥4.4 billion from
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the sale of Caemi Mineração e Metalurgia S.A. in the
Metal Products & Minerals Segment, and a gain of
¥1.0 billion from the sale of MODEC Inc. in the
Machinery, Electronics & Information Segment.
Gain on Issuance of Stock by a Subsidiary
As mentioned above in Gains on Sales of Securities —
Net, Mitsui & Associates Telepark Corporation
registered and issued 8,000 shares of common stock in an
initial public offering on the second section of the Tokyo Stock
Exchange in April 2004. As a result of the public offering, our
ownership interest in Mitsui & Associates Telepark
Corporation decreased and we recognized a gain of
¥1.7 billion on this issuance as a separate line item
in the Statements of Consolidated Income, under gain on issuance
of stock by a subsidiary, in addition to a
¥4.1 billion gain on securities discussed above. For
further information, see Note 19, "ISSUANCE OF STOCK
BY SUBSIDIARIES AND ASSOCIATED COMPANIES."
Loss on Write-Down of Securities
For the year ended March 31, 2005, the loss on write-down
of securities was ¥16.5 billion, a decrease of
¥14.5 billion, or 46.8%, from the
¥31.0 billion for the year ended March 31, 2004.
Stock prices in Japan started to rebound around in May 2003 as
the Japanese government's decision to inject funds into
certain banks reduced concerns about the stability of the
financial system. Stocks continued to recover towards the end of
March 2004 supported by improvements in corporate profits and
gradual economic recovery. For the year ended March 31,
2005, within a narrow range between a high of ¥12,163.89
and a low of ¥10,505.05 in the Nikkei Stock Average, the
Japanese stock markets experienced repeated minor adjustments
due to surging crude oil prices, concern over worldwide
inflation, appreciation of the yen and a slowdown in the United
States economy. However, the stock markets were underpinned by
hopes for recoveries of domestic and overseas economies and an
expansion in corporate profits. The Nikkei Stock Average closed
at ¥11,668.95, ¥11,715.39, and ¥7,972.71 on
March 31, 2005, 2004 and 2003, respectively.
Reflecting these developments in the stock market, the
write-down of marketable securities for the year ended
March 31, 2005 reduced slightly to ¥0.6 billion
from ¥1.1 billion for the year ended March 31,
2004.
With respect to non-marketable securities, considering a
deterioration in financial conditions due to sluggish
advertising revenue, we recorded losses on shares of satellite
broadcaster BS-I, INCORPORATED (not the same company as BSI Co.,
Ltd., listed under Gains on Sales of Securities — Net)
and BS Japan Corporation of ¥1.9 billion and
¥1.2 billion, respectively. MBK Australia Resorts Pty,
Ltd. (Australia) reported a write-down of ¥1.7 billion
based on the estimated sale price for its investment in Mirage
Resorts business in Australia. There were also other instances
of small losses. For the year ended March 31, 2004, we
recorded a ¥21.7 billion loss on shares in POWEREDCOM,
Inc, a Japanese telecommunications company, in consideration of
the deterioration in its financial position, reflecting the
operating loss caused by fierce price competition along with
expansion of the Internet and the decrease in revenues from
fixed-line business. Setting aside the ¥1.5 billion
loss on shares in Mitsui Denman (Ireland) Co., Ltd., write-downs
of other non-marketable securities were not significant.
(Gain) Loss on Disposal or Sales of Property and
    Equipment — Net
For the year ended March 31, 2005, gain on disposal or
sales of property and equipment — net was
¥6.5 billion, an increase of ¥2.4 billion,
or 58.5%, over ¥4.1 billion in the year ended
March 31, 2004.
In addition to a ¥3.2 billion gain from the sale of
Mitsui's corporate residences and dormitories, there was a
¥1.8 billion gain from the sale of warehouses for
lease by a logistics-related subsidiary, Tri-Net Logistics
Management, Inc. (the United States).
For the year ended March 31, 2004, we recorded a
¥5.7 billion gain from the sale of our corporate
residences and dormitories. Those sold in the years ended
March 31, 2005 and 2004 had been acquired
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long before the significant land price increase in Japan in the
late 1980s and early 1990s. We also recorded small losses on the
sale of aircraft and gas stations for the year ended
March 31, 2004.
Impairment Loss of Long-Lived Assets
The impairment loss of long-lived assets for the year ended
March 31, 2005 was ¥21.5 billion, a
¥0.9 billion, or 4.0% decrease from
¥22.4 billion for the year ended March 31, 2004.
The main elements of impairment losses for the year ended
March 31, 2005 were as follows.
•
In the Metal Products & Minerals Segment, we reported a
    ¥6.5 billion impairment loss on plant facilities at an
    aluminum smelting subsidiary, Mitalco Inc. (the United States),
    reflecting the rising trend of electricity costs;
•
We recorded a ¥3.3 billion impairment loss on land for
    development purposes and a loss of ¥1.3 billion on
    land for lease, both held domestically by Mitsui; and
•
In the Energy Segment, Mitsui Oil Co., Ltd. (Japan) recorded an
    impairment loss of ¥2.3 billion mainly on gas stations.
The main elements of impairment losses for the year ended
March 31, 2004 were as follows:
•
Impairment losses on Mitsui's corporate residences and
    dormitories of ¥8.0 billion were recorded due to a
    decline in land prices in Japan. The corporate residences and
    dormitories on which we recorded impairment losses during the
    year ended March 31, 2004 had been acquired mainly in the
    early 1990s;
•
In the Machinery, Electronics & Information Segment,
    there were impairment losses of ¥4.3 billion that
    resulted from the exit from and disposal of certain business at
    NBI Corporation (formerly Toyo Valve Co., Ltd.) and Mitsui
    Bussan Machinery Co., Ltd.;
•
A combined ¥2.8 billion loss was reported at two
    domestic subsidiaries that operate golf courses; and
•
In the Energy Segment, Mitsui Oil Co., Ltd. (Japan) reported
    ¥1.7 billion in impairment losses in connection with
    the restructuring of its gas stations.
For more information on impairment losses on long-lived assets,
see Note 10, "IMPAIRMENT LOSS OF LONG-LIVED
ASSETS," and on our reevaluation and restructuring of
subsidiaries and associated companies, see Note 25,
"EXIT OR DISPOSAL ACTIVITIES."
Compensation and Other Charges Related to DPF Incident
In November 2004, Mitsui discovered that false data had been
produced and submitted to authorities for diesel particulate
filters ("DPF"s) manufactured by Mitsui's
subsidiary, PUREarth Incorporated (Japan), and sold by Mitsui.
These filters were subsidized by the Tokyo Metropolitan
Government and seven other prefectural and municipal
governments, as well as the Ministry of Land, Infrastructure and
Transport, the Ministry of the Environment, and related industry
associations. Mitsui sold approximately 21,500 units of the
product.
Mitsui is carrying out a three-part user response plan
involving: (1) the free replacement of DPFs, (2) the
reimbursement of the amount paid for purchasing Mitsui's
DPFs in exchange for their redemption and (3) a support
program for the purchase of alternative vehicles. In addition,
Mitsui has been proceeding with full compensation of relevant
subsidies.
For the year ended March 31, 2005, Mitsui recorded
¥36.0 billion as compensation and other charges
related to DPF incident in the Statements of Consolidated
Income, consisting of a user response charge of approximately
¥28.0 billion and subsidy compensation of
approximately ¥8.0 billion. The user response charge
was estimated based on expected costs in each user response
plan, which reflects the requirement of each respective user.
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The subsidy compensation was recorded based on the amounts
claimed by subsidy providers. As of the end of June 2005, most
of the subsidy compensation amount has been paid.
For more information please see Note 22, "COMPENSATION
AND OTHER CHARGES RELATED TO DPF INCIDENT."
Other
Expense — Net
For the year ended March 31, 2005, other
expense — net was ¥7.8 billion, a
significant decrease of ¥20.9 billion, or 72.8%, from
¥28.7 billion for the year ended March 31, 2004.
The main elements of other expense — net for the year
ended March 31, 2005 were:
•
the recording of ¥2.5 billion in exploration expenses,
    reflecting an expansion in exploration activities at our
    petroleum and gas development and production subsidiaries,
    including Wandoo Petroleum Pty Ltd. (Australia); and
•
the recording of ¥2.0 billion in restructuring-related
    charges, mainly representing costs related to the termination of
    an indemnity agreement which had been made in connection with
    the sale of a ceramic building materials and fiberboard business
    at Mitsui Wood Systems, Inc. (Japan) in October 2001.
Other expense — net for the year ended March 31,
2004 mainly consisted of:
•
litigation charges of ¥13.7 billion related to the
    settlement of an antitrust lawsuit filed against our subsidiary,
    Bioproducts, Inc. (the United States), which manufactures and
    sells feed ingredient; and
•
restructuring-related charges of ¥6.3 billion, of
    which main elements included a combined ¥3.7 billion
    for Mitsui Bussan Machinery Co., Ltd. (Japan) and NBI
    Corporation (Japan) in the Machinery, Electronics &
    Information Segment.
With regard to litigation charges related to Bioproducts, Inc.,
other related lawsuits are still pending. Although there can be
no assurance of the ultimate results, management believes that
there is less than a reasonable possibility that losses in
addition to amounts that have been reserved for possible
litigation losses will occur, and that the amount of any such
additional losses would not have a material impact on the
consolidated financial position, results of operations or cash
flows. For more details, see Note 23, "COMMITMENTS AND
CONTINGENT LIABILITIES."
For more information on other expense — net, see
Note 20, "OTHER EXPENSE — NET," and on
our restructuring activities, see Note 25, "EXIT OR
DISPOSAL ACTIVITIES."
Income Taxes
For the year ended March 31, 2005, income taxes amounted to
¥103.6 billion, reflecting increases in income from
continuing operations before minority interests and equity in
earnings, and recorded a major rise of ¥56.6 billion,
or 120.4%, from ¥47.0 billion for the year ended
March 31, 2004. The effective tax rate was 59.0%, an
increase of 6.0 points from 53.0% for the year ended
March 31, 2004.
This was mainly due to the impact of:
•
increases in the effect of taxation on dividends from
    subsidiaries and corporate joint ventures (an increase of 5.7
    points from the year ended March 31, 2004); and
•
increases in valuation allowance provided on deferred tax assets
    (an increase of 3.6 points over the year ended March 31,
    2004), due mainly to the increase in valuation allowance on
    deferred tax assets on the impairment loss of certain of
    Mitsui's investments recorded in the past years as a result
    of a change in a policy to sell certain investments.
For further information, see Note 21, "INCOME
TAXES."
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Minority Interests in Earnings of Subsidiaries
Minority interests in earnings of subsidiaries for the year
ended March 31, 2005 were ¥17.6 billion, an
increase of ¥10.1 billion, or 134.7%, from
¥7.5 billion for the year ended March 31, 2004.
Our major minority interests in earnings of subsidiaries for the
year ended March 31, 2005 were ¥5.0 billion in
Sesa Goa Limited (India) (with a minority interest of 49%) and
¥2.9 billion in Japan Collahuasi Resources B.V.
(Netherlands) (with a minority interest of 38.1%) that owns an
interest in a Chilean copper mine joint venture, Compania Minera
Dona Ines de Collahuasi SCM (Chile).
Our major minority interests in earnings of subsidiaries for the
year ended March 31, 2004 were ¥1.5 billion in
Sesa Goa Limited and ¥0.7 billion in Japan Collahuasi
Resources B.V. Increases for the year ended March 31, 2005
were primarily attributable to the strong performances of the
above-mentioned two subsidiaries on the back of rises in prices
of mineral resources.
Equity in Earnings of Associated Companies — Net
    (After Income Tax Effect)
For the year ended March 31, 2005, equity in earnings of
associated companies — net (after income tax effect)
posted a gain of ¥65.9 billion, a significant increase
of ¥25.8 billion, or 64.3%, from
¥40.1 billion for the year ended March 31, 2004.
•
Since the second quarter of the year ended March 31, 2004,
    equity in earnings of Valepar S.A. (Brazil), a holding company
    of the Brazilian iron ore and mineral resources company,
    Companhia Vale do Rio Doce ("CVRD"), have been
    included. In the Metal Products & Minerals Segment,
    earnings of Valepar S.A. and Compania Minera Dona Ines de
    Collahuasi SCM (Chile) increased to ¥6.4 billion and
    ¥7.8 billion, respectively, for the year ended
    March 31, 2005, compared to ¥2.5 billion and
    ¥1.9 billion, respectively, for the year ended
    March 31, 2004.
•
In the Energy Segment, earnings increased significantly at Japan
    Australia LNG (MIMI) Pty Ltd. (Australia) which is involved
    in natural gas, crude oil and condensate exploration,
    development and marketing in West Australia, due to rising oil
    prices and increased production on the back of facility
    expansion. Mitsui Oil Exploration Co., Ltd. (Japan) which is
    chiefly engaged in the production of gas and crude oil in
    offshore Thailand, also recorded an increase to
    ¥2.7 billion for the year ended March 31, 2005
    from ¥1.1 billion for the year ended March 31,
    2004, mainly due to rises in oil prices. Also, Sakhalin Energy
    Investment Company Ltd. (Bermuda) increased earnings on rising
    crude oil prices and an increase in production volume.
•
In the Logistics & Financial Markets Segment, Mitsui
    Leasing & Development Co. Ltd. (Japan) increased to
    ¥2.5 billion for the year ended March 31, 2005
    from ¥0.9 billion for the year ended March 31,
    2004 reflecting the strong performance of its machinery and
    shipping lease business.
•
In the Machinery, Electronics & Information Segment,
    P.T. Paiton Energy (Indonesia) posted earnings of
    ¥2.9 billion for the year ended March 31, 2005,
    continuing the firm performance seen for the year ended
    March 31, 2004. Automobile sales associated companies
    overseas continued to show solid performance for the year ended
    March 31, 2005. There was also a new contribution of
    ¥1.1 billion from United Auto Group Inc. (the United
    States), an automobile dealer which became an associated company
    during the year ended March 31, 2005.
Income (Loss) from Discontinued Operations — Net
    (After Income Tax Effect)
For the year ended March 31, 2005, income (loss) from
discontinued operations — net (after income tax
effect) was income of ¥0.7 billion, a
¥4.4 billion increase from the loss of
¥3.7 billion recorded for the year ended
March 31, 2004. The primary components of discontinued
operations for the year ended March 31, 2005 are as follows:
•
Shirasagi Golf Club Co., Ltd. (Japan), a subsidiary reported in
    the All Other Segment, had been engaged in the operation of a
    membership golf club in Japan, which had reported consecutive
    losses since the opening of the golf club because both the
    number of customers and the average sale per
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customer had declined. In these business conditions, as it was
    very unlikely that Shirasagi Golf Club Co., Ltd. would be able
    to improve its earnings and pay off its debts in the future,
    Mitsui disposed of other than by sales the operation during the
    year ended March 31, 2005. For the year ended
    March 31, 2005, the income from discontinued operation of
    Shirasagi Golf Club Co., Ltd. was ¥0.7 billion,
    partially reversing losses in previous years.
A breakdown of operations discontinued for the year ended
March 31, 2004 was as follows:
•
Takeoka Golf Club, a domestic subsidiary in the All Other
    Segment, which had been engaged in the operation of a public
    golf club in Japan, suffered from a declining number of visitors
    due to keen competition with other golf clubs adjacent to the
    golf club and was disposed of by sale during the year ended
    March 31, 2004. The business was disposed of and we
    recorded ¥3.5 billion in losses — net (after
    income tax effect). We also posted a loss from disposal of
    Global Octanes Corporation (the United States) and other two
    subsidiaries, which had managed Global Octanes Texas Limited
    Partnership, and had been engaged in the manufacture and sale of
    Methyl Tertiary-Butyl Ether ("MTBE"), as its partners,
    but had dissolved the partnership and disposed of the operations
    during the year ended March 31, 2004.
For additional information about our discontinued operations,
see Note 4, "DISCONTINUED OPERATIONS."
Cumulative Effect of Change in Accounting Principle (After
    Income Tax Effect)
On April 1, 2003, we adopted Statement of Financial
Accounting Standards ("SFAS") No. 143,
"Accounting for Asset Retirement Obligations."
SFAS No. 143 requires entities to record the fair
value of a liability for an asset retirement obligation in the
period in which it is incurred. When the liability is initially
recorded, the entity capitalizes the related cost by increasing
the carrying amount of the long-lived asset. We recognized the
cumulative effect of the initial application of
SFAS No. 143 as a separate line item in the Statements
of Consolidated Income under "Cumulative Effect of Change
in Accounting Principle (After Income Tax Effect)"
amounting to ¥2.3 billion including our share of
amounts attributable to associated companies. This represents
the difference between the net amount that was recognized in the
Consolidated Balance Sheets upon the retroactive application of
SFAS No. 143 as of April 1, 2003 and the amounts
recognized in the Consolidated Balance Sheets at that date prior
to the application of SFAS No. 143. The asset
retirement obligations are principally related to the costs of
dismantling and removing mining facilities and gas production
facilities owned by subsidiaries and associated companies in
Australia, which are engaged in mining operations or oil and gas
producing activities.
For additional information about the cumulative effect of change
in accounting principle, see Note 11, "ASSET
RETIREMENT OBLIGATIONS."
Summary of Operations for the Year Ended March 31,
    2004
Operating Environment
The global economic recovery gained momentum from late 2003. The
principal developments in the economic environment influencing
our results of operations during the year ended March 31,
2004 included the following:
•
Major expansion in the exports and imports by emerging economies
    including those in Asia, drove the growth of the world economy.
    The Chinese economy reported an exceptionally strong performance
    with its government seeking sustainable economic growth and
    showing a cautious attitude in its monetary and foreign exchange
    policies to avoid overheating of the economy;
•
There was marked overall appreciation in international commodity
    prices reflecting increasing demand from Asian countries,
    especially from China;
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•
The Japanese economy began to recover gradually along with the
    improvement in the world economic conditions and the apparent
    reduction in the risks of a recession arising from instability
    of the Japanese financial system;
•
As a result of the improvement in the Japanese economy, stock
    prices in Japan bottomed out from the beginning of the year
    ended March 31, 2004; and
•
Major countries around the world maintained their low interest
    rate policies.
Summary of Operations for
the Year Ended March 31, 2004
For the year ended March 31, 2004, we recorded net income
of ¥68.4 billion, an increase of
¥37.3 billion or 119.6% from ¥31.1 billion
for the year ended March 31, 2003. Our overview of the
results of the operations for the year ended March 31, 2004
is set forth below:
•
Gross profit and equity in earnings of associated
    companies — net (after income tax effect) benefited
    from rising commodity market prices driven by strong demand in
    China and other Asian countries for energy and mineral
    resources. As a result, the Metal Products & Minerals
    Segment improved its operating results and the Energy Segment
    continued to perform well as compared with the year ended
    March 31, 2003;
•
Increased overseas demand for plant projects, automobiles and
    ocean vessels improved gross profit in the Machinery,
    Electronics & Information Segment and higher prices and
    increased demand for petrochemical products, including ammonia
    and olefin, improved the results of operations of the Chemical
    Segment. Charges for impairment losses on leased property and
    equipment, investments in securities and receivables in the
    Machinery, Electronics & Information Segment and losses
    resulting from the discontinued operations of North American
    petrochemical subsidiaries in the Chemical Segment were reduced
    for the year ended March 31, 2004 as compared to the year
    ended March 31, 2003; and
•
The turnaround of MITSUI FOODS CO., LTD. (Japan), formerly Sanyu
    Koami Co., Ltd., that had recorded a net loss for the year ended
    March 31, 2003 due to impairment losses on non-marketable
    equity securities and unused land and for the year ended
    March 31, 2002 due to an expense with respect to an early
    retirement program and provision for doubtful receivables
    contributed to the improvement in the Consumer
    Products & Services Segment.
Reflecting development in the above-mentioned operating
segments, our operating results for the year ended
March 31, 2004 improved as compared with the year ended
March 31, 2003 as follows:
•
Gross profit increased by ¥44.3 billion to
    ¥613.9 billion for the year ended March 31, 2004
    compared with ¥569.6 billion for the year ended
    March 31, 2003; and
•
Equity in earnings of associated companies — net
    (after income tax effect) rose by ¥24.8 billion to
    ¥40.1 billion for the year ended March 31, 2004.
    Associated companies in the natural resources business
    contributed to this growth, while there were significant losses
    for the year ended March 31, 2003 from associated companies
    in the Machinery, Electronics & Information Segment and
    the Chemical Segment.
These improvements were partially offset by an increase in other
expense — net by ¥17.7 billion to
¥28.7 billion for the year ended March 31, 2004,
which was primarily attributable to litigation charges for the
United States antitrust lawsuits related to our chemical
subsidiary, Bioproducts, Inc. (the United States).
The average U.S. dollar-yen exchange rate for the year
ended March 31, 2004 was ¥112.76=U.S.$1 compared with
¥121.20=U.S.$1 for the year ended March 31, 2003, a
yen appreciation of ¥8.44, or 7.0%. The appreciation of the
yen had the net effect of reducing gross profit by approximately
¥13.0 billion.
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Discussion and Analysis of Operating Results for the Year
    Ended March 31, 2004
Revenues
Sales of Products
For the year ended March 31, 2004, sales of products were
¥2,490.0 billion, an increase of
¥173.2 billion from ¥2,316.8 billion for the
year ended March 31, 2003. The major reason for this
increase was a ¥112.9 billion increase in revenues
from subsidiaries involved in oil and gas trading activities.
This growth was mainly attributable to an 8.5% increase in the
average price of crude oil during the year ended March 31,
2004 caused by turmoil in Iraq and a lower inventory level of
petroleum products.
Sales of Services
For the year ended March 31, 2004, sales of services were
¥424.5 billion, an increase of ¥34.8 billion
from ¥389.7 billion for the year ended March 31,
2003. Major components of these revenues for the year ended
March 31, 2004 were revenues related to sales and purchases
of products, which are reported net under EITF No. 99-19.
These include commissions received at a fixed amount or rate in
relation to the volume or amount of transactions, and revenues
reported net for some back-to-back sales and purchase
transactions of products where the difference between sales
price and purchase price is recorded as revenue. Revenues from
such trading margins and commissions increased from
¥273.2 billion for the year ended March 31, 2003
to ¥303.7 billion for the year ended March 31,
2004. This increase was mainly due to the growth in trading
transactions at subsidiaries such as MITSUI FOODS CO., LTD.
(Japan) primarily with Japanese supermarkets. Revenues from
logistics and warehouse services, information and communication
services, technical support and many other types of services
increased from ¥77.5 billion for the year ended
March 31, 2003 to ¥83.3 billion for the year
ended March 31, 2004. Revenues from commissions for
facilitating conclusion of the contracts between manufacturers
and customers and for delivering products between suppliers and
customers decreased from ¥39.0 billion for the year
ended March 31, 2003 to ¥37.5 billion for the
year ended March 31, 2004.
Other Sales
For the year ended March 31, 2004, leasing revenues
decreased from ¥49.9 billion to
¥42.2 billion, mainly due to the disposal of leased
aircraft and the termination of the lease contracts in relation
with ocean transport vessels. Derivative trading revenues
decreased from ¥22.1 billion for the year ended
March 31, 2003 to ¥18.2 billion for the year
ended March 31, 2004.
Gross Profit
Gross Profit Classified by Category of Revenues
For the year ended March 31, 2004, gross profit
("GP") increased by ¥44.3 billion to
¥613.9 billion. The changes in GP and GP ratio
classified by category of revenues are set forth below:
Billions of Yen
Years Ended March 31,
2004
2003
As Restated
As Restated
Change
GP
GP Ratio
GP
GP Ratio
GP
GP Ratio
Gross profit from sales of products
¥197.4
7.9%
¥185.7
8.0%
¥11.7
(0.1
)%
Gross profit from sales of services
383.1
90.2%
345.1
88.6%
38.0
1.6
%
Gross profit from other sales
33.4
48.8%
38.8
49.7%
(5.4
)
(0.9
)%
Total
¥613.9
20.6%
¥569.6
20.5%
¥44.3
0.1
%
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Gross profit from sales of products for the year ended
March 31, 2004 increased ¥11.7 billion compared
with the year ended March 31, 2003. This increase was
mainly due to the contribution of newly acquired subsidiaries,
such as Mitsui Norin Co., Ltd. (Japan).
Gross profit from sales of services for the year ended
March 31, 2004 increased ¥38.0 billion compared
with the year ended March 31, 2003. This increase was
mainly due to the growth in commissions for facilitating the
conclusion of contracts between manufacturers and customers and
profit margin for construction projects of oil refineries and
power plants, trading margins from transactions relating to cell
phones and from the domestic transactions with supermarkets by
MITSUI FOODS CO., LTD. (Japan). Gross profit ratio for the year
ended March 31, 2004 improved 1.6 points compared with the
year ended March 31, 2003, mainly due to the increase in
revenues from trading margins and commissions reported net,
where the corresponding costs are fully offset by the billed
amount and the gross profit ratio becomes 100%.
Gross profit from other sales for the year ended March 31,
2004 decreased ¥5.4 billion from the year ended
March 31, 2003. This decrease was mainly due to the
derivative trading losses at Arcadia Petroleum Ltd. (United
Kingdom) relating to petroleum products tradings. Gross profit
ratio for the year ended March 31, 2004 also decreased 0.9
points compared with the year ended March 31, 2003, mainly
due to the decrease in revenues from petroleum products
derivative trading transactions.
Gross Profit Classified by Operating Segment
For the year ended March 31, 2004, the growth in gross
profit was mainly attributable to the operating segments as set
forth below:
Billions of Yen
Years Ended
March 31,
Segment
2004
2003
Change
Chemical
¥ 91.1
¥ 69.3
¥21.8
Machinery, Electronics & Information
128.7
121.1
7.6
Consumer Products & Services
135.9
122.6
13.3
Metal Products & Minerals
77.0
71.5
5.5
•
Growth in the Chemical Segment was due to higher market prices
    for ammonia and other petrochemicals resulting from the rising
    crude oil and natural gas prices;
•
Results in the Machinery, Electronics & Information
    Segment benefited from a higher volume of transactions for
    construction of oil refineries and power plants, sales of
    automobiles, ocean vessels and cell phones;
•
In the Consumer Products & Services Segment, newly
    acquired subsidiary Mitsui Norin Co., Ltd. (Japan), a producer
    and seller of tea leaves, made a new contribution while MITSUI
    FOODS CO., LTD. (Japan) also recorded higher sales mainly to
    supermarkets in Japan; and
•
In the Metal Products & Minerals Segment, gross profit
    increased at an iron ore subsidiary Sesa Goa Limited (India),
    because of growing iron ore exports to China and higher market
    prices of its products in India, and at Mitsui Iron Ore
    Development Pty. Ltd. (Australia), reflecting increased
    shipments of iron ore driven by the demand from China and other
    countries.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the year ended
March 31, 2004 increased to ¥494.4 billion from
¥454.0 billion for the year ended March 31, 2003.
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Despite lower expenses for the early retirement support plan at
Mitsui, total personnel expenses for the year ended
March 31, 2004 increased by ¥19.3 billion to
¥261.3 billion because:
•
At Mitsui, pension costs increased sharply due to a
    ¥13.0 billion increase in amortization of the
    unrecognized net actuarial loss; and
•
A settlement loss of ¥10.5 billion was incurred due to
    the completion of the transfer to the Japanese government of the
    substitutional portion of the Mitsui's EPF.
Communication and information expenses for the year ended
March 31, 2004 increased by ¥2.4 billion to
¥33.5 billion from the year ended March 31, 2003
because of the introduction of a new enterprise resource
planning system designed to raise productivity by standardizing
business processes at Mitsui.
Selling, general and administrative expenses other than
personnel and communication and information expenses increased
by ¥18.3 billion to ¥155.8 billion from the
year ended March 31, 2003 due to an increase in newly
acquired subsidiaries, including Mitsui Norin Co., Ltd. (Japan),
where there were additional depreciation and sales promotion
expenses.
Provision for Doubtful Receivables
Provision for doubtful receivables fell to
¥9.9 billion compared with ¥13.7 billion for
the year ended March 31, 2003. For the year ended
March 31, 2004, provision for doubtful receivables
consisted mainly of individually small provisions for a number
of customers, primarily overseas customers in the machinery
business and domestic and overseas customers in the steel
product business.
For the year ended March 31, 2003, the provision was mainly
for amounts due from United Airlines, Inc. and other receivables
relating to aircraft leasing, caused by the deterioration of the
worldwide airline industry, especially in the United States; for
receivables from customers in Argentina and Honduras reflecting
weak economic conditions; and for receivables from domestic
customers of MITSUI FOODS CO., LTD. (Japan) and Mitsui Bussan
Plant & Project Corp. (Japan).
Interest Expense, Net of Interest Income
Interest expense, net of interest income for the year ended
March 31, 2004 decreased by ¥0.1 billion, which
was attributable to lower net interest expenses at overseas
subsidiaries due to lower interest rates.
The average of the month-end Japanese yen three-month London
Interbank Offered Rate ("LIBOR") was 0.06% and 0.07%
for the year ended March 31, 2004 and 2003, respectively.
The average long-term prime rate in Japan was 1.59% for the year
ended March 31, 2004 compared to 1.79% for the year ended
March 31, 2003. The average of the month-end
U.S. dollar three-month LIBOR was 1.16% for the year ended
March 31, 2004, which fell from 1.63% for the year ended
March 31, 2003 because of the continuing low interest rate
policy in the United States.
Dividend Income
Our dividend income for the year ended March 31, 2004
increased by ¥2.1 billion mainly due to the
¥1.1 billion increase in dividends received by
Mitsui & Co. (Hong Kong) Ltd. from local Hong Kong
investee companies. Dividends from investments in the Energy
Segment amounting to ¥8.1 billion, principally from
LNG projects in Abu Dhabi, Oman and Qatar, were consistent with
dividends for the year ended March 31, 2003 of
¥8.3 billion.
Gain on Securities Contributed to an Employee Retirement
    Benefit Trust
During the year ended March 31, 2004, no contribution of
securities to an employee retirement benefit trust was made. For
the year ended March 31, 2003, Mitsui made a contribution
of certain available-for-sale securities to the trust and
recorded a ¥15.8 billion gain.
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Government Grant for Transfer of Substitutional Portion of
    EPF
This was reported for the year ended March 31, 2004 only.
For information, see "Discussion and Analysis of Operating
Results for the Year Ended March 31, 2005."
Gain on Sales of Securities — Net
The net realized gain on sales of securities for the year ended
March 31, 2004 increased by ¥16.5 billion from
the year ended March 31, 2003. For the year ended
March 31, 2004, gain related to sales of shares of SKY
Perfect Communications Inc., Caemi Mineração e
Metalurgia S.A. and MODEC, Inc.
For the year ended March 31, 2003, there were gains
resulting from the exchange of shares accompanying the merger of
Japan Airlines Company, Ltd. and Japan Air System Co., Ltd. and
the sale of shares of information technology-related companies,
offsetting losses on sales of listed shares of banking
institutions.
Loss on Write-Down of Securities
For the year ended March 31, 2004, the loss on write-down
of securities decreased by ¥6.9 billion to
¥31.0 billion from ¥37.9 billion recorded
for the year ended March 31, 2003.
Stock prices in Japan fell sharply in early 2003 as
non-performing loan problems sparked concerns about the Japanese
financial system and the Nikkei Stock Average reached its
"post-bubble" record low in April 2003. However, a
rebound in stock markets began in May 2003 after the Japanese
government's decision to inject public funds into certain
banks alleviated concerns about financial instability. Improving
corporate earnings and a gradual upturn in the Japanese economy
also drove stock prices higher for the year ended March 31,
2004. The Nikkei Stock Average closed at ¥11,715.39,
¥7,972.71 and ¥11,024.94 on March 31, 2004, 2003
and 2002, respectively.
Due to the rebound in Japanese stock markets, the loss on
write-down of marketable securities decreased sharply to
¥1.1 billion from ¥15.6 billion for the year
ended March 31, 2003. The loss on write-down of marketable
securities for the year ended March 31, 2003 primarily
consisted of those of banking institutions.
For the year ended March 31, 2004, however, with respect to
non-marketable securities, we posted a ¥21.7 billion
loss on shares of POWEREDCOM, Inc., a Japanese
telecommunications company, in consideration of the
deterioration in its financial position reflecting the operating
loss caused by the fierce price competition along with expansion
of the Internet and the decrease in revenues from the fixed-line
business. We also recorded a ¥1.5 billion loss on
shares of Mitsui Denman (Ireland) Co., Ltd., a company in the
chemical industry located in Ireland. For the year ended
March 31, 2003, losses on non-marketable securities were
¥22.3 billion, which included those of information
technology-related companies amounting to ¥7.6 billion.
(Gain) Loss on Disposal or Sales of Property and
    Equipment — Net
For the year ended March 31, 2004, gain on disposal or
sales of property and equipment — net was
¥4.1 billion, an improvement by ¥5.8 billion
compared with the year ended March 31, 2003. This
improvement is mostly attributable to a gain of
¥5.7 billion on sales of Mitsui's corporate
residences and dormitories in Japan. The corporate residences
and dormitories on which we recorded a gain on sales during the
year ended March 31, 2004 had been acquired long before the
land prices significantly increased in Japan in the late 1980s
and early 1990s.
For the year ended March 31, 2003, loss on disposal or
sales of property and equipment — net, which were
mainly incurred by domestic subsidiaries, were not significant.
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Impairment Loss of Long-Lived Assets
The impairment loss of long-lived assets for the year ended
March 31, 2004 slightly decreased by ¥1.2 billion
to ¥22.4 billion. The main elements of impairment
losses for the year ended March 31, 2004 were as follows:
•
Impairment losses on Mitsui's corporate residences and
    dormitories of ¥8.0 billion were recorded due to a
    further decline in land prices in Japan. The corporate
    residences and dormitories on which we recorded impairment
    losses during the year ended March 31, 2004 had been
    acquired mainly in early 1990s;
•
In the Machinery, Electronics & Information Segment,
    there were impairment losses of ¥4.3 billion that
    resulted from the exit from and disposal of certain businesses
    at NBI Corporation (Japan), formerly Toyo Valve Co., Ltd. and
    Mitsui Bussan Machinery Co., Ltd. (Japan); and
•
Impairment losses were also recorded at two domestic
    subsidiaries that operate golf courses.
For more information on our reevaluation and restructuring of
subsidiaries and associated companies, see Note 25,
"EXIT OR DISPOSAL ACTIVITIES." As compared with the
year ended March 31, 2003, we saw the following improvement
in impairment losses on long-lived assets for the year ended
March 31, 2004:
•
For the year ended March 31, 2003, there was an impairment
    loss of ¥9.4 billion on MD-11 leased aircraft due to a
    substantial decline in the fair value of this type of aircraft.
    For the year ended March 31, 2004, a similar loss on our
    leased aircraft was not significant;
•
In the Energy Segment, there was an impairment loss of
    ¥9.2 billion mainly related to gas stations operated
    by Mitsui Oil & Gas Co., Ltd. (Japan), which was
    divided into Mitsui Oil Co., Ltd. and Mitsui Liquefied Gas Co.,
    Ltd. in December 2004, and Kokusai Oil & Chemical Co.,
    Ltd. (Japan) for the year ended March 31, 2003; and
•
MITSUI FOODS CO., LTD. (Japan) recorded an impairment loss on
    unused land in Japan for the year ended March 31, 2003.
Other Expense — Net
For the year ended March 31, 2004, other
expense — net increased by ¥17.7 billion to
¥28.7 billion. The increase was mainly caused by:
•
litigation charges of ¥13.7 billion related to the
    settlement of an antitrust lawsuit filed against our United
    States subsidiary, Bioproducts, Inc., which manufactures and
    sells feed ingredient; and
•
restructuring charges of ¥7.0 billion arising from
    certain subsidiaries such as Mitsui Bussan Machinery Co., Ltd.
    (Japan) and NBI Corporation (Japan). For more information, see
    Note 25, "EXIT OR DISPOSAL ACTIVITIES."
With regard to the litigation charges related to Bioproducts,
Inc., there are still pending lawsuits, but we believe there is
less than a reasonable possibility that the pending lawsuits
would materially affect our results of operations. For more
details, see Note 23, "COMMITMENTS AND CONTINGENT
LIABILITIES."
For the year ended March 31, 2003, out of
¥11.0 billion of other expense — net,
litigation charges were ¥4.1 billion which included
the charge in connection with the lawsuits against Novus
International, Inc., one of our United States subsidiaries.
Additionally, there were foreign exchange losses amounting to
¥2.4 billion mainly at Mitsui due to the yen
appreciation.
Income Taxes
Income taxes for the year ended March 31, 2004 increased by
¥5.8 billion to ¥45.0 billion compared with
the year ended March 31, 2003. The effective tax rate was
53.0%, which was higher than the normal
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statutory corporate tax rate of 42% in Japan. The difference was
primarily caused by the valuation allowance provided for
deferred tax assets for operating losses of certain
subsidiaries. For the year ended March 31, 2003, the
effective tax rate of 59.7% was also mainly due to a valuation
allowance for operating losses of certain subsidiaries. For more
detailed information on our income taxes, see Note 21,
"INCOME TAXES."
Minority Interests in Earnings of Subsidiaries
For the year ended March 31, 2004, minority interests in
earnings of subsidiaries increased by ¥3.1 billion to
¥7.5 billion from the year ended March 31, 2003.
The increase was mainly attributable to the strong performance
of an iron ore subsidiary, Sesa Goa Limited (India), in which
the minority interest portion was 49% for the year ended
March 31, 2004.
Equity in Earnings of Associated Companies — Net
    (After Income Tax Effect)
For the year ended March 31, 2004, equity in earnings of
associated companies — net rose by
¥24.8 billion to ¥40.1 billion due to the
following:
•
In the Energy Segment, earnings increased at Japan Australia LNG
    (MIMI) Pty. Ltd. (Australia), which operates in Western
    Australia, as both sales volumes and crude oil prices rose;
•
In the Metal Products & Minerals Segment, the operating
    results of Valepar S.A. (Brazil), the holding company of
    Companhia Vale do Rio Doce ("CVRD"), were included
    from the second quarter of the year ended March 31, 2004,
    and there were higher earnings of Compania Minera Dona Ines de
    Collahuasi SCM (Chile), a copper mine development company
    reflecting rising copper prices from around the middle of the
    year ended March 31, 2004; and
•
In the Machinery, Electronics & Information Segment,
    earnings rose at P.T. Paiton Energy in Indonesia due to
    higher electric power sales volume and at overseas automobile
    sales subsidiaries.
For the year ended March 31, 2003, there were contributions
from associated companies in the Energy and the Metal
Products & Minerals segments, which were offset by the
substantial losses from:
•
an other than temporary decline in the value of investments in
    NextCom K.K. (Japan), formerly an associated company engaged in
    the information technology business, as a result of the sharp
    decline in its stock price, and an increase in the reserve for
    impaired loans at Furukawa Industrial S.A. Produtos Eletrico
    (Brazil), a telecommunications associated company; and
•
an impairment loss on a production facility of Vinylchloride
    (Malaysia) Sdn. Bhd., an overseas associated company in the
    chemical business.
The absence of such significant losses for the year ended
March 31, 2004 was another reason for the increase in net
equity in earnings of associated companies.
Loss from Discontinued Operations — Net (After
    Income Tax Effect)
For the year ended March 31, 2004, loss from discontinued
operations was ¥3.7 billion. The primary component of
the loss from discontinued operations was the disposal of
Takeoka Golf Club (Japan), amounting to ¥3.5 billion
after income taxes. Takeoka Golf Club, which had been engaged in
the operation of a public golf club in Japan, suffered from the
declining number of visitors due to keen competition with
adjacent golf clubs and was disposed of by sale during the year
ended March 31, 2004.
For the year ended March 31, 2003, loss from discontinued
operations was ¥5.9 billion. The primary components of
loss from discontinued operations were related to the following
petrochemical subsidiaries in North America and amounted to
¥6.3 billion after income tax effect:
•
Transpacific Glycols, Inc. (the United States), a subsidiary
    reported in both the Chemical and Americas Segments, which had
    been engaged in the sale of ethylene glycol, had ceased its sales
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operations during the year ended March 31, 2003 due to its
    declining performance caused by overall market
    conditions; and
•
Pacific Ammonia Inc. (the United States), a subsidiary reported
    in the Chemical Segment, which had been engaged in the
    manufacture and sale of ammonia primarily on the West Coast of
    the United States, had suffered from high natural gas costs, its
    main raw material ingredient, and a relatively weak ammonia
    price due to a worldwide oversupply. Due to this business
    environment, Pacific Ammonia Inc. recognized an impairment loss
    on fixed assets during the year ended March 31, 2003 based
    on a plan to dispose of the operation by sale.
For additional information about our discontinued operations,
see Note 4, "DISCONTINUED OPERATIONS."
Cumulative Effect of Change in Accounting Principle (After
    Income Tax Effect)
This cumulative effect was reported for the year ended
March 31, 2004 only. For information, see "Discussion
and Analysis of Operating Results for the Year Ended
March 31, 2005."
Operating Results by Operating Segment
The business units of Mitsui's Head Office, which are
organized based on "products and services," plan
overall and worldwide strategies for their products and services
and conduct their worldwide operations. The business units also
collaborate with branches and trading subsidiaries that are
located in overseas countries in planning and executing their
strategies for products and regions. The branches and trading
subsidiaries that are located in overseas countries are separate
operating units, which are delegated the business of their
regions as the centers of each particular regional strategy and
operate diversified business together with their subsidiaries
and associated companies in collaboration with the business
units. Therefore, our operating segments consist of
product-focused operating segments comprised of the business
units of the Head Office and region-focused operating segments
comprised of branches, offices and overseas trading subsidiaries.
Our operating segments have been aggregated based on the nature
of the products and other criteria into six product-focused
reportable operating segments and three region-focused
reportable operating segments, totaling nine reportable
operating segments.
Effective April 1, 2004, with the aim of strengthening
domestic businesses and improving operational efficiency, the
"Domestic Branches and Offices," which had been
separate operating units until the year ended March 31,
2004, were integrated into related businesses units based on the
categories of their products and services. Accordingly,
"Domestic Branches and Offices" was abolished and the
components of the reportable segment were transferred to each
product-focused operating segment in the Head Office. Further,
effective April 1, 2004, with the aim of optimizing the
allocation of operating resources and implementing global
strategies more quickly and efficiently, the business units in
the Head Office were reorganized. In this reorganization, the
logistics businesses and the financial businesses, which had
previously been included in "Metal Products &
Minerals" and "All Other," were aggregated as a
new reportable segment "Logistics & Financial
Markets," in order to provide high-quality, specialized
logistics and financial capabilities to customers across all
product areas. In addition, with the aim of responding to the
rapid expansion in Japan of service industries such as the
knowledge-based industry, and the healthcare industry, and
developing new business models based on identifying consumer
needs, the Consumer Service Business Unit was established in
"Consumer Products & Services." Media-related
businesses oriented to consumers were transferred to
"Consumer Products & Services" from
"Machinery, Electronics & Information." The
operating segment information for the years ended March 31,
2004 and 2003 has been restated to conform to the current year
presentation.
Starting from the year ended March 31, 2005, we changed the
presentation of financing revenues and costs of certain
subsidiaries engaged mainly in external consumer financing,
which were formerly reported
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as interest expense, net of interest income. In relation to this
change, the figures for the years ended March 31, 2004 and
2003 have been restated to conform to the current year
presentation.
Further, starting from the year ended March 31, 2005,
equity in earnings of associated companies is disclosed, since
this item is newly included in the measure of segment
performance reviewed by the chief operating decision maker. In
this section, for the convenience of readers to compare equity
in earnings of associated companies by operating segment for the
year ended March 31, 2005 and 2004, the breakdowns for the
year ended March 31, 2004 are additionally provided.
Our operating segment information for gross profit, operating
income (loss), equity in earnings (losses) of associated
companies and net income (loss) for the years ended
March 31, 2005, 2004 and 2003 are as follows:
Operating segment
information
Gross profit
Billions of Yen
Years Ended March 31,
Change
Change
2005
2004
2003
(2005–2004)
(2004–2003)
Metal Products & Minerals
¥
121.4
¥
77.0
¥
71.5
¥
44.4
¥
5.5
Machinery, Electronics & Information
137.3
128.7
121.1
8.6
7.6
Chemical
87.1
91.1
69.3
(4.0
)
21.8
Energy
72.6
54.6
53.8
18.0
0.8
Consumer Products & Services
152.6
135.9
122.6
16.7
13.3
Logistics & Financial Markets
46.7
32.3
33.1
14.4
(0.8
)
Americas
49.9
40.7
44.6
9.2
(3.9
)
Europe
20.7
20.0
22.5
0.7
(2.5
)
Other Overseas Areas
25.8
24.1
23.5
1.7
0.6
Total
714.1
604.4
562.0
109.7
42.4
All Other
12.3
10.4
10.6
1.9
(0.2
)
Adjustments and Eliminations
(0.6
)
(0.9
)
(3.0
)
0.3
2.1
Consolidated Total
725.8
613.9
569.6
111.9
44.3
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Operating Income (Loss)
Billions of Yen
Years Ended March 31,
Change
Change
2005
2004
2003
(2005–2004)
(2004–2003)
Metal Products & Minerals
¥
68.1
¥
28.7
¥
24.7
¥
39.4
¥
4.0
Machinery, Electronics & Information
31.4
29.4
14.1
2.0
15.3
Chemical
24.6
31.4
18.3
(6.8
)
13.1
Energy
35.5
21.7
25.7
13.8
(4.0
)
Consumer Products & Services
32.0
23.3
21.2
8.7
2.1
Logistics & Financial Markets
18.5
10.4
10.9
8.1
(0.5
)
Americas
14.7
8.5
9.5
6.2
(1.0
)
Europe
2.4
3.0
4.2
(0.6
)
(1.2
)
Other Overseas Areas
8.2
6.6
7.6
1.6
(1.0
)
Total
235.4
163.0
136.2
72.4
26.8
All Other
(0.5
)
(1.9
)
(1.8
)
1.4
(0.1
)
Adjustments and Eliminations
(36.9
)
(34.3
)
(32.5
)
(2.6
)
(1.8
)
Consolidated Total
198.0
126.8
101.9
71.2
24.9
Equity in Earnings (Losses) of Associated Companies
Billions of Yen
Years Ended March 31,
Change
2005
2004
(2005–2004)
Metal Products & Minerals
¥
22.4
¥
8.6
¥
13.8
Machinery, Electronics & Information
8.2
7.7
0.5
Chemical
2.5
(1.2
)
3.7
Energy
24.5
14.5
10.0
Consumer Products & Services
3.7
6.3
(2.6
)
Logistics & Financial Markets
2.4
0.2
2.2
Americas
1.6
(2.5
)
4.1
Europe
0.1
0.2
(0.1
)
Other Overseas Areas
0.5
0.4
0.1
Total
65.9
34.2
31.7
All Other
0.4
(0.1
)
0.5
Adjustments and Eliminations
(0.4
)
6.0
(6.4
)
Consolidated Total
65.9
40.1
25.8
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Net Income (Loss)
Billions of Yen
Years Ended March 31,
Change
Change
2005
2004
2003
(2005–2004)
(2004–2003)
Metal Products & Minerals
¥
47.0
¥
24.2
¥
16.1
¥
22.8
¥
8.1
Machinery, Electronics & Information
26.4
5.9
(9.2
)
20.5
15.1
Chemical
(6.9
)
11.4
(3.6
)
(18.3
)
15.0
Energy
42.8
24.4
23.0
18.4
1.4
Consumer Products & Services
16.9
18.9
9.6
(2.0
)
9.3
Logistics & Financial Markets
11.8
4.8
4.7
7.0
0.1
Americas
12.3
0.2
3.3
12.1
(3.1
)
Europe
2.9
0.7
2.8
2.2
(2.1
)
Other Overseas Areas
13.8
10.4
8.6
3.4
1.8
Total
167.0
100.9
55.3
66.1
45.6
All Other
4.4
1.9
6.9
2.5
(5.0
)
Adjustments and Eliminations
(50.3
)
(34.4
)
(31.1
)
(15.9
)
(3.3
)
Consolidated Total
121.1
68.4
31.1
52.7
37.3
Operating Income (Loss)
Operating income (loss) is included in the measure of segment
performance reviewed by the chief operating decision maker.
Operating income (loss) reflects our (a) gross profit,
(b) selling, general and administrative expenses,
(c) provision for doubtful receivables and
(d) government grant for transfer of substitutional portion
of EPF, as presented in the Statements of Consolidated Income.
Results of Operations for the Year Ended March 31,
    2005
Metal Products & Minerals Segment
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥
121.4
¥
77.0
¥
44.4
Operating income
68.1
28.7
39.4
Equity in earnings of associated companies
22.4
8.6
13.8
Net income
47.0
24.2
22.8
Gross profit of the Metal Products & Minerals Segment
for the year ended March 31, 2005 was
¥121.4 billion, a substantial increase of
¥44.4 billion from ¥77.0 billion for the
year ended March 31, 2004. The main factors contributing to
this result were as follows:
•
For the year ended March 31, 2005, iron ore prices under
    long-term contracts rose by 18.6% over the year ended
    March 31, 2004, resulting in major increases in gross
    profit at Sesa Goa Limited (India) and Mitsui Iron Ore
    Development Pty. Ltd. (Australia). Sesa Goa Limited in
    particular contributed a ¥12.2 billion increase
    compared to the year ended March 31, 2004, supported by the
    expansion of sales to China. At Mitsui Iron Ore Development Pty,
    Ltd., shipments (on our equity production basis) increased to
    21.4 million tons for the year ended March 31, 2005
    compared to 18.7 million tons for the year ended
    March 31, 2004 on the back of expanded production at the
    West Angelas mine which came on line in March 2002.
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•
Due to the price rise for long-term contracts for thermal coal
    and metallurgical coal for the year ended March 31, 2005,
    Mitsui Coal Holdings Pty. Ltd. (Australia) recorded a
    ¥5.3 billion increase in gross profit compared to the
    year ended March 31, 2004. Representative prices for
    Australian metallurgical coal rose to U.S.$57 per ton/FOB
    for the year ended March 31, 2005 compared to
    U.S.$47 per ton/FOB for the year ended March 31, 2004.
•
We recorded a combined gross profit increase of
    ¥12.6 billion in the steel products businesses in this
    segment, as profit margins expanded due to the steady
    transaction volume mainly in the domestic market and Asia, amid
    a tightening in supply and demand for various steel products.
Operating income for the year ended March 31, 2005 was
¥68.1 billion, a ¥39.4 billion increase from
¥28.7 billion for the year ended March 31, 2004.
Selling, general and administrative expenses increased, but this
was significantly outweighed by the above-mentioned increase in
gross profit.
Equity in earnings of associated companies for the year ended
March 31, 2005 was ¥22.4 billion, an increase of
¥13.8 billion from ¥8.6 billion for the year
ended March 31, 2004. The main factors contributing to this
result were as follows:
•
In the second quarter of the year ended March 31, 2004, we
    sold our shares in Caemi Mineração e Metalurgia S.A.
    to the Brazilian iron ore and mineral resources company
    Companhia Vale do Rio Doce ("CVRD") at the same time
    as acquiring 18.24% of the outstanding voting shares in Valepar
    S.A. (Brazil), the holding company of CVRD. Our equity in
    earnings of Valepar S.A. for the year ended March 31, 2005
    was ¥6.4 billion, a ¥3.9 billion increase
    compared to the year ended March 31, 2004, also reflecting
    the positive impact of higher mineral resource prices on its
    financial performance.
•
Our equity in earnings in the copper mine joint venture,
    Compania Minera Dona Ines de Collahuasi SCM (Chile), for the
    year ended March 31, 2005 was ¥7.8 billion, an
    increase of ¥5.9 billion compared to the year ended
    March 31, 2004. Average copper prices over the year as
    listed on the London Metals Exchange ("LME") rose to
    U.S.$3,000 per ton/ FOB for the year ended March 31,
    2005 from U.S.$2,046 per ton/ FOB for the year ended
    March 31, 2004.
Net income for the year ended March 31, 2005 was
¥47.0 billion, a significant increase of
¥22.8 billion from ¥24.2 billion for the
year ended March 31, 2004, reflecting increased operating
income and equity in earnings of associated companies, despite
the following negative factors:
•
The year ended March 31, 2005 saw reduced gains on sales of
    securities, reflecting the absence of the ¥4.4 billion
    gain recorded from the sale of shares in Caemi
    Mineração e Metalurgia S.A. for the year ended
    March 31, 2004.
•
We recorded ¥6.5 billion in impairment losses on plant
    facilities at an aluminum smelting subsidiary, Mitalco Inc. (the
    United States) for the year ended March 31, 2005,
    reflecting the rising trend of electricity costs.
Short-and Long-Term Outlook on Prices and Supply-Demand
    Balance for Iron & Steel Raw Materials, and Our Equity
    Production
Short-Term Pricing and Supply-Demand Balance
In the iron ore and coal production joint venture businesses in
Australia and other regions that we are promoting along with
major overseas mineral resource companies, those joint ventures
conclude multiple year sales contracts with Japanese steel
makers, major clients. Based on these long-term contracts, sales
prices are reviewed and renegotiated each fiscal year. For the
year ending March 31, 2006, the annual prices of iron ore
and coal have been raised to reflect limited production
capacities in Australia and Brazil in the face of active demand
for iron and steel raw materials from China as described below.
(Unit prices
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for iron ore and coal from each mine in production also reflect
the difference of respective grades and types.)
•
Iron ore prices rose 71.5% compared to the year ended
    March 31, 2005, on a pure ore content basis.
•
Prices for representative Australian metallurgical coal rose to
    U.S.$125 per ton/ FOB for the year ending March 31,
    2006, a 120% rise over the U.S.$57 per ton/ FOB for the
    year ended March 31, 2005.
Fluctuations in iron ore and coal prices directly result in
revenue from the equity-based production of our iron ore or coal
subsidiaries and associated companies overseas. For the year
ending March 31, 2006, the estimated impact on net income
in the Statements of Consolidated Income arising from change in
iron ore and coal prices is as follows:
•
Estimated impact on net income from a change of U.S.$1 per
    ton in iron ore price: Approximately ¥2.6 billion.
•
Estimated impact on net income from a change of U.S.$1 per
    ton in coal price: Approximately ¥0.6 billion.
For the year ended March 31, 2005, an equity-based
production of our overseas subsidiaries and associated companies
in shipments amounted to 39 million tons of iron ore and
8 million tons of coal. The above-mentioned effect is
calculated based on the assumptions on an estimated increase in
production in line with our holdings after the year ended
March 31, 2005, and a specific range of foreign exchange
for yen, the U.S. dollar and other related currencies.
Efforts are being undertaken at each mine to expand production
and shipments, but production costs are increasing amid a global
trend of rising material and equipment costs, and utility costs
are also trending upwards. In natural resource producing
countries such as Australia, there is a generalized trend toward
currency appreciation in line with any firming in the markets
for export products, resulting in cost pressure for our overseas
subsidiaries and associated companies. As a result, it will also
be necessary for us to take these cost fluctuation factors into
consideration when considering earnings developments at our iron
ore and coal businesses overseas.
Middle- and Long-Term Price Outlook and Supply-Demand Balance
    and Trends in our Equity Production
In order to respond to tightening supply-demand, major iron ore
and coal producers are investing to increase production
capacity. As of March 31, 2005, noteworthy developments in
iron and steel raw materials projects in which we hold a stake
are as follows. (Unless otherwise noted, production amounts
represent at 100% basis by all participants to the relevant
projects.)
•
We are at present expanding the operation at the West Angelas
    mine, a joint venture with Rio Tinto, in order to raise iron ore
    production capacity to 25 million tons per annum from the
    present 20 million tons within 2005. With respect to joint
    ventures promoted with BHP Billiton, we are expanding to raise
    the combined iron ore production capacity to 118 million
    tons from 110 million tons by the year ending
    March 31, 2007.
•
At the Moura/ Theodore mines, a joint venture with Anglo Coal
    Australia Pty Ltd., we have decided to boost annual coal
    production from the present capacity of 7.2 million tons to
    12.7 million tons by 2007.
It is difficult to make definitive forecasts about demand
developments from areas such as China for a medium to long term.
On the other hand, operations of other projects are also
expanding production capacity which we expect will be reflected
in global production capacity in the year beyond 2007.
We produce our Medium-Term Strategic and Financial Plan on a
biennial basis, but have yet to come up with the outlook of
supply and demand or iron and steel raw materials prices for the
period
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beyond 2007. As there are too many uncertainties on the future
supply-demand and price outlook for our management to draw up
definitive forecasts at this point in time.
Machinery, Electronics & Information
Segment
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥
137.3
¥
128.7
¥
8.6
Operating income
31.4
29.4
2.0
Equity in earnings of associated companies
8.2
7.7
0.5
Net income
26.4
5.9
20.5
Gross profit in the Machinery, Electronics &
Information Segment for the year ended March 31, 2005 was
¥137.3 billion, an increase of ¥8.6 billion
from ¥128.7 billion for the year ended March 31,
2004. The main components of the changes in gross profit were:
•
Growth in cell phone agency sales by Telepark Corp., leading to
    an increase in gross profit of ¥3.6 billion. NextCom
    K.K. (Japan), an associated company in the year ended
    March 31, 2004, was merged with two of Mitsui's
    subsidiaries to become a subsidiary in the third quarter of the
    year ended March 31, 2005, resulting in growth of
    ¥4.0 billion.
•
In the year ended March 31, 2004, there was a significant
    contribution from plant and transportation projects such as a
    power station and railway project in Malaysia, and an oil
    refinery in Russia. In the year ended March 31, 2005
    execution of such large contracts declined and gross profit
    decreased slightly.
•
Business expansion of P.T. Bussan Auto Finance (Indonesia),
    a motorcycle retail finance company, resulted in growth of
    ¥1.7 billion. In general, overseas subsidiaries in the
    automotive field recorded increased gross profit.
Operating income for the year ended March 31, 2005 was
¥31.4 billion, a ¥2.0 billion increase from
the ¥29.4 billion for the year ended March 31,
2004. Although gross profit rose, selling, general and
administrative expenses including personnel expenses rose for
NextCom K.K. (Japan), Telepark Corp. (Japan) and overseas
subsidiaries in the automotive field.
Equity in earnings of associated companies for the year ended
March 31, 2005 was ¥8.2 billion, an increase of
¥0.5 billion from ¥7.7 billion for the year
ended March 31, 2004. P.T. Paiton Energy (Indonesia)
continued to be buoyant, recording a figure of
¥2.9 billion. In addition to the favorable performance
of overseas automotive associated companies, the United Auto
Group, Inc. (the United States), a company which newly became an
associated company made a new contribution of
¥1.1 billion.
Net income for the year ended March 31, 2005 was
¥26.4 billion, a substantial increase of
¥20.5 billion from ¥5.9 billion for the year
ended March 31, 2004. In addition to the small increase in
operating income and equity in earnings of associated companies,
there was significant improvement in other expenses for the year
ended March 31, 2005. The major factors for this included
the following:
•
For the year ended March 31, 2004 there was a
    ¥21.7 billion impairment loss on Mitsui's
    investment in a telecommunications carrier POWEREDCOM, Inc. in
    consideration of the deterioration in its financial position.
    Moreover, in connection with our effort toward reevaluating and
    restructuring the business of subsidiaries and associated
    companies for the year ended March 31, 2004, we reorganized
    the business of NBI Corporation (Japan), formerly known as Toyo
    Valve Co., Ltd. and Mitsui Bussan Machinery Co., Ltd. (Japan),
    which led to impairment losses on property and equipment of
    ¥4.3 billion and other expense-net of
    ¥3.7 billion; and
•
Gains on the sale of shares in Japanese cell-phone carrier
    Vodafone K.K. for the year ended March 31, 2005 amounted to
    ¥7.2 billion. As a result of the listing of TelePark
    Corp. (Japan) on the Tokyo Stock Exchange, we recognized a
    ¥1.7 billion gain on issuance of stock by a subsidiary
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and a ¥4.1 billion gain on the sale of securities. In
    December 2004, following the merger of associated company
    NextCom K.K. (Japan) with the two subsidiaries ADAM NET Ltd.
    (Japan) and BSI Co., Ltd. (Japan), Mitsui made a gain of
    ¥3.7 billion through the receipt of shares in NextCom
    K.K., in exchange for shares in the two subsidiaries.
Chemical Segment
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥
87.1
¥
91.1
¥
(4.0
)
Operating income
24.6
31.4
(6.8
)
Equity in earnings (losses) of associated companies
2.5
(1.2
)
3.7
Net (loss) income
(6.9
)
11.4
(18.3
)
Gross profit in the Chemical Segment for the year ended
March 31, 2005 was ¥87.1 billion, a decline of
¥4.0 billion from ¥91.1 billion for the year
ended March 31, 2004. Although gross profit from
petrochemical products was boosted by rising prices reflecting
increasing crude oil prices and strong demand in Asia,
especially in China, these gains were outweighed by unrealized
losses on certain long term petrochemical purchase commitments
based on rising purchase prices that were linked to natural gas
price, and increased raw material cost at a feed additive
manufacturing subsidiary Novus International, Inc. (the United
States).
Operating income for the year ended March 31, 2005 was
¥24.6 billion, a ¥6.8 billion decrease from
the ¥31.4 billion for the year ended March 31,
2004. In addition to the above-mentioned declines in gross
profit, selling, general and administrative expenses including
personnel expenses also rose.
Equity in earnings of associated companies for the year ended
March 31, 2005 was ¥2.5 billion, improved by
¥3.7 billion compared with the losses for the year
ended March 31, 2004 of ¥1.2 billion. This
segment withdrew from the manufacture and sale of gasoline
additives in which it had been engaged together with
Mitsui & Co. (U.S.A.) Inc. for the year ended
March 31, 2004.
This segment recorded net loss of ¥6.9 billion for the
year ended March 31, 2005, a significant decline of
¥18.3 billion compared with ¥11.4 billion
net income for the year ended March 31, 2004. In addition
to the above-mentioned changes in operating income and equity in
earnings of associated companies, the following factors were
also responsible for the losses:
•
For the year ended March 31, 2005, Mitsui discovered that
    false data had been produced and submitted to authorities for
    diesel particulate filters ("DPF"s) manufactured by
    its subsidiary PUREarth Incorporated and sold by Mitsui. The
    Tokyo Metropolitan Government and other bodies provided
    subsidies to the purchasers of these DPFs. Mitsui established a
    user response plan including the free replacement of DPFs and
    has been proceeding with full compensation of relevant
    subsidies, which resulted in a ¥36.0 billion loss for
    the year ended March 31, 2005 as compensation and other
    charges related to DPF incident.
•
For the year ended March 31, 2004, this segment recorded a
    loss of ¥2.8 billion (after income tax effect) which
    was the segment's share basis for the settlement of
    antitrust lawsuits involving Bioproducts, Inc. (the United
    States), a subsidiary jointly owned by this segment with its 20%
    equity interest and Mitsui & Co. (U.S.A.), Inc. that
    produced choline chloride, a feed ingredient.
