October 5, 2007

Concerning capital investment in domestic and overseas production companies

This is to inform you that Nippon Suisan Kaisha, Ltd. (President & CEO: Naoya Kakizoe) has agreed to make capital investments in Kaneko Shokuhin Co., Ltd. (Headquarters: Mitoyo City, Kagawa Prefecture), Kunihiro Inc. (Headquarters: Onomichi City, Hiroshima Prefecture), which are domestic frozen prepared food companies, Sasaya Shoten Co., Ltd. (Headquarters: Kushiro City, Hokkaido), which is a domestic seafood processing company, and Tai Mei Food Industrial Corp. (Headquarters: Kaohsiung County, Taiwan), which is an overseas frozen prepared food company.

The aim of capital investments in these companies is to strengthen links among our processed foods business and marine products business, and in particular to further improve the level of production management at these companies, as well as to ensure food safety and security based on the quality control standards the Company demands, improve competitiveness, build up a stable supply structure, and strengthen related functions as a manufacturer in accordance with the policies of the Company’s medium-term management plan that began in FY2006 (New TGL Plan: from 2006 to 2011).

Until now, these companies have produced foods such as octopus balls, fried oysters and green soybeans which fall under the major category of frozen prepared foods for consumer and commercial use under processed foods business, and have also supplied raw materials (such as surimi (fish paste) and salmon processing) for some of the Company’s major products. Through capital investments in these companies, we will allow us to further strengthen our continuing partnerships with them, and by sharing the development, production and sales capacities held by our group, we can maximize value and aim to capitalize on synergistic benefits along the supply chain.

<< Overview of companies and our capital investments >>
All of the companies are affiliates subject to the equity method in Nissui’s consolidated accounting.

Kaneko Shokuhin Co., Ltd.
Location: 177-3 Nio-otsu, Nio-cho, Mitoyo City, Kagawa Prefecture
Representative: Shigemasa Namikoshi, President
Established: March 1966
Capitalization: 40,000,000 yen
Line of business: Production and sale of frozen prepared foods (octopus balls)
Sales volume: 3,008,000,000 yen (year ended February 2007)
Number of employees: 160 (as of the end of February 2007)
Ratio of ownership by the Company: 20.5%

Kunihiro Inc.
Location: 15-13 Higashi Onomichi, Onomichi City, Hiroshima Prefecture
Representative: Ikuzo Kawasaki, President
Established: July 1970
Capitalization: 90,000,000 yen
Line of business: Production and sales of frozen prepared foods, processing and sales of seafood, wholesale of fresh seafood (fried oysters)
Sales volume: 7,603,000,000 yen (year ended June 2007)
Number of employees: 293 (as of the end of June 2007)
Ratio of ownership by the Company: 20.5%

Sasaya Shoten Co., Ltd.
Location: 8-19 Otanoshike, Kushiro City, Hokkaido Prefecture
Representative: Masayuki Sasaya, President
Established: June 1983
Capitalization: 98,380,000 yen
Line of business: Seafood processing (surimi (fish paste) and salmon flakes)
Sales volume: 16,462,000,000 yen (year ended May 2007)
Number of employees: 282 (as of the end of May 2007)
Ratio of ownership by the Company: 20.0%

Tai Mei Food Industrial Corp.
Location: Hwa Chung Road, Daliao, Kaohsiung County, Taiwan
Representative: Ching-chien Tsai, President
Established: August 1972
Capitalization: 365,000,000 yen
Line of business: Production and sale of frozen vegetables (green soybeans)
Sales volume: 1,194,000,000 yen (year ended December 2006)
Number of employees: 120 (as of the end of December 2006)
Ratio of ownership by the Company: 25.0%