Sumitomo, Marubeni and Mitsui in Talks to Integrate LPG Operations.

Tokyo, Japan, Dec 25, 2006 - (JCN) - Sumitomo Corporation, Marubeni Corporation and Mitsui & Co., Ltd. announced that they have exchanged a memorandum with each other, agreeing to discuss integrating operations in the liquid petroleum gas (LPG) business.

By integrating the operations, the three companies, which are currently operating all segments of the LPG business from import, wholesaling to retailing, aim to increase their efficiency and competitiveness, to provide more finely-tuned services and to improve the quality of operations through a comprehensive security system, in order to stably and safely supply LPG, a clean energy, to customers.

The LPG industry in Japan is still in a difficult situation due to competition with other energy sources. As a result, the three companies have decided that integrating their LPG operations could enhance their wholesale functions and optimize their sales structures (reduce distribution cost, reinforce security measures and so on).

Integration would be achieved through the appropriate reallocation of management resources, taking advantage of their consistent sales system from import, wholesaling to retailing, and their scale, thus enabling them to play a leading role in the industry.

The three companies will examine various types of integration of all domestic LPG operations, from import, wholesaling to retailing, and the organizational structures of the group of three companies, including integration of import terminals, secondary bases and filling stations, and streamlining of their distribution systems.

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