February 28, 2006

Nissui Signs Letter of Understanding on Assisting Turnaround of Kurahashi Co., Ltd.

Nippon Suisan Kaisha, Ltd. (Naoya Kakizoe, President & CEO) has signed a letter of understanding with Kurahashi Co., Ltd. and Chugoku Bank, Ltd. (head office: Okayama City, President: Akira Nagashima) on the business turnaround of Kurahashi Co., Ltd.

Nissui decided to take part in assisting the business turnaround of Kurahashi Co., Ltd. (hereinafter referred to as "Kurahashi") in response to requests by Kurahashi and Chugoku Bank.

Kurahashi will establish a new company (hereinafter referred to as "New Kurahashi") based on joint capital investment according to the business turnaround plan under the RCC Corporate Rehabilitation Scheme and transfer its business rights to New Kurahashi. Nissui will have a 36% equity stake in New Kurahashi, dispatch one Director and one Auditor and provide assistance in product supply and funding.

Kurahashi has had dealings with Nissui for many years in seafood wholesale and sale of frozen foods and processed foods, and plays an important role as a local supplier of food products including seafood.

In consideration of these circumstances, Nissui has decided to sign the Letter of Understanding based on the judgment that Kurahashi can be rehabilitated by consolidating its businesses into core businesses, namely, seafood wholesale and sale of frozen foods and processed foods.