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Mitsui to Acquire Locomotive Leasing Company and Purchase 50 Locomotives from Siemens AG, Germany.

Tokyo, Japan, Sept 21, 2006 - (JCN Newswire) - Mitsui & Co., Ltd. (TSE:8031) announced today that it had reached a basic agreement with Siemens AG ("Siemens") of Germany on the acquisition of a locomotive leasing company, Siemens Dispolok GmbH ("Dispolok", currently a 100% subsidiary of Siemens). In addition to this acquisition, Mitsui ordered 50 electric locomotives manufactured by Siemens for approximately 25 billion yen, which will be delivered within next 3 years. The transactions are scheduled to take place in October 2006, subject to regulatory approvals by the German authorities.

Mitsui has been expanding its locomotive leasing business mainly in West European countries such as Germany, the Netherlands, Belgium and France, with 50 locomotives owned and operated through its wholly owned subsidiary Mitsui Rail Capital Europe B.V. ("MRCE"), which was established in October 2004. Dispolok, meanwhile, currently leases out approximately 100 locomotives in Germany, Austria, Italy and Central and East European countries. Following the acquisition of Dispolok, the combined locomotive fleet leased by Mitsui through MRCE and Dispolok will increase to 150 units, creating an operating base which covers the whole European continent.

The 50 locomotives to be purchased are multi-system units, equipped with various power and safety systems that will allow Mitsui to efficiently handle the increasing demand of cross-border operations along with enlargement of the European Union and liberalization of the railroad industry.

Mitsui entered the advanced freight car leasing market in the United States in 1996, building on the operational and managerial expertise gained from more than a decade of freight car leasing and maintenance operations. Leveraging this experience, in 2004 Mitsui entered the European locomotive leasing market as the first Japanese company. Through further expansion of its asset base both at MRCE and Dispolok and through ongoing measures to reinforce its maintenance and train operation management services, Mitsui aims to lead the market.

The importance of rail transportation is increasing over the world due to its energy efficiency and less environmental load as well as its mass transportation capacity of goods.

The EU, in particular, has been taking strong initiatives to enhance freight transportation capacity by rail through liberalization of the railroad industry. On top of the rolling stock leasing business, Mitsui intends to diversify its activities into logistics and freight transportation services using the railway network within Europe.

About Siemens Dispolok GmbH
Head Office: Munich,the Federal Republic of Germany
Establishment: 2001
Business: Siemens locomotive leasing and maintenance management in
 Europe
Capital: 2 million Euro
Shareholder: Siemens Beteiligungen Inland GmbH 100%
 (Siemens Aktiengesellschaft("SAG") 100%)
Employees: 29
Locomotives: 107 (as of September 2006) (all manufactured between
 2001 - 2006)
Major customers: National Railways(Austria, Slovenia, Croatia),
 TX-Logistics(Germany), Rail4Chem(Germany),
 Wiener Lokalbahn(Austria), Ferrovia Nord Milano (Italy)
Sales: 44 million Euro(estimate for the year ending September
 2006)


About Mitsui and Co., Ltd.

Mitsui and Co., Ltd. (TSE:8031; NASDAQ:MITSY) is one of the largest trading houses in the world and is active in a wide range of trading activities, along with the development of energy sources and other natural resources for various industries. These include export, import, domestic and offshore transactions in such industrial materials as steel, non-ferrous metals and chemicals as well as in machinery, electronic and industrial products and lifestyle-related products, including foodstuffs, textiles and general merchandise. Mitsui is also involved in various businesses related to the aforementioned activities, as well as telecommunications and IT, service businesses and regional development. For more information, please visit www.mitsui.co.jp.

Source: Mitsui and Co., Ltd.

Contact:
Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7548
Facsimile: +81-3-3285-9819

Mitsui & Co., Ltd.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9819
E-Mail : infoTKADZ@mitsui.com


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Publication:JCN Newswires
Date:Sep 21, 2006
Words:624
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