Nichimen Corporation (Nichimen) resolved, in the meeting of its Board of Directors on September 27, 2002, to transfer all shares of its subsidiary, which engages in chemical businesses, to Global Chemical Holdings, Inc. (GCH), a joint holding company of Nichimen and Nissho Iwai Corporation (Nissho Iwai) in the chemical business field.

1.Reason for Business Transfer
As already announced on August 26, 2002, Nichimen reached a basic agreement with Nissho Iwai to fully integrate chemical businesses of those two companies in order to pursue more synergies and raise corporate value in the chemical business field. In line with this basic agreement, Nichimen decided to transfer all shares of its subsidiary, which engages in chemical businesses, to GCH.


2.Scheme for Business Transfer

(1)Method of business transfer
Nichimen already transferred its chemical businesses to Nichimen Kagakuhin Co., Ltd. (Nichimen Kagakuhin), a 100% subsidiary of Nichimen, on September 1, 2002. Nichimen transfers all issued shares of Nichimen Kagakuhin to GCH on September 27, 2002.

(2)Contents of business transfer

1.Business results for FY2001 (ended March 2002)

(Millions of Yen)

(Note) Figures for "Business to be transferred" are internal management base.

2.Assets & Liabilities (as of March 31, 2002)

(Millions of Yen)

(Note) Figures in the above table are internal management base.

3.Number of employees
　41 (as of July 1, 2002)


3.About the subsidiary to be transferred to GCH

4.Nichimen's shareholding before and after transfer