•
For the year ended March 31, 2005, we sold our shares in
    Bangkok Polyethylene Public Company Limited, a manufacturer of
    high-density polyethylene in Thailand, which had been jointly
    owned by the Chemical Segment and the Other Overseas Areas
    Segment. Of the ¥3.9 billion realized in the sale,
    this Segment's share came to ¥2.5 billion.
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Energy Segment
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥72.6
¥54.6
¥18.0
Operating income
35.5
21.7
13.8
Equity in earnings of associated companies
24.5
14.5
10.0
Net income
42.8
24.4
18.4
During the year ended March 31, 2005, the price of crude
oil rose considerably, driven by increasing demand, particularly
from China, and spurred by the instability in supply from the
Middle East and other regions. A flood of speculative money into
the futures market drove up the price of West Texas Intermediate
("WTI") to an all-time high of U.S.$57.60 per
barrel in March 2005. The average price of crude oil bound for
Japan, Japan Crude Cocktail ("JCC"), soared from
U.S.$29.43 per barrel during the year ended March 31,
2004 to U.S.$38.77 per barrel during the year ended
March 31, 2005 (the average in calendar year of 2004 was
U.S.$36.37 per barrel).
Gross profit in the Energy Segment for the year ended
March 31, 2005 was ¥72.6 billion, an increase of
¥18.0 billion from the ¥54.6 billion for the
year ended March 31, 2004. The main factors were as below:
•
For the year ended March 31, 2004 Arcadia Petroleum Ltd.
    (United Kingdom) recorded a loss in petroleum products trading,
    from which it withdrew. For the year ended March 31, 2005
    Arcadia Petroleum Ltd. concentrated on crude oil trading and its
    gross profit improved by ¥13.5 billion from the year
    ended March 31, 2004;
•
Among overseas subsidiaries engaged in the development,
    production and sale of oil and gas, Mitsui E&P Middle
    East B.V. (Netherlands), which develops and produces oil
    and gas in Oman, increased gross profit by
    ¥3.3 billion, reflecting the rise in oil prices and an
    increase in sales volume. In addition, Mittwell Energy Resources
    Pty., Ltd. (Australia), which sells crude oil and condensate,
    recorded an increase of ¥1.7 billion; and
•
Domestic petroleum product sales showed strong performance,
    successfully passing higher oil prices on to their wholesale and
    retail pricing. Combined gross profits of three of our domestic
    sales subsidiaries — Mitsui Oil Co., Ltd., Mitsui
    Liquefied Gas Co., Ltd. (which was separated out from Mitsui Oil
    Co., Ltd. in December 2004) and Kokusai Oil & Chemical
    Co., Ltd. — increased by ¥4.7 billion for
    the year ended March 31, 2005.
Operating income for the year ended March 31, 2005 was
¥35.5 billion, a ¥13.8 billion increase from
¥21.7 billion for the year ended March 31, 2004.
This growth reflected the above-mentioned increase in gross
profit, but was partially offset by a ¥3.8 billion
increase in selling, general and administrative expenses at
Arcadia Petroleum Ltd. arising from higher trader bonuses.
Equity in earnings of associated companies for the year ended
March 31, 2005 was ¥24.5 billion, an increase of
¥10.0 billion from ¥14.5 billion for the
year ended March 31, 2004. Earnings increased significantly
at Japan Australia LNG (MIMI) Pty, Ltd. (Australia),
involved in natural gas, crude oil and condensate exploration,
development and marketing in West Australia, due to rising oil
prices and increased production on the back of expanded
facilities. Mitsui Oil Exploration Co., Ltd. (Japan), chiefly
engaged in the production of gas and crude oil in offshore
Thailand, also recorded an increase to ¥2.7 billion
for the year ended March 31, 2005 from
¥1.1 billion for the year ended March 31, 2004,
mainly driven by rising crude oil prices. Also, Sakhalin Energy
Investment Company Ltd. (Bermuda) increased earnings on rising
crude oil prices and an increase in production volume.
Net income for the year ended March 31, 2005 was
¥42.8 billion, a significant increase of
¥18.4 billion from ¥24.4 billion for the
year ended March 31, 2004. This increase resulted from the
above-mentioned improvement in both operating income and equity
in earnings of associated companies. In
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addition, dividend income from our three LNG projects in the
Middle East, namely, in Abu Dhabi, Oman and Qatar totaled
¥12.8 billion for the year ended March 31, 2005,
reflecting their strong performance due to rising oil prices, an
increase of ¥4.7 billion over ¥8.1 billion
for the year ended March 31, 2004.
Short- and Long-Term Outlook on Prices and Supply-Demand
    Balance for Energy, and Our Equity Production
Short-Term Pricing and Supply-Demand Balance
A survey conducted by the International Energy Agency indicated
that world crude oil demand in 2004 was 82.5 million
barrels per day, with an estimated demand for 2005 of
84.3 million barrels per day. General observations by
agencies and corporations suggest that in the short term, apart
from changing factors such as Organization of Petroleum
Exporting Countries ("OPEC") production policies and
the political situation in the Middle East, an overall tight
supply-demand balance will continue, driven by strong growth of
demand in Chinese economy and limited capacity of oil producing
countries to increase production.
Our equity-based production volume of oil and gas for the year
ended March 31, 2005 was about 42 million barrels (gas
is converted to barrels of oil at the ratio of 5,800 cubic
feet of natural gas to 1 barrel of crude oil). For the year
ending March 31, 2006, the Sakhalin II LNG project and
Enfield crude oil projects will still be in development stage,
so the level of production is expected to slightly increase from
the year ended March 31, 2005. For the year ended
March 31, 2005, a change of U.S.$1 per barrel in crude
oil prices is expected to have an effect of ¥1 billion
on net income in the Statements of Consolidated Income as a
result of changes in revenues of our oil and gas related
subsidiaries and associated companies. Similar to the iron and
steel raw materials, actual results of operations are also
influenced by production costs, trends in foreign exchange rates
and other factors surrounding those subsidiaries and associated
companies.
Middle- and Long-Term Price Outlook and Supply-Demand Balance
    and Trends in Our Equity Production
The middle and long term trends in supply, demand, and prices of
crude oil are subject to far greater levels of uncertainty than
trends in the short term, and it is therefore impossible for
management to make a definitive forecast. On the other hand,
with respect to LNG, we are focusing on the changes in market
structure that are currently taking place, and acting
accordingly as follows:
•
In the past, the market has grown mainly with long-term purchase
    contracts by power and gas companies operating in Japan and the
    Far East. Expansion of incumbent oil and gas projects and green
    field projects coming on stream will increase the volume of
    supply to the market, while demand, which has traditionally
    centered around the Far East, will be joined by growing demand
    from Europe and the United States, while huge markets in China
    and India would emerge. Therefore, globalization both in terms
    of supply and demand is expected to progress. In addition, as
    the opportunity for supply and demand adjustments in these
    markets increase, LNG is expected to become a more marketable
    commodity.
•
Those long-term purchase contracts with Japanese companies in
    many projects are expected to come due for renewal around 2010,
    and more flexible terms reflecting the above-mentioned
    supply-demand trends will be requested from the buyers. In
    evaluating the opportunity for the expansion of incumbent
    projects and the participation into green field projects, we are
    putting emphasis on securing stable supply as well as
    diversifying our source of supply to ensure better flexibility.
Assuming that we do not acquire any additional interests on top
of our existing interests in oil and gas as of March 31,
2005, our equity based production capacity from 2009 onwards (by
which time production of crude oil from our investments at the
Enfield crude oil project and LNG at the Sakhalin II
project will have come on stream) will increase to an annual
equity-based production capacity of approximately
80 million barrels, from the approximately 42 million
barrels for the year ended March 31, 2005.
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On July 14, 2005, Mitsui announced that, it received an
interim report from Sakhalin Energy Investment Co., Ltd. which
were addressed to shareholders of the Sakhalin II project,
namely, Royal Dutch/ Shell Group, Mitsui and Mitsubishi
Corporation, relating to the possibility of changes in the total
budget of the development plan for Phase 2 of the
Sakhalin II Project, as well as the scheduled timing for
the first delivery of LNG. The report indicates, as provisional
estimates, that there would be the possibility that the total
budget for the project could be of the order of 20 billion
U.S. dollars and the first delivery of LNG would take place
in mid 2008. Originally, the total budget for the Phase 2
development was expected to be approximately 10 billion
U.S. dollars, with the first delivery of LNG expected to
take place in 2007.
Consumer Products & Services Segment
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥152.6
¥135.9
¥16.7
Operating income
32.0
23.3
8.7
Equity in earnings of associated companies
3.7
6.3
(2.6
)
Net income
16.9
18.9
(2.0
)
Gross profit in the Consumer Products & Services
Segment for the year ended March 31, 2005 was
¥152.6 billion, an increase of ¥16.7 billion
from the ¥135.9 billion for the year ended
March 31, 2004. The main factors contributing to this
growth were as follows:
•
There was a ¥4.5 billion increase at MBK Real Estate
    Ltd. (the United States) resulting from strong sales of large
    commercial facilities and residential properties;
•
With the acquisition of Mitsui Norin Co., Ltd. (Japan) in the
    second quarter of the year ended March 31, 2004, gross
    profit for the year ended March 31, 2005 increased by
    ¥5.1 billion from year ended March 31, 2004
    reflecting its full year contribution; and
•
Mitsui's profit margin on commodity trading in corn,
    soybeans, raw sugar and other agricultural commodities
    increased, following rises in the markets for those commodities.
Operating income for the year ended March 31, 2005 was
¥32.0 billion, an ¥8.7 billion increase over
¥23.3 billion for the year ended March 31, 2004.
An increase of ¥4.0 billion in selling, general and
administrative expenses at Mitsui Norin Co., Ltd. was outweighed
by the above-mentioned increase in gross profit.
Equity in earnings of associated companies for the year ended
March 31, 2005 was ¥3.7 billion, a decrease of
¥2.6 billion from ¥6.3 billion for the year
ended March 31, 2004. Ventura Foods LLC (the United
States), engaged in food oil processing, recorded a decline of
¥1.1 billion due to falling sales prices as a result
of increased competition in the first half of the year ended
March 31, 2005.
Net income for the year ended March 31, 2005 was
¥16.9 billion, a decrease of ¥2.0 billion
from ¥18.9 billion for the year ended March 31,
2004. Although operating income rose, net income fell because of
a decline in equity in earnings of associated companies, along
with the following factors:
•
While we recorded a combined ¥4.0 billion gain on
    sales of shares in netprice, ltd. and VeriTrans, Inc., both
    IT-related companies, when they were listed on domestic stock
    exchanges in the year ended March 31, 2005, we recorded
    ¥6.7 billion gain on the sale of SKY Perfect
    Communications Inc. for the year ended March 31, 2004.
•
Considering a deterioration in financial conditions due to
    sluggish advertising revenue at satellite broadcasters BS-I,
    INCORPORATED and BS Japan Corporation, we recorded losses on
    these shares of ¥1.9 billion and
    ¥1.2 billion, respectively.
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Logistics & Financial Markets Segment
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥46.7
¥32.3
¥14.4
Operating income
18.5
10.4
8.1
Equity in earnings of associated companies
2.4
0.2
2.2
Net income
11.8
4.8
7.0
Gross profit in the Logistics & Financial Markets
Segment for the year ended March 31, 2005 was
¥46.7 billion, an increase of ¥14.4 billion
from ¥32.3 billion for the year ended March 31,
2004. Mitsui & Co. Energy Risk Management Ltd. (United
Kingdom) increased gross profit by ¥11.0 billion from
the year ended March 31, 2004 in energy derivative trading
on the back of extremely high volatility in the crude oil
market. Moreover, Mitsui's transactions in commodities
derivative in energy and non-ferrous metals and foreign exchange
contracts produced good results.
Operating income for the year ended March 31, 2005 was
¥18.5 billion, an ¥8.1 billion increase from
¥10.4 billion for the year ended March 31, 2004.
The increase in bonuses paid to traders at Mitsui & Co.
Energy Risk Management Ltd. caused selling, general and
administrative expenses to rise by ¥4.6 billion,
partly offsetting the above-mentioned growth in gross profit.
Equity in earnings of associated companies for the year ended
March 31, 2005 was ¥2.4 billion, an increase of
¥0.2 billion from ¥2.2 billion for the year
ended March 31, 2004. Mitsui Leasing & Development
Ltd. (Japan) recorded an increase in its machinery and ship
leasing business, reflecting the booming global shipping
industry.
Net income for the year ended March 31, 2005 was
¥11.8 billion, an increase of ¥7.0 billion
from ¥4.8 billion for the year ended March 31,
2004, which was attributable to the increase in operating income
and equity in earnings of associated companies.
Americas Segment
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥
49.9
¥
40.7
¥
9.2
Operating income
14.7
8.5
6.2
Equity in earnings (losses) of associated companies
1.6
(2.5
)
4.1
Net income
12.3
0.2
12.1
Gross profit in the Americas Segment for the year ended
March 31, 2005 was ¥49.9 billion, an increase of
¥9.2 billion from the ¥40.7 billion for the
year ended March 31, 2004. Certain subsidiaries owned by
Mitsui & Co. (U.S.A.) Inc. (the United States)
increased gross profit. Steel product subsidiaries enjoyed
favorable business conditions, namely, steep price rises in the
steel product market reflecting the strong growth of the United
States economy. Champions Pipe & Supply, Inc. (the
United States) recorded a ¥3.5 billion rise in gross
profit. In addition, Portac, Inc. (the United States), a
subsidiary that manufactures lumber and lumber products,
increased gross profit by ¥1.6 billion due to the
surge in lumber prices.
Operating income for the year ended March 31, 2005 was
¥14.7 billion, a ¥6.2 billion increase from
¥8.5 billion for the year ended March 31, 2004.
Selling, general and administrative expenses rose at Mitsui
Steel Development Co., Inc. (the United States) and other
subsidiaries, partly offsetting the above-mentioned growth in
gross profit.
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Equity in earnings of associated companies for the year ended
March 31, 2005 was a ¥1.6 billion, an improvement
of ¥4.1 billion from the losses of
¥2.5 billion for the year ended March 31, 2004.
There was a rebound from the impact of losses on the operations
in the manufacture and sale of gasoline additives, which were
disposed of during the year ended March 31, 2004; moreover,
TAMCO (the United States), an associated company engaged in the
manufacture and sale of steel bar, increased earnings supported
by rising prices in the steel material market.
Net income for the year ended March 31, 2005 was
¥12.3 billion, an increase of ¥12.1 billion
from the ¥0.2 billion for the year ended
March 31, 2004. This increase was due to increases in
operating income and equity in earnings of associated companies.
In addition, as described in the Chemical Segment section, this
segment no longer had to bear its share corresponding to an 80%
equity interest of a ¥13.7 billion charge recorded as
other expenses for the year ended March 31, 2004, arising
from the settlement of an antitrust lawsuit filed against
Bioproducts, Inc. (the United States) which manufactures and
sells feed ingredients.
Europe Segment
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥
20.7
¥
20.0
¥
0.7
Operating income
2.4
3.0
(0.6
)
Equity in earnings of associated companies
0.1
0.2
(0.1
)
Net income
2.9
0.7
2.2
Gross profit in the Europe Segment for the year ended
March 31, 2005 was ¥20.7 billion, a slight
increase of ¥0.7 billion from ¥20.0 billion
for the year ended March 31, 2004. Gross profit of our
trading subsidiaries in Europe generally stayed at about the
same level as the year ended March 31, 2004.
Operating income for the year ended March 31, 2005 was
¥2.4 billion, a ¥0.6 billion decrease from
¥3.0 billion for the year ended March 31, 2004.
The increase in selling, general and administrative expenses,
chiefly personnel expenses and office expenses, outweighed the
above-mentioned growth in gross profit.
Equity in earnings of associated companies for the year ended
March 31, 2005 was ¥0.1 billion, a decrease of
¥0.1 billion from ¥0.2 billion for the year
ended March 31, 2004.
Net income for the year ended March 31, 2005 was
¥2.9 billion, an increase of ¥2.2 billion
from ¥0.7 billion for the year ended March 31,
2004. This was attributable to a ¥1.6 billion
improvement in Arcadia Petroleum Ltd. (United Kingdom),
corresponding equity share owned by Mitsui & Co. (U.K.)
Inc., reflecting the share recovery of net income as mentioned
in the Energy Segment section.
Other Overseas Areas Segment
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥25.8
¥24.1
¥1.7
Operating income
8.2
6.6
1.6
Equity in earnings of associated companies
0.5
0.4
0.1
Net income
13.8
10.4
3.4
Gross profit in the Other Overseas Areas Segment for the year
ended March 31, 2005 was ¥25.8 billion, an
increase of ¥1.7 billion from ¥24.1 billion
for the year ended March 31, 2004. This was
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due to continuing favorable conditions for agent businesses,
chiefly in the fields of steel products and chemicals at trading
subsidiaries and overseas offices in Asia.
Operating income for the year ended March 31, 2005 was
¥8.2 billion, a ¥1.6 billion increase from
¥6.6 billion for the year ended March 31, 2004.
This increase resulted from an increase in gross profit.
Equity in earnings of associated companies for the year ended
March 31, 2005 was ¥0.5 billion, a slight
increase of ¥0.1 billion from ¥0.4 billion
for the year ended March 31, 2004.
Net income for the year ended March 31, 2005 was
¥13.8 billion, an increase of ¥3.4 billion
from ¥10.4 billion for the year ended March 31,
2004. This increase was due not only to the increase in
operating income, but also to improvement in the equity-based
earnings corresponding to the share owned by Mitsui &
Co. (Australia) Ltd. (Australia), in both Mitsui Iron Ore
Development Pty. Ltd. (Australia) and Mitsui Coal Holdings Pty.
Ltd. (Australia) which showed strong growth in net income for
the year ended March 31, 2005, as described in the Metal
Products & Minerals Segment section. The increases in
this segment attributable to these two companies were
¥0.9 billion and ¥0.8 billion, respectively.
The Other Overseas Areas Segment also recorded a
¥1.4 billion gain on the sale of the segment's
shares in Bangkok Polyethylene Public Company Limited, a
manufacturer of high-density polyethylene in Thailand.
All Other
Billions of Yen
Years Ended
March 31,
2005
2004
Change
Gross profit
¥12.3
¥10.4
¥1.9
Operating loss
(0.5
)
(1.9
)
1.4
Equity in earnings (losses) of associated companies
0.4
(0.1
)
0.5
Net income
4.4
1.9
2.5
The activities of this segment include development and marketing
of systems, financing services, office services and other
services to external customers, and/or to us, and associated
companies.
Gross profit in the All Other Segment for the year ended
March 31, 2005 was ¥12.3 billion, an increase of
¥1.9 billion from ¥10.4 billion for the year
ended March 31, 2004. This increase was mainly due to the
increase at Mitsui Knowledge Industry Co., Ltd. (Japan), which
is engaged in development and marketing of systems, and
benefited from favorable conditions in the information service
business.
Operating loss of ¥0.5 billion was recorded for the
year ended March 31, 2005 although this represented a
¥1.4 billion improvement from the loss of
¥1.9 billion for the year ended March 31, 2004.
The main reason for this improvement was the above-mentioned
growth in gross profit.
Equity in earnings of associated companies for the year ended
March 31, 2005 was ¥0.4 billion, an improvement
of ¥0.5 billion from the ¥0.1 billion loss
for the year ended March 31, 2004. The improvement was
mainly due to the improved earnings of our associated companies
in the financing services and leasing business.
Net income for the year ended March 31, 2005 was
¥4.4 billion, an increase of ¥2.5 billion
from the ¥1.9 billion for the year ended
March 31, 2004. This was due to an increase in operating
income and equity in earnings of associated companies. In
addition, for the year ended March 31, 2004, we recorded a
¥5.8 billion impairment loss of long-lived assets that
had occurred when Takeoka Golf Club sold its public golf club
business. We recorded an impairment loss of
¥3.3 billion for the year ended March 31, 2005 on
the land held by Mitsui for domestic development projects due to
the decline in land prices in Japan.
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Results of Operations for the Year Ended March 31,
2004
Metal Products & Minerals Segment
Billions of Yen
Years Ended
March 31,
2004
2003
Change
Gross profit
¥77.0
¥71.5
¥5.5
Operating income
28.7
24.7
4.0
Net income
24.2
16.1
8.1
For the year ended March 31, 2004, gross profit increased
by ¥5.5 billion to ¥77.0 billion, primarily
attributable to the growth at overseas subsidiaries engaged in
iron and steel raw materials driven by higher demand in China
and other areas of Asia as well as strong market prices.
For the year ended March 31, 2004, iron ore production
volume at Australian iron ore subsidiaries, including Mitsui
Iron Ore Development Pty. Ltd. (Australia), increased by
3.6 million tonnes, reflecting strong demand for iron ore
in China and other countries. During the year ended
March 31, 2004, the U.S. dollar price of iron ore
increased by 9% compared with the price of iron ore for the year
ended March 31, 2003. Meanwhile, during the year ended
March 31, 2004, the Australian dollar appreciated steeply
against the U.S. dollar, rising from an average of
U.S.$0.5656 for the year ended March 31, 2003 to
U.S.$0.6941 for the year ended March 31, 2004, which
reduced Australian dollar denominated revenues at Mitsui Iron
Ore Development Pty. Ltd. and a coal subsidiary, Mitsui Coal
Holdings Pty. Ltd. (Australia). As a result, gross profit and
operating income at Australian iron and steel raw material
subsidiaries remained at the same high levels as for the year
ended March 31, 2003. At an iron ore subsidiary, Sesa Goa
Limited (India), there were sharp increases in gross profit and
operating income because of growing iron ore exports to China
and higher market prices of products in India.
In addition, gross profit from steel scrap operations in the
United States and Japan also increased as market prices rose in
the first half of the year ended March 31, 2004.
For steel products, gross profit declined slightly. Although
exports to China and other Asian countries were stepped up and
prices increased in Japan, gross profit for the year ended
March 31, 2003 had included a significant contribution from
highly profitable steel pipe export projects to China and other
Asian countries, which did not continue into the year ended
March 31, 2004.
Operating income also rose by ¥4.0 billion to
¥28.7 billion, reflecting the above-mentioned increase
in gross profit.
Net income for the year ended March 31, 2004 was
¥24.2 billion, increased by ¥8.1 billion,
which was attributable to the increase in equity earnings of
associated companies as well as the above-mentioned growth in
operating income. The following are reasons for the increase in
equity in earnings of associated companies:
•
In the iron and steel raw material operations, we sold shares of
    Caemi Mineração e Metalurgia S.A. in September 2003
    under a sales contract in March 2003 with CVRD, a Brazilian
    producer of iron ore and other minerals, and recognized a gain
    of ¥4.4 billion. At the same time, Mitsui acquired an
    18.24% voting share of the outstanding shares of Valepar S.A.
    (Brazil), a controlling shareholder of CVRD that owns a 52.3%
    voting share of CVRD. Due to the strong performance of CVRD, our
    equity in earnings of Valepar S.A. for the year ended
    March 31, 2004 was ¥2.5 billion; and
•
In the non-ferrous metal operations, equity in earnings of
    Compania Minera Dona Ines de Collahuasi SCM (Chile), a copper
    mine development company in Chile, rose to
    ¥1.9 billion as the global market price of copper
    increased from around the middle of the year ended
    March 31, 2004.
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Machinery, Electronics & Information
Segment
Billions of Yen
Years Ended
March 31,
2004
2003
Change
Gross profit
¥128.7
¥121.1
¥ 7.6
Operating income
29.4
14.1
15.3
Net income (loss)
5.9
(9.2
)
15.1
Gross profit for the year ended March 31, 2004 increased by
¥7.6 billion to ¥128.7 billion. The main
elements of the growth were:
•
the contribution of large-scale electrical machinery and plant
    projects, including a power plant in Malaysia and an oil
    refinery in Russia;
•
in the information technology category, the increase at
    Mitsui & Associates Telepark Corporation (Japan), which
    changed its name to Telepark Corp in October 2004, by
    ¥3.0 billion reflected the introduction of new cell
    phone models which raised the sales volume and the contribution
    by newly acquired subsidiaries including Cablenet Saitama Co.,
    Ltd. (Japan).
•
higher gross profit at automobile sales companies and logistics
    and transportation companies in certain areas of the
    world; and
•
increased sales and lease operations for ocean transport vessels
    as market prices, including the price of used vessels, climbed,
    despite lower gains on sales of leased aircraft.
For the year ended March 31, 2004, operating income of
¥29.4 billion was also much higher by
¥15.3 billion due to an increase in gross profit and a
decrease in provision for doubtful receivables, in contrast to
the year ended March 31, 2003 when this segment suffered
from provisions for doubtful receivables from: United Airlines,
Inc. and other airline companies; domestic customers at Mitsui
Bussan Plant & Project Corp. (Japan); and
communications and transportation projects in Argentina.
For the year ended March 31, 2004, in addition to an
increase in operating income, net income recovered to
¥5.9 billion, an increase of ¥15.1 billion,
which was primarily due to the recovery of equity in earnings of
associated companies from the year ended March 31, 2003, in
spite of a material write-down of securities for the year ended
March 31, 2004 held by this segment.
There was a ¥21.7 billion impairment loss on
Mitsui's investment in telecommunications carrier
POWEREDCOM, Inc. in consideration of the deterioration in its
financial position reflecting the operating loss caused by the
fierce price competition along with expansion of the Internet
and the decrease in revenues from fixed-line business.
For the year ended March 31, 2003, we recorded an
impairment loss of ¥9.4 billion on MD-11 leased
aircraft due to a substantial decline in the fair value of this
type of aircraft. As the business environment in the airline
industry also remained weak during the year ended March 31,
2004, we posted another, but much less significant, impairment
loss. Furthermore, in conjunction with our effort of
reevaluating and restructuring the businesses of subsidiaries
and associated companies, we sold the valve business of NBI
Corporation (Japan) due to declining demand for its products
caused by the sluggish capital investment in Japan. We also
reorganized Mitsui Bussan Machinery Co., Ltd. (Japan) due to its
poor performance caused by the shrinking construction and
industrial machinery market. Regarding these two subsidiaries,
we recorded impairment losses on property and equipment of
¥4.3 billion and other expense — net of
¥3.7 billion.
Equity in earnings of associated companies for the year ended
March 31, 2003 was impacted by an impairment of
¥4.5 billion at NextCom K.K. (Japan) because of the
other-than-temporary decline in the fair value of the securities
and a loss of ¥4.6 billion at Furukawa Industrial S.A.
Produtos Eletrico, a telecommunications associated company in
Brazil, because of a significant provision for doubtful
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receivables. The absence of such items for the year ended
March 31, 2004 generated a substantial increase in equity
in earnings of associated companies because of:
•
increasing sales volume of electric power at P.T. Paiton
    Energy (Indonesia); and
•
increased production and sales of automobile companies in Canada
    and Indonesia.
Chemical Segment
Billions of Yen
Years Ended
March 31,
2004
2003
Change
Gross profit
¥91.1
¥69.3
¥21.8
Operating income
31.4
18.3
13.1
Net income (loss)
11.4
(3.6
)
15.0
For the year ended March 31, 2004, gross profit increased
by ¥21.8 billion to ¥91.1 billion due
primarily to higher market prices of ammonia and other
petrochemicals.
During the year ended March 31, 2004, market prices of
petrochemicals climbed along with prices of crude oil and
natural gas. The price of ammonia reached the highest level in
30 years, and prices of olefins, aromatics, synthetic
textile materials and other petrochemicals also increased. In
addition, there was higher demand in Asia for all categories of
petrochemicals. The result was growth in gross profit of
petrochemical products, chiefly ammonia. In the plastics
business, a new operation in China that produces liquid crystal
cells for personal computers and mobile phones contributed to
growth in gross profit.
Operating income for the year ended March 31, 2004 was
¥31.4 billion. The improvement of
¥13.1 billion was attributable to the increase in
gross profit.
This segment turned a net loss for the year ended March 31,
2003 to net income of ¥11.4 billion for the year ended
March 31, 2004, an improvement of ¥15.0 billion.
In the petrochemicals business, losses were recorded for the
year ended March 31, 2003 due to the discontinued
operations at two North American subsidiaries, Transpacific
Glycols, Inc. (the Unites States) and Pacific Ammonia Inc. (the
United States). In addition, impairment losses of long-lived
assets in a factory of an associated company, Vinylchloride
(Malaysia) Sdn. Bhd. were recorded due to the lower market price
for the year ended March 31, 2003. For the year ended
March 31, 2004, there were no significant charges of this
nature, which contributed to the improvement of net income for
the year ended March 31, 2004 along with the increase in
operating income.
During the year ended March 31, 2004, losses on write-down
of securities decreased from the year ended March 31, 2003
and included a ¥3.1 billion loss in investment in
Ishihara Sangyo Kaisha, Ltd. Additionally, we recorded a
¥1.5 billion loss in the investment in Mitsui Denman
(Ireland) Co., Ltd. for the year ended March 31, 2004.
However, this segment recorded a loss of ¥2.8 billion
for the year ended March 31, 2004, after income tax effect,
reflecting the segment's share of charges for the
settlement of choline chloride antitrust lawsuits by
Bioproducts, Inc. (the United States), a subsidiary jointly
owned by the Chemical Segment and Mitsui & Co.
(U.S.A.), Inc. that produces choline chloride, a feed ingredient.
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Energy Segment
Billions of Yen
Years Ended
March 31,
2004
2003
Change
Gross profit
¥54.6
¥53.8
¥0.8
Operating income
21.7
25.7
(4.0
)
Net income
24.4
23.0
1.4
Gross profit for the year ended March 31, 2004 increased
slightly by ¥0.8 billion to ¥54.6 billion.
Gross profit rose at Mitsui Oil & Gas Co., Ltd.
(Japan), as a result of an increase in sales prices of petroleum
products which more than offset the increase in costs of these
products. However, this increase was offset by petroleum
products trading losses at Arcadia Petroleum Ltd. (United
Kingdom).
Crude oil prices (Japan Crude Cocktail) were strong during the
year ended March 31, 2004 due to OPEC's announcement
of its decision to cut production in the middle of the year
ended March 31, 2004, 'turmoil in Iraq, and a low
inventory level of petroleum products. The average price of
crude oil per barrel rose from U.S.$26.7 for the year ended
March 31, 2003 to U.S.$29.4 for the year ended
March 31, 2004. Furthermore, the year ended March 31,
2004 showed growth in the demand for LNG and crude oil in Japan
as the demand for electricity from thermal power plants
increased and in China, South Korea and other Asian countries
due to their expanding economies.
Operating income was lower by ¥4.0 billion primarily
because of an increase in selling, general and administrative
expenses including research expenses for new businesses.
Despite the decrease in operating profit, net income for the
year ended March 31, 2004 was ¥24.4 billion, a
slight increase of ¥1.4 billion compared with the year
ended March 31, 2003. For the year ended March 31,
2004, impairment losses on long-lived assets substantially
decreased by ¥7.5 billion to ¥1.7 billion
from ¥9.2 billion for the year ended March 31,
2003 at two domestic subsidiaries, Mitsui Oil & Gas
Co., Ltd. (Japan) and Kokusai Oil & Chemical Co., Ltd.
(Japan). Their impairment losses on long-lived assets for the
year ended March 31, 2003 primarily related to their gas
stations in Japan.
The cumulative effect of the initial application of
SFAS No. 143 had an impact of ¥2.2 billion,
which was mainly the cost of dismantling and removing gas
production facilities owned by an associated company, but its
equity in earnings slightly increased during the year ended
March 31, 2004 because of strong operating results backed
by higher sales volumes and high crude oil prices. In addition,
equity in earnings of Mitsui Oil Exploration Co., Ltd. (Japan)
increased due to the improvement in the performance of its main
business, Thai offshore gas development.
Consumer Products & Services Segment
Billions of Yen
Year Ended
March 31,
2004
2003
Change
Gross profit
¥135.9
¥122.6
¥13.3
Operating income
23.3
21.2
2.1
Net income
18.9
9.6
9.3
For the year ended March 31, 2004, gross profit increased
by ¥13.3 billion to ¥135.9 billion. Higher
gross profit in the foods operations, which contributed in large
part to the improvement of this segment, was primarily
attributable to our newly acquired subsidiary Mitsui Norin Co.,
Ltd. (Japan) and secondly to the higher earnings at MITSUI FOODS
CO., LTD. (Japan), our food wholesaler subsidiary, resulting
from a higher volume of trading transactions with Ito-Yokado
Group and other retailers. Bovine
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Spongiform Encephalopathy ("BSE") and avian influenza
had a negligible impact on this segment's results. Also,
these increases were partially offset by the decreases in gross
profit in:
•
the real estate operations after a strong performance for the
    year ended March 31, 2003 that was driven by the sales of
    condominiums in Japan and the sale of a large United States
    commercial facility by MBK Real Estate Ltd. (the United
    States); and
•
the general merchandise operations due to our lower trading
    transactions involved in sports and leisure activities for the
    year ended March 31, 2004.
Operating income for the year ended March 31, 2004 was
¥23.3 billion, an increase of ¥2.1 billion
from the year ended March 31, 2003 in spite of the
improvement in gross profit. In the foods operations, selling,
general and administrative expenses rose at Mitsui Norin Co.,
Ltd. (Japan) and MITSUI FOODS CO., LTD. (Japan), although the
improvement in gross profit still outweighed the increase in
expenses.
The increase of ¥9.3 billion in net income to
¥18.9 billion for the year ended March 31, 2004
was primarily attributable to a turnaround of MITSUI FOODS CO.,
LTD. (Japan). It reported net income of ¥1.6 billion
for the year ended March 31, 2004, which was a
¥6.5 billion improvement from the year ended
March 31, 2003, due to the drastic decrease in impairment
losses on non-marketable equity securities and unused land, as
well as the above-mentioned improvement in its gross profit. In
addition, there was a ¥6.7 billion gain on the sale of
all shares held in SKY Perfect Communications Inc. during the
year ended March 31, 2004.
Logistics & Financial Markets Segment
Billions of Yen
Years Ended
March 31,
2004
2003
Change
Gross profit
¥32.3
¥33.1
¥(0.8
)
Operating income
10.4
10.9
(0.5
)
Net income
4.8
4.7
0.1
For the year ended March 31, 2004, gross profit slightly
fell by ¥0.9 billion to ¥32.3 billion due to
a decrease in gain from foreign exchange transactions at Mitsui
and decreases in the profit margin in the transportation
businesses.
Operating income decreased by ¥0.5 billion to
¥10.4 billion, reflecting the above-mentioned decline
in gross profit.
However, net income for the year ended March 31, 2004
increased slightly, which was attributable to improvement at an
insurance related associated company.
Americas Segment
Billions of Yen
Years Ended
March 31,
2004
2003
Change
Gross profit
¥40.7
¥44.6
¥(3.9
)
Operating income
8.5
9.5
(1.0
)
Net income
0.2
3.3
(3.1
)
Gross profit was lower by ¥3.9 billion mainly because
of a decline in the steel products and machinery transactions at
Mitsui & Co. (U.S.A.), Inc. and appreciation of the
Japanese yen against the U.S. dollar. The strong yen also
held down selling, general and administrative expenses, allowing
this segment to hold the decline in operating income to less
than the downturn in gross profit.
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Net income for the year ended March 31, 2004 decreased by
¥3.1 billion to only ¥0.2 billion due to the
charges for the settlement of the antitrust lawsuits at our
wholly owned subsidiary Bioproducts, Inc. (the United States).
Such settlement charges were shared with the Chemical Segment
that owns shares of this subsidiary jointly with
Mitsui & Co. (U.S.A.) Inc.
Europe Segment
Billions of Yen
Years Ended
March 31,
2004
2003
Change
Gross profit
¥20.0
¥22.5
¥(2.5
)
Operating income
3.0
4.2
(1.2
)
Net income
0.7
2.8
(2.1
)
For the year ended March 31, 2004, gross profit and
operating income declined by ¥2.5 billion and
¥1.2 billion, respectively, as a result of the decline
in the automobile businesses.
Net income also decreased by ¥2.1 billion because
there was a valuation loss on the investment of
Mitsui & Co. UK PLC in Mitsui Denman (Ireland) Co.,
Ltd., a company in the chemical industry. Another cause of the
lower net income was a loss at Arcadia Petroleum Ltd. (United
Kingdom) due to poor petroleum products trading results.
Other Overseas Areas Segment
Billions of Yen
Years Ended
March 31,
2004
2003
Change
Gross profit
¥24.1
¥23.5
¥
0.6
Operating income
6.6
7.6
(1.0
)
Net income
10.4
8.6
1.8
Gross profit for the year ended March 31, 2004 was slightly
higher because of the growth at Mitsui & Co. (Shanghai)
Ltd. and other subsidiaries in China and the contribution of a
newly established foreign trading subsidiary, Mitsui &
Co., India Pvt. Ltd. The operating income shrank for the same
reason as the above.
Net income increased by ¥1.8 billion due to an
increase of ¥1.1 billion in dividend income at
Mitsui & Co. (Hong Kong) Ltd. from local Hong Kong
investee companies.
All Other
Billions of Yen
Years Ended
March 31,
2004
2003
Change
Gross profit
¥10.4
¥10.6
¥(0.2
)
Operating income (loss)
(1.9
)
(1.8
)
(0.1
)
Net income
1.9
6.9
(5.0
)
The All Other includes business activities which primarily
provide services, such as logistics service, financing service,
development and marketing of systems, and office services, to
external customers and/or to ourselves and associated companies.
Gross profit and operating income for the year ended
March 31, 2004 recorded almost the same level as the year
ended March 31, 2003.
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Net income decreased by ¥5.0 billion, which was
primarily attributable to a loss in relation with Takeoka Golf
Club, which was disposed of by sale during the year ended
March 31, 2004 due to the declining number of visitors
reflecting keen competition from adjacent golf clubs, and to
impairment losses on long-lived assets at two other golf clubs.
Inflation
Management believes that inflation did not have a significant
effect on our reported results of operations.
Critical Accounting Policies and Estimates
Accounting policies and estimates are considered to be critical
if they are important to our financial condition and results of
operations and involve estimates that require management's
subjective or significant judgment about the effect of matters
that are inherently uncertain. For a summary of our significant
accounting policies including the critical accounting policies
discussed below, please see Note 2, "BASIS OF
FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES."
The preparation of the consolidated financial statements in
conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the carrying values of
assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses
during the reporting period. On an ongoing basis, we evaluate
the estimates that are based on historical experiences and on
various other assumptions that are believed to be reasonable
under the circumstances. The results of these evaluations form
the basis for making judgments about the carrying values of
assets and liabilities and the reported amounts of revenues and
expenses that are not readily apparent from other sources.
Actual results may differ from those estimates under different
assumptions. The following items require significant management
judgments and estimates.
Impairment of Long-Lived Assets
The amount of impairment losses of long-lived assets, other than
goodwill and other intangible assets, for the years ended
March 31, 2005, 2004 and 2003 and the balance of the
long-lived assets, net of accumulated depreciation, as of the
end of March 31, 2005, 2004 and 2003 were as follows:
Billions of Yen
As of March 31,
2005
2004
2003
Long-lived assets
¥845.9
¥829.5
¥835.3
Impairment loss
21.5
21.2
23.9
Impairment losses of long-lived assets had a material impact on
our net income in recent years. These losses were mainly due to
the decline in the profitability of the production facilities
owned by certain subsidiaries and the value of land owned by
Mitsui and its domestic subsidiaries. See "Impairment Loss
of Long-Lived Assets" line-by-line explanation in
"Results of Operations" for additional information.
Our long-lived assets to be held and used or to be disposed of
other than by sale are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. This review is performed by
comparing the carrying amount of the asset with the aggregate
amount of the estimated undiscounted future cash flows
("impairment analysis"). If the carrying value of the
asset is greater than the aggregate amount of undiscounted
future cash flows, then the asset is considered impaired, and an
impairment loss is recorded for the amount by which the carrying
value of the asset exceeds its fair value. The fair value of the
asset is calculated as present value of the future cash flows
that are expected from the asset.
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Cash flow projections used in our impairment analysis and fair
value calculations are based on the business plan authorized by
our management or, if this is not available, on the operating
plan reflecting the most recent condition of the long-lived
asset. In these plans, we assume, for example, that the most
recent selling prices of the real estate in the surrounding
areas will reasonably continue in the future, and estimate the
sales prices of the products from facilities and equipment for
the certain future period based on the average price of the
equivalent length of period in the past or on the analysts'
reports.
As for the discount rate used in fair value calculations, when
expected variations in cash flows are not considered in the cash
flow estimate, the discount rate, which includes the risk factor
for the cash flow deviation, is used. Assumptions that
marketplace participants would use in their estimates of fair
value are incorporated in the discount rate when such
information is available. When such information is not
available, an expected internal rate of return used for
management purposes or a weighted average cost of capital of a
company that owns the long-lived asset, whichever is higher, is
also considered for the discounted cash flow calculation.
Factors to be considered when estimating future cash flows and
determining discount rates vary for each long-lived asset
because of the difference in nature of the assets and in
operating circumstances, such as location, owner, operator,
profitability and other factors.
Management believes that the estimates of future cash flows and
the determination of discount rates and fair value are
reasonable; however, changes in estimates resulting in lower
future cash flows and fair value due to unforeseen changes in
business assumptions could negatively affect the valuations of
those long-lived assets.
Allowance for Doubtful Receivables
Since we are a general trading company, trade receivables
represent a large portion of our total assets, and therefore,
the accounting estimates used to establish an allowance for
doubtful receivables are critical.
When we deem it is probable that we will be unable to collect
amounts that are contractually due to us for certain large loan
receivables, the specific loan is reviewed for impairment.
Factors considered in assessing collectibility include length of
period overdue, financial condition of the debtor, requests for
debt restructuring and filings for bankruptcy.
An impairment loss for a specific loan deemed to be impaired, as
specifically determined under SFAS No. 114,
"Accounting by Creditors for Impairment of a
Loan — an amendment of FASB Statements No. 5 and
15," is measured based on the present value of expected
cash flows discounted at the loan's original effective
interest rate or the fair value of collateral if the loan is
collateral dependent. The expected cash flows from assets and
liabilities of the debtor and the fair value of collateral are
determined mainly based on an evaluation of independent real
estate appraisers, publicly available indication of the real
estate price, market price of financial assets and liabilities,
guarantors' financial condition and other factors. The
recoverable amounts are reviewed on a quarterly basis and if
necessary, an additional allowance is established. See
Note 7, "ALLOWANCE FOR DOUBTFUL RECEIVABLES," for
impaired loan amounts and the respective allowance amounts.
In addition to the above, an allowance for doubtful receivables
is recognized for probable losses inherent in receivables not
specifically deemed to be impaired. The amount of allowance is
the amount judged to be adequate based primarily on our credit
loss experiences and an evaluation of potential losses on the
receivables, considering various factors, including current
economic conditions and financial condition of the debtor. We
review the adequacy of the allowance for doubtful receivables by
assessing both the collateral exposure and the applicable
default rate. Collateral exposure for a particular receivable is
the excess of the carrying value over the applicable collateral
value. A receivable with an estimated collateral value in excess
of the carrying value is considered to have no collateral
exposure. The applicable default rate is determined by a
customer's credit rating that is identified for each
customer based on our financial analysis. The default rate of
each credit rating is determined based on our historical
experiences.
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Management believes that the estimates of the future cash flows,
the fair value of collateral, the credit rating of customers and
the corresponding default rate are reasonable; however, changes
in estimates resulting in lower future cash flows and fair value
of the collateral, due to unforeseen changes in business
assumptions, or drastic increases in default rates based on
negative changes in economic condition could negatively affect
the valuations of related receivables.
Impairment of Investment Securities
An impairment of investment securities is charged to earnings
when a decline in fair value below cost is other than temporary.
The impairment of investment equity securities charged to
earnings for recent fiscal years had a significant impact on our
income. The following table shows the cost of marketable and
non-marketable equity securities as of March 31, 2005, 2004
and 2003 and the impairment loss for the years ended
March 31, 2005, 2004 and 2003:
Billions of Yen
Years Ended March 31,
2005
2004
2003
Impairment
Impairment
Impairment
Cost
Loss
Cost
Loss
Cost
Loss
Marketable equity securities
¥
191.0
¥
0.6
¥
178.6
¥
1.1
¥
140.5
¥
15.6
Non-marketable equity securities
214.1
15.9
216.6
29.7
234.0
22.3
Total
¥
405.1
¥
16.5
¥
395.2
¥
30.8
¥
374.5
¥
37.9
Impairments were mainly due to the decline in the world economy
for the year ended March 31, 2003, and the total amount of
impairment loss has been decreasing along with the recovery of
the world economy. Impairment losses on marketable equity
securities have decreased substantially during the years ended
March 31, 2005 and 2004, which suggests that the securities
market prices and economic conditions of Japan, which
predominantly affects our investment portfolio, has bottomed out.
As for non-marketable equity securities, a
¥21.7 billion loss was recorded for a single investee,
POWEREDCOM, Inc. based on the deterioration in its financial
position from operating losses from its data communication
business for the year ended March 31, 2004. Losses of
¥15.9 billion and ¥22.3 billion for the
years ended March 31, 2005 and 2003, respectively,
consisted of various smaller amounts of losses.
Management principally recognizes that a 50% or more decline in
fair value of a security leads to the conclusion that the
security has other than temporary impairment. If the decline is
less than 50%, various factors, such as the extent to which the
cost exceeds the market value, the duration of the market
decline, our intention and ability to hold the investment until
its market price recovery and the financial conditions of the
investees, are considered in concluding whether the decline is
temporary or not.
As of March 31, 2005, there was no individual marketable
security that had been in a continuous unrealized loss position
for one year or more. The aggregate unrealized loss amount of
the marketable securities (approximately 20 issuers) that
had been in continuous unrealized loss positions for less than
one year and had severity of decline of fair value below cost
ranging from 2% to 19% was ¥1.2 billion. But
considering the combination of length of time that fair values
have been below cost, the extent of decline and the financial
condition of the investees, we expect that their fair value will
recover above their costs while we hold these investments.
For non-marketable securities, fair value of an investment is
generally determined based on our equity in a net amount of the
fair value of the investee's assets and liabilities. In
addition, where future business plans formally adopted by
management of the entities are available and when deemed
appropriate, discounted future cash flow method is used to
determine the fair value of the non-marketable equity
securities. The discount rate reflects risk factors for the cash
flow deviation from the future business plans and assumptions
that marketplace participants would use in their estimates of
fair value when the
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information is available and appropriate. However, there are
investments that are not evaluated for impairment because no
events or changes in circumstances that may have had a
significant adverse effect on the fair value were identified.
See Note 5, "MARKETABLE SECURITIES AND OTHER
INVESTMENTS," for further discussion.
Management believes that the criteria for evaluating the
significance of the decline in fair value are reasonable and
that as long as the economic condition continues to improve, the
amount of impairment losses in investment securities will
continue to decrease in the near future. However, changes in the
securities market or circumstances of each individual investment
due to unforeseen changes in economic and business assumptions
could affect the valuation of the investment securities.
Pension Benefit Costs
Employee pension benefit costs and obligations are dependent on
various assumptions, including discount, retirement, and
mortality rates, which are based on the current statistical
data, as well as the expected long-term rate of return on plan
assets and other factors. In accordance with U.S. GAAP, the
difference between actual results and the assumptions is
accumulated and amortized over future periods and, therefore,
generally affects the recognized costs and the recorded
obligations in future periods. Management believes that the
assumptions used are appropriate, however, differences in actual
experience or changes in assumptions may affect our future
pension costs and obligations.
We determine the discount rates each year as of the measurement
date, based on a review of interest rates associated with
long-term Japanese government bonds or high-quality fixed-income
corporate bonds. The discount rates determined on each
measurement date are used to calculate the benefit obligation as
of that date, and are also used to calculate the net periodic
pension costs for the upcoming plan year.
On March 31, 2003, to reflect declining current market
interest rates in Japan, Mitsui, which is liable for most of our
benefit obligations, reduced the discount rate for its pension
plans from 3% to 2.25%. This change resulted in an
increase in its projected benefit obligation ("PBO")
as of March 31, 2003 and its net periodic pension costs
("NPPC") for the year ended March 31, 2004 by
approximately ¥26.0 billion and
¥4.2 billion, respectively.
Mitsui determines the expected long-term rate of return on plan
assets based on the weighted-average rate of return computed by
using the expected long-term rate of return on each asset class,
which is derived from an extensive study conducted by investment
advisors and actuaries on a periodic basis, and the target
allocations for each asset class. The study includes a review of
anticipated future performance with market analysis of
individual asset classes, and also gives appropriate
consideration to actual historical returns achieved by the
plans. The subsidiaries determine the expected long-term rates
of return on plan assets mainly based on the expectations for
future returns by investment advisors and actuaries.
The following table illustrates the sensitivity to changes in
certain assumptions for Mitsui's pension plans:
Billions of Yen
Impact of Change in
Assumption on
Impact of Change
NPPC for the Year
in Assumption on
Ending
PBO as of
March 31, 2006
March 31, 2005
50 basis point decrease in discount rate
1.8
14.0
50 basis point increase in discount rate
(1.5
)
(13.1
)
50 basis point decrease in expected long-term rate of return on
    plan assets
1.0
—
50 basis point increase in expected long-term rate of return on
    plan assets
(1.0
)
—
See Note 14, "PENSION COSTS AND SEVERANCE
INDEMNITIES," for further discussion about the estimates
and assumptions on PBO and NPPC.
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Tax Asset Valuation
We classify subsidiaries and associated companies into the
following five categories and evaluate realizability of deferred
tax assets by each category. The valuation allowance for the
deferred tax assets is established for the amount determined to
be unrealizable.
First Category
The companies, which constantly generate sufficient taxable
income every year to cover all the future deductible temporary
differences as of the end of each fiscal year, and no
significant change exists or is expected in the business
environment. For this category, we view all deferred tax asset
amounts as realizable.
Second Category
The companies with stable operating results in the past years
(approximately in the last three years), but do not generate
sufficient taxable income in the current year to cover all the
future deductible temporary differences as of the end of the
fiscal year. For this category, the portion of the deferred tax
assets that is recoverable based on an analysis of the scheduled
taxable income in the future is determined to be realizable.
Third Category
The companies with unstable operating results in the past years,
and do not generate sufficient taxable income in the current
year to cover all the future deductible temporary differences as
of the end of the fiscal year. For this category, the portion of
the deferred tax assets that is recoverable based on an analysis
of the scheduled taxable income within a reasonable estimation
period (approximately five years) is determined to be realizable.
Fourth Category
The companies, which have significant amounts of tax loss
carryforwards at the end of the fiscal year, have experienced
the expiration of a significant amount of tax loss carryforward
in the past three years, or will fail to utilize significant
amount of tax loss carryforward up to the expiration date in the
current period. For this category, the portion of the deferred
tax assets that is recoverable with a high degree of certainty
based on an analysis of the scheduled taxable income within the
next fiscal year is determined to be realizable.
If the tax loss carryforward results from a non-recurring and
unusual event such as a significant restructuring of the
business or a change in law or regulation, and the companies
otherwise consistently generate taxable income, the portion of
the deferred tax assets that is recoverable based on an analysis
of the scheduled taxable income within a reasonable estimation
period (approximately five years) is determined to be realizable.
Fifth Category
The companies, which recorded a significant amount of tax loss
carryforwards for each of the past three years and are expected
to record a significant tax loss in the current year as well.
For this category, no deferred tax assets are determined to be
realizable.
For Mitsui, the realizability of deferred tax assets is
determined based on all available evidence, both positive and
negative, including all currently available information
regarding tax deductibility on future years and ability to
generate sufficient taxable income prior to the expiration of
loss carryforward.
Management believes it is more likely than not that all of our
deferred tax assets, net of valuation allowance, will be
realized. However, the amount of realizable net deferred tax
assets may change in the near term if estimates of future
taxable income during the carryforward period are changed or if
statutory
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tax rates are changed. See Note 21, "INCOME
TAXES," for further discussion about the deferred tax
assets and valuation allowance.
New Accounting Standards
The Meaning of Other-than-Temporary Impairment and Its
    Application to Certain Investments
In Issue No. 03-1, "The Meaning of
Other-than-Temporary Impairment and Its Application to Certain
Investments," the FASB Emerging Issues Task Force reached a
consensus in November 2003 on certain quantitative and
qualitative disclosures about unrealized losses on debt and
marketable equity securities and also reached a consensus in
March 2004 on the application of a three-step impairment model
for certain investments in securities and disclosures about
investments accounted for under the cost method.
The three-step impairment model of investments was planned to be
effective for reporting periods beginning after June 15,
2004, however, in September 2004, the FASB issued FASB Staff
Position ("FSP") No. EITF 03-1-1 which
delayed the effective date for Step 2 and Step 3 of
the three-step impairment model until the final issuance of FSP
No. EITF Issue 03-1-a.
The effect of adoption of this consensus on our financial
position and results of operations will be immaterial as long as
the current market environment remains unchanged.
Inventory Costs
In November 2004, the FASB issued SFAS No. 151,
"Inventory Costs — an amendment of
ARB No. 43, Chapter 4."
SFAS No. 151 requires that abnormal amounts of idle
facility expense, freight, handling costs, and wasted material
(spoilage) should be recognized as current-period charges.
In addition, SFAS No. 151 requires that allocation of
fixed production overheads to the costs of conversion be based
on the normal capacity of the production facilities.
SFAS No. 151 is effective for inventory costs incurred
during fiscal years beginning after June 15, 2005. The
effect of adoption of this statement on our financial position
and results of operations is not currently known and cannot be
reasonably estimated until further analysis is completed.
Exchanges of Nonmonetary Assets
In December 2004, the FASB issued SFAS No. 153,
"Exchanges of Nonmonetary Assets — an amendment
of APB Opinion No. 29."
SFAS No. 153 eliminates the exception to fair value
measurement for nonmonetary exchanges of similar productive
assets and replaces it with a general exception to fair value
measurement for exchanges of nonmonetary assets that do not have
commercial substance. A nonmonetary exchange has commercial
substance if the future cash flows of the entity are expected to
change significantly as a result of the exchange.
SFAS No. 153 is effective for nonmonetary asset
exchanges occurring in fiscal periods beginning after
June 15, 2005. The effect of adoption of this statement on
our financial position and results of operations is not
currently known and cannot be reasonably estimated until further
analysis is completed.
Share-Based Payment
In December 2004, the FASB issued SFAS No. 123
(revised 2004), "Share-Based Payment"
("SFAS No. 123R"). SFAS No. 123R
requires the compensation cost from share-based payment
transactions to be recognized in the financial statements. The
amount of the compensation cost is measured based on the
grant-date fair value of the equity instruments issued or the
liabilities incurred. In
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Table of Contents
addition, the award of liability instruments will be remeasured
at the end of each reporting period. The compensation cost is
recognized over the requisite service period.
In April 2005, the SEC adopted a new rule which amends the
effective dates for SFAS No. 123R. Under the new rule,
SFAS No. 123R is effective for fiscal years beginning
after June 15, 2005. The effect of adoption of this
statement on our financial position and results of operations is
not currently known and cannot be reasonably estimated until
further analysis is completed.
Accounting for Stripping Costs Incurred During Production in
    the Mining Industry
In March 2005, the FASB Emerging Issues Task Force reached a
consensus on Issue No. 04-6 ("EITF
No. 04-6"), "Accounting for Stripping Costs
Incurred during Production in the Mining Industry."
EITF No. 04-6 requires that stripping costs incurred
during the production stage of mine are variable production
costs that should be considered a component of mineral inventory
costs and are recognized as a component of costs of sales in the
same period as the revenue from the sale of the inventory.
EITF No. 04-6 is effective for fiscal years beginning after
December 15, 2005. The effect of adoption of this consensus
on our financial position and results of operations will be
immaterial.
Conditional Asset Retirement Obligations
In March 2005, the FASB issued FIN No. 47,
"Accounting for Conditional Asset Retirement
Obligations — an interpretation of FASB Statement
No. 143." FIN No. 47 clarifies that an
entity is required to recognize a liability for the fair value
of a legal obligation to perform asset retirement activities
that are conditional on a future event if the amount can be
reasonably estimated.
FIN No. 47 also clarifies when an entity would have
sufficient information to reasonably estimate the fair value of
an asset retirement obligation.
FIN No. 47 is effective for fiscal years ending after
December 15, 2005. The effect of adoption of this
interpretation on our financial position and results of
operations will be immaterial.
B.     Liquidity and Capital
Resources
Use of Non-GAAP Financial Measures
Non-GAAP financial measures are defined in the SEC regulations
as financial measures that either exclude or include amounts
that are not excluded from or included in the most directly
comparable measure calculated and presented in accordance with
GAAP.
Net Debt-to-Equity Ratio
We refer to "Net Debt-to-Equity Ratio" ("Net
DER") in this Liquidity and Capital Resources and elsewhere
in this annual report. Net DER is comprised of "net
interest bearing debt" divided by shareholders' equity.
"Net interest bearing debt" is defined as adjusted
interest bearing debt described as below less cash and cash
equivalents and time deposits. Our interest bearing debt
primarily consists of long term debt, less current maturities,
which are not readily repayable. As mentioned below
"Funding and Treasury Policies and Objectives," to
flexibly meet capital requirements and to prepare for future
debt-service requirements in case of unforeseen deteriorations
in financial markets, currently we hold a relatively high level
of cash and cash equivalents reflecting the current financial
market conditions and future capital requirements. Under this
policy, Net DER is a useful internal measure for our management
to review the balance between:
•
our capacity to meet debt repayments; and
•
leverage to improve return on equity in our capital structure.
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Management believes it is also helpful for the readers of this
annual report.
To calculating our adjusted interest bearing debt, followings
are the eliminating factors:
•
accounts payables, derivative liabilities and others;
•
capital lease obligations; and
•
SFAS No. 133 fair value adjustment.
Elimination of SFAS No. 133 fair value adjustment is
made because Japanese investors usually evaluate Net DER of
other general trading companies in this manner.
This measure does not recognize the fact that cash and cash
equivalents and time deposits may not be available completely
for debt repayments, but cash and cash equivalents and time
deposits may be required for operational needs including certain
contractual obligations or capital expenditure.
"Net interest bearing debt" and "Net DER"
are presented in the table below.
Billions of Yen
As of March 31,
2005
2004
Short-term debt
¥
615.4
¥
646.7
Long-term debt
3,196.9
2,898.9
Less eliminating factors included in long-term debt:
Accounts payables, derivative liabilities and others
(193.0
)
(147.6
)
Capital lease obligations
(21.3
)
(19.2
)
Less SFAS No. 133 fair value adjustment
(58.2
)
(43.2
)
Adjusted interest bearing debt
3,539.8
3,335.6
Less cash and cash equivalents and time deposits
(819.9
)
(685.0
)
Net interest bearing debt
¥
2,719.9
¥
2,650.6
Shareholders' equity
¥
1,122.8
¥
963.3
Net DER (times)
2.42
2.75
The most directly comparable GAAP measure is considered to be
"Debt-to-Equity Ratio" ("DER"). However,
this ratio measures gross debt relative to equity, and does not
measure changes in cash position.
Adjusted DER (times)
3.15
3.46
(defined as adjusted interest bearing debt divided by
shareholders' equity)
Free Cash Flow
We define "free cash flow" as the sum of net cash
provided by operating activities and net cash used in investing
activities. Management believes that such indicator is useful to
investors, to measure available net cash for investment in
strategic opportunities and/or debt repayment; or magnitude of
reliance on borrowing to procure fund for strategic investments.
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The following table shows a reconciliation of net cash provided
by operating activities to free cash flow.
Billions of Yen
As of March 31,
2005
2004
2003
Net cash provided by operating activities
¥
200.1
¥
100.1
¥
52.1
Net cash used in investing activities
(224.0
)
(134.2
)
(4.2
)
Free Cash Flow
¥
(23.9
)
¥
(34.1
)
¥
47.9
Finance and Liquidity Management
Funding and Treasury Policies and Objectives
Our basic funding policy is to secure stable sources of funds to
maintain adequate liquidity and financing to satisfy capital
requirements for our operations and to maintain the strength of
our balance sheet. In order to achieve our objectives, our
principal strategy is to obtain long-term funds (those with
maturities of around 10-years) from financial institutions,
including insurance companies and banks, and through the
issuance of corporate bonds. In addition, we utilize financing
programs provided by government financing agencies for various
projects to obtain long-term financing. Another strategy is to
maintain sufficient liquidity to flexibly meet capital
requirements and to prepare for future debt-service requirements
in case of unforeseen deteriorations in financial markets. We
hold cash and cash equivalents as liquidity sources, which
consist mainly of highly-liquid and highly-rated short-term
financial instruments and deposits. We aim to maintain the level
of cash and cash equivalents at about 10% of total assets,
reflecting the current financial market conditions and future
capital requirements.
In principle, our wholly owned domestic subsidiaries do not
raise their funds in financial markets or borrow from banks, but
instead use a cash management service provided by
Mitsui & Co. Financial Services Ltd. (Japan), our
financing subsidiary, which centralizes the fund raising
function and promotes efficient use of funds. We are currently
extending this policy to our principal overseas subsidiaries.
Funding Sources
We borrow funds based on our longstanding relations with
financial institutions in Japan and overseas, borrow from
government financing agencies, and also utilize project
financing. In addition to these funding sources, Mitsui
maintains a ¥200 billion debt shelf-registration and a
¥2,400 billion commercial paper program in Japan.
Similarly, Mitsui & Co. (U.S.A.), Inc.,
Mitsui & Co. International (Europe) B.V.,
Mitsui & Co., Asia Investment Ltd. and
Mitsui & Co., Ltd. have arranged a joint Euro
medium-term note ("MTN") program of
U.S.$5 billion. Mitsui guarantees notes issued by these
overseas subsidiaries. For raising short-term funds,
Mitsui & Co. (U.S.A.), Inc. has a U.S.$1.5 billion
U.S. domestic commercial paper program, and we have made
arrangements for commercial paper programs in some other
overseas markets.
Unused lines of credit, for short-term financing outside Japan,
aggregated ¥498.5 billion at March 31, 2005.
Certain foreign subsidiaries compensate banks for these
facilities in the form of commitment fees, which were not
material in each of the past three years.
Taking advantage of a favorable financial market environment,
during the year ended March 31, 2005, we increased
long-term funding by borrowing from financial institutions and
issuing bonds in Japan and MTNs in overseas markets for debt
retirement and for working capital requirements. There were five
bond issues that raised ¥55.0 billion in total (with
maturities of 10 to 20 years) under the shelf-registration
in Japan during the year ended March 31, 2005. As a result,
long-term debt accounted for approximately 83% of total debt as
of March 31, 2005, in which we regard as a satisfactory
level from the viewpoint of our financial policies.
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Approximately 76% of the balance of short-term and long-term
debt as of March 31, 2005 was denominated in Japanese yen
and the rest was mainly denominated in U.S. dollars.
