Chiyoda Announces Mid-Term Corporate Plan for ''Double Step Up'' in Reliability and Earnings Growth.

TOKYO -- Target: Equity ratio of at least 30% by the end of fiscal 2008

Chiyoda Corporation (OTC:CHYCF) has created a Mid-Term Corporate Plan called Double Step Up 2008 that covers the four-year period ending in the 2008 fiscal year. During the past four years, the Chiyoda Group has concentrated on two strategic themes: focusing resources on business fields where it has technological superiority, particularly Gas Value Chain such as LNG and ethylene; and strengthening its ability to execute projects. This has produced significant results, including the achievement of the five-year rebuilding plan in only three and a half years.

In an environment for new contracts where the continuation of "gas shift" and the growing scale of plants and projects is certain, Chiyoda will continue to concentrate on and strengthen the above two strategic themes. Concurrently, to lay the groundwork for creating new-era businesses and achieving sustainable growth, Double Step Up 2008 is also positioned as a time for steady progress in two more respects: establishing a sound financial position; and creating a vibrant corporate culture and refining employee skills.

1. Group Vision -- Double Step Up

(a) Use superiority in technology and project execution to become the Reliability No.1 Project Company.

(b) Use business process improvements to become an Excellent Company able to sustain earnings growth.

2. Group Strategy

(a) Leverage technological superiority to build customer relationships as a reliable partner.

(b) Leverage strengths to reinforce project execution skills through IT-driven improvements.

(c) Establish a sound financial position able to support the creation of new-era businesses.

(d) Establish a vibrant corporate culture and refine employee skills.

3. Targeted Performance Indicator and Projected Growth (Consolidated)

Targeted performance indicator: Raise equity ratio to at least 30% by the end of fiscal 2008 (18.3% at the end of FY04 third quarter).

(billion yen)
----------------------------------------------------------------------
  Projected Growth    FY 2004   FY 2005   FY 2006  FY 2007   FY 2008
----------------------------------------------------------------------
Net sales                250.0     290.0    310.0     340.0     340.0
----------------------------------------------------------------------
Operating profit           8.8      11.5     17.5      20.5      20.5
----------------------------------------------------------------------
Ordinary profit            9.2      11.5     17.5      20.5      20.5
----------------------------------------------------------------------
Net profit                10.0      10.5     11.0      11.5      11.5
----------------------------------------------------------------------

4. Basic Policy for Earnings Distributions

Chiyoda's policy is to pay a stable dividend in accordance with operating results while increasing retained earnings. A dividend per share of 5 yen is planned for fiscal 2004, and the goal is to raise the dividend per share to at least 10 yen by fiscal 2008.

Chiyoda Corporation, headquartered in Yokohama, Japan, provides services on a global basis in the field of engineering, procurement and construction (EPC) for gas processing, refineries, and other hydrocarbon or other industrial plant projects, particularly for LNG, GTL and DME.