Corporations and Investors Position Themselves to Compete in the New Japan.

Business/Government/Assignment Editors

NEW YORK--(BUSINESS WIRE)--March 19, 2003

The Japan External Trade Organization  New York (JETRO NY) released a newsletter today highlighting corporate and investor activity in Japan. It can be viewed at: http://www.jetro.org/newyork/focusnewsletter/focus21.html.

* Japanese Corporate and Financial Practices in the Midst of

Fundamental Change

-- Nomura Securities reports that M&A transactions involving Japanese firms rose 25% in 2002.

-- Japan's Nikkei newspaper notes 51% of Japanese listed firms saw share ownership by financial institutions decline compared with six months ago.

-- One recent account stated temporary workers in Japan are expected to soon number more than 15 million -- nearly 30% of the nation's workforce.

-- It has been reported that corporate bankruptcies in Japan rose to 19,500 in 2002 - the second highest figure on record -- and only 5% sought reconstruction under the government-sponsored rehabilitation measures.

* Japanese Firms Restructure to Enhance Their Competitiveness

-- Seibu Department Stores recently announced a 1.9

billion yen reorganization plan.

-- NKK Corp and Kawasaki Steel merger achieved the top

position in a survey listing the new group as the top

choice of 43 major institutional investors.

-- Matsushita initiated a complete reorganization, creating

full autonomy among its business units.

-- Nissho Iwai and Nichimen plan to integrate their

operations into a single holding company.

-- Shinsei Bank and Seiyu are adopting many new practices as

a result of investments they received from foreign

shareholders.

-- Marubeni appointed a restructuring veteran to lead firm

back to profitability.

-- Minolta and Konica are slated to consolidate their

operations.

-- Hitachi plans to dispose of operations that account for

about 20% of net sales to improve its profitability.

* Entrepreneurial Firms Introduce New Business Models in Japan

Entrepreneurial firms are changing social dynamics and economic trends to identify market niches where they can command a competitive advantage.

* Foreign Corporate and Portfolio Investors Begin to Expand their

Japanese Exposure

American Chamber of Commerce in Japan president Lance Lee, noted in a recent interview with the Nikkei Weekly that "...personally, I'm very optimistic about the future of Japan. With a society of people with high literacy, a strong work ethic and a good habit of saving, no businessperson can help but be optimistic."

-- Goldman Sachs recently announced an investment of

approximately $1.26 billion in Sumitomo Mitsui Financial

Group as well as four hotels in another transaction

totaling over $360 million.

-- Walmart has become the major shareholder of the Seiyu

supermarket chain.

-- Prada, Ferragamo, Christian Dior and Coach all announced

their intention to open major new stores in Japan this

year.

-- U.S. real estate giant CB Richard Ellis announced plans to

invest (Y)300 million in Japan over next two years.

Data and statistics have been compiled by JETRO from publicly-released media accounts. JETRO does not guarantee their accuracy, and any such information should be checked by the reader before they are used to make any business or investment decision.

Focus is published and disseminated by JETRO New York, in coordination with KWR International, Inc., New York, NY 10023, Tel: [phone], Fax: [phone], E-mail: [e-mail]. JETRO New York is registered as an agent of the Japan External Trade Organization, Tokyo, Japan and KWR International, Inc. is registered on behalf of JETRO New York. This material is filed with the Department of Justice where the required registration e time away,