We employ certain derivative financial instruments, which
include interest rate swaps, currency swaps and foreign exchange
forward contracts, to manage financial exposures resulting from
our financing activities. Currency swap agreements and foreign
exchange forward contracts are used to manage risks associated
with the fluctuations in foreign exchange rates. The principal
financial derivative instruments that are employed to manage
interest rate risk exposure are interest rate swap agreements. A
large part of such agreements are used for fair value hedging of
fixed rate interest-bearing debt, including fixed interest rate
borrowing, bonds and notes, converting into floating interest
rates based on the three-month or six-month LIBOR. The interest
rates on approximately 81% of Mitsui's long-term debt,
other than borrowings for certain projects, were floating after
taking into account interest rate swap arrangements as of
March 31, 2005.
See Note 26, "DERIVATIVE INSTRUMENTS AND HEDGING
ACTIVITIES" for further description of our risk management
policies.
Credit Ratings
To facilitate access to funds from capital markets, Mitsui and
our certain foreign trading subsidiaries have obtained ratings
for their commercial paper (short-term debt) and long-term
senior unsecured debt (long-term debt) from Rating and
Investment Information, Inc. ("R&I"), Moody's
Investors Service, Inc. ("Moody's") and Standard
and Poor's Services ("S&P"). The ratings as
of June 2005 were as follows:
R&I
Moody's
S&P
Short-term debt
a-1+
P-1
A-2
Long-term debt
AA-
A2
A-
*
*
The credit rating by S&P on long-term debt was provided
    without our request.
S&P in March 2005 raised our long-term corporate credit
rating to "A-" from "BBB+." S&P cited
the following factors for the change in ratings:
•
the gradually improving financial profiles on the Japanese
    general trading companies, with evidence of an upswing in
    operating income and equity in earnings of associated companies
    supported by the progress in restructuring unprofitable
    businesses, and sound performance in their trading of energy and
    metal businesses;
•
the reduction in the risk from investments and loans, due to
    proper management of the risks involved in investments and
    loans, with the resulting improvement in the risk balance
    between shareholders' equity and investments and loans; and
•
the continuation of our strategy to strengthen our profitability
    after credit costs.
Moody's in April 2005 upgraded the rating to A2 from A3 on
unsecured long-term debt of Mitsui and its supported
subsidiaries. Mitsui's short-term debt rating was also
upgraded to Prime 1 from Prime 2. According to Moody's,
this rating action reflects the progress the company has made in
improving our debt to equity ratio ("DER") and
profitability over the past several years in the difficult
operating environment. Mitsui intends to maintain and improve
its current credit ratings by enhancing its earnings and risk
management.
Credit ratings are an assessment by the rating agencies of
the credit risks associated with us and are based on information
provided by us and other sources that the rating agencies
consider reliable. Lower ratings generally result in higher
borrowing costs and reduced access to capital markets. Credit
ratings do not constitute a recommendation to buy, sell or hold
securities and are subject to change or withdrawal by each of
rating agencies at any time. As rating agencies may have
different criteria in evaluating the risk
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associated with a company, you should evaluate each rating
independently of other ratings. Ratings may be changed without
pre-notice at any time.
Liquidity Management
For the interest rate structure and the maturity profile of our
outstanding debt, see Note 13, "SHORT-TERM AND
LONG-TERM DEBT."
We had working capital, or current assets minus current
liabilities, of ¥1,138.9 billion,
¥900.7 billion and ¥806.4 billion as of
March 31, 2005, 2004 and 2003, respectively.
Short-term debt was ¥615.4 billion,
¥646.7 billion and ¥690.9 billion, and
long-term debt less current maturity was
¥2,904.9 billion, ¥2,541.2 billion and
¥2,500.5 billion as of March 31, 2005, 2004 and
2003, respectively.
Cash and cash equivalents were ¥791.8 billion,
¥638.3 billion and ¥694.8 billion as of
March 31, 2005, 2004 and 2003, respectively.
In addition to cash and cash equivalents, we had time deposits
and marketable securities of ¥28.1 billion and
¥28.1 billion, ¥46.7 billion and
¥29.3 billion, and ¥37.7 billion and
¥64.5 billion, as of March 31, 2005, 2004 and
2003, respectively.
Net interest-bearing debt (interest-bearing debt less cash and
cash equivalents and time deposits) was
¥2,719.9 billion, an increase of
¥69.3 billion from the year ended March 31, 2004.
However, the net DER improved from 2.75 as of March 31,
2004 to 2.42 as of March 31, 2005, reflecting a strong
increase in shareholders' equity. Mitsui anticipates an
increase in total assets from ¥7,593.4 billion as of
March 31, 2005 to ¥8,000 billion as of
March 31, 2006 in our outlook for the year ending
March 31, 2006 due to our new investments. However, we
expect to keep the net debt-to-equity ratio around 2.5 in order
to maintain our sound financial standing while refraining from a
highly leveraged funding policy and utilizing operating cash
flows during this period for new investments.
The ratio of current assets to current liabilities improved from
129.7% as of March 31, 2004 to 134.7% as of March 31,
2005 partly because long-term debt and bonds increased in line
with our principal funding strategies as mentioned above. The
ratio of current assets to current liabilities as of
March 31, 2003 was 126.7%.
As of March 31, 2005, we have given guarantees for
obligations of various third parties and associated companies.
These guarantees are not expected to require substantial use of
our capital resources. We have not had any material payment
requirements resulting from activities for the past three years.
For details on guarantees issued by us, see Note 23,
"COMMITMENTS AND CONTINGENT LIABILITIES."
With the exception of project financing and non-recourse
financing, it is our policy not to conclude agreements for
important financial transactions with financial institutions
that contain additional debt restriction clauses that may cause
acceleration of our obligations, including debt incurrence
restrictions, negative pledges, restrictions on dividend
payments and various financial ratio limits, and there are no
material financial covenants in the agreements undertaken.
Assuming that our subsidiaries have sufficient distributable net
assets or retained earnings as provided under the local laws of
the relevant jurisdictions, there are no material contractual or
legal restrictions on the ability of our subsidiaries to
transfer funds to us in the form of dividends, loans or
advances. There are no material economic restrictions on
payments of dividends, loans or advances to us by our
subsidiaries other than general withholding or other taxes
calculated at the rates determined by the local tax laws of the
relevant jurisdictions.
We held ¥791.8 billion of cash and cash equivalents as
of March 31, 2005 in comparison to ¥237.5 billion
of outstanding debt from commercial papers, MTNs and bonds with
current maturities. Of the cash and cash equivalents,
approximately 72% was held by Mitsui and approximately 80% was
denominated in Japanese yen. We believe that we maintain
sufficient liquidity to satisfy our working
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capital and debt-service requirements for the foreseeable future
through existing cash and cash equivalents and time deposits,
the sales of certain assets in parallel with outside borrowings
from financial institutions, as well as, the issuance of bonds
and notes.
We plan to contribute ¥8.6 billion to our
defined-benefit pension plans for the year ending March 31,
2006. This fund requirement will be managed under our funding
policy mentioned above.
Investment Plans and Financial Policies of the Current
    Medium-Term Strategic and Financial Plan
According to our two-year Medium-Term Strategic and Financial
Plan (announced in May 2004) ending in March 2006, we plan to
invest ¥400 billion during the period of the plan. By
the end of March 2005, we had placed a total of approximately
¥260 billion into investments and the acquisition of
long-lived assets. This included ¥62.8 billion for the
Enfield crude oil development project, ¥82.4 billion
for the Sakhalin II project, ¥63.4 billion for
the purchase of Edison Mission Energy's overseas power
generation business portfolio, and ¥12.6 billion for
the expansion of iron ore and coal mining in Australia.
After the end of March 2005, we revised our investment plan, and
announced in May 2005 that we expect to invest a total of
¥420 billion in the period from April 2005 to the end
of March 2006. The principal investments in this plan are
described below.
— Approximately ¥200 billion in mineral
resources and energy projects,
— Approximately ¥100 billion in
infrastructure projects, and
— Approximately ¥100 billion in growing and
strengthening fields such as consumer and financial products and
services.
Many of the projects in the investment plan involve bidding. The
outcome of bidding will have an effect on our actual cash flows
and financial condition for the year ending March 31, 2006.
Our investment plan assumes that all of the planned investments
will be made by the year ending March 31, 2006.
We will procure funding for these investments by increasing
internal liquidity, as well as fund raising (including project
finance) from the private sector and government financing
agencies, and direct financing from capital markets. We forecast
our level of interest-bearing debt to increase by about
¥270 billion by the year ending March 31, 2006;
however, this amount may vary, depending on the state of
progress of the investment plan.
In formulating our investment plans we are paying careful
attention to our level of financial leverage —
including our shareholders' equity ratio and our net DER.
Accompanying the revision of the investment plan outlined above,
we have targeted a net DER of around 2.5 for the year ending
March 31, 2006.
Non-Exchange Traded Commodity Contracts at Fair
Value
We perform trading activities in commodities that are listed on
the terminal (futures) markets. Our trading consists of
derivative instruments traded in the commodity futures markets,
as well as non-exchange traded commodity contracts including
commodity derivatives. Non-exchange traded commodity contracts
are recorded at fair value based on prices actively quoted in
the terminal (futures) market for commodities such as
precious metals. Some non-exchange traded commodity contracts,
such as non-exchange traded derivatives of crude oil and oil
products, are recorded at fair value based on the prices
provided by other external sources. Their effect on earnings and
financial position is immaterial.
Transactions With Related Parties
When conducting our business operations throughout the world, we
form alliances with leading partner companies in Japan and
overseas, including manufacturers and companies in raw materials
resources fields, such as energy and ferrous materials. In
addition to investing in associated companies
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where we are a minority shareholder, we conduct selling and
purchasing transactions of various products on a recurring basis
with such associated companies.
Our principal associated companies include Valepar S.A.
(18.24%), Japan Australia LNG (MIMI) Pty. Ltd. (50.00%),
Mitsui Oil Exploration Co., Ltd. (44.34%), IPM Eagle LLP
(30.00%), Nihon Unisys, Ltd. (28.91%), Sakhalin Energy
Investment Company Ltd. (25.00%) and United Auto Group, Inc.
(15.53%), among others.
During the years ended March 31, 2005, 2004 and 2003 our
gross revenues from transactions with these associated companies
amounted to ¥121 billion, ¥108 billion and
¥91 billion, respectively, and the values of goods and
services purchased from such companies and reported as cost of
revenues were ¥192 billion, ¥161 billion and
¥143 billion, respectively.
Prices applied in transactions with associated companies are
computed in the same way that such prices would be calculated in
transactions with unrelated third parties. In addition, when
associated companies are counterparties in transactions with us
and we conduct such business under long-term procurement and/or
sales contracts, in general, we conclude a corresponding sales
contract with the purchasers (unrelated parties) of goods
procured by us and/or with suppliers (unrelated parties) of the
goods we sell to associated companies. In addition, as of
March 31, 2005, we were the guarantor for
¥57.6 billion in funds borrowed and other financial
obligations of associated companies. Regarding any other
commitments related to transactions with associated companies,
we do not normally assume risk in excess of our percentage of
share ownership in such associated companies.
Assets, Liabilities and Shareholders' Equity
Total assets as of March 31, 2005 increased by
¥877.4 billion to ¥7,593.4 billion, compared
with ¥6,716.0 billion as of March 31, 2004.
Current assets as of March 31, 2005 increased by
¥486.2 billion to ¥4,420.7 billion, compared
with ¥3,934.5 billion as of March 31, 2004. The
details of the increase are as follows:
•
Cash and cash equivalents increased by ¥153.5 billion
    from the year ended March 31, 2004, mainly derived from our
    long-term borrowings and issuance of bonds.
•
As a result of increased business transactions and rising prices
    in various markets, accounts receivables and inventories
    increased by ¥156.9 billion and by
    ¥83.9 billion, respectively, mainly at subsidiaries in
    the Energy Segment, the Metal Products & Minerals
    Segment, and the Americas Segment. As a result of an increase in
    the derivative assets of Mitsui & Co. Energy Risk
    Management Ltd. (United Kingdom) and other subsidiaries in the
    Logistics & Financial Markets Segment, other current
    assets increased by ¥74.1 billion.
Current liabilities as of March 31, 2005 increased by
¥248.0 billion to ¥3,281.8 billion compared
with ¥3,033.8 billion as of March 31, 2004. The
main factors were as follows:
•
In addition to a ¥178.3 billion increase in accounts
    payables corresponding to the above-mentioned increase in
    accounts receivables, the increase in derivative liabilities of
    Mitsui & Co. Energy Risk Management Ltd. and others led
    to a ¥92.1 billion increase in other current
    liabilities, corresponding to the above-mentioned increase in
    the derivative assets.
•
On the other hand, short-term debts declined by
    ¥31.4 billion, mainly due to the redemption of
    Mitsui's commercial papers. Similarly, there was a decline
    of ¥65.7 billion in current maturities of long-term
    debt through repayments by Mitsui on the due date.
As a result, working capital as of March 31, 2005, or
current assets minus current liabilities, increased by
¥238.2 billion to ¥1,138.9 billion compared
with ¥900.7 billion as of March 31, 2004
(including the above-mentioned increase in cash and cash
equivalents by ¥153.5 billion).
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The sum of total investments and non-current receivables, net
property and equipment, intangible assets, less accumulated
amortization, deferred tax assets — non-current, and
other assets as of March 31, 2005 increased by
¥391.1 billion to ¥3,172.7 billion from
¥2,781.6 billion as of March 31, 2004.
Within investments and non-current receivables, the total of
investments in and advances to associated companies and other
investments as of March 31, 2005 increased by
¥289.7 billion to ¥1,633.4 billion compared
with ¥1,343.7 billion as of March 31, 2004. The
details of the increase are as follows:
•
Investments in and advances to associated companies increased
    due to our investment in the preferred stock of Sakhalin Energy
    Investment Company Ltd. (Bermuda) of ¥82.4 billion and
    through our investment in IPM Eagle LLP (United Kingdom) of
    ¥63.4 billion that purchased Edison Mission
    Energy's overseas power plant business portfolio. In
    addition, there was an ¥84.2 billion increase due to
    the increase in our equity in earnings of associated companies
    for the year ended March 31, 2005 and a
    ¥28.1 billion increase reflecting an increase in
    unrealized holding gains on available-for-sale securities in
    relation to the investment in INPEX CORPORATION
    ("INPEX") owned by our associated company Mitsui Oil
    Exploration Co., Ltd. (Japan) following INPEX's initial
    public offering.
•
Other investments increased due to the increase in unrealized
    holding gains on available-for-sale securities of
    ¥23.7 billion.
Net property and equipment (less accumulated depreciation) rose
by ¥63.6 billion to ¥662.7 billion compared
with ¥599.1 billion as of March 31, 2004. The
main assets acquired during the year ended March 31, 2005
were mineral rights of ¥48.5 billion as well as
equipment and fixtures of ¥14.3 billion in relation to
the Enfield crude oil project.
Long-term debt, less current maturities as of March 31,
2005 increased by ¥363.7 billion to
¥2,904.9 billion from ¥2,541.2 billion as of
March 31, 2004. This was due to an increase in borrowings
from financial institutions and the issuance of bonds by both
Mitsui and Mitsui & Co. International (Europe) B.V.
(Netherlands). In addition to the procurement of funding for
investments and acquisition of property and equipment during the
year ended March 31, 2005 as mentioned above, we have been
proceeding with further funding procurement ahead of
implementation of investments set forth in our investment plan.
Shareholders' equity as of March 31, 2005 increased by
¥159.5 billion to ¥1,122.8 billion from
¥963.3 billion as of March 31, 2004, mainly due
to the accumulation of retained earnings, but also as a result
of an increase in unrealized holding gains and losses on
available-for-sale securities.
Cash Flows
Billions of Yen
Years Ended March 31,
2005
2004
2003
Net cash provided by operating activities
¥
200.1
¥
100.1
¥
52.1
Net cash used in investing activities
(224.0
)
(134.2
)
(4.2
)
Net cash provided (used in) by financing activities
171.3
(12.2
)
17.8
Effect of exchange rate changes on cash and cash equivalents
6.1
(10.2
)
(4.5
)
Net increase (decrease) in cash and cash equivalents
153.5
(56.5
)
61.2
Cash and cash equivalents at beginning of year
638.3
694.8
633.6
Cash and cash equivalents at end of year
791.8
638.3
694.8
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Cash Flows during the Year Ended March 31,
    2005
Cash Flows from Operating Activities
Net cash provided by operating activities for the year ended
March 31, 2005 was ¥200.1 billion, which was
primarily attributable to:
•
Operating income which increased steadily in the Metal
    Products & Minerals Segment, Energy Segment, and other
    segments
•
Dividends received from associated companies as well as our
    investment in third parties amounting to
    ¥53.6 billion, mainly from investments in our mineral
    resource and energy related associated companies such as Japan
    Australia LNG (MIMI) Pty. Ltd. (Australia), Valepar S.A.
    (Brazil), and other Middle Eastern LNG companies
•
Total payments, in relation to contributions to our defined
    benefit pension plan and payments under unfunded severance
    indemnities plans amounting to ¥30.9 billion
•
A one-time payment of ¥8.1 billion for compensation
    and other charges related to DPF incident
•
Payments of ¥56.9 billion for corporate income taxes
Net cash provided by operating activities increased by
¥100.0 billion for the year ended March 31, 2005
compared with the year ended March 2004. The reasons for this
increase were:
•
Operating income which increased by ¥71.2 billion in
    total, and by operating segment mainly attributable to a
    ¥39.4 billion increase in the Metal
    Products & Minerals Segment and a
    ¥13.8 billion increase at the Energy Segment.
•
Dividends received from associated companies as well as our
    investments in third parties showed further increase.
Cash Flows from Investing Activities
Net cash used in investing activities for the year ended
March 31, 2005 totaled ¥224.0 billion. Of this
amount, ¥133.3 billion was used in relation to
investments and loans. The details of the cash flows are as
follows:
•
A total of ¥190.4 billion was paid for investments in
    and advances to associated companies. This included
    ¥80.7 billion* investment in preferred stock of
    Sakhalin Energy Investment Company Ltd. (Bermuda) and an
    investment of ¥62.2 billion* in IPM Eagle LLP (United
    Kingdom) that purchased Edison Mission Energy's overseas
    power generation business portfolio. Deduction of a
    ¥52.7 billion proceeds from sales of investments in
    and collection of advances to associated companies resulted in a
    net cash outflow of ¥137.7 billion.
•
A total of ¥68.5 billion was used on acquisition of
    debt securities for fund management purposes, mainly by Mitsui
    and its financing subsidiaries, and ¥59.8 billion was
    obtained as proceeds from maturities of debt securities. While
    ¥14.5 billion was provided by the sale of shares in
    Vodafone K.K., ¥8.9 billion was used in the purchase
    of shares in CornerStone Research & Development, Inc.
    (the United States).
A total of ¥90.7 billion was paid for fixed assets,
which includes property leased to others and property and
equipment. The main items are listed below.
•
Payments of ¥64.4 billion* for the acquisition of
    mineral rights and other fixed assets in the Enfield crude oil
    project in Western Australia
•
Payments of ¥17.2 billion for the acquisition of
    facilities for the development of iron ore and coal
* Cash flows in foreign currencies were translated into yen
using the average foreign exchange rates during the year, and
therefore differ from the amounts appearing in "Investment
Plans and Financial Policies of the Current Medium-Term
Strategic and Financial Plan" and "Assets, Liabilities
and Shareholders' Equity" as above, which were
translated by the current rate as of March 31, 2005.
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•
Payments of ¥16.0 billion for purchasing rolling stock
    and ocean vessels for lease, and proceeds of
    ¥17.0 billion from the sale of aircraft, rolling stock
    and ocean vessels for lease
•
A proceed of ¥10.8 billion from the sale of our office
    building in the United Kingdom
•
Proceeds of ¥12.8 billion from the sale of
    Mitsui's corporate residences and dormitories
Cash flows used in investing activities for the year ended
March 31, 2005 increased by ¥89.8 billion
compared with the year ended March 31, 2004. Large cash
outflow and cash inflow for the year ended March 31, 2004
included an investment of ¥97.1 to acquire shares in
Valepar S.A. (Brazil), an investment of ¥56.7 billion
in the preferred stock of Sakhalin Energy Investment Company
Ltd. (Bermuda), and a proceed of ¥49.8 billion from
the sale of shares in Caemi Mineração e Metalurgia S.A.
Cash Flows from Financing Activities
Net cash provided by financing activities for the year ended
March 31, 2005 was ¥171.3 billion, which was
primarily attributable to:
•
An increase in long-term and short-term debt of
    ¥183.8 billion, mainly consisting of the increased
    long-term borrowings and issuance of long-term bonds by Mitsui,
    Mitsui & Co. (U.S.A.) Inc. and other trading
    subsidiaries. Of this amount, ¥141.2 billion was
    procured by Mitsui.
•
In response to increasing demand for funds for our investments
    and acquisition of fixed assets, we increased our level of
    long-term fund procurement, taking advantage of a favorable
    financial market environment. As a result, that our long-term
    debt increased by ¥120.7 billion in long-term
    borrowings and by ¥55.0 billion in bonds.
•
Other major cash flows from financing activities included a
    ¥2.6 billion proceed from the issuance of stock of
    Telepark Corp. (Japan), and payments of ¥14.2 billion
    for cash dividends.
Cash flows from financing activities for the year ended
March 31, 2005 increased by ¥183.5 billion
compared with the year ended March 31, 2004. The main
sources, as described above, were increases in levels of
long-term fund procurement through our borrowings from financial
institutions and issuance of bonds. Please refer to
"Finance and Liquidity Management — Funding
Sources" above for details of our fund procurement for the
year ended March 31, 2005.
Cash and Cash Equivalents at End of the Year
In addition to the increase of ¥6.1 billion due to
changes in exchange rates, the balance of our cash and cash
equivalents increased by ¥153.5 billion for the year
ended March 31, 2005 to ¥791.8 billion as of
March 31, 2005.
Cash Flows in the Current Medium-Term Strategic and
    Financial Plan
Reflecting our active investment program, free cash flow, which
we define as net of cash flows from operating activities
(¥200.1 billion for the year ended March 31,
2005) and cash flows from investing activities (negative
¥224.0 billion for the same year) as shown in our
Statements of Consolidated Cash Flows, was negative
¥23.9 billion for the year ended March 31, 2005.
In the year ending March 2006, our free cash flow is expected to
be approximately the same as the year ended March 31, 2005
mainly due to the following reasons:
•
Our analysis of the trends in mineral resource and energy prices
    and their expected influence on our operating results for the
    year ending March 31, 2006 suggests that rising resource
    and energy prices will continue to support growth in net income
    and operating cash flows in the year ending March 2006.
•
Many investments in our current Medium-Term Strategic and
    Financial Plan ending March 2006 will be made in the fields of
    mineral resources and energy. It will take a long time to begin
    generating cash inflow from those investments.
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Cash Flows during the Year Ended March 31,
    2004
Cash Flows from Operating Activities
Net cash provided by operating activities for the year ended
March 31, 2004 was ¥100.1 billion, which was
primarily attributable to:
•
operating income in almost all segments, especially in the Metal
    Products & Minerals Segment and the Chemical Segment;
    and
•
dividends from associated companies and unrelated investees,
    particularly those operating in the natural resources business
    (e.g., iron and steel raw materials, oil and gas).
The above net cash inflow was partly offset by the payment of
U.S.$126.5 million, or ¥13.7 billion, for the
settlement of a major part of choline chloride lawsuits in the
United States.
Net cash provided by operating activities increased by
¥47.9 billion compared to the year ended
March 31, 2003. The principal reasons for this increase
were:
•
¥21.9 billion higher operating income; and
•
¥25.9 billion decline in contributions to defined
    benefit plans from ¥26.0 billion to
    ¥0.1 billion.
In addition, during the year ended March 31, 2003, our
domestic financing subsidiary, Bussan Credit Co., Ltd. (Japan),
which has merged with other subsidiaries and been operating as
Mitsui & Co. Financial Services Ltd. since April 2005.,
purchased trade receivables (Mitsui's trade payables) at a
discount from various suppliers, which caused early payments of
our trade payables, which reduced net cash from operating
activities.
Cash Flows from Investing Activities
Net cash used in investing activities was
¥134.2 billion. There was a net cash outflow of
¥80.9 billion for investments and loans, which
consisted of:
•
¥124.8 billion cash inflow from proceeds from
    maturities of debt securities held by financing subsidiaries;
•
proceeds of ¥49.8 billion from the sale of investments
    in Caemi Mineração e Metalurgia S.A. (Brazil);
•
payment of ¥97.1 billion for investment in Valepar
    S.A. (Brazil); and
•
payment of ¥56.7 billion for the purchase of preferred
    stock of Sakhalin Energy Investment Company Ltd. (Bermuda).
As for the additions and sales of long-lived assets, cash
inflow and outflow mainly consisted of:
•
purchases of mining facilities in the Metal Products &
    Minerals Segment;
•
purchases of aircraft, rolling stock and ocean transport vessels
    for leasing;
•
proceeds from sales of leased aircraft and ocean transport
    vessels; and
•
proceeds from sales of Mitsui's residences and dormitories.
Net cash used in investing activities increased by
¥129.9 billion compared to the year ended
March 31, 2003, due mainly to investments in Valepar S.A.
in the Metal Products & Minerals Segment and Sakhalin
Energy Investment Company Ltd. in the Energy Segment.
Cash Flows from Financing Activities
During the year ended March 31, 2004, Mitsui and its
financial subsidiary repaid short-term and long-term debt, while
Mitsui and its foreign trading subsidiaries raised
¥177.4 billion through the issuance of
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bonds. As a result, net cash provided by short-term and
long-term financing activities totaled ¥0.7 billion.
After the payments of cash dividends, net cash used in financing
activities totaled ¥12.2 billion.
Cash flows used in financing activities increased by
¥30.1 billion from the cash flows of
¥17.8 billion provided by financing activities for the
year ended March 31, 2003, because:
•
there was an increase in borrowings at the above-mentioned
    financing subsidiary in Japan to finance early repayments of
    Mitsui's trade payables during the year ended
    March 31, 2003; and
•
Mitsui and the domestic financial subsidiary increased the
    repayments of short-term debt.
Cash and Cash Equivalents at End of Year
Cash and cash equivalents declined by ¥56.5 billion
after the effect of exchange rate changes on cash and cash
equivalents. As a result, cash and cash equivalents as of
March 31, 2004 were ¥638.3 billion.
C.     Research &
Development
For the year ended March 31, 2005, research and development
("R&D") expenses totaled ¥5.6 billion,
which consist mainly of ¥3.9 billion in the Chemical
Segment related to nanotechnology, biotechnology and life
sciences technology, ¥0.9 billion in the Machinery,
Electronics & Information Segment, and
¥0.7 billion in the Consumer Products &
Services Segment including R&D relating to food products.
In the nanotechnology field, a key research area in the Chemical
Segment, we have been developing and promoting the
commercialization of ethanol separation technology by using
zeolite membranes, which will dramatically improve the energy
efficiency of biomass ethanol production. Biomass ethanol is a
renewable energy source, and as such it is being studied all
over the world as an additive for automobile gasoline and fuel
for electrical power generation, as a means of addressing the
issue of global warming. By realizing improved energy efficiency
in the production of biomass ethanol through the use of zeolite
membranes, it is expected to reduce costs and promote the
introduction of biomass ethanol fuel in Japan.
Furthermore, carbon nanotubes are expected to be developed for a
variety of advanced applications in the future, and we are
continuing to cooperate with industry and academia to conduct
development research into these applications, providing the
produced carbon nanotubes for many partner university
laboratories and companies as we strive together to
commercialize this technology.
With regards to the manufacturing of zeolite membranes and
carbon nanotubes, we build a commercial plant for zeolite
membranes (dehydration membranes) during the year ending
March 31, 2006, and we are also laying the groundwork for
establishing a company for carbon nanotubes during the same year.
In addition, with the primary objective of expanding demand for
methionine, a feed supplement subsidiary, Novus International
Inc. (the United States) has been working to develop new
applications and manufacturing processes, and has also been
conducting R&D in feed analysis services and new products by
using a broad array of techniques ranging from cellular biology
techniques to living-body experiments. These R&D efforts are
producing tangible results, such as improvements in the
market's view for its products, the startup of a new plant
for intermediates, and the debut of new products in the area of
organic acids and organic minerals.
In the Machinery, Electronics & Information Segment,
Chlorine Engineers Corp. (Japan) — a unit of a
subsidiary, MBK Project Holdings Ltd. (Japan) that is engaged in
the business of making electrolyzers and providing engineering
for chlor-alkali plants — continuously conducts
research on the structure of electrolyzers and the optimization
of the materials used in these devices, in order to realize
energy savings by boosting plant operating rates and prolonging
the lifespan of these electrolyzers. This research helps reduce
operating and maintenance costs for users, and also contributes
to the protection of the environment.
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As a food related activities in the Consumer Products &
Services Segment, a subsidiary, Mitsui Norin Co., Ltd. (Japan)
is primarily focused on the commercialization of its research
into the health benefits, application and material development
of catechin, a substance in tea that has high sterilization and
anti-viral properties, and to its commercialization in the
pharmaceutical field. Mitsui Norin Co., Ltd. is pursuing
research with universities and research institutions inside and
outside of Japan, and seeking to uncover the bioactive
properties of tea, it is also using genetic engineering methods
to establish microbe identification technology and methods for
analyzing foreign substances and offensive odors.
For the year ended March 31, 2004, R&D expenses were
¥6.0 billion. Principal R&D activities undertaken
were related to nanotechnology and biotechnology in the Chemical
Segment, electrolysis technology in the Machinery,
Electronics & Information Segment and food-related
initiatives in the Consumer Products & Services
Segment. R&D expenses incurred in these three segments were
¥4.5 billion, ¥1.1 billion and
¥0.3 billion, respectively.
For the year ended March 31, 2003, R&D expenses were
¥3.4 billion. R&D activities were mainly related
to nanotechnology and biotechnology in the Chemical Segment and
information technology in the Machinery, Electronics &
Information Segment. R&D expenses incurred in these three
segments were ¥2.0 billion and ¥1.2 billion,
respectively.
D.     Trend Information
See relevant discussion elsewhere in this item.
E.     Off-Balance Sheet
Arrangements
We use off-balance sheet arrangements in the ordinary course of
business to further our trading, fund-raising and other
activities. Categories of off-balance arrangements are as
follows:
Guarantees
The following tables summarize our guarantees as of
March 31, 2005 and 2004.
The maximum potential amount of future payments represents the
amount without consideration of possible recoveries under
recourse provision or from collateral held or pledged that we
could be obliged to pay if there were defaults by guaranteed
parties or there were changes in an underlying which would cause
triggering events under market value guarantees and
indemnification contracts. Such amounts bear no relationship to
the anticipated losses on these guarantees and indemnifications,
and they greatly exceed anticipated losses. Estimated proceeds
from collateral and recourse represent the anticipated values of
assets we could liquidate or receive from other parties to
offset our payments under guarantees. The carrying amounts of
liabilities recorded on the Consolidated Balance Sheets reflect
our best estimate of future payments we may incur as part of
fulfilling our guarantee obligations.
Billions of Yen
Maximum
Recourse
Carrying
Potential Amount
Provisions/
Amount of
As of March 31, 2005:
of Future Payments
Collateral
Liabilities
Financial Guarantees
¥
194
¥
31
¥
3
Performance Guarantees
33
6
0
Market Value Guarantees
73
42
—
Billions of Yen
Maximum
Recourse
Carrying
Potential Amount
Provisions/
Amount of
As of March 31, 2004:
of Future Payments
Collateral
Liabilities
Financial Guarantees
¥
258
¥
41
¥
6
Performance Guarantees
37
6
0
Market Value Guarantees
62
36
—
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In the furtherance of our trading activities, it is a customary
practice for us to guarantee, severally or jointly with others,
indebtedness of certain of our customers and suppliers and of
certain associated companies as well as to guarantee the
performance of contracts by such entities.
As lessees in operating lease contracts, certain subsidiaries
have issued residual value guarantees of leased ocean transport
vessels, and on the date of expiration of operating lease
contracts, such subsidiaries will either purchase the leased
assets at a fixed price or will be responsible for making up any
shortfall between the actual sales price and the guaranteed
value. In accordance with FASB Interpretation No. 46,
"Consolidation of Variable Interest Entities (revised
December 2003) — an Interpretation of ARB
No. 51," on December 31, 2003, we consolidated
¥19.9 billion and ¥20.2 billion of total
assets related to certain ocean transport vessels entities at
March 31, 2005 and 2004, respectively. This information is
provided in Note 24, "VARIABLE INTEREST ENTITIES."
Sales of Trade Receivables
Mitsui & Co. (U.S.A.), Inc. and Mitsui & Co.
(Canada) Ltd. use off-balance sheet arrangements in which
certain trade receivables are sold to third parties. At
March 31, 2005 and 2004, the outstanding amounts of these
off-balance sheet arrangements were immaterial.
Variable Interest Entities
We are involved with and have significant variable interests in
a number of variable interest entities that are not consolidated
because we are not the primary beneficiary, but in which we have
significant variable interests. These variable interest entities
mainly engage in leasing and financing activities. Further
information is provided in Note 24, "VARIABLE INTEREST
ENTITIES."
Commitments on Deferred Payments
We had financing commitments totaling ¥2.7 billion at
March 31, 2005, principally for financing, on a
deferred-payment basis, the cost of ocean transport vessels and
equipment to be purchased by our customers. We had so much
financing commitments at March 31, 2004. Further
information is provided in Note 23, "COMMITMENTS AND
CONTINGENT LIABILITIES."
F.     Tabular Disclosure of
Contractual Obligations
The following table provides our contractual obligations as of
March 31, 2005 and payment due by period of these
contractual obligations:
Billions of Yen
Payment Due by Period
Balance as of
After
Contractual Obligations
March 31, 2005
March 2006
March 2008
March 2010
March 2010
Long-Term Debt
¥
3,118
¥
255
¥
704
¥
664
¥
1,495
Capital Lease Obligations
23
6
8
2
7
Operating Leases
105
22
29
19
35
Purchase Obligations
2,317
774
803
305
435
Total
¥
5,563
¥
1,057
¥
1,544
¥
990
¥
1,972
The amounts of "Long-Term Debt" include bank
borrowings, bonds and long-term trade payables, excluding the
effect of SFAS No. 133 fair value adjustment and
capital lease obligations (present value of net minimum lease
payments). "Capital Lease Obligations" represents the
schedule of payments for future minimum lease payments.
"Operating Leases" represents the schedule of payments
for future minimum rentals. Minimum rental payments have not
been reduced by minimum sublease rentals of
¥59 billion due in the future under noncancelable
subleases. "Purchase Obligations" represents the
schedule of payments for long-term purchase obligations, net of
advance payments of ¥77 billion made to suppliers as of
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March 31, 2005. The purchased items are principally
chemical materials, oil products, ocean transport vessels,
metals and machinery and equipment, either at fixed prices or at
basic purchase prices adjustable to the market. In general, our
customers, primarily large Japanese industrial companies and
shipping firms, are also parties to the contracts or by separate
agreements and are committed to purchase the items from us.
In addition to the above, we plan to contribute
¥8.6 billion to our defined benefit pension plans for
the year ending March 31, 2006.
For additional information regarding long-term debt, capital
lease obligations and operating leases, and purchase
obligations, see Note 13, "SHORT-TERM AND LONG-TERM
DEBT," Note 8, "LEASES," and Note 23,
"COMMITMENTS AND CONTINGENT LIABILITIES," respectively.
Item 6.
Directors, Senior Management and Employees.
A.
Directors and Senior Management.
We are managed by a Board of Directors and Executive Officers.
As of June 30, 2005, we have eleven Directors and
thirty-eight Executive Officers including eight of which are
also Directors. In accordance with Mitsui's Articles of
Incorporation and Rules of the Board of Directors, each Director
was elected for a term of one year. Each Executive Officer
has been appointed by the Board of Directors.
The Board of Directors is our decision-making body. The Board of
Directors determines our basic guidelines and policies by
establishing our corporate strategy, reviewing our business
plans, and supervising and monitoring the activities of our
Executive Officers.
The Executive Officers are responsible for the execution of our
corporate activities. They must follow and enforce the general
guidelines and policies established by the Board of Directors
and Mitsui's Articles of Incorporation.
As of June 30, 2005, Mitsui's Executive Officers
consisted of one President, three Executive Vice Presidents,
six Senior Executive Managing Officers, ten Executive
Managing Officers and eighteen Managing Officers.
The execution of the Directors' functions (including their
functions to supervise and monitor the activities of the
Executive Officers) is audited by Corporate Auditors. Each
Corporate Auditor is elected by shareholders of Mitsui at a
general meeting of the shareholders. As of June 30, 2005,
we have five Corporate Auditors. In performing their auditing
activities, they act independently of each other while they
constitute and act through the Board of Corporate Auditors as
the applicable Japanese laws and regulations require.
Directors, Corporate Auditors and Executive
    Officers
Our Directors, Corporate Auditors and Executive Officers as of
the end of June 2005 were:
Directors
Name
Position
Nobuo Ohashi
Chairman and Director
Shoei Utsuda
Executive Director
Tetsuya Matsuoka
Executive Director
Masataka Suzuki
Executive Director
Gempachiro Aihara
Executive Director
Yushi Nagata
Executive Director
Hiroshi Tada
Executive Director
Yasunori Yokote
Executive Director
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Name
Position
Kazuya Imai
Executive Director
Akishige
    Okada
(1)
Director; Advisor, Sumitomo Mitsui Banking Corporation
Akira
    Chihaya
(1)
Director; Representative Director and Chairman of the Board of
    Directors of Nippon Steel Corporation
(1)
Mr. Akishige Okada and Mr. Akira Chihaya are external
    directors as provided for in Item 7-2, Clause 2,
    Article 188 of the Commercial Code of Japan. See
    "Item 6.C. Board Practices."
Corporate
Auditors
Name
Position
Tasuku
    Kondo
(2)
Corporate Auditor
Hiroshi
    Matsuura
(2)
Corporate Auditor
Ko
    Matsukata
(3)
Corporate Auditor, Senior Consultant, Mitsui Sumitomo Marine and
    Fire Insurance Co., Ltd.
Yasutaka
    Okamura
(3)
Corporate Auditor, Member of the Japan Federation of Bar
    Associations.
Hideharu
    Kadowaki
(3)
Corporate Auditor, Chairman of the Institute, The Japan Research
    Institute, Limited
(2)
Mr. Tasuku Kondo and Mr. Hiroshi Matsuura are
    Corporate Auditors of full-time service as provided for in
    Clause 2, Article 18, of the "Law Concerning
    Special Measures under the Commercial Code with Respect to
    Audit, etc. of Corporations" of Japan.
(3)
Mr. Ko Matsukata, Mr. Yasutaka Okamura and
    Mr. Hideharu Kadowaki are external Corporate Auditors as
    provided for in Clause 1, Article 18 of the
    aforementioned law.
Executive Officers
Name
Title and Principal Position
Shoei Utsuda
President and Chief Executive Officer
Yasuo Hayashi
Executive Vice President; Managing Director, Mitsui &
    Co. Europe PLC
Tetsuya Matsuoka
Executive Vice President; Power, Transportation & Plant
    Projects Business Unit; Machinery Business Unit; Information,
    Electronics and Telecommunication Business Unit; Financial
    Markets Business Unit; Transportation Logistics Business Unit
Masataka Suzuki
Executive Vice President; Organic Chemicals Business Unit;
    Plastics & Inorganic Chemicals Business Unit;
    Foods & Retail Business Unit; Lifestyle Business Unit;
    Consumer Service Business Unit
Gempachiro Aihara
Senior Executive Managing Officer, Regional Managing Director,
    Asia; DPF Matters
Yushi Nagata
Senior Executive Managing Officer; Corporate Staff Division
    (Information Strategic Planning Division, Corporate Planning and
    Strategy Division, Corporate Administrative Division, Corporate
    Communications Division, Investor Relations Division); Overall
    Administrative Divisions of Business Units; New Business
    Promotion; Chief Operating Officer, Business Process
    Re-Engineering Project Headquarters; Director, Mitsui &
    Co. Europe PLC
Hiroshi Tada
Senior Executive Managing Officer; Iron & Steel
    Products Business Unit; Iron & Steel Raw Materials and
    Non-Ferrous Metals Business Unit; Energy Business Unit
135
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Name
Title and Principal Position
Yasunori Yokote
Senior Executive Managing Officer; Corporate Staff Division
    (Secretariat, Compliance & Operational Control
    Division, Human Resources & General Affairs Division,
    Legal Division); Chief Compliance Officer; Chief Privacy
    Officer; Environmental Matters; Deputy Chief Operating Officer,
    Business Process Re-Engineering Project Headquarters
Kazuya Imai
Senior Executive Managing Officer; Chief Financial Officer;
    Deputy Chief Operating Officer, Business Process Re-Engineering
    Project Headquarters; Director, Mitsui & Co.(U.S.A),
    Inc.
Toshihiro Soejima
Senior Executive Managing Officer; Chief Representative of
    Mitsui & Co., Ltd. in China
Motokazu Yoshida
Executive Managing Officer; Chairman for the Americas
Yoshiyuki Izawa
Executive Managing Officer; General Manager, Osaka Office
Osamu Mori
Executive Managing Officer; Chief Operating Officer, Financial
    Markets Business Unit
Satoru Miura
Executive Managing Officer; General Manager, Nagoya Office
Masayoshi Sato
Executive Managing Officer; Chief Operating Officer,
    Foods & Retail Business Unit
Ken Abe
Executive Managing Officer; Chief Operating Officer,
    Iron & Steel Raw Materials and Non-Ferrous Metals
    Business Unit
Takao Sunami
Executive Managing Officer; Chief Operating Officer, Machinery
    Business Unit
Junichi Matsumoto
Executive Managing Officer; Chief Operating Officer,
    Transportation Logistics Business Unit
Shunichi Miyazaki
Executive Managing Officer; General Manager, Internal Auditing
    Division
Hiroshi Ito
Executive Managing Officer; Chief Operating Officer, Consumer
    Service Business Unit
Takeshi Ohyama
Managing Officer; General Representative of Mitsui &
    Co., Ltd. in Indonesia
Shinjiro Ogawa
Managing Officer; Chief Operating Officer, Information,
    Electronics and Telecommunication Business Unit
Toshimasa Furukawa
Managing Officer; Chief Operating Officer, Power,
    Transportation & Plant Projects Business Unit
Akio Ikeda
Managing Officer; Chairman & Managing Director,
    Mitsui & Co. (Australia) Ltd.
Jitsuro Terashima
Managing Officer; President, Mitsui Global Strategic Studies
    Institute
Motonori Murakami
Managing Officer; General Manager, General Accounting &
    Risk Management Division
Kyoichi Endo
Managing Officer; Managing Director, Mitsui & Co. UK PLC
Toshio Awata
Managing Officer; General Manager, Information Strategic
    Planning Division; Chief Information Officer
Koji Nakamura
Managing Officer; Chief Operating Officer, Plastics &
    Inorganic Chemicals Business Unit
Toru Kitamura
Managing Officer; Chief Operating Officer, Lifestyle Business
    Unit
Kenichi Yamamoto
Managing Officer; General Manager, Human Resources &
    General Affairs Division
Masaaki Murakami
Managing Officer; President, Mitsui & Co.(CANADA) Ltd.
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Name
Title and Principal Position
Kiyotaka Watanabe
Managing Officer; Chief Operating Officer, Iron & Steel
    Products Business Unit
Masaaki Fujita
Managing Officer; Deputy Chief Operating Officer,
    Foods & Retail Business Unit
Junichi Mizonoue
Managing Officer; Chief Operating Officer, Organic Chemicals
    Business Unit
Takao Omae
Managing Officer; President, Mitsui Brasileira
    Importação e Exportação S.A.
Norinao Iio
Managing Officer; Chief Operating Officer, Energy Business Unit
Osamu Koyama
Managing Officer; Executive Vice President, Mitsui &
    Co. (U.S.A), Inc.
The date of birth, the current position and the prior positions
of our Directors, Corporate Auditors, and Executive Officers is
provided below.
Directors
Name
Nobuo Ohashi
Date of Birth
September 13, 1938
Current Position
Chairman and Director (since April 1, 2004)
Prior Positions
• 1994
A member of Board of Directors (Director, General Manager of
    Seoul Office)
• 1996
Director, Chief Operating Officer of Foods Unit
• 1997
Executive Managing Director, Chief Operating Officer of Foods
    Unit
• 1998
Executive Managing Director, General Manager of Corporate
    Planning Division
• 1999
Senior Executive Managing Director, General Manager of Corporate
    Planning Division
• 2000
Executive Vice President
• 2002 /4
Executive Vice President, President of Consumer
    Products & Services Group
• 2002/10
Chairman and Executive Director
Name
Shoei Utsuda
Date of Birth
February 12, 1943
Current Position
President and Chief Executive Officer , Executive Director
    (since October 1, 2002)
Prior Positions
• 1997
A member of Board of Directors (Director, General Manager of
    Machinery, Electronics & Information Administrative
    Division)
• 1998
Director, Chief Operating Officer of Information Business Unit
• 2000
Executive Managing Director, General Manager of Corporate
    Planning Division
• 2002/4
Senior Executive Managing Officer, Chief Strategic Officer,
    Responsible for Administration Division
137
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Name
Tetsuya Matsuoka
Date of Birth
January 5, 1945
Current Position
Executive Vice President , Executive Director (since
    April 1, 2005)
Prior Positions
• 1998
A member of Board of Directors (Director, General Manager of
    Metals Administrative Division)
• 1999
Director, Chief Operating Officer of Non-Ferrous Metals Unit
• 2001
Executive Managing Director, Managing Director of
    Mitsui & Co. Europe PLC, Managing Director of
    Mitsui & Co. UK PLC and Chairman of Mitsui &
    Co. International (Europe) B.V.
• 2002
Senior Executive Managing Officer & Chief Strategic
    Officer, Responsible for Administration Division
• 2003
Executive Director, Senior Executive Managing Officer and Chief
    Operating Officer of Business Process Re-Engineering Project
    Headquarters
• 2004
Senior Executive Managing Officer
Name
Masataka Suzuki
Date of Birth
April 2, 1944
Executive Vice President , Executive Director (since
    April 1,
Current Position
2005)
Prior Positions
• 1999
A member of Board of Directors (Director, Chief Operating
    Officer of Textile & Fashion Unit)
• 2002/4
Executive Managing Officer, Chief Operating Officer of
    Textile & Fashion Unit, Consumer Products &
    Services Group
• 2002/10
Executive Managing Officer, President of Consumer
    Products & Services Group
• 2003
Executive Director, Senior Executive Managing Officer
Name
Gempachiro Aihara
Date of Birth
October 3, 1943
Current Position
Senior Executive Managing Officer, Regional Managing Director,
    Asia; Executive Director (since October 1, 2004)
Prior Positions
• 2000
A member of Board of Directors (Director, Chief Operating
    Officer of Performance Chemicals Unit)
• 2002/4
Executive Managing Officer, General Representative of
    Mitsui & Co., Ltd. in China
• 2004 /6
Executive Director, Senior Executive Managing Officer
138
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Name
Yushi Nagata
Date of Birth
August 30, 1946
Current Position
Senior Executive Managing Officer, Chief Operating Officer of
    Business Process Re-Engineering Project Headquarters ; Executive
    Director (since June 24, 2004)
Prior Positions
• 2000
A member of Board of Directors (Director, Chief Operating
    Officer of Plant & Project Business Unit)
• 2001
Director, Operating Officer of Electric Machinery,
    Plant & Project Business Unit
• 2002/4
Executive Managing Officer, Operating Officer of Electric
    Machinery, Plant & Project Business Unit, Machinery,
    Electronics & Information Group
• 2002/10
Executive Managing Officer, Chief Operating Officer of Electric
    Machinery, Plant & Project Business Unit
• 2004/4
Senior Executive Managing Officer, Chief Operating Officer of
    Business Process Re-Engineering Project Headquarters
Name
Hiroshi Tada
Date of Birth
March 3, 1945
Senior Executive Managing Officer; Executive Director (since
    June
Current Position
24, 2005)
Prior Positions
• 2000
A member of Board of Directors (Director, Chief Operating
    Officer of Iron & Steel Raw Materials Unit)
• 2002/4
Senior Managing Officer, Chief Operating Officer of
    Iron & Steel Raw Materials Unit, Metals Group
• 2003
Executive Managing Officer, Chairman for the Americas, and
    President and Chief Executive Officer of Mitsui & Co.
    (U.S.A.), Inc.
• 2004/4
Senior Executive Managing Officer
Name
Yasunori Yokote
Date of Birth
June 23, 1946
Current Position
Senior Executive Managing Officer, Chief Compliance Officer;
    Chief Privacy Officer; Environmental Matters; Deputy Chief
    Operating Officer, Business Process Re-Engineering Project
    Headquarters; Executive Director, (since April 1, 2005)
Prior Positions
• 2000
A member of Board of Directors (Director, General Manager of
    Personnel Division)
• 2002/4
Director, Senior Managing Officer, General Representative of
    Mitsui & Co., Ltd. in Indonesia
• 2002/6
Senior Managing Officer, General Representative of
    Mitsui & Co., Ltd. in Indonesia
• 2004
Executive Director, Executive Managing Officer, Chief Compliance
    Officer
139
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Name
Kazuya Imai
Date of Birth
April 20, 1946
Current Position
Senior Executive Managing Officer, Chief Financial Officer,
    Deputy Chief Operating Officer, Business Process Re-Engineering
    Project Headquarters; Executive Director, (since June 24,
    2005)
Prior Positions
• 2001
A member of Board of Directors (Director, Executive Vice
    President of Mitsui & Co. (U.S.A.), Inc.)
• 2002/1
Director
• 2002/4
Director, Senior Managing Officer
• 2002/6
Senior Managing Officer
• 2004
Executive Managing Officer, General Manager of Internal Auditing
    Division
• 2005
Senior Executive Managing Officer, Chief Financial Officer,
    Deputy Chief Operating Officer, Business Process Re-Engineering
    Project Headquarters
Name
Akishige Okada
Date of Birth
April 9, 1938
Current Position
Director (since June 27, 2003)
Prior Positions
• 1991
Director, The Mitsui Taiyo Kobe Bank, Ltd.
• 1997
President , The Sakura Bank, Ltd.
• 2001
Director, Chairman of Sumitomo Mitsui Banking Corporation
• 2002
Director, Chairman of Sumitomo Mitsui Financial Group
• 2005
Advisor, Sumitomo Mitsui Banking Corporation
Name
Akira Chihaya
Date of Birth
March 6, 1935
Current Position
Director (since June 24, 2004)
Prior Positions
• 1987
Director of Nippon Steel Corporation
• 1998
Representative Director and President of Nippon Steel Corporation
• 2003
Director, Representative Director and Chairman of the Board of
    Directors of Nippon Steel Corporation (remaining in the same
    position on June 30,2005)
Corporate Auditors
Name
Tasuku Kondo
Date of Birth
August 12, 1942
Current Position
Corporate Auditor (since June 24, 2005)
Prior Positions
• 1996
A member of Board of Directors (Director, General Manager of
    Finance Division)
• 1998
Executive Managing Director
• 2002
Senior Executive Managing Officer and Chief Financial Officer,
    Responsible for General Accounting Division, Finance Division
    and Corporate Risk Management Division
• 2004
Executive Vice President and Chief Financial Officer
• 2005/4
Executive Director
140
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Name
Hiroshi Matsuura
Date of Birth
May 24, 1946
Current Position
Corporate Auditor (since June 27, 2003)
Prior Positions
• 1996
General Manager of Credit Division
• 2002
General Manager of Corporate Risk Management Division
Name
Ko Matsukata
Date of Birth
March 27, 1933
Current Position
Corporate Auditor (since June 27, 1996)
Prior Positions
• 1990
President of Mitsui Marine and Fire Insurance Co., Ltd.
• 1996
Vice Chairman of Mitsui Marine and Fire Insurance Co., Ltd.
• 1997
Senior Advisor to Board of Mitsui Marine and Fire Insurance Co.,
    Ltd.
• 2001
Senior Consultant, Mitsui Sumitomo Marine and Fire Insurance
    Co., Ltd. (remaining in the same position on June 30, 2005)
Name
Yasutaka Okamura
Date of Birth
June 13, 1929
Current Position
Corporate Auditor (since June 27, 2003)
Prior Positions
• 1992
Prosecutor, General
• 1994
Attorney at Law (remaining in the same position on June 30,
    2005)
• 1997
Corporate Auditor of Toyota Motor Corporation (remaining in the
    same position on June 30, 2005)
Name
Hideharu Kadowaki
Date of Birth
June 20, 1944
Current Position
Corporate Auditor (since June 24, 2004)
Prior Positions
• 2001
Executive Managing Director of Sumitomo Mitsui Banking
    Corporation
• 2003
Director, Executive Vice President of Sumitomo Mitsui Financial
    Group
• 2004
Chairman of the Institute, The Japan Research Institute, Limited
    (remaining in the same position on June 30, 2005)
Executive Officers (excluding Executive Officers who are also
    a Director)
Name
Yasuo Hayashi
Date of Birth
August 5, 1942
Current Position
Executive Vice President, Managing Director of Mitsui &
    Co. Europe PLC (since April 1, 2004)
Prior Positions
• 2000
A member of Board of Directors (Executive Managing Director)
• 2001
Executive Managing Director, Chief Operating Officer of Electric
    Machinery, Plant & Project Business Unit, Machinery
    Electronics & Information Group
• 2002
Executive Managing Director, President of Machinery
    Electronics & Information Group
• 2003
Senior Executive Managing Officer
141
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Name
Toshihiro Soejima
Date of Birth
November 10, 1946
Current Position
Senior Executive Managing Officer, Chief Representative of
    Mitsui & Co., Ltd. in China (since April 1, 2005)
Prior Positions
• 2001
A member of Board of Directors (Director, Chief Operating
    Officer of Electronics Devices Business Unit)
• 2002/4
Director, Senior Managing Officer, Chief Operating Officer of
    Electronics Business Unit, Machinery, Electronics &
    Information Group
• 2002/6
Senior Managing Officer, Chief Operating Officer of Electronics
    Business Unit, Machinery, Electronics & Information
    Group
• 2003
Senior Managing Officer, General Manager of Corporate
    Planning & Strategy Division
• 2004
Executive Managing Officer, General Representative of
    Mitsui & Co., Ltd. in China
Name
Motokazu Yoshida
Date of Birth
January 7, 1948
Current Position
Executive Managing Officer, Chairman for the Americas and
    President and Chief Executive Officer of Mitsui & Co.
    (U.S.A.), Inc. (since April 1, 2005)
Prior Positions
• 2001
A member of Board of Directors (Director, Chief Operating
    Officer of Motor Vehicles, Marine & Aerospace Business
    Unit)
• 2002/4
Director, Senior Managing Officer Chief Operating Officer of
    Motor Vehicles, Marine & Aerospace Business Unit,
    Machinery, Electronics & Information Group
• 2002/6
Senior Managing Officer, Chief Operating Officer of Motor
    Vehicles, Marine & Aerospace Business Unit, Machinery,
    Electronics & Information Group
• 2003
Executive Managing Officer, Chief Operating Officer of Motor
    Vehicles, Marine & Aerospace Business Unit
• 2004
Executive Managing Officer, Chief Operating Officer of Machinery
    Business Unit
Name
Yoshiyuki Izawa
Date of Birth
February 10, 1948
Current Position
Executive Managing Officer, General Manager of Osaka Office
    (since April 1, 2004)
Prior Positions
• 2000
A member of Board of Directors (Director, Chief Operating
    Officer of Information Business Unit)
• 2002/4
Director, Senior Managing Officer, Chief Operating Officer of
    Information Business Unit, Machinery, Electronics &
    Information Group
• 2002/6
Senior Managing Officer, Chief Operating Officer of Information
    Business Unit
142
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Name
Osamu Mori
Date of Birth
January 1, 1949
Current Position
Executive Managing Officer, Chief Operating Officer of Financial
    Markets Business Unit (since April 1, 2004)
Prior Positions
• 2000
A member of Board of Directors (Director, General Manager of
    Finance Division)
• 2002/4
Director, Senior Managing Officer, General Manager of Finance
    Division
• 2002/6
Senior Managing Officer, General Manager of Finance Division
• 2003
Senior Managing Officer, Chief Operating Officer, of Financial
    Markets Business Unit
Name
Satoru Miura
Date of Birth
March 2, 1947
Current Position
Executive Managing Officer, General Manager of Nagoya Office
    (since April 1, 2005)
Prior Positions
• 2001
A member of Board of Directors (Director, Chief Operating
    Officer of Iron & Steel Products Unit)
• 2002/4
Director, Senior Managing Officer, Chief Operating Officer of
    Iron & Steel Products Unit, Metals Group
• 2002/6
Senior Managing Officer, Chief Operating Officer of
    Iron & Steel Products Unit
• 2004
Executive Managing Officer, Chief Operating Officer of
    Iron & Steel Products Business Unit
Name
Masayoshi Sato
Date of Birth
November 30, 1945
Current Position
Executive Managing Officer, Chief Operating Officer of
    Foods & Retail Business Unit (since April 1, 2004)
Prior Positions
• 2002
Managing Officer, Chief Operating Officer of Foods Unit
Name
Ken Abe
Date of Birth
September 19, 1947
Current Position
Executive Managing Officer, Chief Operating Officer of
    Iron & Steel Raw Materials and Non-Ferrous Metals
    Business Unit (since April 1, 2004)
Prior Positions
• 2002
Managing Officer, General Manager of Metals Administrative
    Division
• 2003
Managing Officer, Chief Operating Officer of Iron &
    Steel Raw Materials Unit
Name
Takao Sunami
Date of Birth
August 22, 1947
Current Position
Executive Managing Officer, Chief Operating Officer of Machinery
    Business Unit (since January 1, 2005)
Prior Positions
• 2002
Managing Officer, General Manager of e-Mitsui Business Division
• 2003
Managing Officer, General Manager of Fukuoka Office
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Name
Junichi Matsumoto
Date of Birth
September 25, 1947
Current Position
Executive Managing Officer, Chief Operating Officer of
    Transportation Logistics Business Unit (since April 1, 2005)
Prior Positions
• 2002
Managing Officer, General Manager of Corporate Planning Division
• 2003
Managing Officer, Deputy General Vice Representative of
    Mitsui & Co., Ltd. in China
• 2004
Managing Officer, Chief Operating Officer of Transportation
    Logistics Business Unit
Name
Shunichi Miyazaki
Date of Birth
February 11, 1948
Current Position
Executive Managing Officer, General Manager of Internal Auditing
    Division (since April 1, 2005)
Prior Positions
• 2002
Managing Officer, General Manager of Consumer
    Products & Services Administrative Division
Name
Hiroshi Ito
Date of Birth
February 8, 1947
Current Position
Executive Managing Officer, Chief Operating Officer of Consumer
    Service Business Unit (since April 1, 2005)
Prior Positions
• 2003
Managing Officer, Chief Operating Officer of Service Business
    Unit
• 2004
Managing Officer, Chief Operating Officer of Consumer Service
    Business Unit
Name
Takeshi Ohyama
Date of Birth
May 18, 1947
Current Position
Managing Officer, General Representative of Mitsui &
    Co., Ltd. in Indonesia (since April 1, 2004)
Prior Positions
• 2002
Managing Officer, General Manager of Personnel Division
Name
Shinjiro Ogawa
Date of Birth
September 17, 1948
Current Position
Managing Officer, Chief Operating Officer of Information,
    Electronics and Telecommunication Business Unit (since
    April 1, 2004)
Prior Positions
• 2002
Managing Officer, General Manager of Machinery,
    Electronics & Information Administrative Division
Name
Toshimasa Furukawa
Date of Birth
December 25, 1948
Current Position
Managing Officer, General Manager of Machinery,
    Electronics & Information Administrative Division
    (since April 1, 2004)
Prior Positions
• 2002
Managing Officer, President of Mitsui & Co. (Taiwan)
    Ltd.
Name
Akio Ikeda
Date of Birth
January 1, 1947
Current Position
Managing Officer, Chairman & Managing Director of
    Mitsui & Co. (Australia) Ltd. (since April 1, 2004)
Prior Positions
• 2003
Managing Officer, Chief Operating Officer of General Merchandise
    Unit
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Table of Contents
Name
Jitsuro Terashima
Date of Birth
August 11, 1947
Current Position
Managing Officer, President of Mitsui Global Strategic Studies
    Institute (since April 1, 2003)
Name
Motonori Murakami
Date of Birth
November 19, 1948
Current Position
Managing Officer, General Manager of General
    Accounting & Risk Management Division (since
    April 1, 2004)
Prior Positions
• 2003
Managing Officer, General Manager of General Accounting Division
Name
Kyoichi Endo
Date of Birth
October 5, 1947
Current Position
Managing Officer, Managing Director of Mitsui & Co. UK
    PLC and Deputy Managing Director, Mitsui & Co. Europe
    PLC (since April 1, 2004)
Name
Toshio Awata
Date of Birth
July 28, 1948
Current Position
Managing Officer, Chief Information Officer & General
    Manager of Information Strategic Planning Division (since
    April 1, 2005)
Prior Positions
• 2004
Managing Officer, Chief Information Officer & General
    Manager of Business Process Re-Engineering Division
Name
Koji Nakamura
Date of Birth
August 15, 1948
Current Position
Managing Officer, Chief Operating Officer of Plastics &
    Inorganic Chemicals Business Unit (since April 1, 2004)
Name
Toru Kitamura
Date of Birth
March 23, 1949
Current Position
Managing Officer, Chief Operating Officer of Lifestyle Business
    Unit (since April 1, 2004)
Name
Kenichi Yamamoto
Date of Birth
July 25, 1949
Current Position
Managing Officer General Manager of Human Resources &
    General Affairs Division (since April 1, 2005)
Prior Positions
• 2004
Managing Officer, General Manager of Personnel Division
Name
Masaaki Murakami
Date of Birth
August 10, 1949
Current Position
Managing Officer, President, Mitsui & Co. (Canada) Ltd.
    (since April 1, 2005)
Prior Positions
• 2004
Managing Officer, General Manager of Chemical Administrative
    Division
Name
Kiyotaka Watanabe
Date of Birth
May 31, 1948
Current Position
Managing Officer, Chief Operating Officer of Iron &
    Steel Products Business Unit (since April 1, 2005)
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Table of Contents
Name
Masaaki Fujita
Date of Birth
January 4, 1949
Current Position
Managing Officer, Deputy Chief Operating Officer of
    Foods & Retail Business Unit (since April 1, 2005)
Name
Junichi Mizonoue
Date of Birth
February 15, 1950
Current Position
Managing Officer, Chief Operating Officer of Organic Chemicals
    Business Unit (since April 1, 2005)
Name
Takao Omae
Date of Birth
December 18, 1949
Current Position
Managing Officer, President of Mitsui Brasileira
    Importação e Exportação S.A. (since
    April 1, 2005)
Name
Norinao Iio
Date of Birth
March 2, 1951
Current Position
Managing Officer; Chief Operating Officer of Energy Business
    Unit (since April 1, 2005)
Name
Osamu Koyama
Date of Birth
August 8, 1948
Current Position
Managing Officer; Executive Vice President of Mitsui &
    Co. (U.S.A), Inc. (since April 1, 2005)
There is no family relationship between any Directors, Corporate
Auditors, Executive Officers and any other persons named above.
