Second and Third Contracts Concluded with Vietnamese Shipyards for Japanese Owners

April 21, 2005

In March of this year, Kanemats concluded its second contract with a Vietnamese shipyard for the construction of two ships for two different Japanese owners. Both ships will be built at the Ben Kien Shipyard, owned by the state-run shipbuilder Vinashin*, and both will be single-decker general cargo carriers of approximately 8,700 DWT. The first ship is scheduled for delivery in May 2006 and the other in August of the same year. This is the first cargo ship order to be placed with Ben Kien Shipyard for a Japanese owner.

In March, Kanematsu also concluded its third contract with a Vietnamese shipyard, this time for an order placed with Bach Dang Shipyard, another member of the Vinashin Group, on behalf of Noma Shipping Co., Ltd. for a general cargo vessel of approximately 10,500 DWT. All of these contracts have agreements under which Kanematsu provides Vietnamese shipyards with vessel designing services and package deliveries of shipbuilding equipment.

Kanematsu’s first contract with a Vietnamese shipyard was for an order placed with Bach Dang Shipyard in July 2003, on behalf of Noma Shipping Co., Ltd. Construction was completed in December 2004, and the vessel is currently in operation. This vessel has been well received by its operators, and has provided evidence of the trustworthiness of the shipyard’s shipbuilding capabilities and expertise. It is for this reason that a new cargo vessel order has been placed with Ben Kien Shipyard.

Kanematsu will continue making active efforts to facilitate and organize shipbuilding transactions of a similar nature with Vietnamese shipyards for Japanese ship owners.

*Note: The Vietnam Shipbuilding Industry Corporation (Vinashin) is one of several Vietnamese companies operating under the direct control of the Vietnamese Government. The Vietnam Shipbuilding Union was reorganized in January 1996 to form the current corporate structure, and the name was changed to Vinashin. The Company undertakes shipbuilding, ship repair, and ship design, as well as steel structure and marine construction. Vinashin has 52 subsidiaries with a total of 20 shipyards, which include the Bach Dan Shipyard and the Ben Kien Shipyard.