September 29, 2006

Construction of New Nissui Kashima Plant

Please be informed that Nippon Suisan Kaisha, Ltd. (Naoya Kakizoe, President & CEO) entered into an agreement with Dainippon Ink and Chemicals, Incorporated on September 27 to purchase land for the construction of a new Kashima Plant in Kamisu, Ibaraki Prefecture, aimed at strengthening the company's fine chemicals businesses.

Under the New TGL (Toward Global Links) Plan which kicked off this year, Nissui aims to achieve growth by concentrating management resources on "research and development" and the company's "manufacturing function". In line with this policy, Nissui will construct the Kashima Plant as a manufacturing base equipped with advanced fish oil refinement technologies for the pharmaceuticals, functional materials and fish feeds markets as well as the latest technologies and systems for manufacturing new materials.

In addition, Nissui will move ahead with the integration and concentration of Group functions in these businesses, and position the Kashima plant as a key plant for further developing these businesses and significantly boosting their profitability.

One of the main drivers of future growth identified in the New TGL Plan is the fine chemicals business. In this business, Nissui plans to link the Kashima Plant with the Tsukuba Plant, which manufactures pharmaceuticals and functional oils, in order to promote technological innovation and improve productivity of the business as a whole.

In stage one of the construction, the plant will be equipped for manufacturing pharmaceuticals and pharmaceutical by-products, while in stage two investment will be made in plant and equipment with a view to merging the Group's manufacturing facilities and expanding production in the fine chemicals/fine foods businesses, which includes functional foods and chemical products. Nissui will reinforce its expansion of pharmaceuticals and nutritional products such as highly-unsaturated fatty acid-related products, chitin and chitosan derivatives as well as waxes and cholesterol products of marine origin, while also strengthening the cosmetics segment.

[Reference]
For more information about the medium-term management plan, please refer to the materials handed out at the presentation held on April 6, 2006. (http://www.nissui.co.jp/english/ir/management_policy/tgl/index.html)