There is no arrangement or understanding between any of the
above and any other person pursuant to which they were selected
as a Director, a Corporate Auditor or a member of the senior
management.
B.
Compensation.
The aggregate amount of compensation, including benefits from
Directors', Auditors' and Executive Officers'
Pension Plan, paid to Directors, Corporate Auditors and
Executive Officers during the year ended March 31, 2005,
was ¥4,070 million.
In accordance with customary Japanese business practices, a
retiring Director or Corporate Auditor receives a retirement
allowance, which is subject to approval by shareholders at a
general meeting of the shareholders. The amount of the
retirement allowance generally reflects the number of years of
service, rank at the time of retirement and special
contributions to our performance.
Retirement allowances, including benefits from Directors',
Corporate Auditors' and Executive Officers' Pension
Plan, paid to retired individual Directors, Corporate Auditors
and Executive Officers during the year ended March 31, 2005
totaled ¥1,439 million, and the annual bonuses paid to
Directors, Corporate Auditors and Executive Officers during the
year ended March 31, 2005 was ¥207 million, both
of which were included in the ¥4,070 million aggregate
compensation discussed above.
The amount set aside by us for Directors', Corporate
Auditors' and Executive Officers' Pension Plan to
provide pension benefit to retired Directors, Corporate
Auditors, and Executive Officers was ¥1,632 million as
of March 31, 2005.
The retirement allowance system for Directors, Corporate
Auditors and Executive Officers was abolished pursuant to a
resolution of the Board of Directors in February 2004.
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Mitsui's Articles of Incorporation do not provide for the
establishment of stock option plans for Mitsui's directors
and senior management.
C.
Board Practices.
The information in "Item 6.A. Directors and Senior
Management" is incorporated into this section by reference.
None of our Directors have entered into any service contracts
with us providing for benefits upon termination of his or her
employment.
A 2002 amendment to the Commercial Code of Japan gave the
company the alternative of selecting the "Committee
System" as the framework for corporate governance. We
decided, however, to maintain the current system with corporate
auditors because we believe that our corporate auditors, of
which two are full-time and three are external auditors as of
June 30, 2005 and their functions are legally defined and
reinforced, provide adequate auditing functions. Furthermore,
internal directors are familiar with our business operations and
can therefore contribute to effective management. Although we
retained the corporate auditor system, we did decide to adopt
certain aspects of the Committee System and have established
three committees (The Governance Committee, the Nomination
Committee, and the Remuneration Committee) to provide advice to
the Board of Directors. In addition, other measures have been
taken, such as shortening the term of Directors and Executive
Officers from two years to one year, eliminating the retirement
allowance, and increasing the number of external directors.
Our Directors and Corporate Auditors are elected at a general
meeting of shareholders. In accordance with our Articles of
Incorporation, Rules of the Board of Directors and Rules of the
Corporate Auditors, the normal term of office for its Directors
is one
year
(1)
and for its Corporate Auditors is four years. However, they may
both serve any number of consecutive terms. The following table
shows our Directors', Corporate Auditors' and
Executive Officers' terms of office and their shareholdings
as of June 30, 2005.
Length of Time
Served in Office
(From Appointment
Shareholdings as of
to June 2005)
(1)
June 30, 2005
Director:
Nobuo Ohashi
11 years
57,868
Shoei Utsuda
8 years
36,810
Tetsuya Matsuoka
6 years
24,567
Masataka Suzuki
5 years
16,103
Gempachiro Aihara
3 years
12,670
Yushi Nagata
3 years
18,070
Yasunori Yokote
3 years
13,525
Hiroshi Tada
2 years
15,473
Kazuya Imai
1 year
10,926
Akishige
    Okada
(2)
2 years
0
Akira
    Chihaya
(2)
1 year
1,000
(1)
At Mitsui's ordinary general meeting of shareholders held
    on June 24, 2004, an amendment to the Articles of
    Incorporation was resolved whereby the normal term of office for
    Directors has been changed from two years to one year.
(2)
Mr. Akishige Okada and Mr. Akira Chihaya are external
    directors as defined in the Commercial Code of Japan.
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Table of Contents
Length of Time
Served in Office
Date of Expiration of
(From Appointment
Shareholdings as of
Current Term of Office
to June 2005)
June 30, 2005
Corporate Auditor:
Tasuku Kondo
June 2009
Less than 1 year
23,151
Hiroshi Matsuura
June 2007
2 years
17,673
Ko
    Matsukata
(3)
June 2009
9 years
13,784
Yasutaka
    Okamura
(3)
June 2007
2 years
4,079
Hideharu
    Kadowaki
(3)
June 2008
1 year
2,276
(3)
Mr. Ko Matsukata, Mr. Yasutaka Okamura and
    Mr. Hideharu Kadowaki are external Corporate Auditors as
    defined in the Law for Special Exceptions to the Commercial Code
    of Japan Concerning Audit, etc. of Joint Stock Corporations.
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Table of Contents
Length of Time
Served in Office
(From Appointment
Shareholdings as of
to June 2005)
(4)
June 30, 2005
Executive Officer (excluding Executive Officers who are also
    a Director):
Yasuo Hayashi
5 years
21,621
Toshihiro Soejima
4 years
12,172
Motokazu Yoshida
4 years
10,396
Yoshiyuki Izawa
5 years
10,285
Osamu Mori
5 years
23,263
Satoru Miura
4 years
10,485
Masayoshi Sato
3 years
10,433
Ken Abe
3 years
19,319
Takao Sunami
3 years
9,966
Junichi Matsumoto
3 years
14,000
Shunichi Miyazaki
3 years
11,191
Hiroshi Ito
2 years
9,250
Takeshi Ohyama
3 years
10,775
Shinjiro Ogawa
3 years
10,939
Toshimasa Furukawa
3 years
11,260
Akio Ikeda
2 years
7,874
Jitsuro Terashima
2 years
17,987
Motonori Murakami
2 years
18,248
Kyoichi Endo
1 year
6,000
Toshio Awata
1 year
4,712
Koji Nakamura
1 year
8,009
Toru Kitamura
1 year
1,603
Kenichi Yamamoto
1 year
8,801
Masaaki Murakami
1 year
16,307
Kiyotaka Watanabe
Less than 1 year
591
Masaaki Fujita
Less than 1 year
591
Junichi Mizonoue
Less than 1 year
591
Takao Omae
Less than 1 year
7,030
Norinao Iio
Less than 1 year
295
Osamu Koyama
Less than 1 year
0
Total Shareholdings by Directors, Corporate Auditors, and
    Executive Officers
561,969
(4)
The rules of Executive Officers provides for the term of the
    Executive Officers as one year starting April 1 and ending
    March 31.
Mitsui's Articles of Incorporation provide that the Board
of Directors shall elect from among its members Representative
Directors, one of whom shall be the President. Under the
Commercial Code of Japan, each of the Representative Directors
has statutory authority and power to represent and act on behalf
of the company in all respects.
At least one of Corporate
Auditors
(5)
should be a person who has not been a director, manager or
employee of a company or any of its subsidiaries during the
five-year
period
(6)
prior to his or her election
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as a Corporate Auditor. Each Corporate Auditor has a statutory
duty to examine financial statements, in collaboration with
independent certified public accountants, and business reports
to be submitted by the Board of Directors at the general meeting
of shareholders and also to supervise the administration of the
company's affairs by Directors. Corporate Auditors are
required to participate in meetings of the Board of Directors
but are not entitled to vote.
Corporate Auditors constitute the Board of Corporate Auditors.
The Board of Corporate Auditors has a statutory duty to prepare
and submit its audit report to the Board of Directors each year.
A Corporate Auditor may note his or her opinion in the audit
report if his or her opinion is different from the opinion
expressed in the independent auditors' report. The Board of
Corporate Auditors is empowered to establish audit principles,
methods of examination by the Corporate Auditors of the
company's affairs and financial position and other matters
concerning the performance of the Corporate Auditors'
duties. The Corporate Auditors may not at the same time be
directors, managers or employees of the company or any of its
subsidiaries or executive officers of any of its subsidiaries.
(5)
In accordance with amendments of the Law for Special Exceptions
    to the Commercial Code of Japan Concerning Audit, etc. of Joint
    Stock Corporations, the number of external corporate auditors
    after the conclusion of the first ordinary general meeting of
    shareholders held with respect to the fiscal year ending on and
    after May 1, 2005, is required to be at least half the
    number of corporate auditors of a large company whose capital is
    not less than ¥500 million, or whose total debt amount
    is not less than ¥20 billion.
(6)
In accordance with the same amendment as (4), an external
    corporate auditor who is elected at the first ordinary general
    meeting of shareholders held with respect to the fiscal year
    ended on and after May 1, 2005, is defined as any person
    who has not at any time been an employee, manager or director of
    the company or of any of its subsidiaries.
Exemption from Certain Corporate Governance Requirements
    of NASDAQ.
Nasdaq Marketplace Rule 4350(a)(1) provides that a foreign
private issuer may follow its home country practice in lieu of
the requirements of Rule 4350, provided that such foreign
private issuer discloses in its annual reports filed with the
Securities and Exchange Commission each requirement of
Rule 4350 that it does not follow and describes the home
country practice followed by the issuer in lieu of such
requirements. Such requirements of Rule 4350 and the
relevant home country practices we follow are described below:
•
Nasdaq Marketplace Rule 4350(b) requires that there be a
    distribution to shareholders of copies of our annual report
    containing our audited financial statements a reasonable period
    of time prior to our annual meeting of shareholders. In
    accordance with Japanese law, we hold an annual meeting of
    shareholders within three months after the end of each fiscal
    year. Also, in accordance with Japanese law, we distribute to
    shareholders, prior to the annual meeting of shareholders,
    copies of a report of business operations, together with our
    audited unconsolidated financial statements prepared in
    accordance with Japanese GAAP in Japanese. Concurrently with
    such distribution, we distribute Japanese GAAP audited
    unconsolidated financial statements in English to the depository
    for the ADSs, and instruct the depository to distribute the same
    to the registered ADS holders in a timely manner. The English
    version contains a statement that, upon request by an interested
    party, we will provide the party with a copy of our annual
    report on Form 20-F. As a reporting company under the
    Securities Exchange Act of 1934, we are required to prepare
    financial statements in accordance with U.S. GAAP for
    inclusion in our annual report on Form 20-F, which must be
    filed within six months after the end of each fiscal year.
•
Nasdaq Marketplace Rule 4350(c)(1) requires that a majority
    of the board of directors of each issuer be independent
    directors as defined in Rule 4200, and Rule 4350(c)(2)
    requires that independent directors of each issuer have
    regularly scheduled meetings at which only independent directors
    are present. For large Japanese companies, including us, which
    employ a corporate
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governance system based on a board of corporate auditors,
    Japan's company law has no independence requirement with
    respect to directors. The task of overseeing management and
    accounting firms is assigned to the corporate auditors, who are
    separate from the company's management. Large Japanese
    companies, including us, are required to have at least one
    "outside" corporate auditor who must meet independence
    requirements under Japan's company law. An outside
    corporate auditor is defined as a corporate auditor who has not
    served as a director, manager or any other employee of the
    company or any of its subsidiaries for the last five years prior
    to the appointment. Currently, we have three outside corporate
    auditors. Starting on the date of our ordinary meeting of
    shareholders relating to the fiscal year ending March 31,
    2006, at least 50% of our corporate auditors will be required to
    be outside corporate auditors. Also, starting on the same date,
    the independence requirements for outside corporate auditors
    will be strengthened by extending the five-year period referred
    to above to any time prior to the appointment. Our Board of
    Corporate Auditors, which, as explained below, performs
    functions similar to those of an audit committee, has regularly
    scheduled meetings at which only corporate auditors are present.
•
Nasdaq Marketplace Rule 4350(d)(2) requires that each
    issuer have and will continue to have an audit committee of at
    least three members, each of whom (1) is independent as
    defined under Rule 4200(a)(15), (2) meets the
    requirements of Rule 10A-3(b)(1) under the Securities
    Exchange Act of 1934, (3) has not participated in the
    preparation of the financial statements of the issuer or any
    current subsidiary thereof at any time during the past three
    years, and (4) is able to read and understand fundamental
    financial statements, including a company's balance sheet,
    income statement and cash flow statement, as required by
    Rule 4350(d)(2). Nasdaq Marketplace Rule 4350(d)(1)
    requires that each issuer have adopted a formal written audit
    committee charter specifying the items enumerated in that rule
    and that its audit committee have reviewed and reassessed the
    adequacy of the charter on an annual basis. Under Japanese law,
    we are not required to establish or maintain such an audit
    committee. Japan's company law has no independence
    requirement with respect to directors of those "large"
    companies (defined under Japanese law as joint stock
    corporations with stated capital of ¥500 million or
    more or with total liabilities equal to or exceeding
    ¥20 billion), including Mitsui, that employ a
    corporate governance system based on a board of corporate
    auditors. In many such "large" companies, functions
    similar to those of such an audit committee are performed by its
    board of corporate auditors. We have established such a board of
    corporate auditors, each of whom does not concurrently serve as
    a director, manager or any other employee of the company or any
    of its subsidiaries. Under Japan's company law, corporate
    auditors are elected at a general meeting of shareholders and
    are under a statutory duty to review the administration of the
    affairs of Mitsui by its directors and to examine financial
    statements and other documents and reports of Mitsui.
    Furthermore, large Japanese companies, including Mitsui, are
    required to have at least one "outside" corporate
    auditor who must meet additional independence requirements under
    Japan's company law. Starting on the date of our ordinary
    meeting of shareholders relating to the fiscal year ending
    March 31, 2006, at least 50% of our corporate auditors will
    be required to be outside corporate auditors. An outside
    corporate auditor is currently defined as a corporate auditor
    who has not served as a director, manager or any other employee
    of the company or any of its subsidiaries for the last five
    years prior to the appointment. Starting on the date of our
    ordinary meeting of shareholders relating to the fiscal year
    ending March 31, 2006, the additional independence
    requirements for outside corporate auditors will be strengthened
    by extending the five-year period to any time prior to the
    appointment. Currently, we have five corporate auditors, three
    of whom are outside corporate auditors who meet these additional
    requirements. Mitsui's board of corporate auditors has
    adopted its own regulations setting forth the scope of its
    responsibilities and the manner in which it carries out such
    responsibilities, and certain other matters.
•
Nasdaq Marketplace Rule 4350(c)(3) requires that
    compensation of the chief executive officer of each issuer be
    determined or recommended to its board of directors for
    determination either by (i) a majority of its independent
    directors or (ii) a compensation committee comprised solely
    of independent directors and that compensation of all other
    executive officers be determined or
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recommended to the board of directors for determination either
    by (i) a majority of the independent directors or
    (ii) a compensation committee comprised solely of
    independent directors. As explained above, we are not required
    to have independent directors. With regard to director
    compensation, Japan's company law requires the board of
    directors to pass a board resolution proposing director
    compensation to be submitted for approval at a general
    shareholders' meeting. Within the upper limit approved at
    the shareholders meeting, the board of directors may determine
    the amount of compensation for each director. The board of
    directors, by resolution of the board of directors, may delegate
    such decision to the chief executive officer or other persons
    authorized by the board of directors. As for Mitsui, the upper
    limit of compensation for its directors approved by the general
    shareholders' meeting is 60 million yen per month and
    the board of directors has determined to delegate to the chief
    executive officer the decision-making authority as to the amount
    of compensation for each director within such limit. With regard
    to employee (including officer) compensation, the board of
    directors has the authority under Japan's company law to
    determine matters relating to employee compensation. The board
    of directors, by resolution of the board of directors, may
    delegate employment compensation matters to the chief executive
    officer or other persons authorized by the board of directors.
    As for Mitsui, its board of directors duly resolved the
    Regulations for the Executive Officers, which provide that
    executive officers who are also directors of the Company shall
    not be paid any compensation in their capacities as executive
    officers and that the compensation of the executive officers who
    are not directors of the Company shall be decided by the board
    of directors, or decided by the chief executive officer or other
    officer authorized by the board of directors. Mitsui determines
    compensation of its chief executive officer and other officers
    in accordance with the aforementioned procedures. Corporate
    auditors do not have any specific duties with respect to
    compensation of the chief executive officer and other executive
    officers under Japanese law. However, the duties of corporate
    auditors include a general duty to audit the affairs of the
    company to ensure that the business is being operated in
    accordance with applicable law and its charter. If the corporate
    auditors conclude, in connection with the performance of those
    duties, that the compensation of directors violated applicable
    law or the company's charter, the corporate auditors are
    required to report their conclusion to the general
    shareholders' meeting and may bring a lawsuit against the
    responsible directors.
•
Nasdaq Marketplace Rule 4350(c)(4) requires that director
    nominees be selected or recommended for the board of
    directors' selection either by (i) a majority of the
    independent directors or (ii) a nomination committee
    comprised solely of independent directors. Also, Nasdaq
    Marketplace Rule 4350(c)(4)(B) requires that each issuer
    have adopted a formal written charter or board resolution, as
    applicable, addressing the nominations process and such related
    matters as may be required under the U.S. federal
    securities laws. As explained above, We are not required to have
    independent directors. Under Japan's company law, a
    director may be nominated by (i) a resolution of the board
    of directors or (ii) a shareholder owning one percent or
    more of the outstanding shares of a company. Approval by a
    majority of the shareholders in attendance at a general
    shareholders meeting is required to elect a director. There is
    no specific requirement that a company adopt a written charter
    or board resolution addressing the nominations process, nor is
    it customary to do so. Nominations of directors of Mitsui are
    conducted in accordance with the aforementioned procedures.
    Corporate auditors do not have any specific duties with respect
    to nomination of directors under Japanese law. However, the
    duties of corporate auditors include a general duty to audit the
    affairs of the company to ensure that the business is being
    operated in accordance with applicable law and its charter. If
    the corporate auditors conclude, in connection with the
    performance of those duties, that the nomination of directors
    violated applicable law or the company's charter, the
    corporate auditors are required to report their conclusion to
    the general shareholders' meeting and may bring a lawsuit
    against the responsible directors.
•
Nasdaq Marketplace Rule 4350(f) requires that there be a
    provision in the by-laws for a quorum for any meeting of the
    holders of common stock and that such quorum be not less than
    33
1
/
3
%
    of the outstanding shares of the common voting stock. In
    accordance with the Commercial Code of Japan (the
    "Commercial Code"), however, under our Articles of
    Incorporation no quorum is
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required for the adoption of resolutions at a general meeting of
    shareholders, except for (i) the election of directors and
    corporate auditors for which the quorum shall not be less than
    one-third of the total voting rights and (ii) resolutions
    for other specified issues required by the Commercial Code (the
    "special shareholders resolutions"), including an
    amendment to the Articles of Incorporation, a reduction of
    stated capital, the removal of a director or corporate auditor,
    dissolution, merger or consolidation requiring shareholders
    resolution, the transfer of the whole or an important part of
    the business, the taking over of the whole of the business of
    any other corporation requiring shareholders resolution, share
    exchange or share transfer requiring shareholders resolution for
    the purpose of establishing 100% parent-subsidiary
    relationships, splitting of the corporation into two or more
    corporations requiring shareholders' resolution, any
    offering of new shares at a "specially favorable"
    price (or any offering of the rights to subscribe for, or
    acquire its shares at a "specially favorable"
    conditions) to any persons other than shareholders, for which
    the quorum shall be at least one-third of the total voting
    rights and the approval of the holders of at least two-thirds of
    the voting rights represented at the meeting is required. This
    approach is consistent with generally accepted business
    practices of publicly-held companies in Japan.
•
Nasdaq Marketplace Rule 4350(g) provides that each issuer
    solicit proxies and provide proxy statements for all meetings of
    shareholders and provide copies of such proxy solicitation to
    Nasdaq. Currently a Japanese company whose shares are listed on
    the securities exchanges defined in the Securities and Exchange
    Law, including us, may, but is not required to, solicit proxies
    for meetings of shareholders. If such a Japanese company
    solicits proxies for a meeting of shareholders, it is required
    to provide proxy statements and documents for reference as
    provided for in the Securities and Exchange Law and provide
    copies of such proxy statements and documents for reference to
    the Kanto Local Finance Bureau.
•
Nasdaq Marketplace Rule 4350(h) provides that each issuer
    conduct appropriate review of all related party transactions for
    potential conflict of interest situations on an ongoing basis
    and that all such transactions be approved by the issuer's
    audit committee or another independent body of the board of
    directors. Following the requirements of the Commercial Code of
    Japan, we require a Director to obtain the approval of our Board
    of Directors in order for such Director to enter into such
    transactions.
•
Nasdaq Marketplace Rule 4350(i)(1) requires that
    shareholder approval be obtained for the issuance of the
    issuer's stock in certain conditions or certain specified
    transactions described therein. The Commercial Code requires us
    to seek shareholder approval of various matters, and in certain
    instances the special shareholders resolutions as described
    above are required for approval. In addition, while the
    Commercial Code permits, in certain instances, the issuance of
    equity securities without shareholder approval, the Commercial
    Code also contains provisions requiring the timely dissemination
    of information relating to such issuance, allowing for
    opportunities for shareholders to voice their concern with such
    issuance, and mandating the election of statutory auditors whose
    fiduciary duty is to, among other things, oversee on behalf of
    the shareholders actions by the board of directors relating to
    such issuance.
The rights of ADS holders, including their rights relating to
corporate governance practices, are provided in the deposit
agreement.
Limitation of Liabilities of Directors and Corporate
    Auditors
The Articles of Incorporation of Mitsui provide that Mitsui may,
by resolution of the Board of Directors, limit the liabilities
of Directors and Corporate Auditors to the extent as permitted
by Japanese laws. The Articles of Incorporation of Mitsui also
provide that Mitsui may conclude a contract with external
Directors to limit the liability of such Directors to the extent
as permitted by Japanese laws. In accordance with such provision
of the Articles of Incorporation, Mitsui has concluded with
Mr. Akishige Okada, an external Director, a contract dated
June 27, 2003 and has also concluded with Mr. Akira
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Chihaya, an external Director, a contract dated June 24,
2004, to limit their liability to the extent permitted by
Japanese laws.
D.
Employees.
As of March 31, 2005, we had 38,210 employees. The average
number of temporary employees during the year ended
March 31, 2005 was 10,367.
The following table provides the number of employees by
operating segment as of the year ended March 31, 2005.
Operating Segment:
Metal
Machinery,
Consumer
Logistics &
Other
Products &
Electronics &
Products &
Financial
Overseas
All
Year Ended March 31,
Minerals
Information
Chemical
Energy
Services
Markets
Americas
Europe
Areas
Other
Total
2005
4,517
9,510
3,903
1,620
8,458
1,179
2,677
1,062
2,997
2,287
38,210
As of March 31, 2004 and 2003, we had 39,735 and 37,734
employees, respectively. Effective April 1, 2004, the
domestic branches and offices, which had been separated
operating units until the year ended March 31, 2004, were
integrated into related business units based on the categories
of their products and services. Accordingly, "Domestic
Branches and Offices" was abolished and the components of
the reportable segment were transferred to each product-focused
operating segment in the Head Office. See Note 17,
"Segment Information," to our consolidated financial
statements. The number of employees as of March 31, 2004
and 2003 are provided below. Restatement of the figure of
employees at Domestic Branch and Offices as of March 31,
2004 and 2003 to conform to the current year presentation is not
practicable.
Operating Segment:
Domestic
Metal
Machinery,
Consumer
Branches
Other
Products &
Electronics &
Products &
and
Overseas
All
Year Ended March 31,
Minerals
Information
Chemical
Energy
Services
Offices
Americas
Europe
Areas
Other
Total
2004
4,065
7,243
3,581
1,466
10,809
2,736
2,612
1,098
3,138
2,987
39,735
2003
4,033
6,565
3,075
1,303
9,796
2,945
2,637
1,173
3,182
3,025
37,734
We consider relations between management and our labor unions to
be good.
E.
Share Ownership.
Directors, Corporate Auditors and Executive
    Officers
As of June 30, 2005, the members of Mitsui's Board of
Directors, Corporate Auditors and Executive Officers held as a
group, 561,969 shares of our common stock, representing
0.04% of the shares outstanding. This number of shares included
56,509 shares held by Mitsui Executives' Shareholding
Association.
None of Mitsui's Directors, Corporate Auditors nor
Executive Officers is the beneficial owner of more than 1% of
Mitsui's common stock. The number of shares held by
Mitsui's Directors, Corporate Auditors and Executive
Officers, on an individual basis, is provided in
"Item 6.C. Board Practices," and is incorporated
herein by reference.
Employees Shareholding Association
Mitsui operates an Employees' Shareholding Association
which, as of June 30, 2005, had 3,286 employee member
participants.
Employee members declare monthly the amount to be deducted from
their salary to be used to purchase shares of common stock of
Mitsui through the Employees' Shareholding Association.
Employee
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members receive from Mitsui a monthly subsidy equivalent to 10%
of the declared amount, enabling them to purchase shares
equivalent to 110% of the declared amount. Employee members are
entitled to dividends which are applied towards the purchase of
additional shares through the Employees' Shareholding
Association. Employee members are able to sell part of their
shares that have been reserved for them under the
Employees' Shareholding Association's plan, in
multiples of 1,000 shares, once every month. As of
June 30, 2005, the total amount of shares having voting
rights owned by the Employees' Shareholding Association was
12,981,901, representing 0.82% of the total shares issued and
outstanding.
Mitsui does not have any other arrangements for involving its
employees in the capital of Mitsui, including any arrangement
that involves the issue or grant of options, shares or
securities of Mitsui.
Item 7.
Major Shareholders and Related Party Transactions.
A.
Major Shareholders.
As of March 31, 2005, there were 1,583,687,322 shares
of our common stock issued (including 1,476,692 shares of
treasury stock), of which 7,359,040 shares were in the form
of ADSs, representing 0.46% of our then outstanding common
stock, and 166,875,559 shares, representing 10.54% of our
then outstanding common stock, were held of record in the form
of common stock by residents in the United States. The number of
registered ADS holders was 42, and the number of registered
holders of shares of common stock in the United States
was 135.
The following table shows our major shareholders as of
March 31, 2005, including shareholders who owned less than
5% of our then outstanding common stock, disclosed under the
Security and Exchange Law of Japan.
Thousands of
Shares of Common
Percentage of Common
Shareholders
Stock Owned
Stock Issued(*)
The Master Trust Bank of Japan, Ltd. (trust account)
170,138
10.74
%
Japan Trustee Services Bank, Ltd. (trust account)
124,071
7.83
Mitsui Mutual Life Insurance Co.
51,033
3.22
Sumitomo Mitsui Banking Corporation
40,500
2.55
The Chuo Mitsui Trust and Banking Company, Limited
37,410
2.36
State Street Bank and Trust Company
36,311
2.29
Nippon Life Insurance Co.
35,070
2.21
Mizuho Corporate Bank, Ltd.
33,083
2.08
The Bank of Tokyo-Mitsubishi, Ltd.
30,375
1.91
Mitsui Sumitomo Insurance Co., Ltd.
24,726
1.56
(*) The figures are rounded down to two decimal places.
Under the Securities and Exchange Law of Japan, any person that
becomes a holder (together with its related persons) of 5% of
the total issued voting shares of a company listed on any
Japanese stock exchange (including ADSs representing such
shares) must file a report with the Director of the relevant
Local Finance Bureau and send a copy of such report to the
company. A similar report must also be filed if the percentage
holding of a holder of more than 5% of the total issued voting
shares of a company increases or decreases by 1% or more.
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Based on such reports we have received, we are aware that each
of the following persons, together with its affiliates, was the
beneficial owner of our common stock in the amounts and as of
the dates shown in the following tables:
Schroder Investment Management (Japan) Ltd.
Thousands of Shares of
Percentage of Common
Ownership as of
Common Stock Owned
Stock Issued
March 31, 2004
146,045,454
9.22
%
September 30, 2004
132,175,833
8.35
March 31, 2005
105,825,213
6.68
Mitsui Asset Trust Banking Company, Limited
Thousands of Shares of
Percentage of Common
Common Stock Owned
Stock Issued
Ownership as of
November 30, 2003
87,912,465
5.55
%
February 22, 2005
70,694,710
4.46
Mizuho Corporate Bank, Ltd.
Thousands of Shares of
Percentage of Common
Common Stock Owned
Stock Issued
Ownership as of
April 30, 2003
76,810,314
4.84
%
Deutsche Bank AG
Thousands of Shares of
Percentage of Common
Common Stock Owned
Stock Issued
Ownership as of
March 31, 2004
81,768,610
5.16
%
May 31, 2004
34,271,518
2.16
The voting rights of our major shareholders do not differ from
the voting rights of other shareholders.
To our knowledge, we are not directly or indirectly owned or
controlled by any other corporations, by any foreign government
or by any other natural or legal persons severally or jointly.
We know of no arrangements which may, at a subsequent date,
result in a change in control of Mitsui.
B.
Related Party Transactions.
In conducting our business operations involving a broad range of
products throughout the world, we have, in the ordinary course
of business, formed alliances with leading partner companies in
Japan and overseas, including manufacturers and companies in the
field of natural resources, such as energy and ferrous
materials. Moreover, in the ordinary course of business, from
time to time, we make minority investments in, or provide loans
to, amongst others, our customers, manufacturers, alliance
partners, distributors or suppliers. We conduct our global
business operations on a continuing basis with such associated
companies (investees owned 20% to 50%, corporate joint ventures,
other investees over which we have the ability to exercise
significant influence, noncontrolling investments in general
partnerships, limited partnerships and limited liability
companies). Our principal associated companies include Valepar
S.A. (18.24%), Japan Australia LNG (MIMI) Pty. Ltd.
(50.00%), Mitsui Oil Exploration Co., Ltd.
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(44.34%), IPM Eagle LLP (30.00%), Nihon Unisys, Ltd. (28.91%),
Sakhalin Energy Investment Company Ltd. (25.00%) and United Auto
Group, Inc. (15.53%), among others.
The following table shows information regarding account balances
and transactions with associated companies:
Billions of
Yen
As of
March 31,
2005
2004
Accounts receivable, trade
¥197
¥186
Advances to associated companies
93
115
Accounts payable, trade
95
76
Dividends received from associated companies for the years ended
March 31, 2005, 2004 and 2003 amounted to
¥33 billion, ¥19 billion and
¥13 billion, respectively.
See Note 6, "INVESTMENTS IN AND ADVANCES TO ASSOCIATED
COMPANIES," to our consolidated financial statements.
Prices applied in transactions with associated companies are
computed in the same way that such prices would be calculated in
transactions with unrelated third parties. In addition, when
associated companies are counterparties in transactions with us
and we conduct such business under long-term procurement and/or
sales contracts, in general, we conclude a corresponding sales
contract with the purchasers (unrelated parties) of goods
procured by us and/or with suppliers (unrelated parties) of the
goods we sell to associated companies. Regarding any other
commitments related to transactions with associated companies,
we do not normally assume risk in excess of its percentage of
share ownership in an associated company.
In furtherance of their trading activities, it is customary
practice for us to loan or guarantee, severally and jointly with
others, indebtedness of certain customers and suppliers and of
certain associated companies as well as to guarantee the
performance of contracts by such entities. At March 31,
2005, the aggregate amount of loans (including
¥58 billion guarantees) relating to associated
companies was ¥129 billion. The largest amount
outstanding as of March 31, 2005 was ¥30 billion
loan with no interest to P.T. Paiton Energy Co., which owns
and operates a coal-fired power plant in East Java, Indonesia.
The loan was mainly from Paiton Power Financing B.V., which is a
wholly owned subsidiary of Mitsui engaged in the financing for
P.T. Paiton Energy Co. Other major loans to associated
companies are related to power plant projects and projects of
developments of natural resources jointly invested with other
partners.
In the ordinary course of our business, we have entered into
transactions with various organizations with which certain of
the our Directors and Senior Management are associated, but no
material transactions have been entered into for the three-year
period ended March 31, 2005.
As of March 31, 2005, no person was the beneficial owner of
more than 10% of our common stock.
C.
Interests of Experts and Counsel.
Not applicable.
Item 8.
Financial Information.
A.
Consolidated Statements and Other Financial Information.
Consolidated Financial Statements
The audited consolidated financial statements required by this
item are included elsewhere in this annual report.
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Table of Contents
Export Sales
The total amount of revenues from export transactions for the
year ended March 31, 2005 was ¥258 billion or 7%
of total revenue of ¥3,526 billion.
Legal Proceedings
Antitrust Suits against Mitsui, Mitsui U.S.A. and Novus
    International
Mitsui and two of its subsidiaries, together with other
third-party methionine manufacturers, were named as defendants
in class action lawsuits in the United States, filed by direct
and indirect customers of methionine. In these cases,
manufacturers of methionine allegedly violated federal and/or
state antitrust laws by conspiring to fix the prices of
methionine. The lawsuits sought compensatory and treble damages
in unspecified amounts.
In May 2002, Mitsui and the subsidiaries reached an agreement
for settlement with the class action plaintiffs constituted by
direct customers. Under this settlement, Novus International,
Inc., Mitsui's 65%-owned subsidiary, paid
U.S.$37.8 million as a settlement amount. In November 2002,
Mitsui and the subsidiaries reached an agreement for settlement
with the plaintiffs who opted out of that class action. Under
this settlement, Novus International, Inc. paid
U.S.$58.2 million as a settlement amount.
This did not affect our consolidated results of operations for
the years ended March 31, 2005, 2004 and 2003, since Novus
International, Inc. had previously recorded an estimated
provision for the full settlement amount.
Other related lawsuits are still pending, but the management
believes that there is less than a reasonable possibility that
the pending lawsuits would materially affect our consolidated
results of operations.
Antitrust Suits against Mitsui, Mitsui U.S.A. and
    Bioproducts
Our wholly-owned U.S. subsidiary, Bioproducts, Inc., which
was producing and selling choline chloride, an ingredient of
animal feed and pet foods, was named as a defendant in the
lawsuits in the United States, together with other third-party
choline chloride manufacturers. In these cases, manufacturers of
choline chloride allegedly violated U.S. antitrust laws.
Although Mitsui and its wholly owned U.S. subsidiary,
Mitsui & Co. (U.S.A.), Inc. ("Mitsui
U.S.A."), were neither a manufacturer nor a seller of
choline chloride in the U.S. market, Mitsui and Mitsui
U.S.A. were also named as defendants in a class action lawsuits
based on the plaintiffs' allegation that Mitsui and Mitsui
U.S.A. were involved in the violation of the antitrust laws.
During the course of the legal proceedings, Mitsui and Mitsui
U.S.A. have consistently denied any wrongdoing. However, in the
trial before the Federal District Court of the District of
Columbia in June 2003, the jury rendered a verdict stating that
the defendants participated in the violation of the antitrust
laws. Mitsui and Mitsui U.S.A. considered undertaking the legal
proceedings necessary to overrule the verdict, but given the
circumstances, it was determined that a settlement with the
class action plaintiffs would be in the best interest of Mitsui
and all of its stakeholders, and entered into an agreement for
settlement with the class action plaintiffs by paying
U.S.$53.0 million as a settlement amount. The settlement
was subject to court approval, which was obtained on
April 27, 2005. This amount is recorded as other
expense — net in the Statements of Consolidated Income
for the year ended March 31, 2004.
Mitsui, Mitsui U.S.A. and Bioproducts, Inc. were also named as
defendants in other lawsuits made by the plaintiffs who opted
out of that class action, but entered into an agreement for
settlement with most of the plaintiffs in February 2004. Under
this settlement, Mitsui, Mitsui U.S.A. and Bioproducts, Inc.
were released from the legal proceedings by paying the opt-out
plaintiffs U.S.$73.5 million as a settlement amount. This
amount was paid in February 2004 and was recorded as other
expense — net in the Statements of Consolidated Income
for the year ended March 31, 2004.
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For other related lawsuits that are still pending, although
there can be no assurance of the ultimate results, management
believes that there is less than a reasonable possibility that
losses in addition to amounts that have been reserved for
possible litigation losses will occur, and that the amount of
any such additional losses would not have a material impact on
our consolidated financial position, results of operations or
cash flows.
Other Matters
Various other claims and legal actions are pending against us in
respect of contractual obligations and other matters arising out
of the conduct of our business. Appropriate provision has been
recorded for the estimated loss on claims and legal actions
including those mentioned above. In the opinion of management,
any additional liability will not materially affect our
consolidated financial position, results of operations, or cash
flows.
Dividend Policy
Under our Medium-Term Strategic & Financial Plan that
we announced on May 19, 2004, which runs thorough
March 31, 2006, we have set the target dividend payout
ratio at 20% of consolidated net income, and by growing profits
at Mitsui will aim to progressively and sustainably increase
dividend payments. Such payments will, however, be subject to
our future earnings, financial condition, approval at the
shareholders' meeting (in the case of year-end dividends)
and other factors, including statutory and other restrictions
with respect to the payment of dividends.
B.
Significant Changes.
Except as disclosed in this annual report, there has not been
any significant change since the date of the latest annual
consolidated financial statements included elsewhere in this
annual report.
Item 9.
The Offer and Listing.
A.
Offer and Listing Details.
The primary market for our common stock is the Tokyo Stock
Exchange, or TSE. Our common stock is traded on the First
Section of the TSE and is also listed on four other stock
exchanges in Japan (Osaka, Nagoya, Fukuoka and Sapporo Stock
Exchanges).
Our ADSs, each representing 20 shares of common stock, are
traded on the National Market of NASDAQ under the symbol MITSY.
ADRs, each evidencing one or more ADSs, were originally issued
pursuant to a Deposit Agreement in May 1963, as amended from
time to time, that we entered into with Citibank N.A. of New
York as Depositary and the holders of the ADRs.
Our common stock was listed on the Luxembourg Stock Exchange, in
the form of European Depositary Shares, each representing
20 shares; on the Frankfurt Stock Exchange, in the form of
co-ownership shares, each representing 1 share, in Global
Bearer Certificates; and on the Euronext Amsterdam Stock
Exchange. However, by reason that trading volume had been
extremely low, we applied to each stock exchange for delisting
our common stock and each application was approved with the
following effective date of delisting:
Name of Stock Exchange
Effective Date of Delisting
The Euronext Amsterdam Stock Exchange
February 28, 2005
The Frankfurt Stock Exchange
May 2, 2005
The Luxembourg Stock Exchange
September 26, 2005
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Table of Contents
The following table provides for the periods indicated the
reported high and low closing sales prices of our common stock
on the TSE and the reported high and low closing bid price
quotations per ADS on the National Market of NASDAQ:
TSE
NASDAQ
Price per Share
of Common
Price per ADS
Stock (Yen)
(U.S. dollars)
(1)
High
Low
High
Low
Year ended March 31:
2001
¥
851
¥
605
$
161.50
$
98.00
2002
926
575
152.13
91.00
2003
910
531
146.75
89.40
2004
946
541
181.50
90.90
2005
1,074
773
206.20
137.50
Year ended March 31, 2004:
First quarter
¥
629
¥
541
$
106.59
$
90.90
Second quarter
800
620
140.50
106.76
Third quarter
903
727
162.77
136.00
Fourth quarter
946
770
181.50
150.80
Year ended March 31, 2005:
First quarter
¥
1,010
¥
773
$
191.11
$
137.50
Second quarter
946
801
172.00
144.45
Third quarter
994
841
182.00
163.98
Fourth quarter
1,074
910
206.20
176.94
Year ending March 31, 2006:
First quarter
¥
1,050
¥
908
$
192.44
$
171.50
Month of:
March 2005
¥
1,074
¥
975
$
206.20
$
181.75
April 2005
1,023
923
188.95
174.51
May 2005
995
908
189.89
171.50
June 2005
1,050
981
192.44
180.09
July 2005
1,084
1,015
193.00
182.53
August 2005
1,188
1,057
218.00
185.52
(1)
All fractional figures of the prices per ADS are rounded to the
    nearest two decimal points.
Share prices on Japanese stock exchanges are determined on a
real-time basis by the equilibrium between bids and offers.
These exchanges set daily price limits, which limit the maximum
range of fluctuation within a single trading day. Daily price
limits are set according to the previous day's closing
price or special quote. Although transactions may continue at
the upward or downward limit price if the limit price is reached
on a particular trading day, no transactions may take place
outside these limits. Consequently, an investor wishing to sell
at a price above or below the relevant daily limit may not be
able to sell his shares at such price on a particular trading
day, or at all.
On September 16, 2005, the closing sales price per share of
our common stock on the TSE was ¥1,226, and the closing
sales price per ADS on the National Market of NASDAQ was
U.S.$222.00.
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B.
Plan of Distribution.
Not applicable.
C.
Markets.
See "Item 9.A. Offer and Listing Details."
D.
Selling Shareholders.
Not applicable.
E.
Dilution.
Not applicable.
F.
Expenses of the Issue.
Not applicable.
Item 10.
Additional Information.
A.
Share Capital.
Not applicable.
B.
Memorandum and Articles of Association.
General
Set forth below is information relating to the organization and
common stock of Mitsui, including brief summaries of the
relevant provisions of Mitsui's Articles of Incorporation
and Share Handling Regulations adopted by Mitsui's Board of
Directors, as currently in effect, and of the Commercial Code
and related legislation.
A law to modernize and make overall amendments to the Commercial
Code was promulgated on July 26, 2005. As a result of such
amendments, the provisions governing joint stock corporations
under the Commercial Code will be embodied in a new company law
(the "New Company Law"). The New Company Law will come
into effect within one and a half years after its promulgation,
and it is currently expected that the New Company Law and other
related laws and regulations will take effect in the spring of
2006.
Organization
Mitsui is a corporation (
kabushiki kaisha
) incorporated
in Japan under the Commercial Code of Japan (the
"Commercial Code"). It is registered in the Commercial
Register (
shogyo tokibo
) maintained by the Tokyo Legal
Affairs Bureau and several other registry offices of the
Ministry of Justice.
Objects and Purposes
Article 2 of Mitsui's Articles of Incorporation
provides that our objects are to engage in the following
business:
1.
Foreign trading business, purchasing and selling business,
    wholesaling business, agency business and brokerage business,
    relating to the following commodities:
(1)
Ferrous and non-ferrous metals and their raw materials and
    manufactured goods, and minerals.
(2)
Coal, petroleum, natural gas and other fuels and their
    by-products.
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(3)
All kinds of machines and appliances (including measuring
    instruments and medical apparatus), equipment including
    manufacturing equipment, communications equipment and
    antipollution equipment, rolling stock and vehicles, ships and
    boats, aerospace equipment and aircraft, and parts for the
    foregoing.
(4)
All kinds of chemical products, salt, fertilizers, high-pressure
    gas, explosives, pharmaceuticals (including medicines,
    non-medicinal drugs, medicine for veterinary use, narcotics,
    powerful poison and poison), radio isotope, toilet preparations
    and their raw materials.
(5)
Cereals, sugar, oils and fats, feeds and their raw materials;
    livestocks, agricultural, dairy and marine products, processed
    foods, alcoholic beverage and other foodstuffs and drinks.
(6)
All kinds of textile products and their raw materials.
(7)
All kinds of fur products and raw fur.
(8)
Lumber, cement, other building materials and housing related
    equipment.
(9)
Rubber, pulp, paper and their manufactured goods; tobacco,
    cigars, cigarettes and sundry goods.
(10) Industrial water and drinking water.
2.
Exploration, development, manufacturing, processing, scrapping
    and recycling business relating to the above-mentioned
    commodities.
3.
Acquisition, planning, preservation, utilization and disposition
    of copyrights, patent rights, other intellectual property
    rights, know-how, system technology, and other software and
    acting as intermediary in such transactions.
4.
Information processing and supply, telecommunications business,
    broadcasting business, advertising business, publishing
    business, printing, translation, and production and sales of
    audio and visual copyright products.
5.
Forestry business, sawing business and lumber processing
    business.
6.
Movable assets leasing business.
7.
Secondhand goods business.
8.
Freight forwarding and agency business, land transportation
    business, marine transportation business, port transportation
    business, freight forwarding business, customs brokerage
    business, shipping agency business and warehousing business.
9.
Intermediary business for non-life insurance and insurance under
    the Automobile Liability Law, and offering of life insurance,
    and overseas reinsurance business for non-life insurance.
10.
Business as contractor, design of building, supervision and
    management of various construction works.
11.
Acquisition, disposition, leasing, utilization in any other
    manner and development of real estate and acting as intermediary
    in such transactions.
12.
Supply and development of hot springs.
13.
Surveying and researching business relating to land, sea and sky.
14.
Investment in, purchasing, selling and handling as intermediary
    of negotiable instruments, etc.
15.
Lending money, guaranteeing and assuming debts, engaging in the
    sale and purchase of various credits, dealing in foreign
    exchange transactions, and conducting any other financing
    business.
16.
Operation and management of medical facilities, day-care
    facilities, sports facilities and restaurants, and hotel
    business and travel business.
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17.
Planning, administration and implementation of various events.
18.
Temporary personnel placement service business, employment
    agency business, and personnel guidance and training business
    for development of appropriate job skills and qualifications,
19.
Maintenance and management of real estate.
20.
Investment business, commodities investment dealing service,
    commodities investment advisory service, securities investment
    advisory service, trust business, sale of beneficial interest in
    trust, management service of investment trusts, asset management
    service for investment corporations.
21.
Generation, supply, and sale or purchase of electricity.
22.
Administrative agency service for operations, labor and
    accounting work.
23.
Buying, selling, and derivative transactions for greenhouse
    effect gas emissions rights and related intermediary services.
24.
Agent and intermediary for credit cards application.
25.
Consultancy business relating to the foregoing items.
26.
Other lines of business relating to any of the foregoing items.
Directors
Mitsui's Articles of Incorporation do not have provisions
with respect to: (a) a Director's power to vote on a
proposal, arrangement or contract in which the Director is
materially interested; (b) the Director's power, in
the absence of an independent quorum, to vote compensation to
themselves or any members of their body; (c) the borrowing
powers exercisable by the Directors and how such borrowing
powers can be varied; (d) the retirement or non-retirement
of Directors under an age limit requirement, or (e) the
number of shares, if any, required for Director's
qualification.
Under the Commercial Code, unless approved by the Board of
Directors, the Directors must refrain from effecting any
transaction with a company on his or her behalf or on that of a
third person or otherwise effecting with a person other than the
Director a transaction in which interests are contrary between a
company and the Director, and any Director who has a material
interest in the subject matter of a resolution to be taken by
the Board of Directors cannot vote in such resolution. The total
amounts of remuneration to Directors and that to Corporate
Auditors are subject to the approval of the general meeting of
shareholders and within such authorized amounts, the Board of
Directors and the Board of Corporate Auditors are respectively
authorized to determine the compensation to each Director and
Corporate Auditor.
The Commercial Code specifically requires the approval of the
Board of Directors for a company to borrow a large amount of
money. The Commercial Code does not specifically provide for
what constitutes a "large" amount in these contexts.
It has been the general practice of Mitsui's Board of
Directors to adopt an individual resolution for a borrowing in
excess of certain amount determined by the Board of Directors to
be a "large" amount for Mitsui. The Commercial Code
has no provision with respect to: retirement or non-retirement
of directors under an age limit requirement; and the Commercial
Code prohibits any corporation from requiring a qualification
share for a Director.
Common Stock
Authorized capital
Article 5 of the Mitsui's Articles of Incorporation
provides that the total number of shares authorized to be issued
by Mitsui is two billion five hundred million (2,500,000,000)
shares.
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Under Mitsui's Articles of Incorporation, currently in
effect, only shares of common stock are issuable and
1,583,687,322 shares of common stock (including treasury
stock of 1,476,692 shares) were issued, fully paid as of
March 31, 2005.
Dividends
The Mitsui's Articles of Incorporation provide that
dividends, if any, shall be paid to shareholders, beneficial
shareholders or pledgees of record as of the end of the
Mitsui's fiscal year, i.e., March 31. After the close
of the fiscal period, the Board of Directors prepares, among
other things, a proposed allocation of profits for dividends and
other purposes; this proposal is submitted to Mitsui's
Corporate Auditors and to independent certified public
accountants and then submitted for approval to shareholders at
the ordinary general meeting, which is normally held in June of
each year. In addition to provisions for dividends, if any, and
for the legal reserve and other reserves, the allocation of
profits customarily includes a bonus to Directors. In addition
to year-end dividends, the Board of Directors may, by its
resolution, declare a cash distribution pursuant to
Article 293-5 of the Commercial Code (an "interim
dividend") to shareholders, beneficial shareholders or
pledgees of record as of each September 30, without
shareholders' approval, but subject to the limitations
described below.
The Commercial Code provides that a company may not make any
distribution of profit by way of dividends or interim dividends
for any fiscal period unless it has set aside in its legal
reserve an amount equal to at least one-tenth of the amount paid
by way of appropriation of retained earnings for such fiscal
period until the aggregate amount of capital surplus and legal
reserve reaches one-quarter of its stated capital. Under the
Commercial Code, a company is permitted to distribute profits by
way of year-end or interim dividends out of the excess of its
net assets over the aggregate of:
(i)
its stated capital;
(ii)
its capital surplus;
(iii)
its accumulated legal reserve;
(iv)
the legal reserve to be set aside in respect of the fiscal
    period concerned;
(v)
the excess, if any, of unamortized expenses incurred in
    preparation for commencement of business and in connection with
    research and development over the aggregate of amounts referred
    to in (ii), (iii) and (iv) above;
(vi)
the subscription price or the security deposit for the
    subscription price of new shares issued by the company; and
(vii)
if certain assets of the company are stated at market value
    pursuant to the provisions of the Commercial Code, the aggregate
    amount by which their market value exceeds acquisition cost.
In the case of interim dividends, the net assets are calculated
by reference to the balance sheet as at the last closing of
Mitsui's accounts, but adjusted to reflect any subsequent
payment by way of appropriation of retained earnings and
transfer to legal reserve in respect thereof, provided that
interim dividends may not be paid where there is a risk that at
the end of the fiscal year there might not be any excess of net
assets over the aggregate of the amounts referred to in
(i) through (vii) above. In addition, if Mitsui's
Board of Directors has adopted a resolution for its purchase of
its own shares, the total amount of purchase price authorized by
such resolution shall, whether or not such purchase has been
effected, be deducted from the amount available for interim
dividend.
Under certain loan agreements with government-owned banks, the
lenders may require us to submit proposals as to the payment of
dividends and other appropriations of earnings for the
lenders' review and approval before presentation to the
shareholders. Certain of such agreements require the borrower,
upon the request of the lender, to reduce outstanding loans
before scheduled maturity dates when the lender considers that
Mitsui is able to reduce such loans through increased earnings
or through the proceeds from
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the sale of common stock or bonds and notes. During the fiscal
years ended March 31, 2005 and 2004, Mitsui did not receive
any such requests, and there is no expectation that any such
requests will be made.
In Japan the "ex-dividend" date and the record date
for dividends precede the date of determination of the amount of
the dividends to be paid.
Under the Articles of Incorporation, Mitsui is not obligated to
pay any dividends or interim dividends which are left unclaimed
for a period of three years after the date on which they first
became payable.
Shareholders' Meetings
Mitsui normally holds its ordinary general meeting of
shareholders in June of each year in Tokyo, Japan. In addition,
Mitsui may hold an extraordinary general meeting of shareholders
whenever necessary by giving at least two weeks advance notice
to shareholders.
Under the Commercial Code, notice of a shareholders'
meeting setting forth the place, time, purpose thereof and
providing a summary of the matters to be acted upon, must be
mailed to each shareholder having voting rights (or, in the case
of a non-resident shareholder, to his or her resident proxy or
mailing address in Japan) at least two weeks prior to the date
set for the meeting. The record date for any ordinary general
meeting of shareholders of Mitsui is March 31.
Any shareholder or group of shareholders holding at least 3% of
the total outstanding voting rights, for a continuous period of
six months or longer, may require the convocation of a general
meeting of shareholders for a particular purpose. Unless such
shareholders' meeting is convened promptly or a convocation
notice of a meeting which is to be held not later than eight
weeks from the day such demand is dispatched, the requiring
shareholders may, upon obtaining court approval, convene such
shareholders' meeting.
Any shareholder or group of shareholders holding at least 300
voting rights, or 1% of the total outstanding voting rights, for
a continuous period of six months or longer, may propose a
matter to be considered at a general meeting of shareholders by
submitting a written request to a Representative Director at
least eight weeks prior to the date set for such meeting.
To attend a shareholders' meeting in person or by proxy,
shareholders must provide proof of identity upon request.
Shareholders may be represented by proxies in writing appointed
for the meeting. The representative must be Mitsui's
shareholder holding voting rights. A director appointed by the
Board of Directors acts as the chairman at a general meeting of
shareholders.
Voting rights
A shareholder is entitled to one vote per unit subject to the
limitations on voting rights set forth in the following
paragraph and "Unit" share system — Voting
rights under the unit share system" below. Except as
otherwise provided by law or by the Articles of Incorporation, a
resolution can be adopted at a general meeting of shareholders
by a majority of the voting rights represented at the meeting.
The Commercial Code and Mitsui's Articles of Incorporation
provide, however, that the quorum for the election of Directors
and Corporate Auditors shall not be less than one-third of the
total voting rights. Mitsui's shareholders are not entitled
to cumulative voting in the election of Directors. A corporate
shareholder, more than one-quarter of whose outstanding shares
are directly or indirectly owned by Mitsui, may not exercise its
voting rights with respect to shares of Mitsui that it owns.
Shareholders may exercise their voting rights through proxies,
provided that the proxies are also Mitsui's shareholders
holding voting rights. Mitsui's shareholders also may cast
their votes in writing.
The Commercial Code provides that in order for a company to
amend the Articles of Incorporation and in certain other
instances, including a reduction of stated capital, the removal
of a Director or Corporate Auditor, dissolution, merger or
consolidation requiring shareholders resolution, the transfer of
the whole or an important part of the business, the taking over
of the whole of the business of any other corporation requiring
shareholders resolution, share exchange or share transfer
requiring shareholders
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resolution for the purpose of establishing 100%
parent-subsidiary relationships, splitting of the corporation
into two or more corporations requiring shareholders'
resolution, any offering of new shares at a "specially
favorable" price (or any offering of the rights to
subscribe for, or acquire its shares at a "specially
favorable" conditions) to any persons other than
shareholders, the quorum shall be at least one-third of the
total voting rights and the approval of the holders of at least
two-thirds of the voting rights represented at the meeting is
required (the "special shareholders resolutions");
provided that any amendment to the Articles of Incorporation
reducing the number of shares constituting a unit or eliminating
the provisions for the unit of shares may be made by the
resolution of the Board of Directors rather than by the special
shareholders resolution, as set forth in "'Unit'
share system — Voting rights under the unit share
system."
Subscription rights
Holders of Mitsui's shares of common stock have no
pre-emptive rights under its Articles of Incorporation.
Authorized but unissued shares may be issued at such times and
upon such terms as the Board of Directors determines, subject to
the limitations as to the offering of new shares at a
"specially favorable" price mentioned under
"Voting rights" above. The Board of Directors may,
however, determine that shareholders shall be given subscription
rights regarding a particular issue of new shares, in which case
such rights must be given on uniform terms to all shareholders
as at a record date of which not less than two weeks prior
public notice must be given. Each of the shareholders to whom
such rights are given must also be given notice of the
expiration thereof at least two weeks prior to the date on which
such rights expire.
Under the amendments to the Commercial Code which became
effective on April 1, 2002, a company may also issue the
rights to subscribe for or acquire its shares. Subscription
rights and the rights to subscribe for or acquire shares may be
made transferable or nontransferable by the Board of Directors.
Whether or not a company will make such rights generally
transferable in future rights offerings will depend upon the
circumstances at the time of such offerings.
Liquidation rights
In the event of Mitsui's liquidation, the assets remaining
after payment of all debts and liquidation expenses and taxes
will be distributed among shareholders in proportion to the
respective number of shares of common stock held.
Record date
March 31 is the record date for Mitsui's year-end
dividends. The shareholders and beneficial shareholders who are
registered as the holders of the number of shares constituting
1 unit or more whole units in Mitsui's register of
shareholders and/or beneficial shareholders at the end of each
March 31 are also entitled to exercise shareholders'
voting rights at the ordinary general meeting of shareholders
with respect to the fiscal year ending on such March 31.
September 30 is the record date for interim dividends. In
addition, Mitsui may, if necessary, set a record date on a
temporary basis, by giving advance public notice in accordance
with the resolution of the Board of Directors.
The price of shares generally goes ex-dividends or ex-rights on
Japanese stock exchanges on the third business day prior to a
record date (or if the record date is not a business day, the
fourth business day prior thereto), for the purpose of dividends
or rights offerings.
Repurchase by Mitsui of its Common Stock
Under the amendments to the Commercial Code which became
effective on September 25, 2003, subject to an amendment to
articles of incorporation, a board of directors is authorized to
resolve to purchase its own shares. Mitsui's ordinary
general meeting of shareholders held on June 24, 2004
resolved an amendment to the Articles of Incorporation to that
effect. Except as otherwise permitted by the Commercial Code,
Mitsui may purchase its own shares by a resolution of the Board
of Directors, provided, however, that Mitsui shall report at the
upcoming ordinary shareholders meeting the reason for its
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purchase, the total number of shares and the total acquisition
amount which Mitsui may purchase, and the total amount of
purchase price referred to the above cannot exceed the amount
which can be distributed as interim dividends as above-mentioned
in "Dividends," less the sum of dividends which have
been actually paid as interim dividends.
Mitsui may also acquire its own shares in response to a
shareholder's request for purchase of his or her shares
representing less than 1 unit. See "'Unit'
share system — Repurchase by Mitsui of shares
constituting less than a full unit" below.
Transfer of shares
Under the Commercial Code, the transfer of shares is effected by
delivery of share certificates but, in order to assert
shareholders' rights against a company, the transferee must
have its name and address registered on a company's
register of shareholders. For this purpose, Mitsui's
shareholders are required to file their names, addresses and
seals with The Chuo Mitsui Trust and Banking Company, Limited,
which is the transfer agent for Mitsui's shares. Foreign
shareholders may file specimen signatures in lieu of seals.
Non-resident shareholders are required to appoint a standing
proxy in Japan or designate a mailing address in Japan.
The central clearing system of share certificates under the Law
Concerning Central Clearing of Share Certificates and Other
Securities in Japan applies to the shares. Pursuant to this
system, a holder of the share is able to choose, at his/her
discretion, to participate in this system and all certificates
of the shares elected to be put into this system are deposited
with the Japan Securities Depository Center, Inc.
("JASDEC") (through a participating institution having
a clearing account with JASDEC, if the holder is not such a
participating institution) and all such shares are registered in
the name of JASDEC, on Mitsui's register of shareholders.
Each participating shareholder ("beneficial
shareholder") will, in turn, be registered in the register
of Mitsui's beneficial shareholders, and be treated in the
same way as shareholders registered on Mitsui's register of
shareholders. In connection with the transfer of the shares held
under this system, entry of the share transfer in the book
maintained by JASDEC for the participating institutions shall
have the same effect as delivery of share certificates.
"Unit" share system
Pursuant to the Commercial Code, Mitsui has adopted
1,000 shares (50 ADSs) as 1 unit of shares. This unit
share system is called
"tangen-kabu-system."
Any amendment to the Articles of Incorporation reducing the
number of shares constituting a unit or eliminating the
provisions for the unit of shares may be made by a resolution of
the Board of Directors rather than by a special shareholders
resolution. The number of shares constituting 1 unit cannot
exceed 1,000 or one two-hundredth (1/200) of all issued shares.
Voting rights under the unit share system
Under the unit share system, shareholders shall have one voting
right for each unit of shares that they hold. Any number of
shares less than a full unit will carry no voting rights.
Share certificates for less than a unit of shares
Under its Article of Incorporation, except as otherwise provided
in the Share Handling Regulations, Mitsui will not issue share
certificates for less than a unit of shares. Thus, unless
Mitsui's Board of Directors takes a resolution to eliminate
the provision for the unit shares from the Articles of
Incorporation or the shareholders amend the Articles of
Incorporation by a special shareholders resolution to eliminate
the provision for not to issue share certificates for less than
a unit of shares, a share certificate for any number of shares
less than a full unit will in general not be issued. As the
transfer of shares normally requires the delivery of the share
certificates, therefore, any fraction of a unit for which no
share certificates are issued is not transferable.
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Repurchase by Mitsui of shares constituting less than a full
    unit
A holder of shares constituting less than 1 unit may
require Mitsui to purchase such shares at their market value.
Increase in purchase of the shares to make one unit
Under the Articles of Incorporation, any shareholder who holds
shares less than one unit may request Mitsui to sell such number
of shares owned by Mitsui as are necessary to make one unit by
adding the number of shares owned by such shareholder in
accordance with the Share Handling Regulations and the
Commercial Code.
Effect of the unit share system on holders of ADSs
A holder who owns ADSs evidencing less than 1,000 common
shares will indirectly own less than a whole unit. Although, as
discussed above, under the unit share system holders of less
than a unit have the right to require Mitsui to purchase their
shares or sell such number of shares owned by Mitsui as are
necessary to make one unit by adding the number of their shares,
holders of ADSs that represent other than integral multiples of
whole units are unable to withdraw the underlying shares of
capital stock representing less than a unit and, therefore, are
unable, as a practical matter, to exercise the rights to require
Mitsui to purchase nor sell such underlying shares, unless
Mitsui's Articles of Incorporation are amended to eliminate
the provision not to issue share certificates for the numbers of
shares less than a whole unit. As a result, access to the
Japanese markets by holders of ADSs through the withdrawal
mechanism will not be available for dispositions of shares in
lots less than a unit. The unit share system does not affect the
transferability of ADSs, which may be transferred in lots of any
size.
Reporting of Substantial Shareholdings
The Securities and Exchange Law of Japan and its related
regulations require any person who has become, beneficially and
solely or jointly, a holder of more than 5% of the total issued
shares of a company listed on any Japanese stock exchange or
whose shares are traded on an over-the-counter market in Japan,
to file a report concerning such shareholdings with the director
of the relevant Local Finance Bureau of the Ministry of Finance
within five business days. With certain exceptions, a similar
report must also be made in respect of any subsequent change of
1% or more in any such holding or of any change in material
matters set out in any previously-filed reports. For this
purpose, shares issuable or transferable to such person upon
exercise of exchangeable securities, conversion of convertible
securities or exercise of warrants or stock acquisition rights
(including those incorporated in bonds with share subscription
rights) are taken into account in determining both the number of
shares held by such holder and the issuer's total issued
share capital. Copies of each report must also be furnished to
the issuer of the shares and to all Japanese stock exchanges on
which the shares are listed or, in the case of shares traded
over-the-counter, to the Japan Securities Dealers Association.
