In its effort to complete its corporate management system of "corporate division companies", Nissho Iwai Corporation is reorganizing its chemicals division companies.

As of April 1, 2001, Nissho Iwai Corporation is transferring part of the business operations of theChemicals Company, one of its division companies in its new management system, to the division company's three major subsidiaries in its effort to reinforce their business prowess and solidify its co-working relationship with them.

Since April 2000, Nissho Iwai has been operating on its new system of what are called "division companies within a company," with each of Nissho Iwai's nine division companies making a renewed effort to be more competitive in its own area of business for better results from its consolidated business management. Looking at its diverse business operations in a new perspective of the functions it offers and of the characteristics of the industry it operates in, the Chemicals Company has decided to have a better cooperative system of "division of labor" between the principal and the subsidiaries to ensure more efficient corporate group management.

In this new arrangement to spin off part of its business and functions, the Chemicals Company continues to work for the integrated management of large overseas chemicals investments and financings mostly in Asia and the related sales and purchase transactions for the materials and products involved, for the development and expansion of the business for strategic products in electronics and biochemistry, and for improved risk management functions. The Chemicals Company hopes that it will eventually become a holding company in the future. At the same time, the hope is that the "consolidating function" of the Chemicals Company will be intensified as the central driving force for "group consolidation of management" with the collaboration among Nissho Iwai's division companies intensified in an effort to bring about better synergy effects in Nissho Iwai's group business management.

The following are the three major subsidiaries to which the transfer is to be made:

1. NISSHO IWAI CHEMICAL CORPORATION
2. NISSHO IWAI PLASTIC CORPORATION
3. NISSHO IWAI CEMENT CORPORATION

While they have been engaged mostly in domestic business characterized by sales & purchase transactions for goods and by dealership business as agency, they are going to have export & import and off-shore trading businesses transferred from the Chemicals Company so that they may make the most of the resulting synergy effects in their new global business activities in respective areas of business so as to offer better improved services to the customer and to expand their business.

[ The business status of each subsidiary company ]

1. Nissho Iwai Chemical Corporation, NICC, (annual sales:50 billion yen), has been solidifying its presence with a steady track record over the years as a pioneering ex-major-trading-company domestic chemicals distributor and supplier mostly for chemicals in bulk, including solvents and paint raw materials (to be supplied in tankers and ex chemical storage tanks) and specialty chemicals. Now with most of the principal's chemicals trading businesses transferred to it and with NI Chemical Corporation (Mihama-ku, Chiba) as the division's chemicals storage base and Hokko Chemical Co., Ltd. (Konohana-ku, Osaka) due to belong to NICC in stock transfer from the principal, NICC will likely make its functions and services intensified and better organized and to better serve its customers.

Moreover, another subsidiary Nissho Iwai Ceramics (annual sales: about 10 billion yen) as a refractories & ceramic materials supplier with a good business track record will also get merged with NICC to have its business lines further diversified. At the same time, Vermitech Corporation, as the subsidiary of Nissho Iwai Ceramics, along with its business for various minerals for which Nissho Iwai has historically been strong, will all be transferred to NICC from the principal.

NICC is planning to have its stock listed on one of the Tokyo Stock Exchanges in 2002, and to be able to do so, will endeavor to have its revenue and profit bases solidified, its corporate value increased and its working capital replenished.

2. With its long years' good record of handling plastics, Nissho Iwai Plastic Corporation (annual sales: about 70 billion yen) has been successfully focusing its business resources on IT-related equipment and other newly emerging business opportunities under the banner of a "development oriented specialized trader." Now with the principal's plastics trading business being transferred to it, Nissho Iwai Plastic Corporation aims to draw on this added strength to enlarge its overseas business operations. It, too, is considering being listed on one of the stock exchanges toward 2002.

3. Nissho Iwai Cement Corporation (annual sales: about 38 billion yen) get the transfer of all of the principal's export & import trading business as well as of its domestic business for cement. By accepting capital participation from more than one parties as its customers, this company, which is now a wholly owned subsidiary, is expected to have its working capital replenished, its presence and credit-worthiness firmly established in the industry, thereby gaining increased competitiveness and profitability.

Company Information: outlines of the Chemicals Company and its subsidiaries as the transferees of its businesses
(Figures are those projected for the fiscal year 2001)

(A) Chemicals Company

Items	On a consolidated basis (as a single company)
Annual Sales	About 600 billion yen (about 130 billion yen)
Operating Profits	About 30 billion yen (about 5 billion yen)
Number of Employees	(about 100, excluding those stationed abroad)

(B) Outlines of the Transferees

Company Names	Nissho Iwai Chemical Corporation
Established	January 1988
Business Address	4-4-10, Muro-machi, Nihonbashi, Chuo-ku, Tokyo
Represented by	AOKI Tetsunobu
Annual Sales	About 100 billion yen
Capital	700 million yen
Number of Employees	About 160

Company name	Nissho Iwai Plastic Corporation
Established	May 1979
Business Address	1-9-15,Kaigan,Minato-ku, Tokyo
Represented by	FUNATSUKI Yoshikatsu
Annual Sales	About 98 billion yen
Capital	1,000 million yen
umber of Employees	About 180

Company Name	Nissho Iwai Cement Corporation
Established	October 1995
Business Address	1-4-9, Nishishinbashi, Minato-ku, Tokyo
Represented by	AKI Michio
Annual Sales	About 40 billion yen
Capital	320 million
Number of Employees	About 40