To Whom It May Concern

SUB:  Change of term-of-office of Directors and Executive Officers

At a meeting of Nissho Iwaifs Board of Directors held today, it was decided to change the term of office of board members as described below.

The new term of office will come into effect after the election of directors in the 96th annual general meeting of shareholders (scheduled to be held on the 28th of June, 2000), and the executive directors appointed in the first meeting of the board of directors thereafter.

The new term-of-office will become effective subject to approval of changes in associated regulations in the 96th annual general meeting of shareholders. 

Notice

1.In order to build an optimum management structure capable of responding dynamically to changes in the business environment, as well as to ensure management accountability and performance-based remuneration, the term-of-office of directors is hereby changed from the current 2 years to 1 year.

2.In order to ensure operational accountability and performance-based remuneration, the term-of-office of executive directors is hereby changed from the current 2 years to 1 year.