Exercise of Voting Rights
Except for the general limitation under Japanese anti trust and
anti monopoly regulations against holding of shares of capital
stock of a Japanese corporation which leads or may lead to a
restraint of trade or monopoly, and except for general
limitations under the Commercial Code or Mitsui's Articles
of Incorporation on the rights of shareholders applicable
regardless of residence or nationality, there is no limitation
under Japanese laws and regulations applicable to Mitsui or
under its Articles of Incorporation on the rights of
non-resident or foreign shareholders to hold or exercise voting
rights on the shares of common stock of Mitsui.
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Change in Control
There is no provision in Mitsui's Articles of Incorporation
that would have an effect of delaying, deferring or preventing a
change in control of Mitsui and that would operate only with
respect to merger, consolidation, acquisition or corporate
restructuring involving Mitsui.
Daily Price Fluctuation Limits under Japanese Stock
    Exchange Rules
Share prices on Japanese stock exchanges are determined on a
real-time basis by the equilibrium between bids and offers.
These exchanges are order-driven markets without specialists or
market makers to guide price formation. To prevent excessive
volatility, these exchanges set daily upward and downward price
fluctuation limits for each share, based on the previous
day's closing price. Although transactions may continue at
the upward or downward limit price if the limit price is reached
on a particular trading day, no transactions may take place
outside these limits. Consequently, an investor wishing to sell
at a price above or below the relevant daily limit may not be
able to sell his or her shares at such price on a particular
trading day, or at all.
On September 16, 2005, the closing price of our shares on
the Tokyo Stock Exchange was ¥1,226 per share. The
following table shows the daily price limit for a stock on the
Tokyo Stock Exchange with a closing price of between ¥500
and ¥1,000 per share, as well as the daily price limit
if our per share price were to rise to between ¥1,000 and
¥1,500, or fall to between ¥200 and ¥500. Other
daily price limits would apply if our per share price moved to
other ranges.
Selected Daily Price Limits
Maximum
Previous Day's Closing Price or
Daily Price
Special Quote
Movement
Greater or equal to
¥
200
Less than
¥
500
¥
80
Greater or equal to
500
Less than
1,000
100
Greater or equal to
1,000
Less than
1,500
200
For a history of the trading price of our shares on the Tokyo
Stock Exchange, see "Item 9.A. Offer and Listing
Details" of this annual report.
C.
Material Contracts.
We have not been a party to any material contract, other than
contracts entered into in the ordinary course of business,
within past two years immediately preceding the date of this
report.
D.
Exchange Controls.
Foreign Exchange Regulations
The Foreign Exchange and Foreign Trade Law of Japan, as
currently in effect, and the cabinet orders and ministerial
ordinances thereunder (the "Foreign Exchange
Regulations") govern certain matters relating to the
acquisition and holding of the shares or the ADSs, by
"Non-Residents of Japan" and by "Foreign
Investors" as hereinafter defined.
"Non-Residents of Japan" are defined as individuals
who are not resident in Japan and corporations whose principal
offices are located outside Japan. Branches and other offices of
Japanese corporations located outside Japan are regarded as
Non-Residents of Japan, and branches and other offices located
within Japan of foreign corporations are regarded as residents
of Japan. "Foreign Investors" are defined to be
(i) individuals not resident in Japan,
(ii) corporations which are organized under the laws of
foreign countries or whose principal offices are located outside
Japan, and (iii) other corporations of which (a) 50%
or more of the shares are held directly or indirectly by
(i) or (ii) above, (b) a majority of
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officers consists of Non-Residents of Japan or (c) a
majority of officers having the power of representation consists
of Non-Residents of Japan.
Acquisition of Shares
In general, acquisition of shares of stock of a Japanese company
listed on any Japanese stock exchange or traded in any
over-the-counter market in Japan ("Listed Shares") by
a Non-Resident of Japan from a resident of Japan is not subject
to any prior filing requirements except as described below.
However, the Minister of Finance of Japan (the "MOF")
and other Ministers having jurisdiction over the business of the
subject company (together, the "Ministers") may
require a prior approval for any such acquisition in certain
exceptional circumstances. The resident of Japan who transferred
the shares of a Japanese company to a Non-Resident of Japan must
file a report concerning such transfer with the MOF within
20 days after the transfer unless such transfer is made
through a bank, securities company or financial futures trader
licensed under the relevant Japanese law or consideration of
such transfer is ¥100 million or less.
If the number of Listed Shares to be acquired, or the number of
Listed Shares that will be held as a result of such acquisition,
by a Foreign Investor (whether from a resident of Japan, another
Foreign Investor or from or through security companies) is 10%
or more of the total outstanding shares of the subject company,
the Foreign Investor must file a post facto report with the
Ministers within 15 days of the date of acquisition. In
certain exceptional cases, a prior notification is required in
respect of such an acquisition.
Acquisition of Shares upon Exercise of Subscription Rights
    Attached to Bonds
The acquisition by a Non-Resident of Japan of shares upon
exercise of his or her rights under the bonds with rights for
subscription of new shares offered overseas is exempted from the
notification and reporting requirements described under this
"Item 10.D. Exchange Controls — Acquisition
of Shares" above.
ADRs
The deposit of the shares by a Non-Resident of Japan, the
issuance of the ADRs, in exchange therefore and the withdrawal
of the underlying shares upon surrender of the ADRs are not
subject to any formalities referred to under "Acquisition
of Shares" above, except where as a result of such deposit
(or withdrawal) the aggregate number of shares held by the
depositary (or its nominee) or the holder surrendering the ADRs,
as the case may be, would be certain percentage of the total
outstanding shares, in which event the relevant report is
required as outlined under "Item 10. B.
Memorandum and Articles of Association — Reporting of
Substantial Shareholdings" and/or under this
"Item 10.D. Exchange Controls — Acquisition
of Shares."
Dividends and Proceeds of Sales
Dividends paid on, and the proceeds of sales in Japan of the
shares held by Non-Residents of Japan may be convertible into
any foreign currency and repatriated abroad with no limit on the
amount under the Foreign Exchange Regulations currently in
effect. The acquisition of the shares by Non-Residents of Japan
by way of stock splits is not subject to any of the aforesaid
notification and confirmation requirements.
E.
Taxation.
Japanese Taxation
The following is a summary of the principal Japanese national
tax consequences to owners of our shares or ADSs who are
non-resident individuals or non-Japanese corporations without a
permanent establishment in Japan to which income from our shares
is attributable. The tax treatment is subject to
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possible changes in the applicable Japanese laws or double
taxation conventions occurring after that date. This summary is
not exhaustive of all possible tax considerations that may apply
to a particular investor. Investors are encouraged to consult
their own tax advisers as to:
•
the overall tax consequences of the acquisition, ownership and
    disposition of shares or ADSs, including specifically the tax
    consequences under Japanese law;
•
the laws of the jurisdiction of which they are resident; and
•
any tax treaty between Japan and their country of residence.
Generally, a non-resident holder of shares or ADSs is subject to
Japanese withholding tax on dividends paid by us. In the absence
of any applicable tax treaty, convention or agreement reducing
the maximum rate of withholding tax, the rate of Japanese
withholding tax applicable to dividends paid by us to
non-resident holders is 7% for dividends to be paid on or before
March 31, 2008, and 15% thereafter, except for dividends
paid to any individual shareholder who holds 5% or more of the
issued shares of Mitsui. Japan has income tax treaties,
conventions or agreements whereby the maximum withholding tax
rate for dividend payment is set at, in most cases, 15% for
portfolio investors, with, among other countries, Australia,
Belgium, Canada, Denmark, Finland, France, Germany, Ireland,
Italy, Luxembourg, The Netherlands, New Zealand, Norway,
Singapore, Spain, Sweden, Switzerland and the United Kingdom.
Under the new U.S.-Japan tax treaty (the "Treaty"),
the maximum withholding rate on dividends for portfolio
investors is 10%, if (i) they do not have a permanent
establishment in Japan, and (ii) the shares on ADSs with
respect to which such dividends are paid are not effectively
connected with such permanent establishment, and (iii) they
are qualified U.S. residents eligible for benefits under
the Treaty. Under the Treaty, withholding tax on dividends for
pension funds which are qualified U.S. resident eligible
for benefits under the Treaty is exempt from Japanese taxation
by way of withholding or otherwise, unless such dividends are
derived from the carrying on of a business, directly or
indirectly, by such pension funds. Japanese tax law provides in
general that if the Japanese statutory rate is lower than the
maximum rate applicable under tax treaties, conventions or
agreements, the Japanese statutory rate shall be applicable.
Stock splits are not subject to Japanese income or corporate
tax. A capitalization of retained earnings or legal reserve by
Japanese corporations is not subject to Japanese income or
corporate tax as "constructive dividends" in case of
no cash payment or assets delivery. A capitalization of capital
surplus is not subject to Japanese income or corporate tax.
Non-resident holders who are entitled to a reduced rate of
Japanese withholding tax on payments of dividends on the shares
by us are required to submit an Application Form for the Income
Tax Convention regarding Relief from Japanese Income Tax on
Dividends in advance through us to the relevant tax authority
before the payment of dividends. A standing proxy for
non-resident holders may provide the application. With respect
to ADSs, this reduced rate is applicable if the depositary or
its agent submits two Application Forms for Income Tax
Convention (one prior to payment of dividends, the other within
eight months after our fiscal year-end). To claim this reduced
rate, a non-resident holder of ADSs will be required to file
proof of taxpayer status, required by the depositary.
Non-resident holders who do not submit an application in advance
will generally be entitled to claim a refund from the relevant
Japanese tax authority of withholding taxes withheld in excess
of the rate of an applicable tax treaty.
Gains derived from the sale outside Japan of Mitsui's
shares or the ADSs by Non-Residents of Japan, including
non-Japanese corporations, will not be subject to Japanese taxes
on income. Gains derived from the sale in Japan of Mitsui's
shares or the ADSs by a Non-Resident of Japan or a non-Japanese
corporation not having a permanent establishment in Japan to
which such income is attributable are, in general, not subject
to Japanese income or corporate tax.
Japanese inheritance and gift taxes, at progressive rates, may
be payable by an individual who acquire the shares or the ADSs
as a legatee, heir or donee.
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United States Taxation
General
This discussion of certain U.S. federal tax consequences
only applies to U.S. holders who hold our ADSs or common
shares as capital assets for tax purposes and are not members of
a special class of holders subject to special rules, including:
dealers in securities; traders in securities who elect to use a
mark-to-market method of accounting for their securities
holdings; tax-exempt organizations; insurance companies; persons
liable for alternative minimum tax; persons who actually or
constructively own 10% or more of Mitsui voting stock; persons
who hold shares or ADSs as part of a hedging or straddle or
conversion transaction; or U.S. holders whose functional
currency is not the U.S. dollar. A U.S. holder is a
beneficial owner of shares or ADSs that is: a citizen or
resident of the United States; a domestic corporation; an estate
whose income is subject to U.S. federal income tax
regardless of its source; or a trust, if a U.S. court can
exercise primary supervision over the trust's
administration and one or more U.S. persons are authorized
to control all substantial decisions of the trust.
Moreover, the effect of any applicable U.S. state or local
tax laws is not discussed in this annual report.
For U.S. federal income tax purposes, if a person holds
ADRs evidencing ADSs, that person will be treated as the owner
of the underlying shares represented by those ADSs. Exchanges of
common shares for ADRs, and ADRs for ordinary shares, will not
be subject to U.S. federal income tax.
Taxation of Dividends
Subject to the passive foreign investment company
("PFIC") rules discussed below, the gross amount of
any dividend paid by Mitsui out of its current or accumulated
earnings and profits (as determined for U.S. federal income
tax purposes) is subject to tax. For noncorporate
U.S. holders, dividends paid in taxable years beginning
before January 1, 2009 that constitute qualified dividend
income will be taxable at a maximum tax rate of 15% provided
that shares or ADSs were held for more than 60 days during
the 121-day period beginning 60 days before the ex-dividend
date and other holding period requirements are met. Dividends
Mitsui pays with respect to its shares or ADSs generally will be
qualified dividend income. Dividends are taxable to
U.S. holders when they, in the case of shares, or the
depositary, in the case of ADSs, receive them, either actually
or constructively. The dividend will not be eligible for the
dividends-received deduction generally allowed to
U.S. corporations in respect of dividends received from
other U.S. corporations. Any distribution in excess of
current and accumulated earnings and profits (as determined for
U.S. federal income tax purposes) will be treated as a
non-taxable return of capital to the extent of a holder's
basis in the ADSs or common shares and thereafter as capital
gain.
The amount of the dividend distribution that a holder must
include in his or her income will be the U.S. dollar value
of the Japanese yen payments made, determined at the spot
Japanese yen/ U.S. dollar rate on the date such dividend
distribution is includible in such holder's income,
regardless of whether the payment is in fact converted into
U.S. dollars. Generally, any gain or loss resulting from
currency exchange fluctuations during the period from the date a
holder includes the dividend payment in income to the date such
payment is converted into U.S. dollars will be treated as
ordinary income or loss and will not be eligible for the special
tax rate applicable to qualified dividend income. Such gain or
loss will generally be income or loss from sources within the
United States for foreign tax credit limitation purposes.
Dividends will be income from sources outside the United States,
but dividends paid in taxable years beginning before
January 1, 2007 generally will be "passive" or
"financial services" income, and dividends paid in
taxable years beginning after December 31, 2006 will,
depending on your circumstances, be "passive" or
"general" income which, in either case, is treated
separately from other types of income for purposes of computing
the foreign tax credit allowable to you. No U.S. foreign
tax credit will be allowed to U.S. holders of common shares
or ADSs in respect of any personal property or similar tax
imposed by Japan (or any taxing authority thereof or therein).
Special rules apply in determining the foreign tax credit
limitation with respect to dividends that are subject to the
maximum 15% tax rate.
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Distributions of additional shares or rights to subscribe for
additional shares to U.S. holders with respect to their
common shares or ADSs that are made as part of a pro rata
distribution to all shareholders generally will not be subject
to U.S. federal income tax.
Taxation of Capital Gains
Subject to the PFIC rules discussed below, a U.S. holder
who sells or otherwise disposes of common shares or ADSs will
recognize gain or loss for U.S. federal income tax purposes
in an amount equal to the difference between the
U.S. dollar value of the amount realized and his or her tax
basis (determined in U.S. dollars) in such shares or ADSs.
Capital gain of a noncorporate U.S. holder that is
recognized before January 1, 2009 is generally taxed at a
maximum rate of 15% where the holder has a holding period
greater than one year. The gain or loss will generally be income
or loss from sources within the U.S. for foreign tax credit
limitation purposes.
PFIC Rules
Mitsui does not believe that the common shares or ADSs will be
treated as stock of a PFIC for United States federal income tax
purposes, but this conclusion is a factual determination that is
made annually and thus is subject to change. If Mitsui were
treated as a PFIC, unless a U.S. holder elected to be taxed
annually on a mark-to-market basis with respect to the common
shares or ADSs, gain realized on the sale or other disposition
of the shares or ADSs would in general not be treated as capital
gain. Instead a U.S. holder would be treated as if he or
she had realized such gain and certain "excess
distributions" ratably over the holding period for the
shares or ADSs and would be taxed at the highest tax rate in
effect for each such year to which the gain was allocated, in
addition to which an interest charge in respect of the tax
attributable to each such year would apply. In addition,
dividends received from Mitsui would not be eligible for the
special tax rates applicable to qualified dividend income if
Mitsui were a PFIC either in the taxable year of the
distribution or the preceding taxable year, but instead would be
taxable at rates applicable to ordinary income.
F.
Dividends and Paying Agents.
Not applicable.
G.
Statement by Experts.
Not applicable.
H.
Documents on Display.
We are subject to the informational requirements of the
Securities Exchange Act of 1934 and, in accordance therewith, we
file annual reports on Form 20-F within six months of our
fiscal year-end and furnish other reports and information on
Form 6-K with the Securities and Exchange Commission. These
reports and other information can be inspected at the public
reference room at the Securities and Exchange Commission at
100 F Street, N.E., Washington, D.C. 20549. You
can also obtain copies of such material by mail from the public
reference room of the Securities and Exchange Commission at
prescribed fees. You may obtain information on the operation of
the Securities and Exchange Commission public reference room by
calling the Securities and Exchange Commission in the United
States at 1-800-SEC-0330. You can also access to the documents
filed via the Electronic Data Gathering, Analysis and Retrieval,
or EDGAR, system on the website of the Securities and Exchange
Commission (http://www.sec.gov).
173
Table of Contents
I.
Subsidiary Information.
Not applicable.
Item 11.
Quantitative and Qualitative Disclosures about Market
    Risk.
In the normal course of business, we are exposed to many risks
arising from the potential change in financial and other
instruments' values caused by fluctuations in interest
rates, foreign currency exchange rates, commodity prices and
equity prices. We maintain a comprehensive risk management
policy to use derivative financial and commodity instruments,
including foreign exchange forward contracts, interest rate and
currency swap agreements, commodity futures, forwards, options
and swap agreements, however, these risks are not fully
insulated. To a lesser degree, Mitsui and certain subsidiaries
also enter into derivative financial and commodity instruments
for trading purposes within position limits and loss limits
(trading limits) strictly set under the risk management
structure, which is described below.
We have established market risk management procedures at several
levels throughout our organization. Chief Operating Officers of
operating segments have the first line of responsibility for
managing market risk within prescribed limits. These officers
have in-depth knowledge of the primary sources of risk in their
individual markets and the instruments available to hedge their
exposures.
The General Accounting & Risk Management Division
within our headquarters monitors the company-wide process of
risk management and compliance with trading limits set for
operating segments. The General Accounting & Risk
Management Division also provides general oversight with respect
to the market risk management process for operating segments.
Interest Rate Risk
Our normal business activities expose us to market risk arising
from changes in interest rates. To manage our interest rate
risk, we enter into interest rate swap agreements and interest
rate and currency swap agreements in order to modify and match
the interest rate characteristics of our assets and liabilities.
Foreign Currency Exchange Rate Risk
Our global operations in many countries generate foreign
currency exposures related to imports, exports and financing in
currencies other than the local currency. We use derivative
instruments such as foreign exchange forward contracts, currency
swap agreements, and interest rate and currency swap agreements
to hedge market risk arising from the changes in foreign
exchange rates associated with existing assets, obligations,
future cash flows from receivables and payables resulting from
selling and purchasing activities, long-term financing
transactions, identifiable commitments and forecasted
transactions denominated in foreign currencies.
Commodity Price Risk
As major participants in global commodities markets, we trade in
physical precious and base metals, energy products (crude oil
and refined oil products) and agricultural products (wheat,
coffee, sugar and others), and utilize a variety of derivatives
related to these commodities, such as futures, forwards, swaps
and options. Derivatives on those commodities are often used to
hedge price movements in the underlying physical inventory or
future inventory needs and to fix the expected future cash flows
from forecasted transactions. To facilitate hedging, we are
often required to take positions in the commodity markets in the
form of future, forward, swap and option contracts involving
those commodities.
Equity Price Risk
We hold stocks issued by our business partners including,
amongst others, our customers and suppliers as marketable
securities for the promotion of business and strategic
objectives. We also hold other marketable securities, such as of
banking institutions, for investment purposes. We are exposed to
equity
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Table of Contents
price risk inherent in these stocks. We do not take continuous
hedging measures against the market exposures on those
securities.
Risk Management of Derivative Financial Instruments and
    Other Financial Instruments
As an independent monitoring and advisory division for currency
and interest rate risks to which we are exposed, the General
Accounting & Risk Management Division obtains and
analyzes detailed information on financial transactions,
measures the risks and reports them directly to a member of
senior management. For financial instruments entered into for
trading purposes, such as interest rate swap transactions,
foreign exchange forward contracts, interest rate futures and
others, the General Accounting & Risk Management
Division measures daily Value-at-Risk ("VaR") and
conducts back-testing, validating their risk model by comparing
its assumptions with actual results semi-annually.
In addition to a policy that the counterparties in most
derivative transactions are strictly limited to highly rated
financial institutions, the General Accounting & Risk
Management Division continuously evaluates the creditworthiness
and the level of transactions with individual institutions and
estimates our current and potential exposure, or the cost of
replacing existing swaps and other transactions, in the event
that a counterparty is unable to meet its obligations.
Risk Management of Derivative Commodity Instruments
Each of our operating segments has a general framework for
measuring portfolio risk which is based on aggregate risk limits
approved by our management and credit risk of counterparties.
The transactions are confirmed with counterparties and are
recorded by independent risk management sections. The results of
trading are periodically reported to our Executive Officers in
charge of risk management.
In order to strengthen our risk monitoring process, particularly
by sharing and exchanging information on newly developed risk
measurement methods, we periodically hold company-wide
conferences among the concerned operating segments and related
divisions in the corporate headquarters.
VaR
We use the VaR method to measure market risk. VaR is a
statistical measure of the potential maximum loss in the fair
value of a portfolio resulting from adverse market movements in
underlying risk factors, over a defined period, within a certain
confidence level. As VaR incorporates historical data regarding
changes in market risk factors, our actual results may differ
materially from the calculations below. The sum of the VaRs for
the risk categories do not represent our aggregate VaR, because
market risk factors such as interest rates and currency exchange
rates are partially correlated to offset a portion of the simple
sum of the VaRs. At March 31, 2005 and 2004, we estimated
VaR in one day with respect to the interest rate, foreign
currency exchange rate and commodity price risks (with some
exceptions to certain commodity price risks in which case VaRs
in five days are used) using a variance-covariance method and a
historical simulation approach with a confidence level of 97.7%.
VaRs for Non-Trading Activities
The following table sets forth the year-end, high, low and
average VaR figures of interest rate risk, foreign currency
exchange rate risk and commodity price risk for non-trading
purposes, for the years ended March 31, 2005 and 2004.
The following VaR figures do not reflect the full effect of the
hedging activities related to all of the underlying exposures
such as the effect of receivables, payables and cash flows from
anticipated transactions that are hedged items.
Interest rate risk consists of the net risk position based on
the management of our assets and liabilities. Foreign exchange
rate risk consists of the net risk position of transactions
denominated in foreign currencies, but mainly in
U.S. dollars. Commodity price risk consists of the net risk
position of
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commodity positions and commodity derivative instruments
utilized to hedge the commodity price risk associated with
physical commodity inventories and firm commitments.
Millions of Yen
Years Ended March 31,
2005
2004
Year End
High
Low
Average
Year End
High
Low
Average
Interest rate risk
¥
376
¥
1,667
¥
262
¥
870
¥
1,096
¥
1,453
¥
197
¥
983
Foreign currency exchange rate risk
986
1,192
244
753
535
1,179
402
738
Commodity price risk
1,044
1,329
925
1,071
1,336
1,336
1,089
1,207
VaRs for Trading Activities
Mitsui and certain trading subsidiaries conduct trading
activities within well-defined position limits and loss limits
strictly set under the risk management structure mentioned
above. The results of the transactions and positions are
confirmed, monitored daily and reported to management by
independent sections to eliminate or reduce unacceptable losses
from the trading activities. The items traded by Mitsui and
certain subsidiaries are principally foreign exchange contracts,
interest rate swap agreements and commodity futures, forwards,
swaps and options related to base metals and agricultural
products.
The following table sets forth the year end, high, low, and
average VaR figures of interest rate risk, foreign exchange rate
risk and commodity price risk, for trading purposes, for the
years ended March 31, 2005 and 2004.
Millions of Yen
Years Ended March 31,
2005
2004
Year End
High
Low
Average
Year End
High
Low
Average
Interest rate risk
¥
0
¥
87
¥
0
¥
23
¥
1
¥
107
¥
1
¥
48
Foreign currency exchange rate risk
133
176
17
72
157
157
1
65
Commodity price risk
2,863
3,068
2,177
2,592
2,106
2,496
1,531
2,035
Tabular Presentation of Equity Price Risk
The cost, fair value and unrealized holding net gains on
marketable equity securities by industry at March 31, 2005
and 2004 were as follows:
Millions of Yen
March 31, 2005
March 31, 2004
Unrealized Holding
Unrealized Holding
Cost
Fair Value
Net Gains
Cost
Fair Value
Net Gains
Manufacturing
¥
113,654
¥
194,101
¥
80,447
¥
101,307
¥
172,984
¥
71,677
Commercial, finance and real estate
29,518
49,193
19,675
43,166
68,374
25,208
Transport and telecommunication
17,814
32,658
14,844
11,150
15,589
4,439
Energy, service and others
30,021
57,145
27,124
22,986
40,071
17,085
Total
¥
191,007
¥
333,097
¥
142,090
¥
178,609
¥
297,018
¥
118,409
For the year ended March 31, 2005, the general increase in
unrealized holding gains (except for the commercial, finance and
real estate sector) compared to the year ended March 31,
2004 was mainly due to the overall improvement in holding
stocks' prices. The decrease in cost and fair value of the
commercial, finance and real estate was mainly due to the
application of equity method to the investment in the retail
industry. The increase in cost and fair value of the
manufacturing sector was mainly due to
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the new investments in the chemical and textile industries. The
energy, service and others sector and transport and
telecommunication sector also showed the increase in cost and
fair value mainly due to initial public offerings of
non-marketable equity securities.
Maturities and fair values of debt securities classified as
available-for-sale and held-to-maturity at March 31, 2005
were as follows:
Millions of Yen
Available-for-Sale
Held-to-Maturity
Aggregate
Aggregate
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Contractual maturities:
Within 1 year
¥234,870
¥234,870
¥1,348
¥1,348
After 1 year through 5 years
67,981
67,999
233
233
After 5 years through 10 years
4,069
4,073
10
10
After 10 years
2
2
—
—
Total
¥306,922
¥306,944
¥1,591
¥1,591
The actual maturities may differ from the contractual maturities
shown above because certain issuers may have the right to redeem
debt securities before their maturity.
Item 12.
Description of Securities Other than Equity Securities.
Not applicable.
PART II
Item 13.
Defaults, Dividend Arrearages and Delinquencies.
None.
Item 14.
Material Modifications to the Rights of Security Holders and
    Use of Proceeds.
None.
Item 15.
Controls and Procedures.
Disclosure Controls and Procedures
Our management, with the participation of its principal
executive and principal financial officer, has performed an
evaluation of the effectiveness of disclosure controls and
procedures (as defined by Rule 13a-15(e) under the
U.S. Securities Exchange Act of 1934) as of the end of the
period covered by this report. Based upon that evaluation, our
principal executive and principal financial officer concluded
that the disclosure controls and procedures were effective as of
the end of the period covered by this report.
There was no change in our internal control over financial
reporting that occurred during the period covered by this report
that has materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting.
In November 2004, Mitsui has completed the implementation of a
new enterprise resource planning system based on SAP R/3, which
records contracts, controls delivery of goods, manages
settlement and runs financial reporting applications.
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Table of Contents
Item 16.
[Reserved]
Item 16A.
Audit Committee Financial Expert.
Our Board of Corporate Auditors has determined that Tasuku
Kondo, Hiroshi Matsuura and Hideharu Kadowaki qualify as an
"audit committee financial expert" as defined in this
Item 16A serving on our Board of Corporate Auditors.
Mr. Kondo joined Mitsui in 1965. Since then he had always
worked in the field of accounting or financing and was appointed
as Director and General Manager of Finance Division in 1996 and
as Representative Director and Chief Financial Officer in 2001.
He was elected as one of our Corporate Auditors at the ordinary
general meeting of shareholders held in June 2005.
Mr. Matsuura joined Mitsui in 1970. Since then he had
always worked in the field of management of credit risk, country
risk, investment risk and market risk and was appointed as
General Manager of the Corporate Risk Management Division before
having been elected as one of our Corporate Auditors at the
ordinary general meeting of shareholders held in June 2003.
Through his career, he has acquired, among other things,
experience auditing, analyzing and evaluating financial
statements of a great number of companies to be granted our
credit including loan, guarantee and investment for various
transactions.
Mr. Kadowaki was elected as one of our Corporate Auditors
at the ordinary general meeting of shareholders held in June
2004. His main career has been in the field of financial risk
management at Mitsui Bank, Sakura Bank, Sumitomo Mitsui Banking
Corporation, and Sumitomo Mitsui Financial Group, Inc. His final
position in the bank was an executive vice president who, while
overseeing the entire operation of the bank, was responsible for
risk management and internal auditing.
Item 16B.
Code of Ethics.
Mitsui maintains Business Conduct Guidelines for Employees and
Officers, applicable to all employees and officers. The Business
Conduct Guidelines set forth provisions relating to compliance
with applicable laws and regulations, honest and ethical conduct
including the handling of conflicts of interest.
In addition, Mitsui adopted a "Code of Ethics" as a
supplement to the Business Conduct Guidelines. The Code of
Ethics applies to Mitsui's financial professionals
including our principal executive officer, principal financial
officer, principal accounting officer and persons performing
similar functions.
Both the Business Conduct Guidelines for Employees and Officers
and the Code of Ethics are filed as exhibits to this annual
report.
Item 16C.
Principal Accountant Fees and Services.
Deloitte Touche Tohmatsu, a Japanese member firm of Deloitte
Touche Tohmatsu (a Swiss Verein), has been our principal
accountant for SEC reporting purposes.
The table below shows aggregate fees billed for each of the last
two fiscal years for professional services rendered to Mitsui
and its subsidiaries by Deloitte Touche Tohmatsu and other
member firms of Deloitte Touche Tohmatsu (a Swiss Verein).
Millions of Yen
Year Ended
March 31,
2005
2004
Audit
    fees
(1)
¥1,298
¥1,223
Audit-related
    fees
(2)
122
143
Tax
    fees
(3)
483
430
All other
    fees
(4)
37
181
Total
¥1,940
¥1,977
(1)
Audit fees are fees billed for professional services rendered by
    the principal accountant for the audit of our annual financial
    statements and services that are provided by the accountant in
    connection with statutory and regulatory filings or engagements.
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Table of Contents
(2)
Audit-related fees are fees billed for assurance and related
    services that are reasonably related to the performance of the
    audit or review of our financial statements, such as assessment
    of internal accounting controls and due diligence services in
    connection with potential business acquisitions, that are not
    reported in audit fees.
(3)
Tax fees are fees billed for professional services rendered by
    the principal accountant for tax compliance, tax advice and tax
    planning.
(4)
All other fees are fees billed for services provided by the
    principal accountant, other than services reported in audit
    fees, audit-related fees and tax fees, such as advisory services
    for risk management and regulatory matters.
Beginning with the year ended March 31, 2004, the first
fiscal year of application of paragraph (c)(7) of
Rule 2-01 of Regulation S-X, our Board of Corporate
Auditors has adopted pre-approval policies and procedures
requiring pre-approval by the Board of Corporate Auditors for
all audit and non-audit services provided by the principal
accountant. For the year ended March 31, 2005, the
pre-approval policies and procedures have been amended so that
(i) any audit or non-audit services, for which estimated
total fee shall not exceed 10 Million Yen, may be
pre-approved by the two full-time Corporate Auditors, provided
that such pre-approval must be reported at the next proceeding
full Board of the Corporate Auditors and that (ii) certain
categories of non-audit services prescribed in the pre-approval
policies and procedures may be pre-approved comprehensively on
an annual basis provided that the estimated total fees should be
specified in the relevant application and that the actual
services provided shall be periodically reported to the Board of
Corporate Auditors. All of the services provided by the
principal accountant for the year ended March 31, 2005 were
approved by the full-time Corporate Auditors or the Board of
Corporate Auditors pursuant to the pre-approval policies and
procedures described above, and none of such services were
approved pursuant to the procedures described in
Rule 2-01(c)(7)(i)(C) of Regulation S-X, which waives
the general requirement for pre-approval in certain
circumstances.
Item 16D.
Exemptions from the Listing Standards for Audit
    Committees.
Not applicable.
Item 16E.
Purchases of Equity Securities by the Issuer and Affiliated
    Purchasers.
The following table sets forth Mitsui's purchases of its
common stock during fiscal the year ended March 31, 2005:
(c) Total Number of
(d) Maximum Number
Shares Purchased as
of Shares that May
(a) Total Number
(b) Average
Part of Publicly
Yet Be Purchased
of Shares
Price Paid per
Announced Plans or
Under the Plans or
Period
Purchased
(1)
Share (Yen)
Programs
Programs
April 1, 2004 – April 30, 2004
56,140
¥970.03
N/A
N/A
May 1, 2004 – May 31, 2004
16,634
854.26
N/A
N/A
June 1, 2004 – June 30, 2004
25,485
848.57
N/A
N/A
July 1, 2004 – July 31, 2004
72,383
829.12
N/A
N/A
August 1, 2004 – August 31, 2004
57,811
868.59
N/A
N/A
September 1, 2004 – September 30, 2004
63,612
923.27
N/A
N/A
October 1, 2004 – October 31, 2004
93,439
952.50
N/A
N/A
November 1, 2004 – November 30, 2004
102,205
918.71
N/A
N/A
December 1, 2004 – December 31, 2004
168,910
877.73
N/A
N/A
January 1, 2005 – January 31, 2005
86,405
931.93
N/A
N/A
February 1, 2005 – February 28, 2005
84,370
991.37
N/A
N/A
March 1, 2005 – March 31,
    2005
(2)
71,853
1,048.64
N/A
N/A
Total
899,247
922.91
N/A
N/A
(1)
Under the Commercial Code of Japan, a holder of shares
    constituting less than one full unit may require Mitsui to
    purchase such shares at their market value (See "Memorandum
    and Articles of
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Association — 'Unit' share
    system — Repurchase by Mitsui of shares constituting
    less than a full unit" in "Item 10. Additional
    Information"). During the year ended March 31, 2005,
    Mitsui purchased 899,247 shares for a total purchase price
    of 829,921,816 yen upon such requests from holders of shares
    constituting less than one full unit.
(2)
On January 19, 2005, Mitsui announced that, at its Meeting
    of the Board of Directors, Mitsui decided to merge with Mitsui
    Sakhalin Development Co. Ltd. ("MSD") on
    March 31, 2005.
MSD was a wholly-owned subsidiary of Mitsui and a holding
vehicle of Mitsui's investment in Sakhalin Energy
Investment Co., Ltd. ("SEIC"). SEIC is engaged in the
Sakhalin II Crude Oil and LNG Exploration, Development and
Production Project ("Sakhalin II Project")
promoted by Mitsui. Mitsui Sakhalin Holdings B.V.
("MSH") had been subsequently established in
Netherlands to flexibly respond to the recycling of cash flow in
conjunction with the phased development of the Sakhalin II
Project. Mitsui executed a short-form merger with MSD in order
to simplify its financing structure and make MSH the only
holding vehicle for its investment in SEIC. The merger had
minimal impact on Mitsui's business performance.
Under the Commercial Code of Japan, a shareholder giving a
written notice to the company of his/her intention to oppose the
merger within 2 weeks after the company's announcement
of such merger may make a demand upon the company that the
company purchase the shares owned by such shareholder at a fair
price.
In March 2005, there was such a request for 5,000 shares
by a shareholder who opposed the merger of MSD, and Mitsui
purchased those shares in the due course. This purchase of
5,000 shares was not included in the purchase of
71,853 shares from March 1, 2005 to March 31,
2005 in the column of "(a) Total Number of Shares
Purchased".
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PART III
Item 17.
Financial Statements.
Not applicable.
Item 18.
Financial Statements.
The information required by this item has been provided
elsewhere in this annual report.
Item 19.
Exhibits.
Exhibits
Exhibit
Number
Document
1
.1
The Articles of Incorporation of Mitsui & Co., Ltd., as
    of June 24, 2005 (English-language translation).
1
.2*
The Share Handling Regulation of Mitsui & Co., Ltd., as
    amended on June 24, 2004 (English-language translation).
1
.3*
The Rules of the Board of Directors of Mitsui & Co.,
    Ltd., as amended on April 1, 2004 (English-language
    translation).
1
.4
The Rules of the Board of Corporate Auditors of
    Mitsui & Co., Ltd., as amended on September 8,
    2004 (English-language translation).
2
.1**
Deposit Agreement, dated October 1, 1982 among
    Mitsui & Co., Ltd., Citibank, N.A., and holders of ADRs
    and European Depositary Receipts.
8
.1
List of Subsidiaries of Mitsui & Co., Ltd.
11
.1
Code of Ethics for Senior Financial Officers and Professionals.
11
.2
Business Conduct Guidelines for Employees and Officers of
    Mitsui & Co., Ltd.
12
.1
Certification of the principal executive officer of
    Mitsui & Co., Ltd. required by Rule 13a-14(a).
12
.2
Certification of the principal financial officer of
    Mitsui & Co., Ltd. required by Rule 13a-14(a).
13
.1
Certification required by Rule 13a-14(b) and
    Section 1350 of Chapter 63 of Title 18 of the
    United States Code.
*
Incorporated by reference to the corresponding exhibit to our
    annual report on Form 20-F
(File No. 0-9929) filed on September 30, 2004.
**
Incorporated by reference to the corresponding exhibit to our
    annual report on Form 20-F
(File No. 0-9929) filed on September 27, 2002.
We have not included as exhibits certain instruments with
respect to our long-term debt, the amount of debt authorized
under each of which does not exceed 10% of our total assets, and
we agree to furnish a copy of any such instruments to the
Securities and Exchange Commission upon request.
181
Table of Contents
MITSUI & CO., LTD. (MITSUI BUSSAN KABUSHIKI KAISHA)
AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
The audited consolidated financial statements of
Mitsui & Co., Ltd. (Mitsui Bussan Kabushiki Kaisha) and
subsidiaries, together with the report of Deloitte Touche
Tohmatsu as of March 31, 2005 and 2004, and for the years
ended March 31, 2005, 2004 and 2003, filed as part of this
annual reports are as follows:
Page
Report of Independent Registered Public Accounting Firm
F-2
Consolidated Balance Sheets, March 31, 2005 and 2004
F-3
Statements of Consolidated Income for the Years Ended
    March 31, 2005, 2004 and 2003
F-5
Statements of Consolidated Shareholders' Equity for the
    Years Ended March 31, 2005, 2004 and 2003
F-7
Statements of Consolidated Cash Flows for the Years Ended
    March 31, 2005, 2004 and 2003
F-9
Notes to Consolidated Financial Statements
F-10
Supplemental Information on Oil and Gas Producing Activities
    (Unaudited)
F-82
Supplemental Information:
Schedules for the Years
Ended March 31, 2005, 2004 and 2003:
(Schedules are omitted because of the absence of the conditions
under which they are required or because the required
information is included in the consolidated financial statements
or notes thereto.)
Financial statements of majority-owned subsidiaries of the
registrant not consolidated and of 50% or less owned persons
accounted for by the equity method have been omitted because
Mitsui & Co., Ltd.'s proportionate share of the
income from continuing operations before income taxes, and total
assets of each such company is less than 20% of the respective
consolidated amounts, and the investment in and advances to each
company is less than 20% of consolidated total assets.
F-1
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
Mitsui & Co., Ltd. (Mitsui Bussan Kabushiki Kaisha):
We have audited the accompanying consolidated balance sheets of
Mitsui & Co., Ltd. (Mitsui Bussan Kabushiki Kaisha) and
subsidiaries (the "Company") as of March 31, 2005
and 2004, and the related statements of consolidated income,
consolidated shareholders' equity, and consolidated cash
flows for each of the three years in the period ended
March 31, 2005 (all expressed in Japanese yen). These
financial statements are the responsibility of the
Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. The Company is not required to
have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audits included
consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control over
financial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of
Mitsui & Co., Ltd. and subsidiaries as of
March 31, 2005 and 2004, and the results of their
operations and their cash flows for each of the three years in
the period ended March 31, 2005, in conformity with
accounting principles generally accepted in the United States of
America.
As discussed in Note 2 to the consolidated financial
statements, the accompanying statements of consolidated income
for the years ended March 31, 2004 and 2003 have been
restated.
As discussed in Note 11 to the consolidated financial
statements, effective April 1, 2003, the Company changed
its method of accounting for asset retirement obligations to
conform to Statement of Financial Accounting Standards
No. 143.
Our audits also comprehended the translation of Japanese yen
amounts into U.S. dollar amounts and, in our opinion, such
translation has been made in conformity with the basis stated in
Note 2. Such U.S. dollar amounts are presented solely
for the convenience of readers outside Japan.
/s/ DELOITTE TOUCHE TOHMATSU
Deloitte Touche Tohmatsu
Tokyo, Japan
June 15, 2005, except for Note 29, as to which the
date is June 24, 2005
F-2
Table of Contents
CONSOLIDATED BALANCE SHEETS
Mitsui & Co., Ltd. and subsidiaries
March 31, 2005 and 2004
Millions of
U.S. Dollars
Millions of Yen
(Note 2)
2005
2004
2005
ASSETS
Current Assets:
Cash and cash equivalents (Notes 2 and 5)
¥
791,810
¥
638,299
$
7,400
Time deposits
28,067
46,710
262
Marketable securities (Notes 2 and 5)
28,077
29,337
262
Trade receivables (Note 9):
Notes and loans, less unearned interest
450,678
467,380
4,212
Accounts (Note 8)
1,863,742
1,706,850
17,418
Associated companies
197,015
186,373
1,841
Allowance for doubtful receivables (Notes 2, 7 and 8)
(22,519
)
(22,498
)
(210
)
Inventories (Notes 2 and 9)
596,876
513,016
5,578
Advance payments to suppliers
90,901
62,038
850
Deferred tax assets — current (Notes 2 and 21)
46,410
31,473
434
Other current assets
349,622
275,496
3,268
Total current assets
4,420,679
3,934,474
41,315
Investments and Non-current Receivables
(Notes 2 and
    9):
Investments in and advances to associated companies
    (Notes 6, 11 and 17)
973,219
726,521
9,096
Other investments (Note 5)
660,230
617,189
6,170
Non-current receivables, less unearned interest (Note 8)
544,615
485,446
5,090
Allowance for doubtful receivables (Notes 7 and 8)
(100,066
)
(110,098
)
(935
)
Property leased to others — at cost, less accumulated
    depreciation (Notes 8, 10 and 24)
183,175
230,311
1,712
Total investments and non-current receivables
2,261,173
1,949,369
21,133
Property and Equipment — at Cost
(Notes 2, 8, 9, 10 and 11):
Land, land improvements and timberlands
207,115
220,842
1,936
Buildings, including leasehold improvements
317,576
329,405
2,968
Equipment and fixtures
429,315
395,010
4,012
Mineral rights
78,303
27,349
732
Vessels
21,002
18,215
196
Projects in progress
35,727
26,224
334
Total
1,089,038
1,017,045
10,178
Accumulated depreciation
(426,350
)
(417,906
)
(3,985
)
Net property and equipment
662,688
599,139
6,193
Intangible Assets, less Accumulated Amortization
(Notes 2, 3, 12 and 14)
104,257
90,809
974
Deferred Tax Assets — Non-current
(Notes 2, 11 and 21)
29,641
32,406
277
Other Assets (Note 14)
114,949
109,831
1,074
Total
¥
7,593,387
¥
6,716,028
$
70,966
F-3
Table of Contents
CONSOLIDATED BALANCE SHEETS — (Continued)
Mitsui & Co., Ltd. and subsidiaries
March 31, 2005 and 2004
Millions of
U.S. Dollars
Millions of Yen
(Note 2)
2005
2004
2005
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term debt (Notes 9 and 13)
¥
615,353
¥
646,746
$
5,751
Current maturities of long-term debt (Notes 8, 9 and 13)
291,950
357,675
2,728
Trade payables:
Notes and acceptances
113,481
124,321
1,060
Accounts
1,645,842
1,467,516
15,382
Associated companies
94,805
76,360
886
Accrued expenses:
Income taxes (Notes 2 and 21)
47,160
32,628
441
Interest
19,570
20,210
183
Other
75,299
39,522
704
Advances from customers
100,681
83,273
941
Other current liabilities (Notes 2, 21, 22 and 23)
277,635
185,534
2,595
Total current liabilities
3,281,776
3,033,785
30,671
Long-term Debt, less Current Maturities
(Notes 8, 9, 11 and 13)
2,904,923
2,541,221
27,149
Accrued Pension Costs and Liability for Severance Indemnities
(Notes 2 and 14)
39,467
52,296
369
Deferred Tax Liabilities — Non-current
(Notes 2 and 21)
143,566
47,387
1,341
Commitments and Contingent Liabilities
(Notes 9 and
    23)
Minority Interests
(Note 11)
100,827
78,061
942
Shareholders' Equity
(Note 15):
Common stock — no par value
Authorized, 2,500,000,000 shares;
Issued, 1,583,687,322 shares in 2005 and
    1,583,674,837 shares in 2004
192,493
192,487
1,799
Capital surplus
288,048
287,763
2,692
Retained earnings:
Appropriated for legal reserve
37,018
36,633
346
Unappropriated (Notes 6, 13, 21 and 29)
656,032
549,521
6,131
Accumulated other comprehensive income (loss) (Note 2):
Unrealized holding gains and losses on available-for-sale
    securities (Note 5)
100,179
69,729
936
Foreign currency translation adjustments
(142,787
)
(161,454
)
(1,334
)
Minimum pension liability adjustment (Note 14)
(5,691
)
(5,743
)
(53
)
Net unrealized gains and losses on derivatives (Note 26)
(1,252
)
(3,996
)
(12
)
Total accumulated other comprehensive loss
(49,551
)
(101,464
)
(463
)
Treasury stock, at cost: 1,476,692 shares in 2005 and
    2,661,783 shares in 2004
(1,212
)
(1,662
)
(11
)
Total shareholders' equity
1,122,828
963,278
10,494
Total
¥
7,593,387
¥
6,716,028
$
70,966
See notes to consolidated financial statements.
F-4
Table of Contents
Statements of Consolidated Income
Mitsui & Co., Ltd. and subsidiaries
Years Ended March 31, 2005, 2004 and 2003
Millions of
U.S. Dollars
Millions of Yen
(Note 2)
2004
2003
As restated
As restated
2005
(Note 2)
(Note 2)
2005
Revenues
(Notes 2, 17 and 18):
Sales of products
¥
2,980,759
¥
2,490,014
¥
2,316,828
$
27,858
Sales of services
435,210
424,473
389,653
4,067
Other sales (Note 8)
109,764
68,449
78,090
1,026
Total revenues
3,525,733
2,982,936
2,784,571
32,951
Total Trading Transactions (Notes 2 and 17): 2005,
    ¥13,615,047 million — $127,243 million;
    2004, ¥12,284,111 million; 2003,
    ¥11,474,183 million
Cost of Revenues
(Notes 2 and 18):
Cost of products sold
2,684,146
2,292,662
2,131,157
25,086
Cost of services sold
68,995
41,346
44,594
645
Cost of other sales (Note 8)
46,789
34,985
39,250
437
Total cost of revenues
2,799,930
2,368,993
2,215,001
26,168
Gross Profit
725,803
613,943
569,570
6,783
Other Expenses (Income):
Selling, general and administrative (Notes 2, 8,
    12, 14, 18 and 25)
518,949
494,437
453,973
4,850
Provision for doubtful receivables (Notes 2 and 7)
8,863
9,883
13,665
83
Interest expense, net of interest income (Notes 2 and 26):
    2005, ¥35,512 million — $332 million;
    2004, ¥30,015 million; 2003, ¥39,641 million
8,097
5,898
5,774
76
Dividend income
(24,570
)
(18,448
)
(16,266
)
(230
)
Gain on securities contributed to an employee retirement benefit
    trust (Notes 5 and 14)
—
—
(15,831
)
—
Government grant for transfer of substitutional portion of EPF
    (Notes 2 and 14)
—
(17,224
)
—
—
Gain on sales of securities — net (Notes 2 and 5)
(34,856
)
(27,465
)
(11,026
)
(326
)
Gain on issuance of stock by a subsidiary (Notes 2 and 19)
(1,677
)
—
—
(16
)
Loss on write-down of securities (Notes 2 and 5)
16,544
31,024
37,907
155
(Gain) loss on disposal or sales of property and
    equipment — net (Note 25)
(6,527
)
(4,057
)
1,745
(61
)
Impairment loss of long-lived assets (Notes 2, 10, 12
    and 25)
21,505
22,378
23,638
201
Compensation and other charges related to DPF incident
    (Note 22)
36,000
—
—
336
Other expense — net (Notes 18, 20, 23 and 25)
7,831
28,712
11,001
73
Total other expenses
550,159
525,138
504,580
5,141
Income from Continuing Operations before Income Taxes,
    Minority Interests and Equity in Earnings
(Note 21)
175,644
88,805
64,990
1,642
Income Taxes
(Notes 2 and 21):
Current
65,098
45,016
39,187
608
Deferred (Note 19)
38,457
2,025
(389
)
360
Total
103,555
47,041
38,798
968
Income from Continuing Operations before Minority Interests
    and Equity in Earnings
72,089
41,764
26,192
674
Minority Interests in Earnings of Subsidiaries
(17,558
)
(7,470
)
(4,412
)
(164
)
Equity in Earnings of Associated Companies — Net
    (After Income Tax Effect)
(Notes 2, 6 and 21)
65,893
40,078
15,295
615
Income from Continuing Operations
120,424
74,372
37,075
1,125
Income (Loss) from Discontinued Operations — Net
    (After Income Tax Effect)
(Notes 4, 21 and 25)
712
(3,700
)
(5,937
)
7
Cumulative Effect of Change in Accounting Principle (After
    Income Tax Effect)
(Notes 11 and 21)
—
(2,285
)
—
—
Net Income
¥
121,136
¥
68,387
¥
31,138
$
1,132
F-5
Table of Contents
Statements of Consolidated Income — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Years Ended March 31, 2005, 2004 and 2003
U.S. Dollars
Yen
(Note 2)
Net Income per Share
(Notes 2, 11 and 16):
Basic:
Continuing operations
¥
76.10
¥
47.04
¥
23.43
$
0.71
Discontinued operations
0.45
(2.35
)
(3.75
)
0.01
Cumulative effect of change in accounting principle
—
(1.44
)
—
—
Total
¥
76.55
¥
43.25
¥
19.68
$
0.72
Diluted:
Continuing operations
¥
71.70
¥
44.44
¥
22.17
$
0.67
Discontinued operations
0.42
(2.19
)
(3.48
)
0.00
Cumulative effect of change in accounting principle
—
(1.36
)
—
—
Total
¥
72.12
¥
40.89
¥
18.69
$
0.67
See notes to consolidated financial statements.
F-6
Table of Contents
Statements of Consolidated Shareholders' Equity
Mitsui & Co., Ltd. and subsidiaries
Years Ended March 31, 2005, 2004 and 2003
Millions of
U.S. Dollars
Millions of Yen
(Note 2)
2005
2004
2003
2005
Common Stock
(Note 15):
Balance at beginning of year
Shares issued: 2005, 2004 and
    2003 — 1,583,674,837 shares
¥
192,487
¥
192,487
¥
192,487
$
1,799
Common stock issued upon conversion of bonds
Shares issued: 2005 — 12,485 shares; 2004
    and 2003 — 0 share
6
—
—
0
Balance at end of year
Shares issued: 2005 — 1,583,687,322 shares;
    2004 and 2003 — 1,583,674,837 shares
¥
192,493
¥
192,487
¥
192,487
$
1,799
Capital Surplus
(Note 15):
Balance at beginning of year
¥
287,763
¥
287,756
¥
287,756
$
2,690
Conversion of bonds
6
—
—
0
Gain on sales of treasury stock
13
7
—
0
Exchange of treasury stock for subsidiary's stock
266
—
—
2
Balance at end of year
¥
288,048
¥
287,763
¥
287,756
$
2,692
Retained Earnings
(Note 15):
Appropriated for Legal Reserve:
Balance at beginning of year
¥
36,633
¥
36,382
¥
35,873
$
342
Transfer from unappropriated retained earnings
385
251
509
4
Balance at end of year
¥
37,018
¥
36,633
¥
36,382
$
346
Unappropriated
(Notes 6, 13, 21 and 29):
Balance at beginning of year
¥
549,521
¥
494,038
¥
476,074
$
5,136
Net income
121,136
68,387
31,138
1,132
Cash dividends paid (annual rate per share: 2005,
    ¥9.0 — 8.4¢; 2004 and 2003, ¥8.0)
(14,240
)
(12,653
)
(12,665
)
(133
)
Transfer to retained earnings appropriated for legal reserve
(385
)
(251
)
(509
)
(4
)
Balance at end of year
¥
656,032
¥
549,521
¥
494,038
$
6,131
Accumulated Other Comprehensive Income (Loss) (After Income
    Tax Effect)
(Notes 2, 15 and 21):
Balance at beginning of year
¥
(101,464
)
¥
(147,138
)
¥
(76,918
)
$
(948
)
Unrealized holding gains and losses on available-for-sale
    securities (Note 5)
30,450
66,324
(40,841
)
285
Foreign currency translation adjustments
18,667
(20,401
)
(22,384
)
174
Minimum pension liability adjustment (Note 14)
52
988
(6,358
)
0
Net unrealized gains and losses on derivatives (Note 26)
2,744
(1,237
)
(637
)
26
Balance at end of year
¥
(49,551
)
¥
(101,464
)
¥
(147,138
)
$
(463
)
F-7
Table of Contents
Statements of Consolidated Shareholders'
Equity — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Years Ended March 31, 2005, 2004 and 2003
Millions of
U.S. Dollars
Millions of Yen
(Note 2)
2005
2004
2003
2005
Treasury Stock, at Cost
(Note 15):
Balance at beginning of year
Shares in treasury: 2005 — 2,661,783 shares;
    2004 — 2,297,845 shares;
    2003 — 494,860 shares
¥
(1,662
)
¥
(1,378
)
¥
(302
)
$
(15
)
Purchase of treasury stock
Shares purchased: 2005 — 1,000,990 shares;
    2004 — 472,590 shares;
    2003 — 1,802,985 shares
(904
)
(356
)
(1,076
)
(8
)
Sales of treasury stock
Shares sold: 2005 — 317,200 shares;
    2004 — 108,652 shares;
    2003 — 0 share
158
72
—
1
Exchange of treasury stock for subsidiary's stock
Shares exchanged: 2005 — 1,868,881 shares;
    2004 and 2003 — 0 share
1,196
—
—
11
Balance at end of year
Shares in treasury: 2005 — 1,476,692 shares;
    2004 — 2,661,783 shares;
    2003 — 2,297,845 shares
¥
(1,212
)
¥
(1,662
)
¥
(1,378
)
$
(11
)
Summary of Changes in Equity from Nonowner Sources
    (Comprehensive Income (Loss))
(Notes 2, 15 and 21):
Net income
¥
121,136
¥
68,387
¥
31,138
$
1,132
Other comprehensive income (loss) (after income tax effect):
Unrealized holding gains and losses on available-for-sale
    securities (Note 5)
30,450
66,324
(40,841
)
285
Foreign currency translation adjustments
18,667
(20,401
)
(22,384
)
174
Minimum pension liability adjustment (Note 14)
52
988
(6,358
)
0
Net unrealized gains and losses on derivatives (Note 26)
2,744
(1,237
)
(637
)
26
Changes in equity from nonowner sources
¥
173,049
¥
114,061
¥
(39,082
)
$
1,617
See notes to consolidated financial statements.
F-8
Table of Contents
Statements of Consolidated Cash Flows
Mitsui & Co., Ltd. and subsidiaries
Years Ended March 31, 2005, 2004 and 2003
Millions of
U.S. Dollars
Millions of Yen
(Note 2)
2005
2004
2003
2005
Operating Activities
(Note 28):
Net income
¥
121,136
¥
68,387
¥
31,138
$
1,132
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation and amortization
66,598
65,809
58,331
622
Pension and severance costs, less payments
(18,575
)
35,441
(9,660
)
(174
)
Provision for doubtful receivables
8,863
9,883
13,665
83
Gain on securities contributed to an employee retirement benefit
    trust
—
—
(15,831
)
—
Government grant for transfer of substitutional portion of EPF
—
(17,224
)
—
—
Gain on sales of securities — net
(34,856
)
(27,465
)
(11,026
)
(326
)
Gain on issuance of stock by a subsidiary
(1,677
)
—
—
(16
)
Loss on write-down of securities
16,544
31,024
37,907
155
(Gain) loss on disposal or sales of property and
    equipment — net
(6,527
)
(4,057
)
1,745
(61
)
Impairment loss of long-lived assets
21,505
22,378
23,638
201
Deferred income taxes
38,457
2,025
(389
)
360
Minority interests in earnings of subsidiaries
17,558
7,470
4,412
164
Equity in earnings of associated companies, less dividends
    received
(33,076
)
(21,364
)
(2,258
)
(309
)
(Income) loss from discontinued operations — net
    (after income tax effect)
(712
)
3,700
5,937
(7
)
Cumulative effect of change in accounting principle (after
    income tax effect)
—
2,285
—
—
Changes in operating assets and liabilities:
Increase in trade receivables
(169,700
)
(127,066
)
(42,933
)
(1,586
)
Increase in inventories
(73,375
)
(32,689
)
(27,512
)
(686
)
Increase (decrease) in trade payables
209,689
45,549
(12,703
)
1,960
Advances from customers
34,969
21,509
177
327
Other — net
3,248
14,484
(2,490
)
31
Net cash provided by operating activities
200,069
100,079
52,148
1,870
Investing Activities
(Note 28):
Net decrease (increase) in time deposits
20,324
(9,603
)
40,220
190
Investments in and advances to associated companies
(190,388
)
(203,380
)
(63,769
)
(1,779
)
Sales of investments in and collection of advances to associated
    companies
52,675
67,772
10,111
492
Acquisitions of available-for-sale securities
(90,769
)
(131,207
)
(154,050
)
(848
)
Proceeds from sales of available-for-sale securities
21,864
51,250
66,106
204
Proceeds from maturities of available-for-sale securities
56,934
110,063
144,368
532
Acquisitions of held-to-maturity debt securities
(2,233
)
(17
)
(4,231
)
(21
)
Proceeds from maturities of held-to-maturity debt securities
2,912
14,793
10,560
27
Acquisitions of other investments
(67,506
)
(46,856
)
(39,838
)
(631
)
Proceeds from sales of other investments
73,436
28,829
30,242
686
Increase in long-term loan receivables
(68,111
)
(42,768
)
(56,169
)
(636
)
Collection of long-term loan receivables
62,829
76,384
84,445
587
Additions to property leased to others and property and equipment
(170,068
)
(113,197
)
(123,216
)
(1,589
)
Proceeds from sales of property leased to others and property
    and equipment
79,324
59,924
62,186
742
Acquisitions of subsidiaries, net of cash acquired
(5,233
)
3,859
(11,208
)
(49
)
Net cash used in investing activities
(224,010
)
(134,154
)
(4,243
)
(2,093
)
Financing Activities
(Note 28):
Net (decrease) increase in short-term debt
(29,113
)
(71,759
)
94,026
(272
)
Proceeds from long-term debt
754,425
636,957
509,517
7,050
Repayments of long-term debt
(541,544
)
(564,529
)
(571,968
)
(5,061
)
Purchases of treasury stock — net
(764
)
(264
)
(1,086
)
(7
)
Payments of cash dividends
(14,240
)
(12,653
)
(12,665
)
(133
)
Proceeds from issuance of stock by a subsidiary
2,557
—
—
24
Net cash provided by (used in) financing activities
171,321
(12,248
)
17,824
1,601
Effect of Exchange Rate Changes on Cash and Cash
    Equivalents
6,131
(10,191
)
(4,499
)
57
Net Increase (Decrease) in Cash and Cash Equivalents
153,511
(56,514
)
61,230
1,435
Cash and Cash Equivalents at Beginning of Year
638,299
694,813
633,583
5,965
Cash and Cash Equivalents at End of Year
¥
791,810
¥
638,299
¥
694,813
$
7,400
See notes to consolidated financial statements.
F-9
Table of Contents
Notes to Consolidated Financial Statements
Mitsui & Co., Ltd. and subsidiaries
1.
NATURE OF OPERATIONS
Mitsui & Co., Ltd. (Mitsui Bussan Kabushiki Kaisha) and
subsidiaries (collectively, the "companies"), as
sogo shosha
or general trading companies, are engaged in
business activities, such as trading in various commodities,
financing for customers and suppliers relating to such trading
activities worldwide, and organizing and coordinating industrial
projects through their worldwide business networks.
The companies conduct sales, export, import, offshore trades and
manufacture of products in the areas of "Metal
Products & Minerals," "Machinery,
Electronics & Information," "Chemical,"
"Energy," and "Consumer Products &
Services (foods & retail, lifestyle and consumer
service business)," while providing general services for
retailing, information and communications, technical support,
transportation and logistics and financing.
Further, the companies are also engaged in development of
natural resources such as oil and gas, and iron and steel raw
materials.
In addition to the above, the companies are engaged in strategic
business investments in new areas such as information
technology, biotechnology and nanotechnology.
2.
BASIS OF FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT
    ACCOUNTING POLICIES
I.
BASIS OF FINANCIAL STATEMENTS
The accompanying consolidated financial statements are stated in
Japanese yen, the currency of the country in which
Mitsui & Co., Ltd. (the "Company") is
incorporated and principally operates. The translation of
Japanese yen amounts into U.S. dollar amounts for the year
ended March 31, 2005 is included solely for the convenience
of readers outside Japan and has been made at the rate of
¥107= U.S.$1, the approximate rate of exchange at
March 31, 2005. The translation should not be construed as
a representation that the Japanese yen amounts could be
converted into U.S. dollars at the above or any other rate.
The accompanying consolidated financial statements have been
prepared on the basis of accounting principles generally
accepted in the United States of America
("U.S. GAAP"). Effect has been given in the
consolidated financial statements to adjustments which have not
been entered in the companies' general books of account
maintained principally in accordance with accounting practices
prevailing in the countries of incorporation. Major adjustments
include those relating to accounting for derivative instruments
and hedging activities, recognition of expected losses on
purchase and sale commitments, accounting for certain
investments including non-monetary exchange of investments,
accounting for warrants, accounting for pension costs and
severance indemnities, recognition of installment sales on the
accrual basis of accounting, accounting for business
combinations, accounting for goodwill and other intangible
assets, accounting for asset retirement obligations, accounting
for consolidation of variable interest entities and accounting
for leasing.
Subsequent to the issuance of the consolidated financial
statements for the year ended March 31, 2004, the companies
decided to classify financing revenues and costs of certain
subsidiaries engaged mainly in external consumer financing from
interest expense, net of interest income to other sales and cost
of other sales, respectively. This change reflects the growing
financing operations of the subsidiaries and has been made to
more fairly present their financing transactions in the
Statements of Consolidated Income. Specifically, the companies
reclassified the financing revenues and costs from interest
expense, net of interest income to other sales and cost of other
sales, respectively, and restated the Statements of Consolidated
Income for the prior years to conform to the current year
presentation. As a result of this restatement, other sales, cost
of other sales and gross profit increased by
¥6,938 million, ¥1,887 million and
F-10
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
¥5,051 million, respectively, and interest expense,
net of interest income increased by ¥5,051 million,
which was net by the decrease in interest income of
¥6,938 million, in the Statements of Consolidated
Income for the year ended March 31, 2004. Also, other
sales, cost of other sales and gross profit increased by
¥4,867 million, ¥1,778 million and
¥3,089 million, respectively, and interest expense,
net of interest income increased by ¥3,089 million,
which was net by the decrease in interest income of
¥4,867 million, in the Statements of Consolidated
Income for the year ended March 31, 2003. This restatement
had no impact on net income or shareholders' equity.
