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To Our Stakeholders

I would like to extend a warm thank you to everyone for your continued support.

Firstly, I am pleased to announce that the General Shareholders' Meeting held June 25 went smoothly. In the General Shareholders' Meeting having an opportunity to announce the results of one year's business activities I wish to thank shareholders for their participation, for sharing all your most valued opinions and approving the reported matters. For me it is a fresh opportunity to promote ideas concerning Sojitz Group's efforts to boost corporate value by contributing to society throughout the world.

Today, Sojitz posted its first quarter results for fiscal 2008 (ending March 2009). Net sales rose by ¥29.9 billion year on year to ¥1,407.2 billion. Gross trading profit increased ¥3.3 billion year on year to ¥68.5 billion and recurring profit, impacted by factors such as higher SG&A expenses and reduced equity in earning of unconsolidated subsidiaries and affiliates, increased year on year by ¥0.1 billion to ¥28.5 billion. The recurring profit result equates to 29% progress towards achieving the full-year recurring profit forecast target.

As a result of the above, net income was ¥16.3 billion, logging a progress of 27% with respect to the full-year forecast target of ¥60.0 billion. At the end of the first quarter of our final year of the New Stage 2008 medium-term management plan, our progress status is on track to achieving the plan targets. We are continuing these efforts and are pushing ahead with our sights firmly on achieving the plan targets for fiscal 2008.

Looking at the current environment of the global economy, future prospects have become even gloomier than the situation at the beginning of the calendar year. While the U.S. economic prognosis is fast deteriorating on one hand, the soaring resources and food prices are generating inflationary pressures on the other. The financial situation is becoming less and less stable as economic activity decelerates and private consumption abates; moreover, there are no signs of stability in foreign currency exchange.

However, there is still plenty of strength sustaining the growth of overseas emerging countries. We therefore face a mixed economic environment that includes both uncertainty of future economic activity and growth of regional economies, mainly those of the emerging economies. The Sojitz Group aims to take advantage of the critical junctures of change and turn them into golden business opportunities.

In July, I visited Russia and Ukraine, and I am left with the impression that growth of the actual economy there is very strong. Judging from the confidence brimming from our Sojitz people over there, I think that Sojitz's activities in Russia and NIS are extremely prosperous and have begun to extend their reach to involve all regions of Europe such as London and Düsseldorf. Businesses that straddle high-growth regions and employ cross-divisional cooperation are expanding their sphere of coverage. This is one example of a successful business model for a general trading company. I think that placing greater attention on such a model, will serve to boost Sojitz's growth.

In this first quarter of the final year of the New Stage 2008, medium-term management plan, we managed to post first quarter results for fiscal 2008 exceeding the progress goal for the plan targets. However, we will further raise our antennae to keep a careful watch for change in the global economic and financial environment, striving to further boost Sojitz's corporate value.

By realizing future-oriented sustainable growth, we will earn a reputation among our stakeholders as company that can be relied on to perform well in times of change, further strengthening stakeholder trust in our company. We are grateful for your ongoing support.

July 30, 2008

Yutaka Kase
President and CEO
Sojitz Corporation