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Corporate Disclosure [August 20, 2004]

[August 20, 2004] Notification of revision of conversion price for Kanematsu’s 2nd issue of unsecured non-detachable warrants (“convertible bonds”)

The conversion price has been revised downward, 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
¥147.20 ¥157.60

2. Effective: August 23, 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.

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