Total trading transactions, as presented in the accompanying
Statements of Consolidated Income, are a voluntary disclosure as
permitted by Financial Accounting Standards Board
("FASB") Emerging Issues Task Force Issue
("EITF") No. 99-19, "Reporting Revenue Gross
as a Principal versus Net as an Agent," and represent the
gross transaction volume or the aggregate nominal value of the
sales contracts in which the companies act as principal and
transactions in which the companies serve as agent. Total
trading transactions should not be construed as equivalent to,
or a substitute or a proxy for, revenues, or as an indicator of
the companies' operating performance, liquidity or cash
flows generated by operating, investing or financing activities.
The companies have included the gross transaction volume
information because similar Japanese trading companies have
generally used it as an industry benchmark. As such, management
believes that total trading transactions are a useful supplement
to the results of operations information for users of the
consolidated financial statements.
II.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Consolidation
The consolidated financial statements include the accounts of
the Company, its majority-owned domestic and foreign
subsidiaries, the variable interest entities ("VIEs")
where the Company or one of its subsidiaries is a primary
beneficiary, and its proportionate shares of the assets,
liabilities, revenues and expenses of certain of its oil and gas
producing, and mining unincorporated joint ventures in which the
companies own an undivided interest in the assets, and pursuant
to the joint venture agreements, are severally liable for their
share of each liability. The VIEs are defined by FASB
Interpretation ("FIN") No. 46,
"Consolidation of Variable Interest Entities (revised
December 2003) — an Interpretation of ARB
No. 51" ("FIN No. 46R"). The
unincorporated joint ventures proportionately consolidated by
the companies include but are not limited to WA-28-L J/V
(40%), Oman Block 9 J/V (35%), Wandoo Oil Field J/V (40%),
Robe River Iron Associates J/V (33%), German Creek J/V (30%) and
Moura J/V (49%).
The difference between the cost of investments in VIEs which are
not a business and the equity in the fair value of the net
assets at the dates of acquisition is accounted for as an
extraordinary gain or loss while the excess of the cost of
investments in other subsidiaries over the equity in the fair
value of the net assets at the dates of acquisition is accounted
for as goodwill.
Certain subsidiaries with a fiscal year-end on or after
December 31, but prior to the parent company's fiscal
year-end of March 31, are included on the basis of the
subsidiaries' respective fiscal year-end.
Foreign currency translation
Foreign currency financial statements have been translated in
accordance with Statement of Financial Accounting Standards
("SFAS") No. 52, "Foreign Currency
Translation." Pursuant to this statement, the assets and
liabilities of foreign subsidiaries and associated companies are
translated into Japanese yen at the respective year-end exchange
rates. All income and expense accounts are translated at average
rates of exchange. The resulting translation adjustments are
included in accumulated other comprehensive income.
F-11
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Receivables and payables denominated in foreign currencies are
translated into Japanese yen at year-end exchange rates with the
resulting gains and losses recognized in earnings.
Cash equivalents
Cash equivalents are defined as short-term (original maturities
of three months or less), highly liquid investments which are
readily convertible into cash and have no significant risk of
change in value including certificates of deposit, time
deposits, financing bills and commercial papers with original
maturities of three months or less.
Allowance for doubtful receivables
In accordance with SFAS No. 114, "Accounting by
Creditors for Impairment of a Loan — an amendment of
FASB Statements No. 5 and 15," an impairment loss for
a specific loan deemed to be impaired is measured based on the
present value of expected cash flows discounted at the
loan's original effective interest rate or the fair value
of the collateral if the loan is collateral dependent.
An allowance for doubtful receivables is recognized for all
receivables not subject to the accounting requirement of
SFAS No. 114 based primarily upon the companies'
credit loss experiences and an evaluation of potential losses in
the receivables.
Inventories
Inventories, consisting mainly of commodities and materials for
resale, are stated at the lower of cost, principally on the
specific-identification basis, or market.
Derivative instruments and hedging activities
In accordance with SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities," as amended
by SFAS No. 138, "Accounting for Certain
Derivative Instruments and Certain Hedging
Activities — an amendment of FASB Statement
No. 133," and SFAS No. 149, "Amendment
of Statement 133 on Derivative Instruments and Hedging
Activities," all derivative instruments are recognized and
measured at fair value as either assets or liabilities in the
Consolidated Balance Sheets. The accounting for changes in the
fair value depends on the intended use of the derivative
instruments and its resulting hedge designation.
The companies enter into derivative commodity instruments, such
as future, forward, option and swap contracts, as a means of
hedging the exposure to changes in the fair value of inventories
and unrecognized firm commitments and the exposure to
variability in the expected future cash flows from forecasted
transactions, principally for non-ferrous metals, crude oil and
agricultural products.
Changes in the fair value of derivative commodity instruments,
designated and effective as fair value hedges, are recognized in
sales of products or cost of products sold as offsets to changes
in the fair value of the hedged items. Changes in the fair value
of derivative commodity instruments, designated and effective as
cash flow hedges, are initially recorded as other comprehensive
income and reclassified into earnings as sales of products or
cost of products sold when the hedged transactions affect
earnings. Changes in the fair value of the ineffective portion
are recognized in sales of products or cost of products sold
immediately.
Changes in the fair value of derivative commodity instruments,
for which hedge requirements are not met under
SFAS No. 133, are currently recognized in sales of
products or cost of products sold without any offsetting changes
in the fair value of the hedged items.
F-12
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The Company and certain subsidiaries also enter into agreements
for derivative commodity instruments as a part of their trading
activities. These derivative instruments are marked to market
and gains or losses resulting from these contracts are reported
in other sales.
Changes in the fair value of all open positions of precious
metals traded in terminal (future) markets are recognized in
other sales in order to reflect the fair value of commodity
trading transactions consisting of inventories, unrecognized
firm commitments and derivative commodity instruments as a whole.
The companies enter into derivative financial instruments such
as interest rate swap agreements, foreign exchange forward
contracts, currency swap agreements, and interest rate and
currency swap agreements as a means of hedging their interest
rate and foreign exchange exposure.
Changes in the fair value of interest rate swap agreements,
designated and effective as fair value hedges for changes in the
fair value of fixed-rate financial assets or liabilities
attributable to changes in the designated benchmark interest
rate, are recognized in interest expense, net of interest income
as offsets to changes in the fair value of hedged items. Changes
in the fair value of interest rate swap agreements, designated
and effective as cash flow hedges for changes in the cash flows
of floating-rate financial assets or liabilities attributable to
changes in the designated benchmark interest rate, are initially
recorded in other comprehensive income and reclassified into
earnings as interest expense, net of interest income when the
hedged transactions affect earnings. Changes in the fair value
of the ineffective portion are recognized in interest expense,
net of interest income immediately.
Changes in the fair value of foreign exchange forward contracts
and currency swap agreements, designated and effective as cash
flow hedges for changes in the cash flows of
foreign-currency-denominated assets or liabilities, unrecognized
firm commitments and forecasted transactions attributable to
changes in the related foreign currency exchange rate, are
initially recorded in other comprehensive income and
reclassified into earnings as foreign exchange gains or losses
when the hedged transactions affect earnings. Changes in the
fair value of the ineffective portion are recognized in foreign
exchange gains or losses immediately.
Changes in the fair value of interest rate and currency swap
agreements, designated and effective as fair value hedges or
cash flow hedges for changes in the fair values or cash flows of
foreign-currency-denominated assets or liabilities attributable
to changes in the designated benchmark interest rate or the
related foreign currency exchange rate are recorded as either
earnings or other comprehensive income depending on the
treatment of foreign currency hedges as fair value hedges or
cash flow hedges.
Changes in the fair value of derivative financial instruments,
for which hedge requirements are not met under
SFAS No. 133, are currently recognized in interest
expense, net of interest income for interest rate swap
agreements and in foreign exchange gains or losses for foreign
exchange forward contracts, currency swap agreements and
interest rate and currency swap agreements.
The Company and certain subsidiaries also enter into agreements
for certain derivative financial instruments as a part of their
trading activities. These derivative instruments are marked to
market and the related gains or losses are reported in interest
expense, net of interest income for interest rate swap
agreements and in other sales for foreign exchange forward
contracts.
The companies use non-derivative financial instruments, such as
foreign-currency-denominated debt, in order to reduce the
foreign currency exposure in the net investment in a foreign
operation. The foreign currency transaction gains or losses on
these instruments, designated as and effective as hedging
instruments, are deferred and recorded as foreign currency
translation adjustments within other
F-13
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
comprehensive income to the extent they are effective as hedge.
These amounts are only recognized in income upon the complete or
partial sale of the related investment or the complete
liquidation of the investment.
For the Statements of Consolidated Cash Flows, cash flows from
derivative commodity instruments and derivative financial
instruments that qualify for hedge accounting are included in
the same category as the items being hedged.
Debt and marketable equity securities
The companies classify debt and marketable equity securities, at
acquisition, into one of three categories: held-to-maturity,
available-for-sale or trading under provisions of
SFAS No. 115, "Accounting for Certain Investments
in Debt and Equity Securities."
Trading securities are carried at fair value and unrealized
holding gains and losses are included in earnings.
Debt securities are classified as held-to-maturity and measured
at amortized cost in the Consolidated Balance Sheets only if the
companies have the positive intent and ability to hold those
securities to maturity. Premiums and discounts amortized in the
period are included in interest income.
Debt and marketable equity securities other than those
classified as trading or held-to-maturity securities are
classified as available-for-sale securities and carried at fair
value with related unrealized holding gains and losses reported
in accumulated other comprehensive income in shareholders'
equity on a net-of-tax basis.
For other than a temporary decline in the value of debt and
marketable equity securities below their cost or amortized cost,
the investment is reduced to its fair value, which becomes the
new cost basis of the investment. The amount of the reduction is
reported as a loss for the year in which such determination is
made. Various factors, such as the extent which the cost exceeds
the market value, the duration of the market decline, the
financial condition and near-term prospects of the issuer, and
the intent and ability to retain the investment for a period of
time sufficient to allow for any anticipated recovery in market
value, are reviewed to judge whether the decline is other than
temporary.
The cost of debt and marketable securities sold is determined
based on the moving-average cost method.
Non-marketable equity securities
Non-marketable equity securities are carried at cost. When other
than a temporary decline in the value of such securities below
their cost occurs, the investment is reduced to its fair value
and an impairment loss is recognized. Various factors, such as
the financial condition and near-term prospects of the issuer,
are reviewed to judge whether it is other than temporary.
The cost of non-marketable equity securities sold is determined
based on the moving-average cost method.
Investments in associated companies
Investments in associated companies (investees owned 20% to 50%,
corporate joint ventures and other investees over which the
companies have the ability to exercise significant influence)
and noncontrolling investments in general partnerships, limited
partnerships and limited liability companies are accounted for
under the equity method, after appropriate adjustments for
intercompany profits and dividends. The differences between the
cost of such investments and the companies' equity in the
underlying fair value of
F-14
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
the net assets of associated companies at the dates of
acquisition are recognized as equity method goodwill.
For other than a temporary decline in the value of investments
in associated companies below the carrying amount, the
investment is reduced to its fair value and an impairment loss
is recognized.
Leasing
The companies are engaged in lease financing consisting of
direct financing leases and leveraged leases, and in operating
leases of properties. For direct financing leases, unearned
income is amortized to income over the lease term at a constant
periodic rate of return on the net investment. Income on
leveraged leases is recognized over the life of the lease at a
constant rate of return on the positive net investment. Initial
direct costs are deferred and amortized using the interest
method over the lease period. Operating lease income is
recognized as other sales over the term of underlying leases on
a straight-line basis.
The companies are also lessees of various assets. Rental
expenses on operating leases are recognized over the respective
lease terms using the straight-line method.
Property and equipment
Property and equipment are stated at cost.
Depreciation of property and equipment (including property
leased to others) is computed principally under the
declining-balance method for assets located in Japan and under
the straight-line method for assets located outside Japan, using
rates based upon the estimated useful lives of the related
property and equipment. The estimated useful lives for
buildings, equipment and fixtures, and vessels are primarily 8
to 65 years, 2 to 30 years, and 13 to 20 years,
respectively. Mineral rights are amortized over their respective
estimated useful lives, which are 14 to 20 years, using the
straight-line method or the unit-of-production method.
Leasehold improvements are amortized over the lesser of the
useful life of the improvement or the term of the underlying
lease.
Significant renewals and additions are capitalized at cost.
Maintenance and repairs, and minor renewals and betterments are
charged to expense as incurred.
Impairment of long-lived assets
In accordance with SFAS No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets,"
long-lived assets to be held and used or to be disposed of other
than by sale are reviewed, by using undiscounted future cash
flows, for impairment whenever events or changes in
circumstances indicate that the carrying amount of the assets
may not be recoverable. If the sum of the expected future cash
flows is less than the carrying amount of the asset, an
impairment loss is recognized. Such impairment loss is measured
as the amount by which the carrying amount of the asset exceeds
its fair value. Long-lived assets to be disposed of by sale are
reported at the lower of carrying amount or fair value less cost
to sell.
Business combinations
In accordance with SFAS No. 141, "Business
Combinations," the purchase method of accounting is used
for all business combinations. The companies separately
recognize and report acquired intangible assets as goodwill or
other intangible assets. Any excess of fair value of acquired
net assets over cost arising from a business combination is
immediately recognized as an extraordinary gain.
F-15
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The cumulative effect of a change in accounting principles on
the write-off of any unamortized deferred credit as of
April 1, 2002 was immaterial.
Goodwill and other intangible assets
In accordance with SFAS No. 142, "Goodwill and
Other Intangible Assets," goodwill is not amortized but
tested for impairment annually or more frequently if impairment
indicators arise. Identifiable intangible assets with a finite
useful life are amortized over their respective estimated useful
lives and reviewed for impairment in accordance with
SFAS No. 144. Any identifiable intangible asset
determined to have an indefinite useful life is not amortized,
but instead tested for impairment in accordance with
SFAS No. 142 until its useful life is determined to be
no longer indefinite.
Equity method goodwill is reviewed for impairment as a part of
other than a temporary decline in the value of investments in
associated companies below the carrying amount in accordance
with Accounting Principles Board ("APB") Opinion
No. 18, "The Equity Method of Accounting for
Investments in Common Stock."
The companies completed the transitional impairment test for
goodwill as of April 1, 2002 in accordance with
SFAS No. 142 and determined that the fair value of the
reporting units including goodwill was in excess of their
carrying amount.
Intangible assets subject to amortization consist primarily of
software, unpatented technologies, trademarks, patents and
customer relationships which are amortized over their respective
estimated useful lives using the straight-line method. The
estimated useful lives for software, unpatented technologies,
trademarks, patents and customer relationships are 3 to
5 years, 10 years, 5 to 10 years, 5 to
8 years and 10 to 30 years, respectively. Intangible
assets not subject to amortization mainly consist of land rights
and trademarks.
The companies completed the transitional reassessment of the
useful lives of identifiable intangible assets as of
April 1, 2002. The companies also completed the
transitional impairment test for intangible assets not subject
to amortization and determined that they are not impaired.
Oil and gas producing activities
Oil and gas exploration and development costs are accounted for
using the successful efforts method of accounting. The costs of
acquiring properties, costs of drilling and equipping
exploratory wells, and costs of development wells and related
plant and equipment are capitalized, and amortized using the
unit-of-production method. Exploratory well costs are expensed,
if economically recoverable reserves are not found. Other
exploration costs, such as geological and geophysical costs, are
expensed as incurred.
In accordance with SFAS No. 144, proved properties are
reviewed for impairment whenever events or changes in
circumstances indicate that the carrying value may not be
recoverable. If the proved properties are determined to be
impaired, an impairment loss is recognized based on the fair
value. Unproven properties are assessed annually for impairment
in accordance with the guidance in SFAS No. 19,
"Financial Accounting and Reporting by Oil and Gas
Producing Companies," with any impairment charged to
expense. The companies' policy is to consider the unproved
properties not impaired if the estimated reserves of those
properties can be established to be economically viable.
Economically viable means that they may be developed in such a
way that it is probable that over their project lives they will
generate, at a minimum, zero net cash flow on an undiscounted
pre-tax basis, based on current prices. For the purpose of this
test, the current price is the price at the end of the period
for which the review is conducted for the reserves concerned.
F-16
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Mining operations
Mining exploration costs are expensed as incurred until the
mining project has been established as commercially viable by a
final feasibility study. Once established as commercially
viable, costs are capitalized as development costs and are
amortized using the unit-of-production method or straight-line
method based on the proven and probable reserves.
In open pit mining operations, it is necessary to remove
overburden and other waste materials to access mineral deposits.
The costs of removing waste materials are referred to as
"stripping costs." During the development of a mine,
before production commences, such costs are generally
capitalized as part of the development costs. Removal of waste
materials continues during the production stage of the mine.
Such post-production stripping costs are variable production
costs to be considered a component of mineral inventory costs
and are recognized as a component of costs of products sold in
the same period as the related revenues from the sales of the
minerals. Depending on the configuration of the mineral
deposits, the post-production stripping costs could lead to a
lower of cost or market inventory adjustment.
Asset retirement obligations
In accordance with SFAS No. 143, "Accounting for
Asset Retirement Obligations," the companies record the
fair value of a liability for an asset retirement obligation in
the period in which it is incurred. When the liability is
initially recorded, the companies capitalize the related cost by
increasing the carrying amount of the long-lived asset. Over
time, the liability is accreted to its present value each
period, and the capitalized cost is depreciated over the useful
life of the related asset.
Pension and severance indemnities plans
The companies have pension plans and/or severance indemnities
plans covering substantially all employees other than directors.
The costs of the pension plans and severance indemnities plans
are accrued based on amounts determined using actuarial methods,
in accordance with SFAS No. 87, "Employers'
Accounting for Pensions."
Guarantees
In accordance with FIN No. 45, "Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others — an
Interpretation of FASB Statements No. 5, 57 and 107 and
rescission of FASB Interpretation No. 34," the
companies recognize, at the inception of a guarantee, a
liability for the fair value of the obligation undertaken for
the guarantee issued or modified after December 31, 2002.
Revenue recognition
The companies recognize revenues when they are realized or
realizable and earned. Revenues are realized or realizable and
earned when the companies have persuasive evidence of an
arrangement, the goods have been delivered or the services have
been rendered to the customer, the sales price is fixed or
determinable and collectibility is reasonably assured. In
addition to this general policy, the following are specific
revenue recognition policies:
Sales of products
Sales of products include the sales of various products as a
principal in the transactions, the manufacture and sale of a
wide variety of products such as metals, chemicals, foods and
general consumer merchandise, the development of natural
resources such as coal, iron ore, oil and gas, and the
development and sale of real estate. The companies recognize
those revenues at the time the delivery conditions agreed
F-17
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
with customers are met. These conditions are usually considered
to have been met when the goods are received by the customer,
the title to the warehouse receipts are transferred, or the
implementation testing is duly completed.
For long-term construction contracts such as railroad projects,
depending on the nature of the contract, revenues are accounted
for by the percentage-of-completion method if costs to complete
and extent of progress toward completion of long-term contracts
are reasonably dependable, otherwise the companies use the
completed contract method.
The Company and certain subsidiaries enter into buy/sell
arrangements, mainly relating to transactions of crude oil and
petroleum products. Under buy/sell arrangements, which are
entered into primarily to optimize supply or demand
requirements, the Company and certain subsidiaries agree to buy
(sell) a specific quality and quantity of commodities to be
delivered at a specific location and/or time while agreeing to
sell (buy) the same quality and quantity of the commodities at a
different location and/or time to the same counterparty. The
buy/sell arrangements are reported on a net basis in the
Statements of Consolidated Income.
Sales of services
Sales of services include the revenues from trading margins and
commissions related to various trading transactions in which the
companies act as a principal or an agent. Specifically, the
companies charge a commission for the performance of various
services such as logistic and warehouse services, information
and communication services, and technical support. For some
back-to-back sales and purchase transactions of products, the
companies act as a principal and record the net amount of sales
and purchase prices as revenues. The companies also facilitate
conclusion of the contracts between manufacturers and customers
and deliveries for the products between suppliers and customers.
Revenues from service related businesses are recorded as
revenues when the contracted services are rendered to
third-party customers pursuant to the agreements.
Other sales
Other sales principally include the revenues from leasing
activities of real estate, aircraft, ocean transport vessels,
rolling stock and equipment, the revenues from derivative
commodity instruments and derivative financial instruments held
for trading purposes, and the revenues from external consumer
financing. See accounting policies for leasing and derivative
instruments and hedging activities for the revenue recognition
policies regarding leasing and derivative transactions,
respectively.
Research and development expenses
Research and development costs are charged to expenses when
incurred.
Advertising expenses
Advertising costs are charged to expenses when incurred.
Issuance of stock by subsidiaries and associated
companies
A subsidiary or an associated company may issue its shares to
third parties at amounts per share in excess of or less than the
Company's average per share carrying value. With respect to
such transactions, the resulting gains or losses arising from
the change in equity interest are recorded in income for the
year in which such shares are issued.
F-18
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Income taxes
Income tax expense is based on reported earnings before income
taxes. Deferred income taxes reflect the impact of temporary
differences between assets and liabilities recognized for
financial reporting purposes and such amounts recognized for tax
purposes and tax loss carryforwards. These deferred taxes are
measured using the currently enacted tax rates in effect for the
year in which the temporary differences or tax loss
carryforwards are expected to reverse. Valuation allowances are
established when it is more likely than not that some or all of
the deferred tax assets will not be realized.
Net income per share
Basic net income per share is computed by dividing net income by
the weighted-average number of common shares outstanding for the
period. Diluted net income per share reflects the potential
dilution as a result of issuance of shares upon conversion of
the companies' convertible bonds.
III.
RECLASSIFICATION
Certain reclassifications and format changes have been made to
prior year amounts to conform to the current year presentation.
IV.
NEW ACCOUNTING STANDARDS
The meaning of other-than-temporary impairment and its
application to certain investments
In Issue No. 03-1, "The Meaning of
Other-than-Temporary Impairment and Its Application to Certain
Investments," the FASB Emerging Issues Task Force reached a
consensus in November 2003 on certain quantitative and
qualitative disclosures about unrealized losses on debt and
marketable equity securities and also reached a consensus in
March 2004 on the application of a three-step impairment model
for certain investments in securities and disclosures about
investments accounted for under the cost method.
The three-step impairment model of investments was planned to be
effective for reporting periods beginning after June 15,
2004, however, in September 2004, the FASB issued FASB Staff
Position ("FSP") No. EITF Issue 03-1-1 which
delayed the effective date for Step 2 and Step 3 of the
three-step impairment model until the final issuance of FSP
No. EITF Issue 03-1-a.
The effect of adoption of this consensus on the companies'
financial position and results of operations will be immaterial
as long as the current market environment remains unchanged.
Investments in limited liability companies
("LLCs")
During the year ended March 31, 2005, the companies adopted
EITF No. 03-16, "Accounting for Investments in Limited
Liability Companies."
EITF No. 03-16 requires investments of more than 3% to 5%
in an LLC that maintain a specific ownership account for each
investor be accounted for under the equity method.
The effect of adoption of this consensus on the companies'
financial position and results of operations was immaterial.
Classification of mineral rights
During the year ended March 31, 2005, the companies adopted
EITF No. 04-2, "Whether Mineral Rights are Tangible or
Intangible Assets," and FSP Nos. FAS 141-1 and
FAS 142-1 which amend SFAS No. 141 and
SFAS No. 142. EITF No. 04-2, FSP Nos.
FAS 141-1 and FAS 142-1 require mineral
F-19
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
rights held by mining entities other than oil- and gas-
producing entities that are within the scope of
SFAS No. 19 be accounted for as tangible assets.
The companies adopted FSP No. FAS 142-2,
"Application of FASB Statement No. 142, Goodwill and
Other Intangible Assets, to Oil- and Gas-Producing
Entities." FSP No. FAS 142-2 requires the scope
exception required by SFAS No. 142 to be extended to
the balance sheet classification and disclosures for drilling
and mineral rights held by oil- and gas-producing entities that
are within the scope of SFAS No. 19.
Upon adoption of these consensus and guidances, all mineral
rights that had been classified as intangible assets in the
Consolidated Balance Sheets as of March 31, 2004 were
reclassified as tangible assets.
Inventory costs
In November 2004, the FASB issued SFAS No. 151,
"Inventory Costs — an amendment of ARB
No. 43, Chapter 4."
SFAS No. 151 requires that abnormal amounts of idle
facility expense, freight, handling costs, and wasted material
(spoilage) should be recognized as current-period charges.
In addition, SFAS No. 151 requires that allocation of
fixed production overheads to the costs of conversion be based
on the normal capacity of the production facilities.
SFAS No. 151 is effective for inventory costs incurred
during fiscal years beginning after June 15, 2005. The
effect of adoption of this statement on the companies'
financial position and results of operations is not currently
known and cannot be reasonably estimated until further analysis
is completed.
Exchanges of nonmonetary assets
In December 2004, the FASB issued SFAS No. 153,
"Exchanges of Nonmonetary Assets — an amendment
of APB Opinion No. 29."
SFAS No. 153 eliminates the exception to fair value
measurement for nonmonetary exchanges of similar productive
assets and replaces it with a general exception to fair value
measurement for exchanges of nonmonetary assets that do not have
commercial substance. A nonmonetary exchange has commercial
substance if the future cash flows of the entity are expected to
change significantly as a result of the exchange.
SFAS No. 153 is effective for nonmonetary asset
exchanges occurring in fiscal periods beginning after
June 15, 2005. The effect of adoption of this statement on
the companies' financial position and results of operations
is not currently known and cannot be reasonably estimated until
further analysis is completed.
Share-based payment
In December 2004, the FASB issued SFAS No. 123
(revised 2004), "Share-Based Payment"
("SFAS No. 123R"). SFAS No. 123R
requires the compensation cost from share-based payment
transactions to be recognized in the financial statements. The
amount of the compensation cost is measured based on the
grant-date fair value of the equity instruments issued or the
liabilities incurred. In addition, the award of liability
instruments will be remeasured at the end of each reporting
period. The compensation cost is recognized over the requisite
service period.
In April 2005, the U.S. Securities and Exchange Commission
adopted a new rule which amends the effective dates for
SFAS No. 123R. Under the new rule,
SFAS No. 123R is effective for fiscal years beginning
after June 15, 2005. The effect of adoption of this
statement on the companies' financial
F-20
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
position and results of operations is not currently known and
cannot be reasonably estimated until further analysis is
completed.
Accounting for stripping costs incurred during production
in the mining industry
In March 2005, the FASB Emerging Issues Task Force reached a
consensus on Issue No. 04-6 ("EITF
No. 04-6"), "Accounting for Stripping Costs
Incurred during Production in the Mining Industry."
EITF No. 04-6 requires that stripping costs incurred during
the production stage of the mine are variable production costs
that should be considered a component of mineral inventory costs
and are recognized as a component of costs of sales in the same
period as the revenue from the sale of the inventory.
EITF No. 04-6 is effective for fiscal years beginning after
December 15, 2005. The effect of adoption of this consensus
on the companies' financial position and results of
operations will be immaterial.
Conditional asset retirement obligations
In March 2005, the FASB issued FIN No. 47,
"Accounting for Conditional Asset Retirement
Obligations — an interpretation of FASB Statement
No. 143."
FIN No. 47 clarifies that an entity is required to
recognize a liability for the fair value of a legal obligation
to perform asset retirement activities that are conditional on a
future event if the amount can be reasonably estimated.
FIN No. 47 also clarifies when an entity would have
sufficient information to reasonably estimate the fair value of
an asset retirement obligation.
FIN No. 47 is effective for fiscal years ending after
December 15, 2005. The effect of adoption of this
interpretation on the companies' financial position and
results of operations will be immaterial.
V.
USE OF ESTIMATES IN THE PREPARATION OF THE CONSOLIDATED
    FINANCIAL STATEMENTS
The preparation of consolidated financial statements in
conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements
and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those
estimates.
3.
BUSINESS COMBINATIONS
For the year ended March 31, 2005
The following are the primary business combinations, which were
completed during the year ended March 31, 2005.
Cornerstone Nutritional Labs, LLC
On December 21, 2004, CornerStone Research &
Development, Inc., a wholly owned subsidiary of
Mitsui & Co. (U.S.A.), Inc.
("Mitsui USA", a wholly owned subsidiary of the
Company) agreed with Cornerstone Nutritional Labs, LLC
("Cornerstone") to take over its nutraceutical
business by acquiring substantially all of the assets used in
the business for U.S.$84.5 million. Cornerstone covers
every aspect of nutraceutical production including raw material
sourcing, blending, encapsulation and packaging in addition to
new product development and sells its products to wholesalers
mainly throughout the United States and Canada.
F-21
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Demand for nutraceuticals in the U.S. market, which is one
of the largest supplements markets in the world, has been
continuously growing. By acquiring Cornerstone's business
through Mitsui USA, which had sold raw materials for supplements
to Cornerstone, the companies have established a vertically
integrated business structure from raw material sourcing to
manufacturing end products and believe the acquisition will
contribute to the companies' business performance. This
acquisition is consistent with the companies' core
strategy, which places strategic investments in the medical and
healthcare field.
The consolidated financial statements for the year ended
March 31, 2005 include the operating results of Cornerstone
from the date of acquisition.
The purchase price was determined based on expected future cash
flows Cornerstone will generate. The excess of the purchase
price over the fair value of net assets acquired was recorded as
goodwill. The significant factors that contributed to the
determination of the purchase price that resulted in the
recognition of goodwill include the following: (1) the
growth potential of Cornerstone's supplements business due
to an increased demand by major supplement makers to contract
manufacturers including Cornerstone to provide every aspect of
nutraceutical production and (2) the synergies that might
be achieved from combining the operations with the Company and
Mitsui USA's supplements businesses.
In connection with this acquisition, ¥4,395 million
and ¥3,490 million were assigned to intangible assets
subject to amortization and goodwill, respectively. The
intangible assets subject to amortization consist primarily of
customer relationships of ¥4,093 million with an
amortization period of ten years. The goodwill is deductible for
tax purposes and has been assigned to the Americas Segment.
The following table summarizes the estimated fair values of the
assets acquired and liabilities assumed at the date of
acquisition:
Millions of Yen
Current assets
¥
2,174
Property and equipment
209
Intangible assets
7,885
Total assets acquired
10,268
Current liabilities
(1,414
)
Total liabilities assumed
(1,414
)
Net assets acquired
¥
8,854
Pro forma results of operations for the above business
combination have not been presented because the effects were not
material to the consolidated financial statements.
NextCom K.K.
BSI Co., Ltd. ("BSI," a wholly owned subsidiary of the
Company), ADAM NET Ltd. ("ADAM NET," a 92.3% owned
subsidiary of the Company) and NextCom K.K.
("NextCom," a 31.2% owned associated company of the
Company accounted for under the equity method) entered into a
merger agreement on September 10, 2004 and merged on
December 11, 2004. NextCom remains as the surviving company
among them. In conjunction with the merger, NextCom issued its
own stocks to each shareholder of BSI and ADAM NET. As a result,
the Company's ownership of voting shares of NextCom rose by
16.5% to 47.7%. Upon the merger, by sending a major part of
board members, the companies took control of the decision making
by the NextCom's board of directors, and consequently,
NextCom became a subsidiary of the Company. This exchange
transaction was accounted for as partial sales of shares of BSI
and ADAM NET previously owned by the Company and partial
acquisitions of shares of NextCom. As a result of the
F-22
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
partial sales transaction, the companies recognized a gain of
¥3,715 million in gain on sales of
securities — net during the year ended March 31,
2005.
NextCom is engaged in the development and distribution of
networking equipment, the consultation of network building, and
system integration as its main businesses, and also provides
other services relating to the above main businesses in Japan.
The companies have designated network integration and system
integration businesses, which are expected to be high growth
businesses along with growth in the broadband network market, as
strategic initiatives, and aim to build a framework which
creates synergies of comprehensive services including both
upstream and downstream services in the information technology
industry for the purpose of maximizing the companies'
profit. This acquisition is consistent with the companies'
core strategy as mentioned above.
The consolidated financial statements for the year ended
March 31, 2005 include the operating results of NextCom as
a subsidiary from the date of acquisition, i.e., the date of the
merger.
Since NextCom is listed on the Tokyo Stock Exchange, the
purchase price of the partial acquisitions was determined based
on the market price of the shares of NextCom over a reasonable
period of time before and after the terms of the acquisition
were agreed to and announced. The excess of the purchase price
of ¥4,441 million, over the fair value of net assets
acquired was recorded as goodwill. The significant factors that
contributed to the determination of the purchase price that
resulted in the recognition of goodwill include the following:
(1) the growth potential of NextCom by taking advantage of
scale, strengthening technological capabilities, and a
broadening customer base, which are brought about by the merger
of the three companies and (2) the synergies that might be
achieved from combining the operations with the companies'
businesses. These factors are based on the expectations of
continuous growth of network integration and system integration
businesses.
In connection with this acquisition, ¥128 million,
¥7 million and ¥3,063 million were assigned
to intangible assets subject to amortization, intangible assets
not subject to amortization and goodwill, respectively. The
goodwill is not deductible for tax purposes and has been
assigned to the Machinery, Electronics & Information
Segment.
The following table summarizes the estimated fair values of the
assets acquired and liabilities assumed at the date of
acquisition:
Millions of Yen
Current assets
¥
16,995
Property and equipment
908
Intangible assets
3,198
Investments and other assets
1,488
Total assets acquired
22,589
Current liabilities
(6,270
)
Long-term liabilities
(1,356
)
Minority interest
(5,981
)
Total liabilities assumed
(13,607
)
Net assets acquired
¥
8,982
Pro forma results of operations for the above business
combination have not been presented because the effects were not
material to the consolidated financial statements.
F-23
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
For the year ended March 31, 2004
The following is a primary business combination, which was
completed during the year ended March 31, 2004.
On May 30, 2003, the Company entered into an agreement with
Mitsui Norin Co., Ltd. ("Mitsui Norin") to acquire the
newly issued shares of Mitsui Norin for ¥6,400 million
and completed the acquisition on August 19, 2003, resulting
in the 85% ownership of voting shares of Mitsui Norin. Mitsui
Norin mainly manufactures and sells processed products of tea
and beverage material for tea.
Prior to the acquisition, Mitsui Norin had suffered from a large
amount of impaired real estate investment made during the
Japanese bubble economy period. In connection with a revival
plan, Mitsui Norin exited the property development business and
focused its management resources on the profitable food
business. Having considered the plan, the Company decided to
acquire the newly issued shares to further strengthen Mitsui
Norin's competitiveness in the food businesses, which
consist mainly of manufacturing and sales of tea for home and
business use and leaves for tea beverages. The Company has a
strategic business plan to assist and expand the operations of
Mitsui Norin as a core consolidated subsidiary in the tea
material businesses conducted by the companies.
The consolidated financial statements for the year ended
March 31, 2004 include the operating results of Mitsui
Norin from the date of acquisition.
The purchase price was determined based on expected future cash
flows Mitsui Norin will generate. The excess of the purchase
price over the fair value of net assets acquired was recorded as
goodwill. The significant factors that contributed to the
determination of the purchase price that resulted in the
recognition of goodwill include the following: (1) Mitsui
Norin's long-term relationships with customers in the food
market, (2) growth potential of Mitsui Norin's tea
materials business and (3) the synergies that might be
achieved from combining the operations with the Company's
food businesses.
In connection with this acquisition, ¥16,607 million,
¥2,387 million and ¥16,547 million were
assigned to intangible assets subject to amortization,
intangible assets not subject to amortization and goodwill,
respectively. The intangible assets subject to amortization
consist primarily of unpatented technologies of
¥15,658 million with an amortization period of ten
years. The intangible assets not subject to amortization consist
primarily of a trademark of ¥2,375 million. The
goodwill is deductible for tax purposes and has been assigned to
the Consumer Products & Services Segment.
The following table summarizes the estimated fair values of the
assets acquired and liabilities assumed at the date of
acquisition:
Millions of Yen
Current assets
¥
30,736
Property and equipment
8,162
Intangible assets
35,541
Investments and other assets
3,263
Total assets acquired
77,702
Current liabilities
(54,414
)
Long-term liabilities
(11,151
)
Minority interest
(5,737
)
Total liabilities assumed
(71,302
)
Net assets acquired
¥
6,400
F-24
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Pro forma results of operations for the above business
combination have not been presented because the effects were not
material to the consolidated financial statements.
For the year ended March 31, 2003
The following is a primary business combination, which was
completed during the year ended March 31, 2003.
Mitsui & Co. (E&P) B.V. (a wholly owned Dutch
subsidiary of the Company) and MOECO International B.V. (a
wholly owned Dutch subsidiary of Mitsui Oil Exploration Co.,
Ltd., an associated company of the Company) acquired all the
outstanding shares of Fortum (E&P) B.V., a wholly owned
Dutch subsidiary of Fortum Finance B.V., which is also a wholly
owned subsidiary of a Finnish energy company, Fortum Oyj. Fortum
(E&P) B.V. held a 35% participating interest in the
oil-producing Block 9 area in Oman. In the first quarter of
the year ended March 31, 2003, Mitsui & Co.
(E&P) B.V. and MOECO International B.V. paid the equivalent
amount to the fair value of the net assets acquired and
completed the acquisition of Fortum (E&P) B.V. The
proportion of acquired shares of Fortum (E&P) B.V. is 60%
for Mitsui & Co. (E&P) B.V. and 40% for MOECO
International B.V. The companies changed the name of
"Fortum (E&P) B.V." into "Mitsui E&P
Middle East B.V."
Block 9, the second largest oil field in Oman, is located
onshore about 300 kilometers west of the capital city, Muscat,
and is operated by Occidental Petroleum Corporation, which holds
the remaining 65% participating interest of the Block 9.
Block 9 has had a proven track record of production since
1984, and is expected to continue producing crude oil for
approximately 25 years. The companies consider the
acquisition to be an excellent addition to their upstream
portfolios, providing stable cash inflows immediately after the
acquisition and over the long term.
This acquisition is consistent with the companies' core
strategy, which places the strategic investments in energy and
natural resources and aims to acquire excellent upstream assets
for the purpose of maintaining a stable earnings structure.
The consolidated financial statements include the operating
results of Mitsui E&P Middle East B.V. from the beginning of
the year ended March 31, 2003.
The companies acquired a mineral right in the Block 9 area
as property and equipment for ¥9,051 million which is
being amortized using the unit-of-production method.
The following table summarizes the estimated fair values of the
assets acquired and liabilities assumed at the date of
acquisition:
Millions of Yen
Current assets
¥
3,104
Property and equipment
8,528
Intangible assets
9,051
Total assets acquired
20,683
Current liabilities
(2,514
)
Minority interest
(5,822
)
Total liabilities assumed
(8,336
)
Net assets acquired
¥
12,347
Pro forma results of operations for the above business
combination have not been presented because the effects were not
material to the consolidated financial statements.
F-25
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
4.
DISCONTINUED OPERATIONS
In accordance with SFAS No. 144, the companies present
the results of discontinued operations (including operations of
a subsidiary that either has been disposed of or is classified
as held for sale) as a separate line item in the Statements of
Consolidated Income under income (loss) from discontinued
operations — net (after income tax effect). The
figures of the Statements of Consolidated Income and the
Statements of Consolidated Cash Flows for the prior years
related to the discontinued operations have been reclassified to
conform to the current year presentation.
The carrying amounts of assets and liabilities of a disposal
group classified as held for sale were immaterial for the years
ended March 31, 2005 and 2004.
Summarized selected financial information for the years ended
March 31, 2005, 2004 and 2003 for the discontinued
operations reclassified during the year ended March 31,
2005 was as follows:
Millions of Yen
Shirasagi
Other
Golf Club
subsidiaries
Total
Year ended March 31, 2005:
Revenues
—
—
—
Loss from discontinued operations before income taxes
—
—
—
Gain on disposal
¥
1,161
¥
47
¥
1,208
Income tax expense
(477
)
(19
)
(496
)
Income from discontinued operations — net
¥
684
¥
28
¥
712
Year ended March 31, 2004:
Revenues
¥
365
¥
3,979
¥
4,344
Loss from discontinued operations before income taxes
¥
(100
)
¥
(1,818
)
¥
(1,918
)
Income tax benefit
39
2,210
2,249
(Loss) income from discontinued operations — net
¥
(61
)
¥
392
¥
331
Year ended March 31, 2003:
Revenues
¥
426
¥
8,021
¥
8,447
Loss from discontinued operations before income taxes
¥
(495
)
¥
(26
)
¥
(521
)
Income tax benefit (expense)
86
(45
)
41
Loss from discontinued operations — net
¥
(409
)
¥
(71
)
¥
(480
)
The primary discontinued operations for the year ended
March 31, 2005 were as follows:
Shirasagi Golf Club
Shirasagi Golf Club, a subsidiary reported in the All Other
Segment, had been engaged in the operation of a membership golf
club in Japan, which opened for business in 1996. Shirasagi Golf
Club had reported consecutive losses since the opening of the
golf club because both the number of customers and the average
sale per customer had declined amidst the prolonged severe
economic conditions that followed the collapse of the bubble
economy in Japan. In these business conditions, it was very
unlikely that Shirasagi Golf Club would be able to improve its
earnings and pay off its debts in the future therefore, the
Company disposed of other than by sale the operation during the
year ended March 31, 2005.
F-26
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Other subsidiaries
The main subsidiary in this category is MBR Corporation (former
Mitsui Bussan Rossignol Corporation), a subsidiary reported in
the Consumer Products & Services Segment.
The Company had been engaged in the sale of Rossignol brand
skis, snowboards and other sporting goods in the Japanese market
through MBR Corporation based on the distributorship agreements
and the license agreement with Rossignol Group. These agreements
were terminated in 2004, and accordingly, the Company disposed
of other than by sale MBR Corporation during the year ended
March 31, 2005. The gain on disposal of the operations
before income taxes was immaterial. No revenues and loss from
discontinued operations before income taxes were recognized by
MBR Corporation for the year ended March 31, 2005. The
revenues for the years ended March 31, 2004 and 2003 were
¥1,662 million and ¥5,829 million,
respectively, and the loss from discontinued operations before
income taxes for the years ended March 31, 2004 and 2003
was ¥1,784 million and ¥247 million,
respectively.
Summarized selected financial information for the years ended
March 31, 2004 and 2003 for the discontinued operations
reclassified during the year ended March 31, 2004 was as
follows:
Millions of Yen
Takeoka
Other
Golf Club
subsidiaries
Total
Year ended March 31, 2004:
Revenues
¥
423
¥
2,393
¥
2,816
Loss from discontinued operations before income taxes
¥
(5,919
)
¥
(2,139
)
¥
(8,058
)
Loss on disposal — net
(49
)
(1,958
)
(2,007
)
Income tax benefit
2,449
3,585
6,034
Loss from discontinued operations — net
¥
(3,519
)
¥
(512
)
¥
(4,031
)
Year ended March 31, 2003:
Revenues
¥
432
¥
3,989
¥
4,421
Loss from discontinued operations before income taxes
¥
(282
)
¥
(3,621
)
¥
(3,903
)
Income tax benefit
339
583
922
Income (loss) from discontinued operations — net
¥
57
¥
(3,038
)
¥
(2,981
)
The primary discontinued operations for the year ended
March 31, 2004 were as follows:
Takeoka Golf Club
Takeoka Golf Club, a subsidiary reported in the All Other
Segment, had been engaged in the operation of a public golf club
in Japan. Takeoka Golf Club had suffered from the declining
number of visitors due to keen competition with other golf clubs
adjacent to the golf club and was disposed of by sale during the
year ended March 31, 2004.
Other subsidiaries
The main subsidiaries in this category are Global Octanes
Corporation, a subsidiary partially reported in both the
Chemical and Americas segments, Global Octanes Investment Inc.,
a subsidiary reported in the Chemical Segment, and Global
Octanes Holding Inc., a subsidiary reported in the Americas
Segment.
These subsidiaries had managed Global Octanes Texas Limited
Partnership, which had been engaged in the manufacture and sale
of Methyl Tertiary-Butyl Ether ("MTBE"), as its
partners, but dissolved the
F-27
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
partnership and disposed of the operations during the year ended
March 31, 2004. This is because the demand for MTBE was
expected to decrease in the future due to the increased
probability that mandatory use of oxygenates including MTBE for
gasoline would be abolished in the United States. The loss on
disposal of the operations before income taxes was
¥3,054 million. The loss from discontinued operations
before income taxes for the years ended March 31, 2004 and
2003 were ¥2,160 million and ¥1,478 million,
respectively. The revenues for the years ended March 31,
2004 and 2003 were immaterial.
Summarized selected financial information for the year ended
March 31, 2003 for the discontinued operations reclassified
during the year ended March 31, 2003 was as follows:
Millions of Yen
Petrochemicals
subsidiaries in
Other
North America
subsidiaries
Total
Year ended March 31, 2003:
Revenues
—
¥
3,740
¥
3,740
Loss from discontinued operations before income taxes
¥
(12,776
)
¥
(1,912
)
¥
(14,688
)
(Loss) gain on disposal — net
(1,724
)
3,425
1,701
Income tax benefit
8,171
2,340
10,511
(Loss) income from discontinued operations — net
¥
(6,329
)
¥
3,853
¥
(2,476
)
The primary discontinued operations for the year ended
March 31, 2003 were as follows:
Petrochemicals subsidiaries in North America (Transpacific
Glycols, Inc. and Pacific Ammonia Inc.)
Transpacific Glycols, Inc., a subsidiary partially reported in
both the Chemical and Americas segments, had been engaged in the
sale of ethylene glycol, but ceased its sales operations during
the year ended March 31, 2003 due to its declining
performance caused by the overall market conditions.
Pacific Ammonia Inc., a subsidiary reported in the Chemical
Segment, which had been engaged in the manufacture and sale of
ammonia primarily on the West Coast of the United States,
suffered from high natural gas costs as its main raw material
ingredient and a relatively weak ammonia price due to a
worldwide oversupply situation. Considering this business
environment, Pacific Ammonia Inc. recognized an impairment loss
of fixed assets during the year ended March 31, 2003 based
on the plan to dispose of the operation by sale.
Other subsidiaries
The main subsidiary in this category is Bussan Promotion Co.,
Ltd.
The Company was the sole agent for import and wholesale of
Philip Morris cigarettes in eastern Japan, and was promoting
them to various retailers through Bussan Promotion Co., Ltd., a
subsidiary reported in the Consumer Products & Services
Segment. Philip Morris International Inc., however, changed its
strategy to directly manage their sales promotion operations,
and accordingly, the Company sold all of the shares of Bussan
Promotion Co., Ltd. to FTR HOLDINGS S.A., a member of Philip
Morris Group, in April 2002, resulting in a gain on disposal of
¥2,398 million for the year ended March 31, 2003.
No revenues and income from discontinued operations before
income taxes were recognized by Bussan Promotion Co., Ltd. for
the year ended March 31, 2003.
F-28
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
5.
MARKETABLE SECURITIES AND OTHER INVESTMENTS
Debt and marketable equity securities
At March 31, 2005 and 2004, the cost, fair value and gross
unrealized holding gains and losses on available-for-sale
securities and held-to-maturity debt securities were as follows:
Millions of Yen
Unrealized holding gains (losses)
Cost
Fair value
Gains
Losses
Net
March 31, 2005:
Available-for-sale:
Marketable equity securities
¥
191,007
¥
333,097
¥
143,261
¥
(1,171
)
¥
142,090
Foreign debentures, commercial paper and other debt securities
306,922
306,944
24
(2
)
22
Held-to-maturity debt securities, consisting principally of
    foreign debentures
1,591
1,591
0
—
0
March 31, 2004:
Available-for-sale:
Marketable equity securities
¥
178,609
¥
297,018
¥
119,438
¥
(1,029
)
¥
118,409
Foreign debentures, commercial paper and other debt securities
206,429
206,551
159
(37
)
122
Held-to-maturity debt securities, consisting principally of
    foreign debentures
2,106
2,106
0
—
0
The carrying amounts of available-for-sale securities (foreign
debentures, commercial paper and other debt securities), with
original maturities of three months or less, and included in
cash and cash equivalents in the Consolidated Balance Sheets was
¥217,988 million and ¥157,996 million at
March 31, 2005 and 2004, respectively. The carrying amounts
of available-for-sale securities (foreign debentures, commercial
paper and other debt securities) included in investments in and
advances to associated companies in the Consolidated Balance
Sheets was ¥32,217 million at March 31, 2005.
F-29
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
At March 31, 2005 and 2004, the fair value and gross
unrealized holding losses on available-for-sale securities and
held-to-maturity debt securities, aggregated by investment
category and length of time that individual securities have been
in continuous unrealized loss positions, were as follows:
Millions of Yen
Less than 12 months
12 months or more
Unrealized
Unrealized
Fair value
holding losses
Fair value
holding losses
March 31, 2005:
Available-for-sale:
Marketable equity securities
¥
16,402
¥
(1,171
)
—
—
Foreign debentures, commercial paper and other debt securities
4
(2
)
—
—
Held-to-maturity debt securities, consisting principally of
    foreign debentures
—
—
—
—
Total
¥
16,406
¥
(1,173
)
—
—
March 31, 2004:
Available-for-sale:
Marketable equity securities
¥
8,234
¥
(1,029
)
—
—
Foreign debentures, commercial paper and other debt securities
9,084
(37
)
—
—
Held-to-maturity debt securities, consisting principally of
    foreign debentures
—
—
—
—
Total
¥
17,318
¥
(1,066
)
—
—
The companies' investments in available-for-sale securities
in an unrealized holding loss position consisted primarily of
domestic marketable equity securities (approximately 20 issuers)
of customers in various industries, including the retail and
chemical industries. The unrealized losses on these securities
were due principally to deterioration of their business
environment such as sluggish consumption and bad weather for the
retail industry and a temporary decline in the Japanese stock
market in relation to the chemical industry. The severity of
decline in fair value less than cost was 2% to 19% and the
duration of the impairment was less than nine months. The
companies evaluated the near-term prospects of the issuer in
relation to the severity and duration of impairment. Based on
that evaluation and the companies' ability and intent to
hold these investments for a reasonable period of time
sufficient for a forecasted recovery of fair value, the
companies did not consider these investments to be
other-than-temporarily impaired at March 31, 2005.
For the years ended March 31, 2005, 2004 and 2003, losses
of ¥586 million, ¥1,262 million and
¥15,573 million, respectively, were recognized on
write-downs of available-for-sale securities to reflect the
decline in market value considered to be other than temporary.
The portion of net trading losses for the year that relates to
trading securities still held at March 31, 2005, 2004 and
2003 were as follows:
Millions of Yen
2005
2004
2003
Net trading losses
¥
(7
)
¥
(32
)
¥
(136
)
F-30
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The proceeds from sales of available-for-sale securities and the
gross realized gains and losses on those sales for the years
ended March 31, 2005, 2004 and 2003 are shown below:
Millions of Yen
2005
2004
2003
Proceeds from sales
¥
21,864
¥
51,250
¥
66,106
Gross realized gains
¥
10,018
¥
18,741
¥
9,661
Gross realized losses
(52
)
(239
)
(4,628
)
Net realized gains
¥
9,966
¥
18,502
¥
5,033
On April 1, 2004, in connection with the foundation of
T&D Holdings, Inc., the Company exchanged shares of Taiyo
Life Insurance Company for those of T&D Holdings, Inc.
In accordance with EITF No. 91-5, "Nonmonetary
Exchange of Cost-Method Investments," a non-cash gain of
¥1,657 million was recorded for the year ended
March 31, 2005, and is included in gain on sales of
securities — net in the Statements of Consolidated
Income.
During the year ended March 31, 2003, the Company
contributed certain available-for-sale securities with a fair
value of ¥27,343 million to an employee retirement
benefit trust and recognized a realized gain of
¥15,831 million, which is included in gain on
securities contributed to an employee retirement benefit trust
in the Statements of Consolidated Income.
On October 2, 2002, in connection with the foundation of
Japan Airlines System Corporation, the Company exchanged shares
of Japan Air System Co., Ltd. for those of Japan Airlines System
Corporation. In accordance with EITF No. 91-5, a non-cash
gain of ¥2,055 million was recorded for the year ended
March 31, 2003, and is included in gain on sales of
securities — net in the Statements of Consolidated
Income.
Debt securities classified as available-for-sale and
held-to-maturity at March 31, 2005 mature as follows:
Millions of Yen
Available-for-sale
Held-to-maturity
Amortized
Aggregate
Amortized
Aggregate
cost
fair value
cost
fair value
Contractual maturities:
Within 1 year
¥
234,870
¥
234,870
¥
1,348
¥
1,348
After 1 year through 5 years
67,981
67,999
233
233
After 5 years through 10 years
4,069
4,073
10
10
After 10 years
2
2
—
—
Total
¥
306,922
¥
306,944
¥
1,591
¥
1,591
The actual maturities may differ from the contractual maturities
shown above because certain issuers may have the right to redeem
debt securities before their maturity.
Investments other than debt and marketable equity
securities
Investments other than investments in debt and marketable equity
securities consisted primarily of non-marketable equity
securities and non-current time deposits and amounted to
¥295,564 million and ¥297,492 million at
March 31, 2005 and 2004, respectively. The estimation of
the corresponding fair values at those dates was not
practicable, as the fair value for all the individual
non-marketable securities held by the companies was not readily
determinable at each balance sheet date.
F-31
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Investments in non-marketable equity securities are carried at
cost; however, if the fair value of an investment has declined
and is judged to be other than temporary, the investment is
written down to its estimated fair value. Losses on write downs
of these investment securities recognized to reflect the
declines in fair value considered to be other than temporary
were ¥15,958 million, ¥29,804 million and
¥22,103 million for the years ended March 31,
2005, 2004 and 2003, respectively.
The aggregate carrying amount of the companies' cost method
investments totaled ¥214,126 million at March 31,
2005. Investments with an aggregate carrying amount of
¥171,485 million were not evaluated for impairment
because the companies did not identify any events or changes in
circumstances that may have had a significant adverse effect on
the fair value of those investments and the companies determined
that it is not practicable to estimate the fair value of those
investments in accordance with SFAS No. 107,
"Disclosures about Fair Value of Financial
Instruments."
6.
INVESTMENTS IN AND ADVANCES TO ASSOCIATED COMPANIES
Investments in associated companies (investees owned 20% to 50%,
corporate joint ventures and other investees over which the
companies have the ability to exercise significant influence)
are accounted for under the equity method. In addition,
noncontrolling investments in general partnerships, limited
partnerships and limited liability companies are also accounted
for under the equity method. Such investments include, but are
not limited to, the companies' investments in Valepar S.A.
(18.24%), Japan Australia LNG (MIMI) Pty. Ltd. (50.00%), Mitsui
Oil Exploration Co., Ltd. (44.34%), IPM Eagle LLP (30.00%),
Nihon Unisys, Ltd. (28.91%), Sakhalin Energy Investment Company
Ltd. (25.00%) and United Auto Group, Inc. (15.53%).
The investment in Valepar S.A. is accounted for under the equity
method because of the Company's ability to exercise
significant influence over operating and financial policies
primarily through board representation and power of veto over
significant operating and financial decisions through the board
of directors. As the sole operating company among the
shareholders, which consist primarily of pension funds and
financial institutions, the Company is expected to capitalize on
its experience and expertise in the iron ore business and
substantively participates in the decision-making processes.
The companies are the second largest shareholder group of United
Auto Group, Inc. ("UAG") and entered into a
shareholders agreement with its largest shareholder group owning
approximately 41% of its voting shares. Based on a reciprocal
voting provision set forth in the agreement for shareholder
election of the directors of UAG, the companies and its largest
shareholder group constitute a "group" within the
meaning of Section 13(d) of the Securities Exchange Act of
1934 and jointly participate in the management of UAG. The
investment in UAG is accounted for under the equity method
because of the companies' ability to exercise significant
influence over operating and financial policies primarily
through board representation by a director and executive vice
president dispatched from the companies. UAG is utilizing the
companies' global network to develop its business
activities outside the United States and, as part of the
process, the companies substantively participate in the
decision-making processes.
Associated companies are engaged primarily in the development of
natural resources and the manufacture and distribution of
various products. The major geographic areas of such entities
are Japan, the Americas, Europe, Asia and Oceania.
F-32
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Investments in and advances to associated companies at
March 31, 2005 and 2004 consisted of the following:
Millions of Yen
2005
2004
Investments in capital stock
¥
880,609
¥
611,397
Advances
92,610
115,124
Total
¥
973,219
¥
726,521
The carrying value of the investments in associated companies
exceeded the companies' equity in the underlying net assets
of such associated companies by ¥100,540 million and
¥84,142 million at March 31, 2005 and 2004,
respectively. The excess is attributed first to certain fair
value adjustments on a net-of-tax basis at the time of the
initial and subsequent investments in those companies with the
remaining portion considered as equity method goodwill. The fair
value adjustments are generally attributed to property and
equipment which consist primarily of mineral rights amortized
over their respective estimated useful lives, principally 8 to
42 years, using either the straight-line or the
unit-of-production method.
Investments in common stock of publicly traded associated
companies include marketable equity securities carried at
¥117,109 million and ¥85,244 million at
March 31, 2005 and 2004, respectively. Corresponding
aggregate quoted market values were ¥169,620 million
and ¥106,516 million, respectively.
Summarized financial information for associated companies at
March 31, 2005 and 2004 and for the years ended
March 31, 2005, 2004 and 2003 was as follows:
Millions of Yen
2005
2004
Current assets
¥
3,702,750
¥
2,770,593
Property and equipment — net of accumulated
    depreciation*
4,195,274
3,036,282
Other assets*
1,473,911
1,087,349
Total assets
¥
9,371,935
¥
6,894,224
Current liabilities
¥
2,974,848
¥
2,362,786
Long-term liabilities
2,835,459
2,261,190
Minority interests
599,892
376,730
Shareholders' equity
2,961,736
1,893,518
Total liabilities and shareholders' equity
¥
9,371,935
¥
6,894,224
The companies' equity in the net assets of associated
    companies
¥
780,069
¥
527,255
*
Mineral rights are classified as "Property and
    equipment — net of accumulated depreciation" at
    March 31, 2005, which were formerly included in "Other
    assets." The figures at March 31, 2004 have been
    reclassified to conform to the current year presentation.
Millions of Yen
2005
2004
2003
Revenues
¥
6,295,587
¥
4,212,195
¥
3,460,933
Gross profit
1,582,586
986,659
730,929
Income before cumulative effect of change in accounting principle
357,019
195,059
92,593
Net income
357,019
190,857
92,593
F-33
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The companies' revenues and purchases from associated
companies included in cost of revenues during the years ended
March 31, 2005, 2004 and 2003 were as follows:
Millions of Yen
2005
2004
2003
Revenues
¥
121,283
¥
107,816
¥
91,372
Purchases
192,405
161,221
143,107
Dividends received from associated companies for the years ended
March 31, 2005, 2004 and 2003 amounted to
¥32,817 million, ¥18,714 million and
¥13,037 million, respectively.
Consolidated unappropriated retained earnings at March 31,
2005 and 2004 included the companies' equity in net
undistributed earnings of associated companies in the amount of
¥142,823 million and ¥92,385 million,
respectively.
7.
ALLOWANCE FOR DOUBTFUL RECEIVABLES
An analysis of the change in the allowance for doubtful
receivables is as follows:
Millions of Yen
Current
Non-current
Total
Year ended March 31, 2005:
Balance at beginning of year
¥
22,498
¥
110,098
¥
132,596
Credits charged off
(3,604
)
(19,241
)
(22,845
)
Provision for doubtful receivables
6,307
2,556
8,863
Charged to other accounts*
(2,682
)
6,653
3,971
Balance at end of year
¥
22,519
¥
100,066
¥
122,585
Year ended March 31, 2004:
Balance at beginning of year
¥
21,236
¥
139,793
¥
161,029
Credits charged off
(3,230
)
(33,584
)
(36,814
)
Provision for doubtful receivables
6,503
3,380
9,883
Charged to other accounts*
(2,011
)
509
(1,502
)
Balance at end of year
¥
22,498
¥
110,098
¥
132,596
Year ended March 31, 2003:
Balance at beginning of year
¥
20,625
¥
139,478
¥
160,103
Credits charged off
(3,974
)
(10,163
)
(14,137
)
Provision for doubtful receivables
6,063
7,602
13,665
Charged to other accounts*
(1,478
)
2,876
1,398
Balance at end of year
¥
21,236
¥
139,793
¥
161,029
*
Principally reclassification to discontinued operations and
    effect of changes in foreign exchange rates.
F-34
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The recorded investment in impaired loans, as defined in
SFAS No. 114, and the allowance for doubtful
receivables related to such loans at March 31, 2005 and
2004 were as follows:
Millions of Yen
2005
2004
Allowance
Allowance
Impaired
for doubtful
Impaired
for doubtful
loans
receivables
loans
receivables
Impaired loans with an allowance for doubtful receivables
¥
129,805
¥
93,665
¥
158,884
¥
106,242
Impaired loans without an allowance for doubtful receivables
5,919
—
6,249
—
Total
¥
135,724
¥
93,665
¥
165,133
¥
106,242
The average investment in impaired loans and interest income on
impaired loans for the years ended March 31, 2005, 2004 and
2003 were as follows:
Millions of Yen
2005
2004
2003
Average investment in impaired loans
¥
150,429
¥
180,081
¥
181,687
Interest income recognized on impaired loans
1,304
1,701
1,800
Interest income on impaired loans has been recognized mainly
using the cash-basis method of accounting during the period that
the loans were impaired.
8.
LEASES
Lessor
The companies lease real estate, aircraft, ocean transport
vessels, rolling stock and equipment.
Certain leases of aircraft, ocean transport vessels and rolling
stock are classified as direct financing leases or leveraged
leases, and the net investments are included as part of trade
receivables — accounts and non-current receivables,
less unearned interest in the accompanying Consolidated Balance
Sheets. The companies have no general obligation for principal
and interest on notes and other instruments related to
third-party participation in leveraged leases. Such notes and
other instruments have not been included in liabilities but have
been offset against the related lease receivables. The residual
values represent the estimate of the values of the leased assets
at the end of the lease contracts and are initially recorded
based on appraisals and estimates. Realization of the residual
values is dependent on the companies' future ability to
sell the related assets under then prevailing market conditions.
Other leases are classified as operating leases and the related
assets are presented as property leased to others — at
cost, less accumulated depreciation in the accompanying
Consolidated Balance Sheets.
