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Toshiba and Nissho Iwai Win Contract to Supply Power Generating Equipment for Dai Ninh Hydro Power Project in Vietnam

Dec. 19, 2003

TOKYO(December 19, 2003)--Toshiba Corporation and Nissho Iwai Corporation today announced that they have won a 5-billion yen contract to supply hydroelectric generating equipment for the Dai Ninh Hydro Power Project in Vietnam. The contract between the companies and Electricity of Vietnam (EVN), the Vietnamese national power company, was signed yesterday, December 18, at a ceremony in Ho Chi Minh City.

The scope of the contract covers design, manufacture, installation and commissioning of hydroelectric power generating equipment for the Dai Ninh Hydro Power Station in the Binh Thuan Province, 260 kilometer east of Ho Chi Minh City in southern Vietnam. Implementation will start in January 2004 and run through to December 2007, and will be funded by an overseas development aid (ODA) loan from the Japan Bank for International Cooperation (JBIC). Project consultation will be provided by a joint venture of Japan's Nippon Koei Co., Ltd. and Electric Power Development Corporation Co., Ltd.

In support of the steady economic growth that Vietnam has enjoyed in recent years, the Vietnamese government plans to increase the country's installed generating capacity by 10,000MW before 2010. On completion, the Dai Ninh Hydro Power Station will contribute to this target with an installed capacity is 300 MW, provided by two 150MW generators.

Toshiba and Nissho Iwai brought a persuasive record to the bidding and negotiations for the contract. Toshiba has extensive experience in hydro power projects, both in Japan and overseas, including Vietnam, and advanced technical capabilities in hydroelectric power generating equipment, including turbines and generators. Nissho Iwai has a historically strong presence in Vietnam's power sector. This depth of experience and capabilities won the confidence of EVN.

The two companies are active in other projects in Vietnam. Together they won a contract for the rehabilitation project of Da Nhim Hydro Power Station in June 2003 with contract amount of approximately 2 billion yen. Nissho Iwai also won a contract in October 2003 for the Phu My Substation Project in Ho Chi Minh City, of which TM T&D Corporation, a joint venture of Toshiba Corporation and Mitsubishi Electric Corporation, will supply a set of transformers and surge arrestors. Buoyed by these favorable developments in the course of the year, Toshiba and Nissho Iwai aim to expand their contributions of power projects in Vietnam.

Commenting on the contract, Ryuji Minagawa, Vice President of the Thermal Power and Hydroelectric Power Systems and Services Division at Toshiba's Industrial and Power Systems & Services Company said: "The Southeast Asian economies, particularly Vietnam, Thailand and Malaysia, are growing fast. To assure consistent growth, they need more reliable electricity supply. We have a long history of supplying reliable power generating equipment, both thermal and hydroelectric, to the national power companies of those countries. Winning the bid for Dai Nihn project will allow us to continue to support Vietnam's long-term social and economic development."

Kyozo Kuramitsu, General Manager of Energy & Power Business Department, Energy & Mineral Resources Company of Nissho Iwai Corporation commented:
"With our recent successes in the Vietnam power sector, Nissho Iwai will continue to expand our activity in the power and energy sector in the fast-growing markets in the world."

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