Japan Airport Terminal Co. Ltd.(JATCO), Sojitz Corporation(Sojitz), and JALUX Inc.(JALUX) today reached agreement on the formation of a business alliance in the airport retail business.　Details of the alliance are set forth below.

1. Background to the Alliance

The Japan Airport Terminal Group (JATCO and its affiliates) constructed and currently manages and operates the domestic passenger terminal at Tokyo International Airport at Haneda and as the leading shareholder of Tokyo International Air Terminal Corporation, the company that manages the international passenger terminal that opened in October 2010, provides key operational services in the international passenger terminal building. The Group also conducts merchandise sales at Haneda Airport, Narita International Airport, Kansai International Airport, and Central Japan International Airport. By taking advantage of such income, It endeavors to expand and develop passenger terminals in conjunction with the rapid development of the aviation industry, and plans to broaden the scope of its business. The Group opened a shop at Chengdu Shuangliu International Airport in China in June 2011 to increase utilization of its terminal building operation experience and expertise overseas. The Group also conducts personnel exchanges with Korea Airports Corporation at Gimpo Airport in Seoul, Korea, Dalian Zhoushuizi Airport Corporation in Dalian, China and Capital Airport Group Corporation in Beijing, China and is entering into other cooperative relationships concerning passenger terminal building management and operation.

Sojitz is a general trading company with more than 50 years of experience in the aviation industry and possesses diverse networks and expertise in areas such as machinery, energy resources, chemicals, and consumer lifestyle products in Japan and overseas. Sojitz created and operates integrated supply chains that extend from materials procurement to processing and logistics. Sojitz utilizes these strengths as the top shareholder of JALUX to expand and develop the business of both companies in diverse segments of the airport and aviation businesses through various cooperative ventures.

JALUX was established in March 1962 as a trading and logistics subsidiary of Japan Airlines and since then has conducted business in a wide range of fields from the retail business including airport shop operation and mail-order sales to the food and beverage business with a focus on aviation services. In the airport shop business, JALUX operates through a subsidiary a network of 85 Blue Sky shops and duty free shops in 24 airports in Japan (as of July 2011) and provides a range of services.

JATCO and JALUX operate similar range of businesses, such as merchandise sales and food and beverage businesses in the Haneda Airport Domestic Terminal 1. The two companies concluded the business partnership agreement with the objective of cooperating to supply services and products that provide more satisfaction to customers who use Haneda Airport, to strengthen security measures in the terminal building, and to raise efficiency and streamline operations. Both companies are looking to expand their airport businesses overseas with a focus on Asia and plan to consider various measures, and they believe that strengthening their relationship with Sojitz, which has global networks, will contribute to their growth and development, and they decided to enter into this basic agreement on capital and business alliance.

 

2. Details of the Alliance

（１）	Details of the Business Alliance
a.	JATCO and JALUX plan to conduct detailed discussions concerning business alliances and implement cooperative operations in the following domains.
	1)	Enhancement of product lineups and services to evoke customer satisfaction in the airport shop operation business and strengthening of terminal building security measures.
	2)	Joint procurement of products.
	3)	Joint production of prepared packaged foods such as Sora-ben.*
	4)	Mail-order and online sales of products.
	5)	Cooperation in the real estate business in the vicinity of Haneda Airport.
	6)	Sharing management resources and information relating to overseas business development.
	7)	Other items that JATCO and JALUX agree on separately.
*	With respect to item 3, refer to the announcement concerning agreement on the establishment of a joint venture released today by JATCO and JALUX.
b.	JATCO and Sojitz plan to conduct detailed discussions concerning business alliances and to implement cooperative operations in the following domains.
	1.	Promotion of the airport retail business to make commercial facilities at Haneda Airport more attractive.
	2.	Promotion of the overseas airport retail business. This will include:
		(i) Retail at Haneda Airport of products from leading overseas retailers and brands and trend-setting products. (ii) Cooperation with Sojitz concerning procurement and logistics for the shop operated by JATCO at the Chengdu Shuangliu International Airport.
（２）	Details of the Capital Alliance
a.	Acquisition of JALUX shares by JATCO In conjunction with the business alliance with JALUX, JATCO will acquire 1,022,000 shares of JALUX common stock (8.0% of all outstanding shares) from Sojitz in a direct transaction outside the market. As a result of the share acquisition, JATCO will become JALUX’s third largest shareholder.
b.	Acquisition of JATCO shares by Sojitz In conjunction with the conclusion of the basic agreement concerning the business alliance with JATCO, Sojitz will acquire 845,000 shares of JATCO common stock (1.0% of all outstanding shares) through a private placement of treasury shares by JATCO. Further details concerning the private placement of the treasury shares can be found in the announcement of private placement of treasury shares released today by JATCO.

 

3. Overview of the Parties to the Business Alliance

As of March 31, 2011

1	Name	Japan Airport Terminal Co., Ltd.	Sojitz Corporation	JALUX Inc.
2	Head Office	Terminal 1 Building 3-2, Hanedakuko 3-chome, Ota-ku, Tokyo	1-20, Akasaka 6-chome, Minato-ku, Tokyo	32-42, Higashi-shinagawa 3-chome, Shinagawa-ku, Tokyo
3	Representative	Isao Takashiro, President & CEO	Yutaka Kase, President & CEO	Akinobu Yokoo, President & CEO
4	Business Activities	Construction, management, and operation of the Haneda Airport passenger terminal building Merchandise sales Other service businesses	・ Business activities in the following fields as a general trading company: - Machinery such as aviation - Energy and metals - Chemicals and functional materials - Consumer lifestyle products	・ Wholesale distribution (trading and logistics) - Aviation-related businesses - Media and life services - Retail business - Food and beverage business
5	Capitalization	17,489million yen	160,339 million yen	2,558 million yen
6	Established	July 20, 1953	April 1, 2003	March 28, 1962
7	Main shareholders and holdings	Japan Airlines International: 5.47％ All Nippon Airways: 5.47％ Japan Trustee Services Bank: 4.33％	Japan Trustee Services Bank: 11.33％ The Master Trust Bank of Japan: 3.41％ Trust & Custody Services Bank: 1.52％	Sojitz: 30.12％ Japan Airlines International: 21.44％ Aioi Nissay Dowa Insurance: 4.57％

* Japan Airlines International Co., Ltd. changed its name to Japan Airlines Co., Ltd. on April 1, 2011
* The shareholdings indicated in item 7 exclude treasury shares from the total number of shares outstanding.

4. Overview of the Parties to the Business Alliance

August 3, 2011	Conclusion of business alliance agreement by JATCO and JALUX Conclusion of basic agreement concerning establishment of joint venture by JATCO and JALUX Conclusion of share transfer agreement by JATCO and Sojitz Conclusion of basic agreement concerning business alliance by JATCO and Sojitz
August 22, 2011	Acquisition of JALUX common stock byJATCO(planned) Acquisition of JATCO common stock by Sojitz (planned)

5. Future Outlook
If any impact on financial performance as a result of the business alliance is expected, the companies involved will make timely announcements.