F-35
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The following comprise the components of the net investment in
direct financing leases as of March 31, 2005 and 2004:
Millions of Yen
2005
2004
Total minimum lease payments to be received
¥
86,060
¥
73,065
Estimated unguaranteed residual value of leased assets
15,926
13,632
Less unearned income
(33,690
)
(30,317
)
Investment in direct financing leases
68,296
56,380
Less allowance for doubtful receivables
(890
)
(855
)
Net investment in direct financing leases
¥
67,406
¥
55,525
The following is a schedule by years of future minimum lease
payments to be received from direct financing leases as of
March 31, 2005:
Millions of Yen
Year ending March 31:
2006
¥
8,901
2007
7,633
2008
9,257
2009
7,333
2010
7,379
Thereafter
45,557
Total
¥
86,060
The following represent the components of the net investment in
leveraged leases as of March 31, 2005 and 2004:
Millions of Yen
2005
2004
Total minimum lease payments to be received (net of principal
    and interest on third-party nonrecourse debt)
¥
4,634
¥
4,605
Estimated unguaranteed residual value of leased assets
6,288
8,344
Less unearned income
(2,721
)
(3,115
)
Investment in leveraged leases
8,201
9,834
Less allowance for doubtful receivables
(292
)
—
Less deferred tax liabilities arising from leveraged leases
(7,252
)
(6,627
)
Net investment in leveraged leases
¥
657
¥
3,207
F-36
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The following schedule provides an analysis of the
companies' investment in property on operating leases and
property held for lease by classes as of March 31, 2005 and
2004:
Millions of Yen
2005
2004
Accumulated
Accumulated
Cost
depreciation
Net
Cost
depreciation
Net
Real estate
¥
164,468
¥
(59,863
)
¥
104,605
¥
195,430
¥
(63,559
)
¥
131,871
Aircraft
31,737
(5,391
)
26,346
45,588
(9,351
)
36,237
Ocean transport vessels
29,685
(5,575
)
24,110
44,222
(4,552
)
39,670
Rolling stock
21,238
(1,470
)
19,768
15,113
(1,429
)
13,684
Equipment and others
19,895
(11,549
)
8,346
21,114
(12,265
)
8,849
Total
¥
267,023
¥
(83,848
)
¥
183,175
¥
321,467
¥
(91,156
)
¥
230,311
The following is a schedule by years of minimum future rentals
on noncancelable operating leases as of March 31, 2005:
Millions of Yen
Year ending March 31:
2006
¥
10,029
2007
8,054
2008
7,073
2009
5,082
2010
3,202
Thereafter
15,938
Total
¥
49,378
Lessee
The companies lease equipment and others under capital leases.
At March 31, 2005, approximately 70% of the capital leases
are with the Company's associated company, Mitsui
Leasing & Development, Ltd.
The following schedule provides an analysis of the
companies' leased assets recorded under capital leases by
classes as of March 31, 2005 and 2004:
Millions of Yen
2005
2004
Accumulated
Accumulated
Cost
depreciation
Net
Cost
depreciation
Net
Equipment
¥
28,024
¥
(13,651
)
¥
14,373
¥
28,975
¥
(14,097
)
¥
14,878
Others
6,846
(1,958
)
4,888
4,404
(1,869
)
2,535
Total
¥
34,870
¥
(15,609
)
¥
19,261
¥
33,379
¥
(15,966
)
¥
17,413
F-37
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The following is a schedule by years of future minimum lease
payments under capital leases together with components of the
present value of the net minimum lease payments as of
March 31, 2005:
Millions of Yen
Year ending March 31:
2006
¥
5,624
2007
5,094
2008
3,367
2009
1,404
2010
829
Thereafter
6,546
Total minimum lease payments
22,864
Less amount representing interest
(1,536
)
Present value of net minimum lease payments
21,328
Less current capital lease obligations
5,363
Long-term capital lease obligations
¥
15,965
The companies lease ocean transport vessels, real estate,
aircraft, rolling stock and equipment under operating leases.
Most of the ocean transport vessels, aircraft and rolling stock
under operating leases are subleased to third parties.
During the year ended March 31, 2005, the Company and
certain subsidiaries sold pieces of real estate to third parties
for ¥17,382 million in total and leased them back with
terms ranging up to 10 years. The resulting leases were
classified as operating leases.
The following is a schedule by years of future minimum rental
payments required under operating leases that have initial or
remaining noncancelable lease terms in excess of one year as of
March 31, 2005. Minimum payments have not been reduced by
minimum sublease rentals of ¥59,008 million due in the
future under noncancelable subleases:
Millions of Yen
Year ending March 31:
2006
¥
22,159
2007
16,631
2008
12,925
2009
10,233
2010
8,676
Thereafter
34,806
Total
¥
105,430
Rental expenses incurred for operating leases for the years
ended March 31, 2005, 2004 and 2003 were
¥40,957 million, ¥35,770 million and
¥35,420 million, respectively. Sublease rental income
for the years ended March 31, 2005, 2004 and 2003 were
¥18,633 million, ¥16,562 million and
¥20,184 million, respectively.
F-38
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
9.
PLEDGED ASSETS AND FINANCIAL ASSETS ACCEPTED AS COLLATERAL
Pledged assets
At March 31, 2005 and 2004, the following assets (exclusive
of assets covered by trust receipts discussed below) were
pledged as collateral for certain liabilities of the companies:
Millions of Yen
2005
2004
Trade receivables (current and non-current)
¥
66,968
¥
47,354
Inventories
26,625
17,073
Investments
27,232
24,665
Property leased to others (net book value)
28,856
23,691
Property and equipment (net book value)
31,525
46,857
Other
14,442
969
Total
¥
195,648
¥
160,609
The distribution of such collateral among short-term debt,
long-term debt and guarantees of contracts, etc. was as follows:
Millions of Yen
2005
2004
Short-term debt
¥
27,887
¥
22,866
Long-term debt
123,345
113,384
Guarantees of contracts, etc.
44,416
24,359
Total
¥
195,648
¥
160,609
Trust receipts issued under customary import financing
arrangements (short-term bank loans and bank acceptances) give
banks a security interest in the merchandise imported and/or the
accounts receivable resulting from the sale of such merchandise.
Because of the companies' large volume of import
transactions, it is not practicable to determine the total
amount of assets covered by outstanding trust receipts.
In addition to the above, the Company has bank borrowings under
certain provisions of loan agreements which require the Company,
upon the request of the bank, to provide collateral, which is
not specified in the loan agreements. See Note 13,
"SHORT-TERM AND LONG-TERM DEBT."
Financial assets accepted as collateral
At March 31, 2005 and 2004, the fair values of financial
assets that the companies accepted as security for trade
receivables and that they are permitted to sell or repledge
consisted of the following:
Millions of Yen
2005
2004
Bank deposits
¥
2,081
¥
1,971
Promissory notes
5,465
10,796
Trade receivables — accounts
231
54
Stocks and bonds
7,787
12,695
Promissory notes of ¥2,106 million and
¥3,554 million which have been provided as collateral
were repledged at March 31, 2005 and 2004, respectively.
F-39
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
There were no financial assets accepted as collateral under
security repurchase agreements at March 31, 2005 and 2004.
10.
IMPAIRMENT LOSS OF LONG-LIVED ASSETS
The companies recognized impairment losses of long-lived assets
in accordance with the provisions of SFAS No. 144
during the years ended March 31, 2005, 2004 and 2003. See
to Note 4, "DISCONTINUED OPERATIONS," for the
impairment loss of long-lived assets reported in discontinued
operations.
The impairment losses of long-lived assets for the year ended
March 31, 2005 consist principally of production facilities
owned by an aluminum smelting subsidiary in the United States,
land held for development and lease owned by the Company, and
gasoline stations, land and buildings for certain businesses
owned by domestic subsidiaries. The impairment losses of
long-lived assets also consist principally of real estate such
as corporate residences and dormitories owned by the Company for
employees and machinery production facilities, golf courses and
gasoline stations owned by domestic subsidiaries for the year
ended March 31, 2004, and property leased to others and
real estate owned by subsidiaries for the year ended
March 31, 2003.
The impairments for the year ended March 31, 2005 mainly
related to declining profitability resulting from the
deterioration of business environment such as increasing
electricity costs and to a continuous decline in the market
value of land in Japan. The impairments for the year ended
March 31, 2004 mainly related to land in Japan which had
experienced significant decreases in market value, and to
production facilities of certain subsidiaries resulting from
operating losses. The impairments for the year ended
March 31, 2003 mainly related to operating cutbacks by the
airline industry in the United States resulting from
deterioration of its business environment and to land in Japan
which had experienced significant decreases in the market value.
See to Note 25, "EXIT OR DISPOSAL ACTIVITIES,"
for the exit or disposal activities which resulted in
recognition of impairment losses of long-lived assets.
Impairment losses of long-lived assets recognized by operating
segment for the years ended March 31, 2005, 2004 and 2003
were as follows:
Millions of Yen
2005
2004
2003
Metal Products & Minerals
¥
8,217
¥
628
¥
1,029
Machinery, Electronics & Information
353
5,842
10,344
Chemical
1,698
581
—
Energy
2,580
1,340
9,219
Consumer Products & Services
1,694
413
2,187
Logistics & Financial Markets
57
213
—
Americas
954
181
—
Other Overseas Areas
—
115
348
All Other
5,601
3,992
511
Adjustments and Eliminations*
296
8,039
—
Consolidated Total
¥
21,450
¥
21,344
¥
23,638
*
"Adjustments and Eliminations" represents impairment
    losses related to assets not allocated to specific operating
    segments.
F-40
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The fair value of the assets is calculated based on independent
appraisals, market value or discounted future cash flows
whichever management considers the most appropriate.
In addition to the impairment losses of long-lived assets based
on SFAS No. 144 shown in the above table, the
impairment losses of intangible assets not subject to
amortization based on SFAS No. 142 were included in
impairment losses of long-lived assets in the Statements of
Consolidated Income for the years ended March 31, 2005 and
2004 as discussed in Note 12, "GOODWILL AND OTHER
INTANGIBLE ASSETS." No impairment loss was recorded for
intangible assets not subject to amortization for the year ended
March 31, 2003.
11.
ASSET RETIREMENT OBLIGATIONS
The companies recognized the cumulative effect of the initial
application of SFAS No. 143 as a separate line item in
the Statements of Consolidated Income for the year ended
March 31, 2004 under cumulative effect of change in
accounting principle (after income tax effect) amounting to
¥2,285 million (loss) including the Company's
share of amounts attributable to associated companies. The
cumulative-effect adjustment represents the difference between
the net amount that was recognized in the Consolidated Balance
Sheets upon the retroactive application of
SFAS No. 143 as of April 1, 2003 and the amounts
recognized in the Consolidated Balance Sheets at that date prior
to the application of SFAS No. 143. The
cumulative-effect adjustment resulted in a decrease in
investments in and advances to associated companies by
¥2,098 million, an increase in equipment and fixtures
by ¥1,812 million (net of accumulated depreciation of
¥1,165 million), an increase in deferred tax
assets — non-current by ¥161 million, an
increase in long-term debt, less current maturities by
¥2,231 million and a decrease in minority interests by
¥71 million.
The asset retirement obligations are principally related to the
costs of dismantling and removing mining facilities and gas
production facilities owned by subsidiaries and associated
companies in Australia, which are engaged in mining operations
or oil and gas producing activities.
The changes in asset retirement obligations for the years ended
March 31, 2005 and 2004 were as follows:
Millions of Yen
2005
2004
Balance at beginning of year
¥
7,328
¥
6,423
Liabilities incurred
6,557
3,124
Liabilities settled
(3,135
)
(2,805
)
Accretion expense
409
168
Foreign currency translation adjustments
355
418
Balance at end of year
¥
11,514
¥
7,328
Note:
The balance at the beginning of the year ended March 31,
    2004 includes the cumulative effect of change in accounting
    principle.
F-41
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The pro forma effects of the retroactive application on net
income and basic and diluted net income per share for the years
ended March 31, 2004 and 2003, as if SFAS No. 143
had been adopted on April 1, 2002, were as follows:
Millions of Yen
2004
2003
Net income
¥
70,672
¥
31,003
Yen
2004
2003
Basic net income per share
¥
44.69
¥
19.59
Diluted net income per share
42.25
18.61
Notes:
(1)
Pro forma net income for the year ended March 31, 2004
    represents reported net income excluding cumulative effect of
    change in accounting principle (after income tax effect) of
    ¥2,285 million (loss) (¥1.44 per basic share
    and ¥1.36 per diluted share).
(2)
Basic and diluted net income per share presented in the
    Statements of Consolidated Income were ¥19.68 and
    ¥18.69, respectively, for the year ended March 31,
    2003.
12.
GOODWILL AND OTHER INTANGIBLE ASSETS
Intangible assets subject to amortization at March 31, 2005
and 2004 consisted of the following:
Millions of Yen
2005
2004
Gross carrying
Accumulated
Gross carrying
Accumulated
amount
amortization
amount
amortization
Software
¥
44,221
¥
18,406
¥
35,779
¥
15,151
Unpatented technologies
15,695
2,742
15,658
1,174
Trademarks
9,839
6,498
11,461
6,750
Patents
9,099
8,583
9,073
8,539
Customer relationships
6,564
1,099
2,139
866
Other
28,531
16,151
26,095
14,399
Total
¥
113,949
¥
53,479
¥
100,205
¥
46,879
The aggregate amortization expense of intangible assets for the
years ended March 31, 2005, 2004 and 2003 was
¥12,853 million, ¥11,496 million and
¥7,430 million, respectively. The estimated aggregate
amortization expense of intangible assets at March 31, 2005
for each of the next five years is as follows:
Millions of Yen
Year ending March 31:
2006
¥
15,949
2007
13,114
2008
9,670
2009
7,283
2010
5,015
F-42
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Total carrying amount of intangible assets not subject to
amortization (excluding goodwill) at March 31, 2005 and
2004 consisted of:
Millions of Yen
2005
2004
Land rights
¥
7,242
¥
7,212
Trademarks
2,386
2,383
Other
2,382
2,657
Total
¥
12,010
¥
12,252
Intangible assets subject to amortization acquired during the
year ended March 31, 2005 totaled
¥21,664 million, and consisted primarily of software
of ¥13,389 million and customer relationships of
¥4,387 million. The weighted average amortization
periods for software and customer relationships are 5 years
and 10 years, respectively. Acquisition of intangible
assets not subject to amortization during the year ended
March 31, 2005 was immaterial.
Intangible assets subject to amortization acquired during the
year ended March 31, 2004 totaled
¥35,816 million, and consisted primarily of unpatented
technologies of ¥15,658 million and software of
¥13,581 million. The weighted average amortization
periods for unpatented technologies and software are
10 years and 5 years, respectively. Intangible assets
not subject to amortization acquired during the year ended
March 31, 2004 totaled ¥3,105 million, and
consisted primarily of trademarks.
In accordance with the change in the presentation of mineral
rights for the year ended March 31, 2005, the gross
carrying amount and the accumulated amortization of mineral
rights at March 31, 2004, the amortization expense for the
years ended March 31, 2004 and 2003, and the acquired cost
of mineral rights for the year ended March 31, 2004 have
been eliminated to conform to the current year presentation.
The impairment losses recognized for intangible assets subject
to amortization and not subject to amortization (excluding
goodwill) for the year ended March 31, 2005 were immaterial.
During the year ended March 31, 2004, the companies
recognized impairment losses of ¥1,533 million on
intangible assets which are included in impairment loss of
long-lived assets in the Statements of Consolidated Income. The
impairment losses consisted primarily of
¥1,034 million on the write-down of land rights which
are held by domestic subsidiaries within the Consumer Products
& Services and Energy segments. The impairments of land
rights resulted from a decrease in the fair value. The fair
value for the basis of determining the impairment loss was
calculated based on discounted future cash flows.
In addition to the intangible assets shown in the above tables,
intangible assets in the Consolidated Balance Sheets at
March 31, 2005 and 2004 also included unrecognized prior
service costs totaling ¥80 million and
¥112 million, respectively, which were recorded under
SFAS No. 87 as discussed in Note 14,
"PENSION COSTS AND SEVERANCE INDEMNITIES."
F-43
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The changes in the carrying amount of goodwill by operating
segment for the years ended March 31, 2005 and 2004 were as
follows:
Millions of Yen
Metal
Machinery,
Consumer
Products &
Electronics &
Products &
Consolidated
Minerals
Information
Chemical
Services
Americas
Total
Balance at April 1, 2003
¥
2,912
¥
2,586
¥
829
¥
1,017
¥
433
¥
7,777
Acquisition
—
822
616
16,547
—
17,985
Foreign currency translation adjustments
(352
)
(125
)
(100
)
(55
)
(11
)
(643
)
Balance at March 31, 2004
2,560
3,283
1,345
17,509
422
25,119
Acquisition
705
3,147
262
—
3,597
7,711
Impairment losses
—
(1,114
)
—
—
—
(1,114
)
Foreign currency translation adjustments
42
(169
)
7
(5
)
106
(19
)
Balance at March 31, 2005
¥
3,307
¥
5,147
¥
1,614
¥
17,504
¥
4,125
¥
31,697
The impairment losses included in the Machinery, Electronics
& Information Segment for the year ended March 31, 2005
consisted primarily of an impairment loss of
¥923 million for goodwill related to a domestic
subsidiary of the Company. Because the subsidiary experienced a
downturn in profitability due to the deterioration of
competitive environment in the information system development
industry, the carrying amount of the subsidiary exceeded the
fair value of the subsidiary and the impairment loss was
recognized in the amount equal to the excess of the carrying
amount of goodwill over the fair value of goodwill. The fair
value of the subsidiary for the basis of determining the
impairment loss was calculated based on discounted future cash
flows.
No impairment loss was recorded for goodwill during the year
ended March 31, 2004.
F-44
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
13.
SHORT-TERM AND LONG-TERM DEBT
Short-term debt
Short-term debt at March 31, 2005 and 2004 were comprised
of the following:
Millions of Yen
2005
2004
Interest rate*1
Interest rate*1
Short-term bank loans and others
¥410,880
2.3
%
¥401,493
1.8
%
Commercial paper
94,643
1.0
120,976
0.5
Notes under medium-term note programme
109,210
0.1
120,796
0.1
Total
614,733
643,265
SFAS No. 133 fair value adjustment*2
620
3,481
Total
¥615,353
¥646,746
*1
The interest rates represent weighted average rates in effect at
    March 31, 2005 and 2004, regardless of borrowing
    currencies, though the range of the interest rates varies by
    borrowing currency.
*2
In accordance with the requirements of SFAS No. 133,
    the portion of the companies' fixed-rate debt obligations
    that is designated and effective as a fair value hedge is
    reflected in the Consolidated Balance Sheets as an amount equal
    to the sum of the debt's carrying value plus a
    SFAS No. 133 fair value adjustment representing
    changes recorded in the fair value of the hedged debt
    obligations attributable to movements in the designated
    benchmark interest rates and applicable foreign currency
    exchange rates during the term of the hedge.
Unused lines of credit, for short-term financing outside Japan,
aggregated ¥498,476 million at March 31, 2005.
Certain foreign subsidiaries compensate banks for these
facilities in the form of commitment fees, which were not
material in each of the past two years.
F-45
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Long-term debt
Long-term debt at March 31, 2005 and 2004 consisted of the
following:
Millions of Yen
2005
2004
Long-term debt with collateral (Note 9):
Banks and insurance companies, maturing serially through
    2015 — principally 0.7% to 10%
¥
38,554
¥
56,112
Government-owned banks and government agencies, maturing
    serially through 2056 — principally 0.7% to 7%
65,504
60,187
Other, maturing serially through 2018 — principally 2%
5,286
5,885
Total
109,344
122,184
Long-term debt without collateral:
Banks and others (principally insurance companies):
Principally 0.03% to 6%, maturing serially through 2018
1,518,613
1,461,479
Principally 0.8% to 13%, maturing serially through 2017 (payable
    in foreign currencies)
477,776
387,352
Bonds and notes:
Japanese yen convertible bonds (fixed rate 1.05%, due 2009)
92,775
92,786
Japanese yen bonds with early redemption clause (fixed rate 0.7%
    to 1.4%, due 2013 — 2016)
71,000
71,000
Japanese yen bonds (fixed rate 0.5% to 3.6%, due
    2005 — 2019)
250,270
240,500
Japanese yen bonds (fixed and floating rate: floating rate 1.9%
    to 2.6%, due 2013 — 2017)
70,500
38,500
Japanese yen bonds (fixed and floating rate: fixed rate 2.4% to
    3.3%, due 2014 — 2024)
31,000
33,000
Japanese yen bonds (floating rate 2.1% to 2.7%, due
    2010 — 2016)
87,000
72,000
Reverse dual currency yen/ U.S. dollar bonds (fixed rate 3.0% to
    3.25%, due 2007 — 2012)
30,000
30,000
Notes under global medium-term note programme (fixed rate 0.2%
    to 4.7%, due 2004 — 2014)
18,381
25,205
Notes under euro medium-term note programme (fixed and floating
    rate: fixed rate 0.1% to 7.9%, due 2004 — 2024)
168,391
118,380
Capital lease obligations (principally 0.7% to 5.5%, maturing
    serially through 2030)
21,328
19,177
Accounts payables, derivative liabilities and others due through
    2019:
Interest bearing
43,081
31,203
Non-interest bearing
149,893
116,441
Total
3,030,008
2,737,023
Total
3,139,352
2,859,207
SFAS No. 133 fair value adjustment*
57,521
39,689
Total
3,196,873
2,898,896
Less current maturities
291,950
357,675
Long-term debt, less current maturities
¥
2,904,923
¥
2,541,221
F-46
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
*
In accordance with the requirements of SFAS No. 133,
    the portion of the companies' fixed-rate debt obligations
    that is designated and effective as a fair value hedge is
    reflected in the Consolidated Balance Sheets as an amount equal
    to the sum of the debt's carrying value plus a
    SFAS No. 133 fair value adjustment representing
    changes recorded in the fair value of the hedged debt
    obligations attributable to movements in the designated
    benchmark interest rates and applicable foreign currency
    exchange rates during the term of the hedge.
The companies have entered into currency swap agreements and
interest rate swap agreements in connection with certain bonds,
notes and other long-term borrowings. The floating interest
rates for interest rate swap agreements are generally based on
the three-month or six-month LIBOR (London Interbank Offered
Rate). The three-month and six-month LIBORs for U.S. dollar
denominated debt as of March 31, 2005 were 3.12% and 3.40%,
respectively. The three-month and six-month LIBORs for
U.S. dollar denominated debt as of March 31, 2004 were
1.11% and 1.16%, respectively. (See Note 26,
"DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES," and
Note 27, "FINANCIAL INSTRUMENTS.")
The 1.05% Convertible Bonds due 2009 may be converted into
common stock at ¥881.00 per share, at the option of the
holder and may be redeemed at the option of the Company at
specified percentages of the principal.
The indenture, under which the bonds were issued, does not
require maintenance of a prescribed amount of net assets, a
minimum debt/equity ratio or limits on the payment of cash
dividends by the Company.
Substantially all short-term and long-term bank borrowings are
made under agreements which, as is customary in Japan, provide
that under certain conditions a bank may require the borrower to
provide collateral (or additional collateral) or guarantors with
respect to the borrowings and that the bank may treat any
collateral, whether furnished as security for short-term or
long-term loans or otherwise, as collateral for all indebtedness
to such bank. Default provisions of certain loan agreements
grant certain rights of possession to the lenders. At
March 31, 2005, bank borrowings under certain provisions of
loan agreements which require the Company, upon the request of
the bank, to provide collateral, which is not specified in the
loan agreements, aggregated ¥43,182 million.
Under certain loan agreements with government-owned banks, the
creditors may require the companies to submit proposals as to
the payment of dividends and other appropriations of earnings
for the creditors' review and approval before presentation
to the shareholders. Certain of those agreements require the
borrower, upon the request of the lender, to reduce outstanding
loans before scheduled maturity dates when the lender considers
that the companies are able to reduce such loans through
increased earnings or through the proceeds from the sale of
common stock or bonds and notes. During the years ended
March 31, 2005 and 2004, the companies did not receive any
such requests, and there is no expectation that any such
requests will be made.
F-47
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Maturities of long-term debt outstanding at March 31, 2005
were as follows, excluding the effect of the
SFAS No. 133 fair value adjustment:
Millions of Yen
Year ending March 31:
2006
¥
259,927
2007
368,668
2008
343,589
2009
218,862
2010
447,045
Thereafter
1,501,261
Total
¥
3,139,352
14.
PENSION COSTS AND SEVERANCE INDEMNITIES
The Company and certain subsidiaries have non-contributory
defined benefit pension plans and contributory defined benefit
pension plans, covering substantially all employees other than
directors.
The primary pension plan is the Company's contributory
Corporate Pension Fund ("CPF") under the Defined
Benefit Corporate Pension Law, which was transferred from the
Company's contributory defined benefit Japanese government
welfare pension program for its employees (the Employees'
Pension Fund, "EPF") during the year ended
March 31, 2004. The benefits for CPF are based on the
length of service.
Effective April 1, 1997, the Company merged a
non-contributory defined benefit pension plan (the Tax Qualified
Pension Plan, "TQPP") into EPF. Only retired employees
with vested benefits as of March 31, 1997, remained in the
TQPP. With the enforcement of the Defined Benefit Corporate
Pension Law, the Company merged TQPP, which had remained only
for retired employees with vested benefits, into CPF on
March 31, 2005.
EPF was composed of a substitutional portion of Japanese Pension
Insurance and a corporate portion of a contributory defined
benefit plan. For the former, the benefits were based on a
standard remuneration schedule under the Welfare Pension
Insurance Law and the length of participation. For the latter,
the benefits were based on length of service. EPF was approved
by the Japanese Minister of Health, Labour and Welfare for an
exemption from the obligation to pay benefits for future
employee service related to the substitutional portion on
October 1, 2002, and an exemption from the obligation to
pay benefits for past employee service related to the
substitutional portion on January 1, 2004. EPF transferred
the benefit obligation and the related government-specified
portion of the plan assets to the Japanese government on
March 12, 2004 and completed the entire process of the
transfer of the substitutional portion. In accordance with EITF
No. 03-2, "Accounting for the Transfer to the Japanese
Government of the Substitutional Portion of Employee Pension
Fund Liabilities," the Company recognized (1) the
difference of ¥17,224 million between the accumulated
benefit obligations settled and the assets transferred to the
Japanese government as a government grant for transfer of
substitutional portion of EPF, (2) the proportionate amount
of the net unrealized loss of ¥10,508 million for the
substitutional portion, as settlement loss, and (3) the
difference of ¥2,183 million between the projected
benefit obligations and the accumulated benefit obligations
related to the substitutional portion, as gain on derecognition
of previously accrued salary progression.
The remaining corporate portion of EPF was transferred to the
Company's CPF.
F-48
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The Company and certain subsidiaries have unfunded severance
indemnities plans. Benefits under the plans are based on the
level of compensation at retirement, or earlier termination of
employment, and the length of service.
The Company and most subsidiaries use a measurement date of
March 31 for their defined benefit pension plans.
Obligations and funded status
The following table sets forth the reconciliation of benefit
obligations, plan assets and funded status of the plans:
Millions of Yen
2005
2004
Change in benefit obligation:
Benefit obligation at beginning of year
¥
255,806
¥
286,075
Service cost
10,798
11,920
Interest cost
5,616
5,487
Plan participants' contributions
365
385
Plan amendments
(342
)
1,155
Actuarial loss
1,552
4,610
Benefits paid from plan assets
(10,799
)
(13,794
)
Direct benefit payments
(3,120
)
(5,739
)
Curtailments
—
(64
)
Settlements
—
(38,057
)
Acquisitions and divestitures
774
4,763
Foreign currency translation adjustments
547
(935
)
Benefit obligation at end of year
261,197
255,806
Change in plan assets:
Fair value of plan assets at beginning of year
262,786
228,418
Actual return on plan assets
11,218
65,183
Employer contribution
27,734
140
Plan participants' contributions
365
385
Benefits paid from plan assets
(10,799
)
(13,794
)
Settlements
—
(18,650
)
Acquisitions and divestitures
95
1,657
Foreign currency translation adjustments
246
(553
)
Fair value of plan assets at end of year
291,645
262,786
Funded status at end of year
30,448
6,980
Unrecognized prior service cost
(6,413
)
(6,483
)
Unrecognized net actuarial loss
53,855
59,499
Net amount recognized
¥
77,890
¥
59,996
Amounts recognized in the Consolidated Balance Sheets consist of:
Intangible assets
¥
80
¥
112
Other assets (prepaid pension costs)
107,958
102,872
Accrued pension costs and liability for severance indemnities
(39,467
)
(52,296
)
Accumulated other comprehensive loss (before income tax effect)
9,319
9,308
Net amount recognized
¥
77,890
¥
59,996
F-49
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The prior service cost is amortized over the average remaining
service period of employees expected to receive related benefits.
The amortization periods of the unrecognized net actuarial loss
are seven years for CPF and the average remaining service period
for other defined benefit pension plans.
The accumulated benefit obligation for the companies'
defined benefit pension plans as of March 31, 2005 and 2004
was ¥256,692 million and ¥249,595 million,
respectively.
The aggregate projected benefit obligation and aggregate fair
value of plan assets for plans with projected benefit
obligations in excess of plan assets were
¥62,745 million and ¥20,140 million at
March 31, 2005 and ¥92,213 million and
¥38,273 million at March 31, 2004. The aggregate
accumulated benefit obligation and aggregate fair value of plan
assets for plans with accumulated benefit obligations in excess
of plan assets were ¥57,339 million and
¥18,954 million at March 31, 2005 and
¥86,124 million and ¥38,273 million at
March 31, 2004.
Components of net periodic pension costs
Net periodic pension costs of the companies' defined
benefit pension plans for the years ended March 31, 2005,
2004 and 2003 included the following components:
Millions of Yen
2005
2004
2003
Service cost — benefits earned during the period
¥
10,798
¥
11,920
¥
11,582
Interest cost on projected benefit obligation
5,616
5,487
7,234
Expected return on plan assets
(6,723
)
(6,013
)
(5,815
)
Amortization of unrecognized prior service cost
(410
)
(137
)
(171
)
Amortization of unrecognized net actuarial loss
2,998
21,806
8,809
Curtailment gain
—
(64
)
—
Settlement loss
—
10,504
—
Gain on derecognition of previously accrued salary progression
—
(2,183
)
—
Net periodic pension costs
¥
12,279
¥
41,320
¥
21,639
Assumptions
Weighted-average assumptions used to determine the
companies' benefit obligations as of March 31, 2005
and 2004 are set forth as follows:
2005
2004
Discount rate
2.4
%
2.4
%
Rate of increase in future compensation levels
0.4
0.5
Weighted-average assumptions used to determine the
companies' net periodic pension costs for the years ended
March 31, 2005, 2004 and 2003 are set forth as follows:
2005
2004
2003
Discount rate
2.4
%
2.5
%
3.2
%
Expected long-term rate of return on plan assets
2.5
2.6
2.6
Rate of increase in future compensation levels
0.5
1.0
1.0
F-50
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The companies determine the discount rates each year as of the
measurement date, based on a review of interest rates associated
with long-term Japanese government bonds or high-quality
fixed-income corporate bonds. The discount rates determined on
each measurement date are used to calculate the benefit
obligation as of that date, and are also used to calculate the
net periodic pension costs for the upcoming plan year.
The rate of increase in future compensation levels was not
applied in determining the projected benefit obligation of CPF
and the corporate portion of EPF which was transferred to CPF,
because the benefit formulas of these plans do not contain
factors relating to compensation levels.
The Company determines the expected long-term rate of return on
plan assets based on the weighted-average rate of return
computed by using the expected long-term rate of return on each
asset class, which is derived from an extensive study conducted
by investment advisors and actuaries on a periodic basis, and
the target allocations for each asset class. The study includes
a review of anticipated future performance with market analysis
of individual asset classes, and also gives appropriate
consideration to actual historical returns achieved by the
plans. The subsidiaries determine the expected long-term rates
of return on plan assets mainly based on the expectations for
future returns by investment advisors and actuaries.
Plan assets
The companies' pension plan weighted-average asset
allocations based on the fair value of such assets as of
March 31, 2005 and 2004 are set forth as follows:
Asset category
2005
2004
Equity securities
54
%
58
%
Debt securities
27
26
Life insurance company general accounts
4
4
Cash and deposits
11
6
Other
4
6
Total
100
%
100
%
Equity securities include securities held in the Company's
employee retirement benefit trust. The fair value of those
securities as of March 31, 2005 and 2004 are 31% and 39% of
total fair value of plan assets, respectively. Life insurance
company general accounts are pooled investment portfolios
managed by insurance companies and guarantee a minimum rate of
return.
The Company's investment objective is to build high quality
plan assets, and the investment policy is targeted to ensure
adequate returns to provide future payments of pension benefits
and severance indemnities. The basic strategy is diversified
investment in various asset classes which have different risk
return characteristics. The Company sometimes uses derivative
instruments to hedge the exposure to changes in the fair value
of debt and equity securities, but never uses them for
speculation. The subsidiaries' investment strategies are
mainly based on diversified investment, and are targeted to
stably ensure adequate returns to provide future payments of
pension benefits over the long term.
The companies' weighted-average target allocation of plan
assets as of March 31, 2005 is 56% equity securities
(including securities held in the employee retirement benefit
trust), 34% debt securities (including life insurance company
general accounts), 9% cash and deposits and 1% other assets.
The Company contributed certain available-for-sale securities to
the employee retirement benefit trust for retirement obligations
during the year ended March 31, 2003. As stated in
Note 5, "MARKETABLE
F-51
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
SECURITIES AND OTHER INVESTMENTS," fair value at
contribution of these securities for the year ended
March 31, 2003 was ¥27,343 million.
The fair value of equity securities of an associated company
included in plan assets is ¥20,250 million (7% of
total fair value of plan assets) and ¥15,765 million
(6% of total fair value of plan assets) at March 31, 2005
and 2004, respectively.
Cash flows
Contributions
The companies expect to contribute ¥8,592 million to
their defined benefit pension plans for the year ending
March 31, 2006.
Estimated Future Benefit Payments
The following benefit payments, which reflect expected future
service, as appropriate, are expected to be paid:
Millions of Yen
Year ending March 31:
2006
¥
13,925
2007
14,066
2008
14,160
2009
14,884
2010
15,110
2011-2015
78,040
In addition to the above defined benefit pension plans, the
Company provides the "Early Retirement Support Plan"
to eligible employees, which guarantees, prior to normal
retirement age, certain supplemental payments based on
preretirement compensation levels. During the years ended
March 31, 2005, 2004 and 2003, the Company recorded
¥3,107 million, ¥3,201 million and
¥12,687 million of periodic payments in excess of
previous projections and projected benefits based on factors
including the history of benefit payments as selling, general
and administrative expenses, respectively.
15.     SHAREHOLDERS' EQUITY
Common stock and capital surplus
Under the Commercial Code of Japan (the "Code"),
certain issuances of common stock, including conversions of
bonds and notes and exercises of warrants issued, are required
to be credited to the common stock account for at least 50% of
the proceeds.
At March 31, 2005, 105,306,470 shares of common stock were
reserved for the conversion of outstanding bonds.
The Code permits, upon approval by the Board of Directors,
transfers of amounts from capital surplus to the common stock
account. The amounts available for transfer are based on capital
surplus as defined by accounting practices prevailing in Japan.
Additional amounts recorded as capital surplus to conform with
U.S. GAAP shall not be transferred to the common stock account
under the Code. Such additional amounts were
¥69,049 million at March 31, 2005 and primarily
relate to accounting for warrants and business combinations.
When debt securities were previously issued with detachable
stock purchase warrants, the portion of the proceeds which was
allocable to the warrants was credited to capital surplus
F-52
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
under U.S. GAAP. In addition, the step acquisition of the shares
held by minority shareholders of a subsidiary by selling
unissued shares of the Company was accounted for by the purchase
method under U.S. GAAP rather than by the pooling of interests
method which was prevailing in Japan when such business
combinations occurred.
Pursuant to the resolution of the Board of Directors, the
Company made free distributions of common stock in prior years.
Such free distributions did not result in the transfer of
retained earnings to common stock or capital surplus.
Corporations in the United States issuing shares in similar
transactions would be required to account for them as stock
dividends as of the shareholders' record date by reducing
retained earnings and increasing appropriate capital accounts by
an amount equal to the fair value of the shares issued. If such
United States practice had been applied to the above free
distributions of shares made on and after September 30,
1986, capital surplus at March 31, 2005 would have been
increased by ¥87,860 million with a corresponding
decrease in unappropriated retained earnings.
Retained earnings appropriated for legal reserve
The Code provides that an amount at least equal to 10% of the
aggregate amount of cash dividends and certain other
appropriations of retained earnings associated with cash outlays
applicable to each period be appropriated as a legal reserve
until the total amount of capital surplus and the legal reserve
equals 25% of common stock. The retained earnings so
appropriated may be used to eliminate or reduce a deficit by
resolution of the shareholders or may be transferred to capital
stock by resolution of the Board of Directors. The Code also
provides that to the extent that the sum of capital surplus and
the legal reserve exceeds 25% of common stock, the excess, if
any, is available for appropriations by resolution of the
shareholders.
Retained earnings unappropriated
The amount of retained earnings available for dividends under
the Code is based on the amount of retained earnings recorded in
the Company's general books of account in accordance with
accepted Japanese accounting practices. The adjustments included
in the accompanying consolidated financial statements for U.S.
GAAP purposes but not recorded in the general books of account
have no effect on the determination of retained earnings
available for dividends under the Code.
Retained earnings, exclusive of retained earnings appropriated
for the legal reserve, shown in the Company's general books
of account amounted to ¥217,496 million at
March 31, 2005. The amount does not include any retained
earnings to be appropriated for the legal reserve as a part of
appropriations of retained earnings associated with cash outlays
but includes ¥469 million restricted as to the payment
of dividends under the Code. See Note 13, "SHORT-TERM
AND LONG-TERM DEBT," for the rights of certain creditors to
review and approve the companies' proposal for the payment
of dividends and other appropriations of earnings. Dividends are
approved by shareholders at a meeting held subsequent to the
fiscal year to which the dividends are applicable. A mid-year
interim dividend may be paid by resolution of the Board of
Directors, subject to limitations imposed by the Code.
The Code permits transfers, upon approval of shareholders, of a
portion of unappropriated retained earnings, available for
dividends, to the common stock account.
Purchase by the Company of shares
The Code permits the Company to purchase and hold its own
shares. The Company is allowed to decide the total number and
amount of the shares to be acquired, not to exceed the amount of
retained earnings available for dividends, subject to the prior
approval of the shareholders at an ordinary general meeting of
shareholders. In addition, the amendment to the Code, which
became effective on September 25, 2003,
F-53
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
permits the Company to purchase its own shares upon the approval
of the Board of Directors, as far as it is permitted under the
Articles of Incorporation, subject to limitations imposed by the
Code. Public companies are generally required to purchase the
shares through market transactions or tender offer and may
dispose of them, subject to the approval of the Board of
Directors, unless otherwise specified in the Code, or as far as
the Articles of Incorporation do not require a resolution of the
shareholders at the shareholders' meeting. As an example of
the disposal of its own shares, the Company sells the shares or
chooses to transfer the shares instead of issuing new shares in
case of merger, stock transfer or exchange, or spin-off. In
addition, the Code enables the Company to retire its own shares
by resolution of the Board of Directors.
At the ordinary general meeting of shareholders held on
June 24, 2004, it was approved that the Company amended the
Articles of Incorporation to entitle the Board of Directors to
purchase outstanding shares of its own common stock by its
resolution.
Accumulated other comprehensive income (loss)
Changes in each component of accumulated other comprehensive
income (loss) for the years ended March 31, 2005, 2004
and 2003 are as follows:
Millions of Yen
2005
2004
2003
Unrealized Holding Gains and Losses on Available-for-Sale
    Securities:
Balance at beginning of year
¥
69,729
¥
3,405
¥
44,246
Pre-tax amount of unrealized holding gains and losses on
    available-for-sale securities
63,409
125,856
(85,488
)
Deferred income taxes
(26,530
)
(49,395
)
34,673
Adjustments for year (after income tax effect)
36,879
76,461
(50,815
)
Pre-tax amount of reclassification adjustments
(12,409
)
(17,240
)
10,540
Deferred income taxes
5,980
7,103
(566
)
Adjustments for year (after income tax effect)
(6,429
)
(10,137
)
9,974
Balance at end of year
¥
100,179
¥
69,729
¥
3,405
Foreign Currency Translation Adjustments:
Balance at beginning of year
¥
(161,454
)
¥
(141,053
)
¥
(118,669
)
Pre-tax amount of translation adjustments
20,935
(27,098
)
(26,957
)
Deferred income taxes
(3,613
)
4,538
1,032
Adjustments for year (after income tax effect)
17,322
(22,560
)
(25,925
)
Pre-tax amount of reclassification adjustments
1,426
2,969
4,721
Deferred income taxes
(81
)
(810
)
(1,180
)
Adjustments for year (after income tax effect)
1,345
2,159
3,541
Balance at end of year
¥
(142,787
)
¥
(161,454
)
¥
(141,053
)
F-54
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Millions of Yen
2005
2004
2003
Minimum Pension Liability Adjustment:
Balance at beginning of year
¥
(5,743
)
¥
(6,731
)
¥
(373
)
Pre-tax amount
(11
)
4,355
(10,584
)
Deferred income taxes
63
(3,367
)
4,226
Adjustments for year (after income tax effect)
52
988
(6,358
)
Balance at end of year
¥
(5,691
)
¥
(5,743
)
¥
(6,731
)
Net Unrealized Gains and Losses on Derivatives:
Balance at beginning of year
¥
(3,996
)
¥
(2,759
)
¥
(2,122
)
Pre-tax amount of net unrealized gains and losses on derivatives
2,143
(6,467
)
(3,782
)
Deferred income taxes
(1,094
)
3,101
1,621
Adjustments for year (after income tax effect)
1,049
(3,366
)
(2,161
)
Pre-tax amount of reclassification adjustments
2,881
3,542
2,762
Deferred income taxes
(1,186
)
(1,413
)
(1,238
)
Adjustments for year (after income tax effect)
1,695
2,129
1,524
Balance at end of year
¥
(1,252
)
¥
(3,996
)
¥
(2,759
)
Accumulated Other Comprehensive Income (Loss) —
    Total:
Balance at beginning of year
¥
(101,464
)
¥
(147,138
)
¥
(76,918
)
Pre-tax amount
78,374
85,917
(108,788
)
Deferred income taxes
(26,461
)
(40,243
)
38,568
Other comprehensive income (loss) for year (after income
    tax effect)
51,913
45,674
(70,220
)
Balance at end of year
¥
(49,551
)
¥
(101,464
)
¥
(147,138
)
F-55
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
16.     NET INCOME PER SHARE
The following is a reconciliation of basic net income per share
to diluted net income per share for the years ended
March 31, 2005, 2004 and 2003:
2005
2004
2003
Net income
Shares
Per share
Net income
Shares
Per share
Net income
Shares
Per share
(numerator)
(denominator)
amount
(numerator)
(denominator)
amount
(numerator)
(denominator)
amount
Millions of
Yen
Millions of
Yen
Millions of
Yen
Yen
In Thousands
Yen
In Thousands
Yen
In Thousands
Basic Net Income per Share:
Income from continuing operations
¥
120,424
1,582,473
¥
76.10
¥
74,372
1,581,195
¥
47.04
¥
37,075
1,582,278
¥
23.43
Income (loss) from discontinued operations — net
    (after income tax effect)
712
1,582,473
0.45
(3,700
)
1,581,195
(2.35
)
(5,937
)
1,582,278
(3.75
)
Cumulative effect of change in accounting principle (after
    income tax effect)
—
—
—
(2,285
)
1,581,195
(1.44
)
—
—
—
Net income available to common shareholders
121,136
1,582,473
76.55
68,387
1,581,195
43.25
31,138
1,582,278
19.68
Effect of Dilutive Securities:
1.5% Convertible Bonds due 2003
—
—
—
—
189
19,266
1.05% Convertible Bonds due 2009
591
105,311
581
105,319
581
105,319
Diluted Net Income per Share:
Income from continuing operations
121,015
1,687,784
71.70
74,953
1,686,514
44.44
37,845
1,706,863
22.17
Income (loss) from discontinued operations — net
    (after income tax effect)
712
1,687,784
0.42
(3,700
)
1,686,514
(2.19
)
(5,937
)
1,706,863
(3.48
)
Cumulative effect of change in accounting principle (after
    income tax effect)
—
—
—
(2,285
)
1,686,514
(1.36
)
—
—
—
Net income available to common shareholders after effect of
    dilutive securities
¥
121,727
1,687,784
¥
72.12
¥
68,968
1,686,514
¥
40.89
¥
31,908
1,706,863
¥
18.69
17.     SEGMENT INFORMATION
SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information," requires disclosure of
financial and descriptive information about operating segments,
which are components of an enterprise whose operating results
are regularly reviewed by the enterprise's chief operating
decision maker in deciding about resources to be allocated to
the segment and assessing its performance.
The business units of the companies' Head Office, which are
organized based on "products and services," plan
overall and worldwide strategies for their products and services
and conduct their worldwide operations. The business units also
collaborate with overseas branches and overseas trading
subsidiaries in
F-56
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
planning and executing their strategies for products and
regions. The overseas branches and overseas trading subsidiaries
are separate operating units, which are delegated the business
of their regions as the centers of each particular regional
strategy and operate diversified business together with their
subsidiaries and associated companies in collaboration with the
business units.
Therefore, the companies' operating segments consist of
product-focused operating segments comprised of the business
units of the Head Office and region-focused operating segments
comprised of overseas branches and overseas trading
subsidiaries. The companies' operating segments have been
aggregated based on the nature of the products and other
criteria into six product-focused reportable operating segments
and three region-focused reportable operating segments, totaling
nine reportable operating segments.
Effective April 1, 2004, with the aim of strengthening
domestic businesses and improving efficiency of operational
resources, the "Domestic Branches and Offices," which
had been separate operating units until the year ended
March 31, 2004, were integrated into related business units
based on the categories of their products and services.
Accordingly, "Domestic Branches and Offices" was
abolished and the components of the reportable segment were
transferred to each product-focused operating segment in the
Head Office. Further, effective April 1, 2004, with the aim
of allocating operating resources based on total optimization
and implementing global strategies more quickly and efficiently,
the business units in the Head Office were reorganized. In this
reorganization, the logistics businesses and the financial
businesses, which had previously been included in "Metal
Products & Minerals" and "All Other," were
aggregated as a new reportable segment "Logistics &
Financial Markets," in order to provide high-quality,
specialized logistics and financial capabilities to customers
across all product areas. In addition, with the aim of
responding to the rapid expansion in Japan of service industries
such as the knowledge-based industry and the healthcare
industry, and developing new business models based on
identifying consumer needs, Consumer Service Business Unit was
established in "Consumer Products & Services."
Additionally the media-related businesses oriented to consumers
were transferred to "Consumer Products & Services"
from "Machinery, Electronics & Information." The
operating segment information for the years ended March 31,
2004 and 2003 have been restated to conform to the current year
presentation.
Further, starting from the year ended March 31, 2005,
equity in earnings of associated companies is disclosed, since
this item is newly included in the measure of segment
performance reviewed by the chief operating decision maker.
A description of reportable operating segments of the Company
follows.
Metal Products & Minerals develops raw material resources of
iron or non-ferrous metals in foreign countries, and
manufactures, sells and trades products in Japan and abroad.
Machinery, Electronics & Information is engaged in the
manufacture, sale and trade of machinery products, leasing,
financing, information related businesses, sale of electronics
products and promotion of certain projects such as plant
constructions and infrastructure buildings in Japan and abroad.
Chemical manufactures, sells and trades chemical products in
Japan and abroad.
Energy develops energy resources overseas and manufactures,
sells and trades oil and gas products in Japan and abroad.
Consumer Products & Services manufactures, constructs, sells
and trades consumer-related products, such as foods, textiles,
general merchandise and houses and provides logistics services
for those businesses in Japan and abroad.
Logistics & Financial Markets engages in logistics services,
insurance and financial businesses in Japan and abroad.
F-57
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Americas, Europe and Other Overseas Areas trade in various
commodities and conduct related business led by overseas trading
subsidiaries or branches located in each region.
Starting from the year ended March 31, 2005, the companies
changed the presentation of financing revenues and costs of
certain subsidiaries engaged mainly in external consumer
financing, which were formerly reported as interest expense, net
of interest income. In relation to this change, the figures of
total trading transactions, gross profit, operating income
(loss) and revenues for the years ended March 31, 2004 and
2003 have been restated to conform to the current year
presentation.
The companies' operating segment information and product
information and geographic area information for the years ended
March 31, 2005, 2004 and 2003 presented in conformity with
SFAS No. 131 are as follows:
OPERATING SEGMENT INFORMATION
Millions of Yen
Metal
Machinery,
Consumer
Logistics &
Products &
Electronics &
Products &
Financial
Minerals
Information
Chemical
Energy
Services
Markets
Year ended March 31, 2005:
Total trading transactions:
External customers
¥
2,640,261
¥
2,720,517
¥
1,901,950
¥
1,402,521
¥
2,633,114
¥
94,354
Intersegment
239,357
116,033
408,446
82,231
83,152
11,172
Total
¥
2,879,618
¥
2,836,550
¥
2,310,396
¥
1,484,752
¥
2,716,266
¥
105,526
Gross profit
¥
121,449
¥
137,310
¥
87,112
¥
72,604
¥
152,627
¥
46,662
Operating income (loss)
¥
68,138
¥
31,381
¥
24,559
¥
35,453
¥
32,019
¥
18,480
Equity in earnings of associated companies
¥
22,444
¥
8,228
¥
2,450
¥
24,480
¥
3,688
¥
2,439
Net income (loss)
¥
46,991
¥
26,437
¥
(6,852
)
¥
42,759
¥
16,882
¥
11,835
Total assets at March 31, 2005
¥
1,227,494
¥
1,306,359
¥
779,930
¥
894,175
¥
1,109,464
¥
405,355
Millions of Yen
Other Overseas
Adjustments and
Consolidated
Americas
Europe
Areas
Total
All Other
Eliminations
Total
Year ended March 31, 2005:
Total trading transactions:
External customers
¥
1,026,282
¥
403,448
¥
769,262
¥
13,591,709
¥
25,014
¥
(1,676
)
¥
13,615,047
Intersegment
494,017
368,812
1,362,376
3,165,596
10,674
(3,176,270
)
—
Total
¥
1,520,299
¥
772,260
¥
2,131,638
¥
16,757,305
¥
35,688
¥
(3,177,946
)
¥
13,615,047
Gross profit
¥
49,911
¥
20,657
¥
25,810
¥
714,142
¥
12,349
¥
(688
)
¥
725,803
Operating income (loss)
¥
14,737
¥
2,412
¥
8,191
¥
235,370
¥
(466
)
¥
(36,913
)
¥
197,991
Equity in earnings of associated companies
¥
1,608
¥
134
¥
479
¥
65,950
¥
417
¥
(474
)
¥
65,893
Net income (loss)
¥
12,343
¥
2,930
¥
13,765
¥
167,090
¥
4,411
¥
(50,365
)
¥
121,136
Total assets at March 31, 2005
¥
445,221
¥
345,917
¥
270,237
¥
6,784,152
¥
2,312,547
¥
(1,503,312
)
¥
7,593,387
F-58
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Millions of Yen
Metal
Machinery,
Consumer
Logistics &
Products &
Electronics &
Products &
Financial
Minerals
Information
Chemical
Energy
Services
Markets
Year ended March 31, 2004 (As restated):
Total trading transactions:
External customers
¥
2,206,439
¥
2,640,632
¥
1,548,680
¥
1,401,288
¥
2,577,867
¥
81,486
Intersegment
260,323
133,884
415,753
100,189
135,319
25,989
Total
¥
2,466,762
¥
2,774,516
¥
1,964,433
¥
1,501,477
¥
2,713,186
¥
107,475
Gross profit
¥
77,027
¥
128,736
¥
91,094
¥
54,616
¥
135,865
¥
32,293
Operating income (loss)
¥
28,715
¥
29,400
¥
31,352
¥
21,708
¥
23,321
¥
10,370
Net income
¥
24,208
¥
5,860
¥
11,389
¥
24,449
¥
18,909
¥
4,786
Total assets at March 31, 2004
¥
994,364
¥
1,223,610
¥
624,799
¥
610,374
¥
1,079,914
¥
358,263
Millions of Yen
Other Overseas
Adjustments and
Consolidated
Americas
Europe
Areas
Total
All Other
Eliminations
Total
Year ended March 31, 2004 (As restated):
Total trading transactions:
External customers
¥
843,532
¥
342,286
¥
624,435
¥
12,266,645
¥
26,954
¥
(9,488
)
¥
12,284,111
Intersegment
448,399
335,262
1,009,695
2,864,813
8,700
(2,873,513
)
—
Total
¥
1,291,931
¥
677,548
¥
1,634,130
¥
15,131,458
¥
35,654
¥
(2,883,001
)
¥
12,284,111
Gross profit
¥
40,711
¥
19,965
¥
24,060
¥
604,367
¥
10,461
¥
(885
)
¥
613,943
Operating income (loss)
¥
8,531
¥
3,030
¥
6,562
¥
162,989
¥
(1,902
)
¥
(34,240
)
¥
126,847
Net income
¥
161
¥
693
¥
10,425
¥
100,880
¥
1,923
¥
(34,416
)
¥
68,387
Total assets at March 31, 2004
¥
399,599
¥
247,574
¥
215,185
¥
5,753,682
¥
2,152,005
¥
(1,189,659
)
¥
6,716,028
Millions of Yen
Metal
Machinery,
Consumer
Logistics &
Products &
Electronics &
Products &
Financial
Minerals
Information
Chemical
Energy
Services
Markets
Year ended March 31, 2003 (As restated):
Total trading transactions:
External customers
¥
1,997,884
¥
2,490,125
¥
1,365,247
¥
1,240,435
¥
2,555,328
¥
93,636
Intersegment
254,925
161,982
322,658
40,886
128,123
13,861
Total
¥
2,252,809
¥
2,652,107
¥
1,687,905
¥
1,281,321
¥
2,683,451
¥
107,497
Gross profit
¥
71,505
¥
121,095
¥
69,266
¥
53,824
¥
122,632
¥
33,158
Operating income (loss)
¥
24,698
¥
14,098
¥
18,278
¥
25,738
¥
21,206
¥
10,929
Net income (loss)
¥
16,133
¥
(9,206
)
¥
(3,563
)
¥
22,980
¥
9,587
¥
4,646
Total assets at March 31, 2003
¥
866,698
¥
1,266,442
¥
572,935
¥
620,412
¥
998,500
¥
273,063
F-59
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Millions of Yen
Other Overseas
Adjustments and
Consolidated
Americas
Europe
Areas
Total
All Other
Eliminations
Total
Year ended March 31, 2003 (As restated):
Total trading transactions:
External customers
¥
786,707
¥
355,061
¥
577,425
¥
11,461,848
¥
29,295
¥
(16,960
)
¥
11,474,183
Intersegment
485,566
224,247
729,116
2,361,364
7,023
(2,368,387
)
—
Total
¥
1,272,273
¥
579,308
¥
1,306,541
¥
13,823,212
¥
36,318
¥
(2,385,347
)
¥
11,474,183
Gross profit
¥
44,584
¥
22,470
¥
23,503
¥
562,037
¥
10,554
¥
(3,021
)
¥
569,570
Operating income (loss)
¥
9,485
¥
4,163
¥
7,571
¥
136,166
¥
(1,828
)
¥
(32,406
)
¥
101,932
Net income (loss)
¥
3,291
¥
2,845
¥
8,627
¥
55,340
¥
6,921
¥
(31,123
)
¥
31,138
Total assets at March 31, 2003
¥
412,659
¥
218,304
¥
201,032
¥
5,430,045
¥
2,085,802
¥
(975,327
)
¥
6,540,520
Notes:
(1)
The figures of "Consolidated Total" for the years
    ended March 31, 2004 and 2003 have been reclassified to
    conform to the change in current year presentation for
    discontinued operations in accordance with
    SFAS No. 144. The reclassification to income (loss)
    from discontinued operation — net (after income tax
    effect) are included in "Adjustments and Eliminations."
(2)
"All Other" includes business activities which
    primarily provide services, such as development and sales of
    systems, financing services, and operations services to external
    customers and/or to the companies and associated companies.
    Total assets of "All Other" at March 31, 2005,
    2004 and 2003 consisted primarily of cash and cash equivalents
    and time deposits related to financing activities, and assets of
    certain subsidiaries related to the above services.
(3)
Net loss of "Adjustments and Eliminations" includes
    income and expense items that are not allocated to specific
    reportable operating segments, such as certain expenses of the
    corporate departments, and eliminations of intersegment
    transactions.
Net loss of "Adjustments and Eliminations" for the
    year ended March 31, 2005 includes
    (a) ¥21,722 million in general and administrative
    expenses of the corporate departments excluding pension costs,
    (b) a charge of ¥15,292 million for the valuation
    allowance for deferred tax assets as a result of change in a
    policy to sell certain investments, and (c) a gain of
    ¥2,432 million for pension related items (all amounts
    are after income tax effects).
Net loss of "Adjustments and Eliminations" for the
    year ended March 31, 2004 includes
    (a) ¥14,001 million in general and administrative
    expenses of the corporate departments excluding pension costs,
    (b) a charge of ¥13,247 million for pension
    related items, and (c) ¥4,743 million in
    impairment losses of long-lived assets (all amounts are after
    income tax effects).
Net loss of "Adjustments and Eliminations" for the
    year ended March 31, 2003 includes (a) a charge of
    ¥7,485 million for an early retirement support
    program, (b) ¥5,814 million in losses on
    write-down of marketable securities, and
    (c) ¥3,142 million in losses on sale of
    marketable securities (all amounts are after income tax effects).
(4)
Transfers between operating segments are made at cost plus a
    markup.
(5)
Operating income (loss) reflects the companies'
    (a) gross profit, (b) selling, general and administrative
    expenses, (c) provision for doubtful receivables, and
    (d) government grant for transfer of substitutional portion
    of EPF, as presented in the Statements of Consolidated Income.
F-60
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
PRODUCT INFORMATION
Millions of Yen
Property and
Iron and
Non-Ferrous
Electronics &
General
Service
Consolidated
Steel
Metals
Machinery
Information
Chemicals
Energy
Foods
Textiles
Merchandise
Business
Total
Year ended March 31, 2005:
Revenues
¥
407,103
¥
161,380
¥
269,241
¥
144,780
¥
729,103
¥
1,048,362
¥
473,573
¥
43,019
¥
96,136
¥
153,036
¥
3,525,733
Year ended March 31, 2004 (As restated):
Revenues
¥
312,853
¥
157,248
¥
305,025
¥
119,843
¥
520,115
¥
954,556
¥
389,496
¥
32,793
¥
84,812
¥
106,195
¥
2,982,936
Year ended March 31, 2003 (As restated):
Revenues
¥
281,761
¥
152,145
¥
304,780
¥
108,110
¥
463,375
¥
830,997
¥
393,228
¥
37,871
¥
88,752
¥
123,552
¥
2,784,571
Note:
In accordance with SFAS No. 144, revenues from
discontinued operations are eliminated from each product amount
and "Consolidated Total." The figures for the years
ended March 31, 2004 and 2003 have been reclassified to
conform to the current year presentation.
GEOGRAPHIC AREA INFORMATION
Millions of Yen
United
United
Consolidated
Japan
States
Kingdom
China
All Other
Total
Year ended March 31, 2005:
Total trading transactions to external customers
¥
7,736,548
¥
1,096,321
¥
200,399
¥
608,100
¥
3,973,679
¥
13,615,047
Year ended March 31, 2004 (As restated):
Total trading transactions to external customers
¥
7,189,292
¥
831,566
¥
159,698
¥
421,247
¥
3,682,308
¥
12,284,111
Year ended March 31, 2003 (As restated):
Total trading transactions to external customers
¥
7,102,671
¥
808,293
¥
154,142
¥
350,884
¥
3,058,193
¥
11,474,183
Notes:
(1)
Total trading transactions are attributed to countries based on
    the location of customers.
(2)
The Company provides total trading transactions instead of
    revenues, as certain costs related to revenues presented net in
    accordance with EITF No. 99-19 are not attributed to
    countries based on the location of customers.
(3)
In accordance with SFAS No. 144, total trading
    transactions to external customers from discontinued operations
    are eliminated from each geographic area amount and
    "Consolidated Total." The figures for the years ended
    March 31, 2004 and 2003 have been reclassified to conform
    to the current year presentation.
(4)
Total trading transactions to the customers located in China,
    which were previously included in "All Other," were
    separately presented in consideration of the importance of the
    amount for the year ended March 31, 2005. The figures for
    the years ended March 31, 2004 and 2003 have been restated
    to conform to the current year presentation.
F-61
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Millions of Yen
United
Consolidated
Japan
States
Australia
All Other
Total
At March 31, 2005:
Long-lived assets
¥
431,236
¥
99,636
¥
177,273
¥
137,718
¥
845,863
At March 31, 2004:
Long-lived assets
¥
469,074
¥
128,100
¥
95,405
¥
136,871
¥
829,450
At March 31, 2003:
Long-lived assets
¥
497,112
¥
113,433
¥
70,433
¥
154,311
¥
835,289
Note:
Mineral rights are classified to property and
equipment — at cost at March 31, 2005, which were
formerly included in intangible assets, less accumulated
amortization. The figures at March 31, 2004 and 2003 have
been reclassified to conform to the current year presentation.
There are no individual material customers with respect to
revenues for the years ended March 31, 2005, 2004 and 2003.
18.
SUPPLEMENTAL INCOME STATEMENT INFORMATION
Supplemental information related to the Statements of
Consolidated Income is as follows:
Millions of Yen
2005
2004
2003
Depreciation of property and equipment*
¥
52,921
¥
54,502
¥
50,652
Research and development expenses
5,647
6,019
3,415
Advertising expenses
9,012
7,915
6,898
Foreign exchange gains — net
4,583
2,887
3,154
*
In accordance with the change in classification of mineral
    rights in the Consolidated Balance Sheets, the figures of
    "Depreciation of property and equipment" for the years
    ended March 31, 2004 and 2003 have been reclassified to
    conform to the current year presentation.
19.
ISSUANCE OF STOCK BY SUBSIDIARIES AND ASSOCIATED COMPANIES
Mitsui & Associates Telepark Corporation
("Telepark"), a subsidiary of the Company, which is
principally engaged in sales of mobile devices and fixed
telecommunication lines, issued 8,000 shares of common stock at
¥319,600 per share to third parties in a public offering on
April 7, 2004 receiving total consideration of
¥2,557 million. As a result of Telepark's public
offering, the companies' ownership of voting shares of
Telepark decreased from 98.19% to 88.60%. The companies
recognized a gain of ¥1,677 million on this issuance
as a separate line item in the Statements of Consolidated Income
under gain on issuance of stock by a subsidiary and provided
deferred income taxes of ¥688 million on such gain.
At the same time, the companies sold 19,000 shares of
Telepark's common stock to third parties at ¥319,600
per share through the stock market, and recorded a gain of
¥4,057 million on this sale. As a result, the
companies' ownership of voting shares of Telepark further
decreased from 88.60% to 65.41%.
Telepark changed its corporate name to Telepark Corp. on
October 1, 2004.
F-62
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
20.
