July 16, 2004

The conversion price for Kanematsu's 2nd issue of unsecured non-detachable warrants has been revised upward, as follows:

1. Conversion Price Revision
Name of convertible bond: New Price Former Price

Kanematsu Corp.'s 2nd issue of unsecured non-detachable warrants
(Non-detachable warrants with a special clause for non-subordination to other bonds traded solely in Japan)

 \157.60 \168.90

2. Effective: July 20, 2004

3. Grounds for the Revision:
The revision in question has been made in response to a decline in the Company's share price. Such a change is provided for in the terms specified in the bond prospectus.