OTHER EXPENSE — NET
Other expense — net for the years ended March 31,
2005, 2004 and 2003 consists of the following:
Millions of Yen
2005
2004
2003
Exploration expenses
¥
2,458
¥
1,367
¥
932
Restructuring-related charges
1,950
6,284
1,131
Impairment loss of goodwill
1,114
—
—
Litigation charges
430
16,173
4,050
Foreign exchange losses (gains) — net
5
(7
)
2,365
Other
1,874
4,895
2,523
Total
¥
7,831
¥
28,712
¥
11,001
Note:
In accordance with SFAS No. 144, the expense and/or
income from discontinued operations, if any, is eliminated from
each line item presented in the above table. The figures for the
years ended March 31, 2004 and 2003 have been reclassified
to conform to the current year presentation.
21.
INCOME TAXES
Income taxes in Japan applicable to the companies, imposed by
the national, prefectural and municipal governments, in the
aggregate resulted in normal effective statutory tax rates of
approximately 41% for the year ended March 31, 2005 and 42%
for the years ended March 31, 2004 and 2003, respectively.
Foreign subsidiaries are subject to income taxes of the
countries in which they operate.
On March 31, 2003, the local tax laws in Japan were
amended, and an enterprise tax on the basis of the size of
business was introduced for the year ended March 31, 2005.
As a result, the statutory tax rate for the year ended
March 31, 2005 was approximately 41% effective
April 1, 2004. The effect of the changes in the tax rates
on the balance of deferred tax assets and liabilities as of
March 31, 2003 was insignificant.
A reconciliation between the normal statutory tax rate in Japan
applied to income from continuing operations and the effective
income tax rate on income from continuing operations for the
years ended March 31, 2005, 2004 and 2003 is summarized as
follows:
%
2005
2004
2003
Normal statutory tax rate in Japan applied to income from
    continuing operations before income taxes, minority interests
    and equity in earnings
41.0
%
42.0
%
42.0
%
Increases (decreases) in tax rate resulting from:
Expenses not deductible for tax purposes and income not
    taxable — net
2.4
4.3
4.3
Application of lower tax rates to certain taxable income
(5.4
)
(5.7
)
(9.9
)
Effect of taxation on dividends from subsidiaries and corporate
    joint ventures
8.4
2.7
10.4
Changes in valuation allowance — net
11.3
7.7
11.6
Other — net
1.3
2.0
1.3
Effective income tax rate on income from continuing operations
59.0
%
53.0
%
59.7
%
F-63
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Amounts provided for income taxes for the years ended
March 31, 2005, 2004 and 2003 are allocated as follows:
Millions of Yen
2005
2004
2003
Income taxes on income from continuing operations
¥
103,555
¥
47,041
¥
38,798
Income (loss) from discontinued operations — net
496
(8,283
)
(11,474
)
Equity in earnings of associated companies
18,342
9,096
26
Cumulative effect of change in accounting principle
—
(161
)
—
Other comprehensive income (loss)
26,461
40,243
(38,568
)
Total
¥
148,854
¥
87,936
¥
(11,218
)
The tax effects of significant temporary differences and
carryforwards which result in deferred tax assets and
liabilities at March 31, 2005 and 2004 are as follows:
Millions of Yen
2005
2004
Deferred Tax Assets:
Accrued pension costs and liability for severance indemnities
¥
15,293
¥
25,083
Allowance for doubtful receivables
13,977
21,994
Estimated losses
46,060
21,944
Impairment loss of long-lived assets
25,763
16,746
Loss carryforwards of subsidiaries and associated companies
70,584
76,528
Unrealized intercompany profit
17,428
21,107
Foreign currency translation
13,138
15,110
Other
12,291
19,709
Total deferred tax assets
214,534
218,221
Valuation allowance
(44,915
)
(31,245
)
Deferred tax assets — net
169,619
186,976
Deferred Tax Liabilities:
Property
96,824
74,428
Investment securities
72,506
56,256
Undistributed earnings of associated companies other than
    corporate joint ventures
61,165
42,566
Other
8,441
2,089
Deferred tax liabilities
238,936
175,339
Net deferred tax (liabilities) assets
¥
(69,317
)
¥
11,637
F-64
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Net deferred tax assets or liabilities at March 31, 2005
and 2004 are included in the Consolidated Balance Sheets as
follows:
Millions of Yen
2005
2004
Current Assets — Deferred tax assets —
    current
¥
46,410
¥
31,473
Deferred Tax Assets — Non-current
29,641
32,406
Current Liabilities — Other current liabilities
(1,802
)
(4,855
)
Deferred Tax Liabilities — Non-current
(143,566
)
(47,387
)
Net deferred tax (liabilities) assets
¥
(69,317
)
¥
11,637
The valuation allowance is provided principally on deferred tax
assets for loss carryforwards of certain subsidiaries where it
is more likely than not that a tax benefit will not be realized.
During the years ended March 31, 2005, 2004 and 2003, the
valuation allowances were increased by
¥13,670 million, increased by ¥8,390 million
and decreased by ¥290 million, respectively. For the
years ended March 31, 2005, 2004 and 2003, adjustments of
the beginning-of-the-year balance of the valuation allowances
attributable to continuing operations were
¥17,910 million (loss), ¥3,475 million
(profit) and ¥3,072 million (profit), respectively.
With respect to the remaining deferred tax assets, the companies
believe it is more likely than not that such benefits will be
realized through the reduction of future taxable income.
The tax benefits of operating loss carryforwards attributable to
continuing operations for the years ended March 31, 2005,
2004 and 2003 were ¥8,795 million,
¥13,493 million and ¥2,204 million,
respectively.
Income taxes or foreign withholding taxes are not provided on
undistributed earnings of foreign subsidiaries and foreign
corporate joint ventures which are considered to be indefinitely
reinvested in the operations of such subsidiaries and corporate
joint ventures. At March 31, 2005 and 2004, the amounts of
undistributed earnings of such foreign subsidiaries and foreign
corporate joint ventures were ¥332,986 million and
¥299,574 million, respectively. Determination of the
amount of unrecognized deferred income taxes with respect to
these foreign earnings is not practicable. The domestic
undistributed earnings would not, under present Japanese tax
laws, be subject to additional taxation.
At March 31, 2005, certain subsidiaries had aggregate
operating loss carryforwards of ¥108,875 million,
which are available to reduce taxable income in subsequent
periods. If not utilized, such loss carryforwards expire as
follows:
Millions of Yen
Within 5 years
¥
21,306
After 5 to 10 years
26,951
After 10 to 15 years
1,521
After 15 years
59,097
Total
¥
108,875
F-65
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Income from continuing operations before income taxes, minority
interests and equity in earnings for the years ended
March 31, 2005, 2004 and 2003 comprised the following:
Millions of Yen
The Company
and its domestic
Foreign
subsidiaries
subsidiaries
Total
Year ended March 31, 2005
¥
54,938
¥
120,706
¥
175,644
Year ended March 31, 2004
¥
38,403
¥
50,402
¥
88,805
Year ended March 31, 2003
¥
10,815
¥
54,175
¥
64,990
Income taxes on income from continuing operations for the years
ended March 31, 2005, 2004 and 2003 comprised the following:
Millions of Yen
The Company
and its domestic
Foreign
subsidiaries
subsidiaries
Total
Year ended March 31, 2005:
Current
¥
32,885
¥
32,213
¥
65,098
Deferred
29,659
8,798
38,457
Total
¥
62,544
¥
41,011
¥
103,555
Year ended March 31, 2004:
Current
¥
27,166
¥
17,850
¥
45,016
Deferred
1,884
141
2,025
Total
¥
29,050
¥
17,991
¥
47,041
Year ended March 31, 2003:
Current
¥
20,617
¥
18,570
¥
39,187
Deferred
(6,447
)
6,058
(389
)
Total
¥
14,170
¥
24,628
¥
38,798
F-66
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
22.
COMPENSATION AND OTHER CHARGES RELATED TO DPF INCIDENT
The Company discovered during the year ended March 31, 2005
that false data of a performance test were produced and
submitted to authorities for diesel particulate filters
("DPF"s) manufactured by PUREarth Incorporated, a
wholly owned subsidiary of the Company, and sold by the Company.
The DPFs were subsidized by the Tokyo Metropolitan Government
and seven other prefectural and municipal governments, as well
as the Ministry of Land, Infrastructure and Transport, the
Ministry of the Environment, and related industry associations.
The Company sold approximately 21,500 units of the product.
The Company is carrying out a three-part user response plan that
involves: (1) the free replacement of DPFs, (2) the
reimbursement of the amount paid for purchasing the
Company's DPFs upon their redemption following the
scrapping or resale of vehicles, and (3) support program
for the purchase of alternative vehicles. In addition, the
Company is also proceeding with full compensation of relevant
subsidies.
The Company recorded ¥36,000 million as compensation
and other charges related to DPF incident in the Statements of
Consolidated Income for the year ended March 31, 2005,
consisting of a user response charge of approximately
¥28,000 million and subsidy compensation of
approximately ¥8,000 million. The user response charge
was estimated based on expected costs of each user response plan
reflecting requests from users of the Company's DPFs. The
subsidy compensation was recorded based on the amounts claimed
by subsidy providers.
The outstanding balance of ¥27,851 million at
March 31, 2005, which was net of compensation and other
charges related to DPF incident of ¥36,000 million and
the Company's payments of ¥8,149 million for
subsidy compensation and other related expenses during the year
ended March 31, 2005, was recorded in other current
liabilities in the Consolidated Balance Sheets.
23.
COMMITMENTS AND CONTINGENT LIABILITIES
I.
LONG-TERM PURCHASE CONTRACTS AND FINANCING COMMITMENTS
The companies customarily enter into long-term purchase
contracts for certain items, principally chemical materials, oil
products, ocean transport vessels, metals, and machinery and
equipment, either at fixed prices or at basic purchase prices
adjustable to market. In general, customers of the companies are
also parties to the contracts or by separate agreements are
committed to purchase the items from the companies; such
customers are generally large Japanese industrial companies and
shipping firms. Long-term purchase contracts at fixed or basic
purchase prices amounted to ¥2,393,864 million at
March 31, 2005. Scheduled deliveries are at various dates
through 2021.
The companies had financing commitments totaling
¥2,728 million at March 31, 2005, principally for
financing, on a deferred-payment basis, the cost of ocean
transport vessels and equipment to be purchased by their
customers through October 2006.
F-67
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
II.
GUARANTEES
The table below summarizes the companies' guarantees as
defined in FIN No. 45 at March 31, 2005 and 2004.
The maximum potential amount of future payments represents the
amounts without consideration of possible recoveries under
recourse provisions or from collateral held or pledged that the
companies could be obliged to pay if there were defaults by
guaranteed parties or there were changes in an underlying which
would cause triggering events under market value guarantees and
indemnification contracts. Such amounts bear no relationship to
the anticipated losses on these guarantees and indemnifications,
and they greatly exceed anticipated losses.
Millions of Yen
Maximum
Expire
Total
Recourse
potential
Carrying
within
Expire after
amount
provisions/
amount of future
amount of
Expire no
1 year
1 year
outstanding
collateral
payments
liabilities
later than
March 31, 2005:
Type of guarantees:
Financial guarantees:
Guarantees for third parties
¥
12,251
¥
72,503
¥
84,754
¥
22,572
¥
88,549
¥
1,360
2021
Guarantees for associated companies
21,918
35,650
57,568
8,857
63,712
2,108
2022
Guarantees to financial institutions for employees' housing
    loans
—
15,170
15,170
—
41,388
—
2029
Total
¥
34,169
¥
123,323
¥
157,492
¥
31,429
¥
193,649
¥
3,468
Performance guarantees
¥
14,564
¥
18,595
¥
33,159
¥
5,779
¥
33,159
¥
331
2013
Market value guarantees:
Obligation to repurchase bills of exchange
¥
52,420
¥
1,302
¥
53,722
¥
41,700
¥
53,722
—
2007
Minimum purchase price guarantees
—
3,222
3,222
—
3,222
—
2013
Residual value guarantees of leased assets
—
16,362
16,362
—
16,362
—
2008
Total
¥
52,420
¥
20,886
¥
73,306
¥
41,700
¥
73,306
—
Derivative instruments
¥
805,527
¥
398,632
¥
1,204,159
—
¥
1,204,159
¥
65,869
F-68
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Millions of Yen
Maximum
Expire
Total
Recourse
potential
Carrying
within
Expire after
amount
provisions/
amount of future
amount of
Expire no
1 year
1 year
outstanding
collateral
payments
liabilities
later than
March 31, 2004:
Type of guarantees:
Financial guarantees:
Guarantees for third parties
¥
26,745
¥
93,071
¥
119,816
¥
31,178
¥
143,654
¥
884
2021
Guarantees for associated companies
17,947
44,343
62,290
9,975
72,586
5,275
2022
Guarantees to financial institutions for employees' housing
    loans
—
18,524
18,524
—
41,388
—
2029
Total
¥
44,692
¥
155,938
¥
200,630
¥
41,153
¥
257,628
¥
6,159
Performance guarantees
¥
10,688
¥
26,094
¥
36,782
¥
5,766
¥
36,787
¥
408
2013
Market value guarantees:
Obligation to repurchase bills of exchange
¥
41,655
¥
296
¥
41,951
¥
36,361
¥
41,951
—
2006
Minimum purchase price guarantees
—
3,171
3,171
—
3,171
—
2013
Residual value guarantees of leased assets
—
16,516
16,516
—
16,516
—
2008
Total
¥
41,655
¥
19,983
¥
61,638
¥
36,361
¥
61,638
—
Derivative instruments
¥
271,761
¥
37,353
¥
309,114
—
¥
309,114
¥
18,210
(1) Financial guarantees
The companies provide various types of guarantees to the benefit
of third parties and related parties principally to enhance
their credit standings, and would be required to execute
payments if a guaranteed party failed to fulfill its obligation
with respect to a borrowing or trade payable.
Categories of financial guarantees are as follows:
Guarantees for third parties
The companies guarantee, severally or jointly with others,
indebtedness of certain customers and suppliers in the
furtherance of their trading activities.
Guarantees for associated companies
The companies, severally or jointly with others, issue
guarantees for associated companies for the purpose of
furtherance of their trading activities and credit enhancement
of associated companies.
Guarantees to financial institutions for employees'
housing loans
As a part of the benefits program for its employees, the Company
issues guarantees to financial institutions for employees'
housing loans. The maximum duration of the guarantees is
25 years. The Company obtains a mortgage on the
employees' assets, if necessary.
F-69
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
At March 31, 2005 and 2004, the following table sets forth
the major parties who have received the companies'
financial guarantees. The amounts shown below were calculated by
offsetting the recourse provisions and collateral against
outstanding balance of the guarantee provided to each guaranteed
party.
Millions of Yen
March 31, 2005:
Guaranteed party:
POWEREDCOM
¥
14,276
Nippon Asahan Aluminium
10,116
Usinas Siderurgicas de Minas Gerais
7,786
Petro21 Intertrade Company
4,861
Project Finance BLRE
4,619
Siam Cement
3,432
Modec Venture 11
3,207
Qatar LNG Investment
3,193
Bontang Train G Project Finance
2,706
Leeward Navigation
2,592
Others
69,275
Total
¥
126,063
March 31, 2004:
Guaranteed party:
POWEREDCOM
¥
19,640
Hutchison 3G UK
10,302
Usinas Siderurgicas de Minas Gerais
9,195
Sanha Fpso
6,256
Qatar LNG Investment
6,062
Project Finance BLRE
5,372
Telefonos De Mexico
5,342
Siam Cement
4,129
Nippon Asahan Aluminium
3,862
Vinyl Chloride (Malaysia)
3,805
Others
85,512
Total
¥
159,477
(2) Performance guarantees
Main items of performance guarantees are contractual guarantees
of Toyo Engineering Corporation regarding plant construction
contracts executed under the name of the guaranteed party in the
Middle East and other regions. The Company has pledged bank
guarantees and performance bonds to the project owners, and in
case that Toyo Engineering Corporation failed to fulfill the
contractual obligation, the project owners would execute bank
guarantees and performance bonds to claim compensation for
damages.
F-70
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
(3) Market value guarantees
Obligation to repurchase bills of exchange
In connection with export transactions, the Company issues bills
of exchange, some of which are discounted by its negotiating
banks. If a customer failed to fulfill its obligation with
respect to the bills, the Company would be obligated to
repurchase the bills based on the banking transaction agreement.
The outstanding guarantees and the maximum potential amount of
future payments is represented by the aggregate par value of the
bills discounted by the banks, and the recourse provisions and
collateral are represented by the amount backed by letters of
credit from the issuing banks of the customers.
Minimum purchase price guarantees
The companies provide marketing services of aircraft for
domestic and overseas airline companies, and as a part of such
businesses, the companies issue market value guarantees of the
aircraft for certain customers.
Residual value guarantees of leased assets
As lessees in operating lease contracts, certain subsidiaries
have issued residual value guarantees of the leased aircraft and
ocean transport vessels, and on the date of expiration of
operating lease contracts, such subsidiaries will either
purchase the leased assets at a fixed price or be responsible
for making up any shortfall between an actual sales price and
the guaranteed price.
(4) Derivative instruments
Certain derivative contracts, including written put options and
credit default swaps, meet the accounting definition of
guarantees under FIN No. 45. While the companies do
not specifically identify whether the counterparties of such
derivative contracts have underlying assets and liabilities, the
companies disclose all the derivative contracts that could meet
the definition under FIN No. 45.
The companies have written put options as a part of their
various derivative transactions related to energy, non-ferrous
metals and grain. The aggregation of notional amounts computed
based on the strike prices and quantities of written options are
disclosed as the total amount outstanding and the maximum
potential amount of future payments. The carrying amount of
liabilities is represented by the fair value of such written
options recorded in the consolidated financial statements.
The companies manage the market and credit risks on these
derivative instruments by monitoring fair values against loss
limits and credit lines, and generally the maximum potential
amount of future payments as stated above greatly overstates the
companies' exposure to market and credit risks.
(5) Indemnification contracts
Indemnification issued through corporate reorganization
The companies divested certain of their businesses through a
sale to a third-party purchaser and a spin-off to an associated
company. In connection with these transactions, the companies
have provided certain indemnities and the terms and conditions
of indemnifications differ by contracts. The maximum potential
amount of future payments could not be quantified because the
limits of those indemnifications are often indefinite. At
March 31, 2005 and 2004, the companies recognized
liabilities of ¥147 million and
¥882 million, respectively, for estimated losses for
their indemnifications where the companies' obligations are
probable and estimable.
F-71
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Joint obligation under membership agreement in commodity
exchanges
The companies are members of major commodity exchanges in Japan
and overseas. In connection with these memberships, the
companies provide guarantees to the exchanges. Under the
membership agreements, if a member becomes unable to satisfy its
obligations to the exchange, the other members would be required
to meet such shortfalls apportioned among the non-defaulting
members in the prescribed manner. The companies' maximum
potential amount of future payments related to these joint
obligations is not quantifiable and the probability of being
required to make any payments under these obligations is remote.
(6) Product warranties
Certain subsidiaries provide product warranties, in relation to
their sales of assets, including machinery and equipment and
residential houses, for the performance of such products during
specified warranty periods, and they are responsible for mending
or payments of compensation against the claims by the customers
regarding defects in performance or function. Estimated warranty
costs are accrued at the time the products are sold based on the
historical claim experiences.
A tabular reconciliation of changes in such liabilities for the
product warranties for the years ended March 31, 2005, 2004
and 2003 is as follows:
Millions of Yen
2005
2004
2003
Balance at beginning of year
¥
1,754
¥
2,130
¥
2,356
Payments made in cash or in kind
(562
)
(486
)
(419
)
Accrual for warranties issued during the year
2,075
828
956
Changes in accrual related to pre-existing warranties
(736
)
(718
)
(763
)
Balance at end of year
¥
2,531
¥
1,754
¥
2,130
III.     LITIGATION
Methionine litigation
The Company and two of its subsidiaries, together with other
third-party methionine manufacturers, were named as defendants
in class action lawsuits in the United States, filed by direct
and indirect customers of methionine. In these cases,
manufacturers of methionine allegedly violated federal and/or
state antitrust laws by conspiring to fix the prices of
methionine. The lawsuits sought compensatory and treble damages
in unspecified amounts.
In May 2002, the Company and the subsidiaries reached an
agreement for settlement with the class action plaintiffs
constituted by direct customers. Under this settlement, Novus
International, Inc., the Company's 65%-owned subsidiary,
paid U.S.$37.8 million as a settlement amount.
In November 2002, the Company and the subsidiaries reached an
agreement for settlement with the plaintiffs who opted out of
that class action. Under this settlement, Novus International,
Inc. paid U.S.$58.2 million as a settlement amount.
This did not affect the Company's consolidated results of
operations for the years ended March 31, 2005, 2004 and
2003, since Novus International, Inc. had previously recorded an
estimated provision for the full settlement amount.
F-72
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Other related lawsuits are still pending, but management
believes that there is less than a reasonable possibility that
the pending lawsuits would materially affect the consolidated
results of operations of the Company.
Choline chloride litigation
The Company's wholly owned U.S. subsidiary, Bioproducts,
Inc., which had been producing and selling choline chloride, an
ingredient of animal feed and pet foods, was named as a
defendant in the lawsuits in the United States, together with
other third-party choline chloride manufacturers. In these
cases, manufacturers of choline chloride allegedly violated
U.S. antitrust laws.
Although the Company and its wholly owned U.S. subsidiary,
Mitsui USA, were neither a manufacturer nor a seller of choline
chloride in the U.S. market, they were also named as
defendants in class action lawsuits based on the
plaintiffs' allegation that the Company and Mitsui USA were
involved in the violation of the antitrust laws. During the
course of legal proceedings, the Company and Mitsui USA have
consistently denied any wrongdoing. However, in the trial before
Federal District Court of the District of Columbia in June 2003,
the jury rendered a verdict stating that the defendants
participated in the violation of the antitrust laws. The Company
and Mitsui USA considered undertaking the legal proceedings
necessary to overrule the verdict, but given the circumstances,
it was determined that a settlement with the class action
plaintiffs would be in the best interest of the Company and all
of its stakeholders, and entered into an agreement for
settlement with the class action plaintiffs by paying
U.S.$53.0 million as a settlement amount. The settlement
had been subject to court approval, which was obtained on
April 27, 2005. This amount was recorded as other
expense — net in the Statements of Consolidated Income
for the year ended March 31, 2004.
The Company, Mitsui USA and Bioproducts, Inc. were also named as
defendants in other lawsuits made by the plaintiffs who opted
out of that class action, but entered into an agreement for
settlement with most of the plaintiffs in February 2004. Under
this settlement, the Company, Mitsui USA and Bioproducts, Inc.
were released from the legal proceedings by paying the opt-out
plaintiffs U.S.$73.5 million as a settlement amount. This
amount was paid in February 2004 and was recorded as other
expense — net in the Statements of Consolidated Income
for the year ended March 31, 2004.
For other related lawsuits that are still pending, although
there can be no assurance of the ultimate results, management
believes that there is less than a reasonable possibility that
losses in addition to amounts that have been reserved for
possible litigation losses will occur, and that the amount of
any such additional losses would not have a material impact on
the consolidated financial position, results of operations or
cash flows of the Company.
Other matters
Various other claims and legal actions are pending against the
companies in respect of contractual obligations and other
matters arising out of the conduct of the companies'
business. Appropriate provision has been recorded for the
estimated loss on claims and legal actions including those
mentioned above. In the opinion of management, any additional
liability will not materially affect the consolidated financial
position, results of operations, or cash flows of the Company.
F-73
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
24.     VARIABLE INTEREST
ENTITIES
The companies are involved with VIEs which mainly engage in
leasing and financing activities within the Machinery,
Electronics & Information and Energy segments.
The VIEs that have been consolidated by the companies in
accordance with FIN No. 46R are described as follows
(excluding VIEs of which the companies also hold a majority
voting interest):
As lessees in operating lease contracts concluded with lessors
that have been established for those lease contracts in Europe
and Latin America, certain subsidiaries have issued residual
value guarantees of the leased vessels. On the date of
expiration of operating lease contracts, such subsidiaries will
either purchase the leased assets at a fixed price or be
responsible for making up any shortfall between an actual sales
price and the guaranteed value. The lessors of the leased
vessels are VIEs and the companies have consolidated the lessors
as the primary beneficiary. Total assets of the lessors as of
March 31, 2005 and 2004 were ¥20,240 million and
¥19,878 million, respectively.
A portion of the leased assets, which are consolidated, is
collateral for the VIE's obligations. The carrying amounts
of those assets as of March 31, 2005 and 2004 were
¥6,984 million and ¥7,542 million,
respectively, and were classified as property leased to
others — at cost, less accumulated depreciation in the
Consolidated Balance Sheets.
The creditors or beneficial interest holders of the consolidated
VIEs do not have recourse to the general credit of the
companies, except for the aforementioned residual value
guarantees.
In addition, the VIEs that are not consolidated because the
companies are not the primary beneficiary, but in which the
companies have significant variable interests, are described as
follows:
The companies are involved with and have significant variable
interests in a number of VIEs that have been established to
finance crude oil and liquefied natural gas ("LNG")
producing plants and equipment or to finance subordinated debts
by providing guarantees or subordinated loans to the VIEs. Those
VIEs provide financing for customers located principally in
Latin America and Middle East in the form of leases and loans.
Total assets of the VIEs as of March 31, 2005 and 2004 were
¥1,117,752 million and ¥839,521 million,
respectively, and the maximum exposure to loss as a result of
the companies' involvement with the VIEs as of
March 31, 2005 and 2004 were ¥83,464 million and
¥47,434 million, respectively.
The amount of maximum exposure to loss represents a loss that
the companies could incur from the variability in value of the
leased assets, from financial difficulties of the customers or
from other causes without consideration of possible recoveries
through insurance and the like. In addition, the amount bears no
relation to the loss anticipated to be incurred from the
companies' involvement with the VIEs and is considered to
exceed greatly the anticipated loss.
25.
EXIT OR DISPOSAL ACTIVITIES
The Company focuses on the maximization of its consolidated
corporate value. To achieve this objective, the Company is
trying to strengthen its consolidated capabilities through
optimal group management. The Company actively restructures its
businesses to make them more efficient by regularly reassessing
the business environment and operational objectives of each of
its businesses.
In addition to these restructurings, the companies have disposed
of certain long-lived assets based on reviews of whether the
companies should keep holding those assets from the standpoint
of profitability. For the year ended March 31, 2005, the
companies recorded total exit or disposal costs of
¥4,161 million, which are defined by
SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities."
F-74
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The costs consisted of a contract termination cost of
¥1,950 million, losses on disposal and impairment of
long-lived assets of ¥1,680 million, and other
associated costs of ¥531 million. These exit or
disposal costs were recorded principally in the Consumer
Products & Services Segment of
¥1,950 million, the Energy Segment of
¥609 million, the Europe Segment of
¥531 million and the Americas Segment of
¥462 million for the year ended March 31, 2005.
For the year ended March 31, 2004, the companies recorded
total exit or disposal costs defined by SFAS No. 146
of ¥18,432 million, which consisted of losses on
disposal and impairment of long-lived assets of
¥10,458 million, contract termination costs of
¥4,537 million, and other associated costs of
¥3,437 million. These exit or disposal costs were
recorded principally in the Machinery, Electronics &
Information Segment of ¥9,461 million, the Energy
Segment of ¥3,742 million, the Chemical and Americas
segments of ¥3,054 million for the year ended
March 31, 2004. During the year ended March 31, 2003,
the exit or disposal activities were immaterial, except for the
exit activities completed by petrochemicals subsidiaries in
North America which are disclosed in Note 4,
"DISCONTINUED OPERATIONS."
Each exit or disposal activity defined by SFAS No. 146
commenced and was substantially completed within the same year.
The ending balances of liabilities for the exit or disposal
costs were immaterial at March 31, 2005 and 2004.
The primary exit or disposal activity for the year ended
March 31, 2005 was as follows:
The Company had compensated losses on defects arising from the
ceramic building materials and fiberboard business in the
Consumer Products & Services Segment, which were sold
in October 2001, pursuant to the indemnification agreement
between the Company and the buyer of the businesses as of 2001.
During the year ended March 31, 2005, the Company
terminated the agreement as a result of the negotiation with the
buyer. In connection with this termination of the agreement, the
Company recorded an associated cost of ¥1,950 million
in other expense — net in the Statements of
Consolidated Income for the year ended March 31, 2005 and
reversed the remaining liability previously recorded under the
indemnification.
The primary exit or disposal activities for the year ended
March 31, 2004 were as follows:
NBI Co., Ltd. (former Toyo Valve Co., Ltd.), a subsidiary
reported in the Machinery, Electronics & Information
Segment, has been engaged in the manufacture and sale of valves
and system equipment. On March 31, 2004, it sold its valve
business to KITZ Material Corporation, a subsidiary of KITZ
Corporation which engages in the manufacture and sale of valves
for construction facilities and industrial plants. The decision
to sell the valve business was made as a result of the
continuing oversupply of valves within the valve industry in
Japan due to deterioration in capital investment. As a result of
this disposal activity, the companies recorded
¥157 million in loss on disposal or sales of property
and equipment — net, ¥4,127 million in
impairment loss of long-lived assets, and other associated costs
of ¥1,747 million in other expense — net in
the Statements of Consolidated Income for the year ended
March 31, 2004.
Mitsui Bussan Machinery Co., Ltd., a subsidiary reported in the
Machinery, Electronics & Information Segment, has been
engaged in the sale and leasing of machine tools and
construction and industrial machinery. Because of its
unprofitable performance in the shrinking Japanese construction
and industrial machinery markets, the Company has decided to
exit from the construction and industrial machinery businesses,
as they have been evaluated as businesses with low historical
profitability and future growth potential compared to the
machine tools business. As a result of this exit decision, the
companies recorded ¥150 million in impairment loss of
long-lived assets, lease termination and asset disposal costs of
F-75
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
¥1,957 million in other expense — net, and
other associated costs of ¥216 million in selling,
general and administrative in the Statements of Consolidated
Income for the year ended March 31, 2004.
Mitsui Oil & Gas Co., Ltd. and Kokusai Oil & Chemical
Co., Ltd., subsidiaries reported in the Energy Segment, are
engaged in the import and domestic sale of petroleum products.
In order to maintain their competitiveness in gasoline station
operations, they have relocated stations, introduced
self-service stations, and established multifunctional
value-added stations, such as stations with convenience stores.
These subsidiaries have also disposed of and/or combined
previously existing stations and streamlined their distribution
processes. In connection with such restructuring and
streamlining efforts, the subsidiaries disposed of certain
unprofitable gasoline stations, which resulted in recording
¥1,742 million in loss on disposal or sales of
property and equipment — net and other associated
costs of ¥2,000 million in other expense —
net in the Statements of Consolidated Income for the year ended
March 31, 2004.
Global Octanes Corporation, a subsidiary partially reported in
both the Chemical and Americas segments, Global Octanes
Investment Inc., a subsidiary reported in the Chemical Segment,
and Global Octanes Holding Inc., a subsidiary reported in the
Americas Segment had managed Global Octanes Texas Limited
Partnership, which had been engaged in manufacture and sale of
MTBE, as its partners. These subsidiaries, however, disposed of
the operations, since the future demand for MTBE in the United
States was expected to decline. As a result of these disposal
activities, the companies recorded impairment loss of long-lived
assets and other assets of ¥3,054 million (before
income tax) in loss from discontinued operations — net
(after income tax effect) in the Statements of Consolidated
Income for the year ended March 31, 2004. Refer to
Note 4, "DISCONTINUED OPERATIONS," for further
discussion on discontinued operations.
26.
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The companies are exposed to market risks related to foreign
currency exchange rates, interest rates and commodity prices in
the ordinary course of business.
In order to offset or reduce these risks, the companies use
derivative instruments, such as foreign exchange forward
contracts, currency swap agreements, interest rate swap
agreements, commodity future, forward, option and swap
contracts, to hedge the exposure to changes in the fair value or
expected future cash flows of recognized assets and liabilities,
unrecognized firm commitments and forecasted transactions. The
companies also use non-derivative financial instruments, such as
foreign-currency-denominated debt, to hedge the foreign currency
exposure in the net investment in a foreign operation.
Foreign currency exchange rate risk hedging
activities
The companies use derivative instruments, such as foreign
exchange forward contracts, currency swap agreements and
interest rate and currency swap agreements, to fix the expected
future cash flows from foreign-currency-denominated receivables
and payables resulting from selling and purchasing activities in
currencies other than the local currency and long-term financing
transactions as part of the companies' global operations in
many countries. The companies also use non-derivative financial
instruments, such as foreign-currency-denominated debt, in order
to hedge the foreign currency exposure in the net investment in
a foreign operation.
Interest rate risk hedging activities
The companies use interest rate swap agreements and interest
rate and currency swap agreements to diversify the sources of
fund raising, reduce fund-raising costs, fix the expected future
cash flows from long-term financial assets and liabilities with
floating interest rates and reduce the exposure to changes in
the fair value of long-term financial assets and liabilities
with fixed interest rates.
F-76
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Commodity price risk hedging activities
The companies use derivative instruments, such as commodity
future, forward, option and swap contracts, to reduce the
exposure to changes in the fair value of inventories and
unrecognized firm commitments and to fix the expected future
cash flows from forecasted transactions in marketable
commodities, such as non-ferrous metals, crude oil and
agricultural products.
Risk management policy
The companies have strictly segregated the trading sections from
the sections that record the results and positions of derivative
instruments and are responsible for cash settlement and account
confirmation with counterparties. Risk management sections
classify the derivative transactions into trading transactions
and hedging transactions. The distinction between trading and
hedging transactions is strictly managed by affirming the
correspondence with the hedged items for transactions for
hedging purposes. Furthermore, these risk management sections
comprehensively monitor, evaluate and analyze the positions of
derivative instruments and report the results periodically to
the Company's executive officers in charge of risk
management. Based on these reports, the executive officers
assess derivative instruments and the market risks surrounding
these instruments, and establish the companies' policy
regarding derivative instruments.
Fair value hedges
Changes in the fair value of derivative instruments designated
as hedging the exposure to changes in the fair value of
recognized assets or liabilities or unrecognized firm
commitments are recorded in earnings together with changes in
the fair value of the corresponding hedged items.
The net gain or loss recognized in earnings representing the
amount of the hedges' ineffectiveness and the component of
the derivative instruments' gain or loss excluded from the
assessment of hedge effectiveness were immaterial for the years
ended March 31, 2005, 2004 and 2003.
The amount of net gain or loss recognized in earnings when a
hedged firm commitment no longer qualifies as a fair value hedge
was immaterial for the years ended March 31, 2005, 2004 and
2003.
Cash flow hedges
Changes in the fair value of foreign exchange forward contracts,
currency swap agreements and interest rate and currency swap
agreements designated as hedging instruments to hedge the
exposure to variability in expected future cash flows of
recognized assets or liabilities, unrecognized firm commitments
and forecasted transactions denominated in foreign currencies
are initially recorded as other comprehensive income. The
amounts in accumulated other comprehensive income are
reclassified into earnings when earnings are affected by the
hedged items.
Changes in the fair value of interest rate swap agreements
designated as hedging instruments to reduce the exposure to
variability in expected future cash flows of floating-rate
financial assets and liabilities are initially recorded as other
comprehensive income. The amounts in accumulated other
comprehensive income are reclassified into earnings as interest
expense when earnings are affected by the hedged items.
Changes in the fair value of commodity forward and swap
contracts designated as hedging instruments to hedge the
exposure to variability in expected future cash flows of the
marketable commodities are initially recorded as other
comprehensive income. The amounts in accumulated other
comprehensive income are reclassified into earnings as sales of
products or cost of products sold when earnings are affected by
the hedged transactions.
F-77
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The ineffective portion of the hedging instruments' gain or
loss and the component of the derivative instruments' gain
or loss excluded from the assessment of hedge effectiveness are
reported in earnings immediately. If the hedged forecasted
transaction will not occur by the end of the originally
specified time period, gain or loss on the hedging instrument
reported in accumulated other comprehensive income is
reclassified into earnings. These amounts were immaterial for
the years ended March 31, 2005, 2004 and 2003.
The estimated net amount of the existing gains or losses in
accumulated other comprehensive income at March 31, 2005
that is expected to be reclassified into earnings within the
next 12 months is a net gain of ¥217 million.
The maximum length of time over which the companies are hedging
their exposure to the variability in expected future cash flows
for forecasted transactions (excluding those forecasted
transactions related to the payment of variable interest on
existing financial instruments) is 26 months. Foreign
exchange forward contracts are used as hedging instruments for
the forecasted transactions.
Hedges of the net investment in a foreign operation
The foreign currency transaction gain or loss on the
non-derivative financial instrument that is designated as, and
is effective as, hedging instruments to hedge the foreign
currency exposure of a net investment in a foreign operation is
recorded as foreign currency translation adjustments within
other comprehensive income to the extent it is effective as a
hedge. The net amount of gains or losses included in the foreign
currency translation adjustments was immaterial for the years
ended March 31, 2005 and 2004.
Derivative instruments for trading purposes and risk
management policy
The Company and certain subsidiaries use derivative instruments
such as foreign exchange forward contracts, interest rate swap
agreements and commodity future, forward, swap and option
contracts for trading purposes. The Company's executive
officers in charge of risk management have set strict position
and loss limits for these instruments. Independent back offices
and middle offices strictly separated from trading sections
(front offices) monitor, evaluate and analyze the position of
trading transactions and market risks. Those results are
periodically reported to the executive officers. Among others,
VaR (Value at Risk: Statistical measure of the potential maximum
loss in the fair value of a portfolio resulting from adverse
market movements in the underlying risk factors such as foreign
currency exchange rates, interest rates and commodity prices,
over a defined period, within a certain confidence level) is
used to measure the market risks of derivative instruments for
trading purposes.
27.
FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS
In accordance with the requirements of SFAS No. 107,
the companies have provided the following fair value estimates
and information about valuation methodologies.
Quoted market prices, where available, are used to estimate fair
values of financial instruments. However, quoted market prices
are not available for a substantial portion of the financial
instruments. Accordingly, fair values for such financial
instruments are estimated using discounted cash flow analysis or
other valuation techniques.
Current financial assets other than marketable securities
and current financial liabilities
The carrying amount is believed to approximate the fair value of
the majority of these instruments because of their short
maturities.
F-78
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
Marketable securities and other investments
See Note 5, "MARKETABLE SECURITIES AND OTHER
INVESTMENTS."
Non-current receivables and advances to associated
companies
The fair values of non-current receivables, including fixed
rate, long-term loans receivable, are estimated by discounted
cash flow analysis, using interest rates currently being offered
for loans or accounts receivable with similar terms to borrowers
or customers of similar credit quality and remaining maturities.
It is believed that the carrying amounts of loans with floating
rates approximate the fair value.
Long-term debt
The fair values for long-term debt, except for debt with
floating rates whose carrying amounts approximate fair value,
are estimated by discounted cash flow analysis, using rates
currently available for similar types of borrowings with similar
terms and remaining maturities.
Financial guarantees and financing commitments
The fair values of financial guarantees are estimated based on
the present values of expected future cash flows, considering
the remaining terms of the arrangements and the
counterparties' credit standings.
The companies have not estimated the fair values of financing
commitments because management does not believe it is
practicable to estimate the fair values due to uncertainty
involved in attempting to assess the likelihood and timing of
commitments being drawn upon, coupled with the lack of an
established market. However, management believes the likelihood
is remote that material payments will be required under these
financing commitments.
Currency and interest rate swap agreements
The fair values of currency and interest rate swap agreements
are estimated by discounted cash flow analysis, using rates
currently available for similar types of swap agreements at the
reporting date. Currency swap agreements include certain
derivatives with both foreign exchange and interest rate
exposures. Fair values of those agreements consist of foreign
exchange and interest rate factors.
Foreign exchange forward contracts
The fair values of foreign exchange forward contracts are
estimated based on market prices for contracts with similar
terms.
F-79
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
The estimated fair values of certain financial instruments and
derivative financial instruments at March 31, 2005 and 2004
were as follows:
Millions of Yen
2005
2004
Carrying
Carrying
amount
Fair value
amount
Fair value
Financial Assets (other than Derivative Financial Instruments):
Current financial assets other than marketable securities
¥
3,510,747
¥
3,510,747
¥
3,108,795
¥
3,108,795
Non-current receivables and advances to associated companies
    (less allowance for doubtful receivables)
625,017
626,252
477,991
485,434
Financial Liabilities (other than Derivative Financial
    Instruments):
Current financial liabilities
(2,730,348
)
(2,730,348
)
(2,381,894
)
(2,381,894
)
Long-term debt (including current maturities)
(3,140,057
)
(3,146,342
)
(2,826,102
)
(2,877,995
)
Derivative Financial Instruments (Assets):
Interest rate swap agreements
54,398
54,398
28,378
28,378
Currency swap agreements
10,375
10,375
24,714
24,714
Foreign exchange forward contracts
19,941
19,941
20,540
20,540
Derivative Financial Instruments (Liabilities):
Interest rate swap agreements
(7,043
)
(7,043
)
(3,825
)
(3,825
)
Currency swap agreements
(5,113
)
(5,113
)
(8,227
)
(8,227
)
Foreign exchange forward contracts
(14,084
)
(14,084
)
(8,878
)
(8,878
)
CONCENTRATION OF CREDIT RISK
The companies' global operations include a variety of
businesses with diverse customers and suppliers which reduces
concentrations of credit risks. The companies deal with
selective international financial institutions to minimize the
credit risk exposure of derivative financial instruments. Credit
risk represents the likelihood that the counterparties may be
unable to meet the terms of the agreements. Management does not
expect any losses as a result of counterparty default on
financial instruments. Credit risk is managed through credit
line approval by management and by periodically monitoring the
counterparties.
F-80
Table of Contents
Notes to Consolidated Financial
Statements — (Continued)
Mitsui & Co., Ltd. and subsidiaries
28.     SUPPLEMENTAL CASH FLOW
INFORMATION
Supplemental information related to the Statements of
Consolidated Cash Flows is as follows:
Millions of Yen
2005
2004
2003
Cash paid during the year for:
Interest
¥
45,226
¥
58,235
¥
55,211
Income taxes (Note 21)
56,927
35,676
31,002
Non-cash investing and financing activities:
Exchange of shares in connection with a business combination of
    investees (EITF No. 91-5) (Note 5):
Fair market value of shares received
4,810
—
7,110
Cost of shares surrendered
2,029
—
2,635
Acquisitions of subsidiaries (Note 3):
Fair value of assets acquired
32,857
77,702
20,683
Fair value of liabilities assumed
15,021
71,302
8,336
Acquisition costs of subsidiaries
17,836
6,400
12,347
Non-cash acquisition cost
8,982
—
—
Cash acquired
3,621
10,259
1,139
Acquisitions of subsidiaries, net of cash acquired
5,233
(3,859
)
11,208
Consolidation of VIEs related to the implementation of
    FIN No. 46R (Note 24):
Total assets recorded
—
20,439
—
Total liabilities recorded
—
20,439
—
Contribution of securities to an employee retirement benefit
    trust (Notes 5 and 14)
—
—
27,343
29.     SUBSEQUENT EVENT
On June 24, 2005, the shareholders approved the payment of
a cash dividend to shareholders of record on March 31, 2005
of ¥10 per share or a total of
¥15,824 million at the Company's ordinary general
meeting of shareholders.
F-81
Table of Contents
SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES
(UNAUDITED)
In accordance with Statement of Financial Accounting Standards
("SFAS") No. 69, "Disclosures about Oil and
Gas Producing Activities," this section provides
supplemental information on oil and gas exploration and
producing activities of the companies in five separate tables.
Tables 1 through 3 provide historical cost information
pertaining to costs incurred for property acquisitions,
exploration and development; capitalized costs; and results of
operations. Tables 4 and 5 present information on the
companies' estimated net proved reserve quantities and
standardized measure of estimated discounted future net cash
flows related to proved reserves. The amounts for investments
that are accounted for by the equity method are separately
presented as "Associated Companies," for which the
companies' share of the investees' information on oil
and gas producing activities is presented in the following
tables. The "Consolidated Companies" column includes
activities in "Oceania" (Australia and New Zealand)
and "Middle East" (Qatar and Oman). The
"Associated Companies" column includes activities in
"Oceania" (Australia) and "Others"
(Sakhalin/ Russia and Thailand). The "Oceania" of
"Associated Companies" column of the following tables
includes information on liquefied natural gas ("LNG")
producing activities as an integral part of natural gas
producing activities.
TABLE 1.
COSTS INCURRED FOR PROPERTY ACQUISITION, EXPLORATION AND
    DEVELOPMENT*1,*2,*3
Millions of Yen
Associated
Consolidated Companies
Companies
Oceania
Middle East
Oceania
Others
Worldwide
Year Ended March 31, 2005:
Acquisition of Proved Properties
¥
20,944
—
—
¥
323
¥
21,267
Acquisition of Unproved Properties
26,403
—
—
—
26,403
Exploration
2,365
¥
93
¥
30
535
3,023
Development
15,909
6,466
5,432
91,464
119,271
Total Costs Incurred
¥
65,621
¥
6,559
¥
5,462
¥
92,322
¥
169,964
Year Ended March 31, 2004:
Acquisition of Proved Properties
—
—
—
¥
1,015
¥
1,015
Acquisition of Unproved Properties
¥
1,553
—
—
—
1,553
Exploration
1,102
¥
467
¥
599
209
2,377
Development
2,443
7,816
9,973
51,187
71,419
Total Costs Incurred
¥
5,098
¥
8,283
¥
10,572
¥
52,411
¥
76,364
Year Ended March 31, 2003:
Acquisition of Proved Properties
¥
1,444
¥
15,986
—
¥
44
¥
17,474
Acquisition of Unproved Properties
—
—
—
441
441
Exploration
637
586
¥
136
1,360
2,719
Development
998
4,809
5,636
16,957
28,400
Total Costs Incurred
¥
3,079
¥
21,381
¥
5,772
¥
18,802
¥
49,034
*1
Includes costs incurred whether capitalized or expensed.
*2
Excludes the cumulative-effect adjustment of
    ¥5,821 million for the initial application of
    SFAS No. 143, "Accounting for Asset Retirement
    Obligations," from the costs incurred for the year ended
    March 31, 2004.
*3
Includes capitalized asset retirement costs incurred in
    accordance with SFAS No. 143 for the years ended
    March 31, 2005 and 2004.
F-82
Table of Contents
TABLE 2.
CAPITALIZED COSTS RELATED TO OIL AND GAS PRODUCING
    ACTIVITIES
Millions of Yen
Consolidated Companies
Associated Companies
Oceania
Middle East
Oceania
Others
Worldwide
Year Ended March 31, 2005:
Proved Properties*
¥
60,775
¥
26,191
¥
126,618
¥
277,034
¥
490,618
Unproved Properties
26,346
—
—
4,818
31,164
Gross Capitalized Properties
87,121
26,191
126,618
281,852
521,782
Accumulated Depreciation, Depletion, Amortization and Valuation
    Allowances
14,261
5,710
69,435
85,830
175,236
Net Capitalized Costs
¥
72,860
¥
20,481
¥
57,183
¥
196,022
¥
346,546
Year Ended March 31, 2004:
Proved Properties*
¥
21,989
¥
23,674
¥
118,332
¥
185,443
¥
349,438
Unproved Properties
1,977
—
—
4,928
6,905
Gross Capitalized Properties
23,966
23,674
118,332
190,371
356,343
Accumulated Depreciation, Depletion, Amortization and Valuation
    Allowances
14,191
3,193
63,119
77,686
158,189
Net Capitalized Costs
¥
9,775
¥
20,481
¥
55,213
¥
112,685
¥
198,154
Year Ended March 31, 2003:
Proved Properties
¥
16,652
¥
21,194
¥
81,810
¥
95,413
¥
215,069
Unproved Properties
—
—
365
33,059
33,424
Gross Capitalized Properties
16,652
21,194
82,175
128,472
248,493
Accumulated Depreciation, Depletion, Amortization and Valuation
    Allowances
11,596
3,157
43,554
58,549
116,856
Net Capitalized Costs
¥
5,056
¥
18,037
¥
38,621
¥
69,923
¥
131,637
*
Includes capitalized asset retirement costs in accordance with
    SFAS No. 143.
F-83
Table of Contents
TABLE 3.
RESULTS OF OPERATIONS FOR OIL AND GAS PRODUCING
    ACTIVITIES*
The companies' results of operations from oil and gas
producing activities are shown in the following table. In
accordance with SFAS No. 69, income taxes are based on
statutory tax rates. Interest income and expense are excluded
from the results reported.
Millions of Yen
Associated
Consolidated Companies
Companies
Oceania
Middle East
Oceania
Others
Worldwide
Year Ended March 31, 2005:
Sales to Unaffiliated Enterprises
—
¥
2,686
¥
29,805
¥
30,631
¥
63,122
Transfers to Affiliated Enterprises
¥
4,028
14,330
7,791
—
26,149
Total Revenues
4,028
17,016
37,596
30,631
89,271
Production Cost
2,369
2,393
11,123
6,687
22,572
Exploration Expenses
2,365
93
126
535
3,119
Depreciation, Depletion, Amortization, Accretion and Valuation
    Allowances
436
3,252
3,669
5,562
12,919
Income Tax Expense
5
5,240
6,247
9,045
20,537
Results of Operations for Oil and Gas Producing Activities
¥
(1,147
)
¥
6,038
¥
16,431
¥
8,802
¥
30,124
Year Ended March 31, 2004:
Sales to Unaffiliated Enterprises
—
¥
1,385
¥
30,254
¥
21,564
¥
53,203
Transfers to Affiliated Enterprises
¥
4,240
11,086
6,603
—
21,929
Total Revenues
4,240
12,471
36,857
21,564
75,132
Production Cost
2,345
2,320
13,426
5,997
24,088
Exploration Expenses
900
467
242
209
1,818
Depreciation, Depletion, Amortization, Accretion and Valuation
    Allowances
597
2,365
5,230
6,281
14,473
Income Tax Expense
342
4,331
5,203
5,573
15,449
Results of Operations for Oil and Gas Producing Activities
¥
56
¥
2,988
¥
12,756
¥
3,504
¥
19,304
Year Ended March 31, 2003:
Sales to Unaffiliated Enterprises
¥
43
¥
8,790
¥
28,789
¥
19,856
¥
57,478
Transfers to Affiliated Enterprises
4,916
3,123
7,351
—
15,390
Total Revenues
4,959
11,913
36,140
19,856
72,868
Production Cost
2,156
2,460
13,402
5,867
23,885
Exploration Expenses
637
295
489
1,360
2,781
Depreciation, Depletion, Amortization and Valuation Allowances
530
2,272
4,984
4,503
12,289
Income Tax Expense
521
3,168
7,320
4,239
15,248
Results of Operations for Oil and Gas Producing Activities
¥
1,115
¥
3,718
¥
9,945
¥
3,887
¥
18,665
*
Excludes the cumulative-effect adjustment of
    ¥2,214 million for the initial application of
    SFAS No. 143 from the results of operations for the
    year ended March 31, 2004.
F-84
Table of Contents
TABLE 4.
PROVED RESERVE QUANTITY INFORMATION
The following table describes proved oil and gas reserves and
changes thereto for the years ended March 31, 2005, 2004
and 2003. The definitions used herein are in accordance with
SFAS No. 25, "Suspension of Certain Accounting
Requirements for Oil and Gas Producing Companies."
Proved Developed and Undeveloped Reserves:
Millions of Barrels
Billions of Cubic Feet
Crude Oil, Condensate and Natural Gas Liquids*1
Natural Gas*1*3
Consolidated
Associated
Consolidated
Associated
Companies
Companies
Companies
Companies
Oceania
Middle East
Oceania
Others
Worldwide
Oceania
Middle East
Oceania
Others
Worldwide
Reserves at April 1, 2002
11
9
39
59
118
—
—
1,155
219
1,374
Changes Attributable to:
Revision of Previous Estimates (includes improved recovery)
—
—
7
16
23
—
—
59
(3
)
56
Extensions and Discoveries
—
—
—
—
—
—
—
—
—
—
Purchases
3
22
—
—
25
27
—
—
29
56
Sales
—
—
—
—
—
—
—
—
—
—
Production
(2
)
(3
)
(6
)
(4
)
(15
)
—
—
(41
)
(24
)
(65
)
Reserves at March 31, 2003
12
28
40
71
151
27
—
1,173
221
1,421
Changes Attributable to:
Revision of Previous Estimates (includes improved recovery)
—
(3
)
5
7
9
—
—
(282
)
2
(280
)
Extensions and Discoveries
—
—
—
52
52
—
84
—
729
813
Purchases
—
—
—
2
2
—
—
—
42
42
Sales
—
—
—
—
—
—
—
—
—
—
Production
(2
)
(2
)
(6
)
(5
)
(15
)
—
—
(45
)
(29
)
(74
)
Reserves at March 31, 2004
10
23
39
127
199
27
84
846
965
1,922
Changes Attributable to:
Revision of Previous Estimates (includes improved recovery)
—
3
(6
)
(32
)
(35
)
—
—
(26
)
4
(22
)
Extensions and Discoveries
2
1
—
—
3
42
—
—
437
479
Purchases
39
—
—
2
41
—
—
—
21
21
Sales
—
—
—
—
—
—
—
—
—
—
Production
(1
)
(3
)
(5
)
(5
)
(14
)
—
(9
)
(49
)
(34
)
(92
)
Reserves at March 31, 2005
50
24
28
92
194
69
75
771
1,393
2,308
Proved Developed Reserves*2:
Reserves at April 1, 2002
11
9
17
18
55
—
—
370
66
436
Reserves at March 31, 2003
9
28
17
18
72
—
—
364
58
422
Reserves at March 31, 2004
7
23
14
19
63
—
84
330
69
483
Reserves at March 31, 2005
6
24
14
18
62
—
75
356
82
513
*1
1 barrel of crude oil = 5,800 cubic feet of natural gas
*2
The proportion of Proved Developed Reserves to Proved Developed
    and Undeveloped Reserves is about 25% as of March 31, 2005
    and relatively low. The expected costs to develop these
    undeveloped reserves are estimated to be
    ¥313,911 million in total as of March 31, 2005,
    which is included in "Future Development Cost" in
    Table 5. The major undeveloped reserves are attributable to an
    associated company in Russia and an associated company in
    Australia. It is expected to commence the production of crude
    oil in 2006 and LNG in 2007, for the associated company in
    Russia. In relation to the associated company in Australia, the
    production of crude oil and LNG has already commenced at the
    existing facilities. The drilling of additional development
    wells will be performed over the project life according to the
    drilling program of the project.
*3
The proved gas reserves are restricted to those volumes that are
    related to firm sales commitments.
F-85
Table of Contents
TABLE 5.
STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS
    RELATED TO PROVED OIL AND GAS RESERVES
The standardized measure of discounted future cash flows,
related to preceding proved oil and gas reserves, is calculated
in accordance with SFAS No. 69. Estimated future cash
inflows from production are computed by applying year-end prices
to year-end quantities of estimated net proved reserves. Future
development and production costs are those estimated future
expenditures necessary to develop and produce year-end estimated
proved reserves based on year-end cost indices, assuming
continuation of year-end economic conditions. Estimated future
income taxes are calculated by applying appropriate year-end
statutory tax rates. Discounted future net cash flows are
calculated using a discount factor of 10 percent. The
information provided does not represent management's
estimate of the companies' expected future cash flows or
value of proved oil and gas reserves. Estimates of proved
reserve quantities shall change over time as new information
becomes available. Moreover, probable and possible reserves,
which may become proved in the future, are excluded from the
calculations. The arbitrary valuation prescribed under
SFAS No. 69 requires assumptions as to the timing of
future development and production costs. The calculations are
made as of each fiscal year-end and should not be relied upon as
an indication of the companies' future cash flows or value
of their oil and gas reserves.
1)
Standardized Measure of Discounted Future Net Cash
    Flows
Millions of Yen
Consolidated Companies
Associated Companies
Oceania
Middle East
Oceania
Others
Worldwide
At March 31, 2005:
Future Cash Inflows from Production
¥
206,903
¥
180,308
¥
392,005
¥
1,021,275
¥
1,800,491
Future Production Cost
(39,241
)
(20,760
)
(161,141
)
(240,064
)
(461,206
)
Future Development Cost
(42,915
)
(9,467
)
(98,020
)
(267,650
)
(418,052
)
Future Income Taxes
(37,675
)
(80,860
)
(62,292
)
(141,239
)
(322,066
)
Undiscounted Future Net Cash Flows
87,072
69,221
70,552
372,322
599,167
10% Annual Discount for Timing of Estimated Cash Flows
(35,103
)
(27,902
)
(28,197
)
(275,684
)
(366,886
)
Standardized Measure of Discounted Future Net Cash Flows
¥
51,969
¥
41,319
¥
42,355
¥
96,638
¥
232,281
At March 31, 2004:
Future Cash Inflows from Production
¥
36,333
¥
138,382
¥
382,405
¥
656,697
¥
1,213,817
Future Production Cost
(20,177
)
(20,641
)
(226,059
)
(145,972
)
(412,849
)
Future Development Cost
(5,140
)
(9,067
)
(4,850
)
(228,608
)
(247,665
)
Future Income Taxes
(2,085
)
(58,820
)
(51,950
)
(98,338
)
(211,193
)
Undiscounted Future Net Cash Flows
8,931
49,854
99,546
183,779
342,110
10% Annual Discount for Timing of Estimated Cash Flows
(1,539
)
(21,446
)
(39,289
)
(211,595
)
(273,869
)
Standardized Measure of Discounted Future Net Cash Flows
¥
7,392
¥
28,408
¥
60,257
¥
(27,816
)
¥
68,241
F-86
Table of Contents
Millions of Yen
Consolidated Companies
Associated Companies
Oceania
Middle East
Oceania
Others
Worldwide
At March 31, 2003:
Future Cash Inflows from Production
¥
51,459
¥
124,006
¥
795,677
¥
307,554
¥
1,278,696
Future Production Cost
(21,526
)
(21,462
)
(348,748
)
(76,675
)
(468,411
)
Future Development Cost
(6,246
)
(10,206
)
(15,476
)
(41,685
)
(73,613
)
Future Income Taxes
(7,773
)
(50,141
)
(119,352
)
(60,375
)
(237,641
)
Undiscounted Future Net Cash Flows
15,914
42,197
312,101
128,819
499,031
10% Annual Discount for Timing of Estimated Cash Flows
(5,774
)
(18,320
)
(191,033
)
(67,421
)
(282,548
)
Standardized Measure of Discounted Future Net Cash Flows
¥
10,140
¥
23,877
¥
121,068
¥
61,398
¥
216,483
2)
Details of Changes for the Year
Millions of Yen
Consolidated Companies
Associated Companies
Worldwide
2005
2004
2003
2005
2004
2003
2005
2004
2003
Present Value at April 1
¥
35,800
¥
34,017
¥
8,951
¥
32,441
¥
182,466
¥
125,565
¥
68,241
¥
216,483
¥
134,516
Sales/ Transfers of Oil and
Gas Produced, Net of Production Costs
(16,282
)
(12,046
)
(12,256
)
(50,417
)
(38,998
)
(36,727
)
(66,699
)
(51,044
)
(48,983
)
Development Costs Incurred
22,375
10,259
5,807
96,896
61,160
22,593
119,271
71,419
28,400
Purchases of Reserves in Place
23,150
—
24,635
1,578
1,894
—
24,728
1,894
24,635
Extensions and Discoveries
11,117
16,746
—
124,122
119,609
—
135,239
136,355
—
Net Changes in Prices, Development and Production Cost
23,033
(2,475
)
7,156
(37,454
)
(253,034
)
(4,650
)
(14,421
)
(255,509
)
2,506
Revisions of Previous Quantity*1
—
(2,837
)
—
(33,933
)
(37,158
)
64,001
(33,933
)
(39,995
)
64,001
Accretion of Discount
3,580
3,402
895
3,244
18,247
12,557
6,824
21,649
13,452
Net Changes in Income Taxes
(11,387
)
(137
)
(1,127
)
1,839
29,126
(6,076
)
(9,548
)
28,989
(7,203
)
Others*2
1,902
(11,129
)
(44
)
677
(50,871
)
5,203
2,579
(62,000
)
5,159
Net Changes for the Year
57,488
1,783
25,066
106,552
(150,025
)
56,901
164,040
(148,242
)
81,967
Present Value at March 31
¥
93,288
¥
35,800
¥
34,017
¥
138,993
¥
32,441
¥
182,466
¥
232,281
¥
68,241
¥
216,483
*1
Includes amounts resulting from changes in the timing of
    production.
*2
Main portion of "Others" is foreign currency
    translation adjustments.
F-87
Table of Contents
SIGNATURE
Pursuant to the requirements of Section 12 of the
Securities Exchange Act of 1934, the registrant hereby certifies
that it meets all of the requirements for filing on
Form 20-F and that it has duly caused and authorized the
undersigned to sign this annual report on its behalf.
MITSUI & CO., LTD.
(Registrant)
Date: September 26, 2005
by
/s/ Kazuya Imai
Kazuya Imai
Senior Executive Managing Officer and
Chief Financial Officer
Table of Contents
INDEX OF EXHIBITS
Exhibit
Number
Document
1
.1
The Articles of Incorporation of Mitsui & Co., Ltd., as
    of June 24, 2005 (English-language translation).
1
.2*
The Share Handling Regulation of Mitsui & Co., Ltd., as
    amended on June 24, 2004 (English-language translation).
1
.3*
The Rules of the Board of Directors of Mitsui & Co.,
    Ltd., as amended on April 1, 2004 (English-language
    translation).
1
.4
The Rules of the Board of Corporate Auditors of
    Mitsui & Co., Ltd., as amended on September 8,
    2004 (English-language translation).
2
.1**
Deposit Agreement, dated October 1, 1982 among
    Mitsui & Co., Ltd., Citibank, N.A., and holders of ADRs
    and European Depositary Receipts.
8
.1
List of Subsidiaries of Mitsui & Co., Ltd.
11
.1
Code of Ethics for Senior Financial Officers and Professionals.
11
.2
Business Conduct Guidelines for Employees and Officers of
    Mitsui & Co., Ltd.
12
.1
Certification of the principal executive officer of
    Mitsui & Co., Ltd. required by Rule 13a-14(a).
12
.2
Certification of the principal financial officer of
    Mitsui & Co., Ltd. required by Rule 13a-14(a).
13
.1
Certification required by Rule 13a-14(b) and
    Section 1350 of Chapter 63 of Title 18 of the
    United States Code.
*
Incorporated by reference to the corresponding exhibit to our
    annual report on Form 20-F
(File No. 0-9929) filed on September 30, 2004.
**
Incorporated by reference to the corresponding exhibit to our
    annual report on Form 20-F
(File No. 0-9929) filed on September 27, 2002.
We have not included as exhibits certain instruments with
respect to our long-term debt, the amount of debt authorized
under each of which does not exceed 10% of our total assets, and
we agree to furnish a copy of any such instruments to the
Securities and Exchange Commission upon request.