November 18, 2004

NEWS RELEASE
Coca-Cola National Beverages Co., Ltd.

Coca-Cola System to Launch Fully-Integrated
Supply Chain Operations in JapanTokyo, November 18, 2004 – Coca-Cola National Beverages Company, Limited(CCNBC) announced today that it will start the fully-integrated management ofprocurement, production, and logistics operations for all Coca-Cola products in Japanon January 1, 2005. This will be accomplished by transferring the bottlers’ franchisemanufacturing operations to CCNBC, an action approved by the company’s
shareowners meeting yesterday. The amount of products to be produced and suppliedby CCNBC is expected to reach 600 million physical cases in 2005.
Established in 2003 with joint investments by all bottling partners and Coca-Cola(Japan) Company, Limited, CCNBC began its first phase of operations in October lastyear. At that time, centralized procurement of raw materials and manufacturing andsupply of so-called toll products the bottlers were consolidated into CCNBC.

Theplanned transfer of franchise products, including the carbonated drinks andready-to-drink coffee products whose production and sales have been handled by thebottlers, will mark the start of a nationally integrated supply chain management (SCM)
for the Coca-Cola System in Japan.
Accelerated Cost Savings
The nationally integrated SCM is expected to deliver cost savings through theimproved efficiency supported by standardization of operational processes andinformation system integration. The plan is for resources generated by cost savings tobe passed on to the shareowner bottlers and invested in sales development programs
and new manufacturing technologies to achieve long-term revenue growth for theentire Coca-Cola System in Japan.

1By 2007,CCNBC is expected to achieve cost reductions of more than 25 billion yenannually (Strategic Procurement: seven billion yen, Manufacturing: 12 billion yen,
Logistics: six billion yen ). In its first phase of operations that began in October 2003
and concludes at the end of 2004, CCNBC is on track to deliver 16.5 billion yen in costsavings, exceeding the original target of 12 billion yen.
During 2004, CCNBC has invested four billion yen into the manufacturing facilities
for new products and specialized packages and nine billion yen into the integrated
information system.

CCNBC plans to invest in these areas over the next three years.

Optimization of Manufacturing Capacity
With the start of the nationally integrated SCM operation, the manufacturing facilities
in the Coca-Cola System in Japan will be streamlined from the current 34 plants (104lines) to 27 plants (90 lines, including 3 new lines to be added) by 2007.

As a firststep, 4 plants (6 lines) will be shut down during 2005. The bottlers who own thesefacilities will make their own announcements regarding specific plans on staffing andphysical assets at each facility.
Enhanced Market Response and Customer Service
The expansive sales and distribution network of the Coca-Cola System will now beenhanced by a flexible manufacturing and logistics infrastructure, capable ofresponding faster to changes in demand, not only in areas of high consumption
products, but also in newly developing niche markets and rapidly changing customer
service requirements.
Improved Quality Management and Product Freshness
By focusing on standardized processes, equipment improvements and investing intraining and sharing of best practices among the bottlers, further quality enhancement
will be assured. The integrated SCM will also improve the freshness of the products
by accelerating the product delivery capability.

In addition, the new information

system will enable centralized product tracking at every manufacturing and logistics
center in the country.
Reduction of Environmental Impact
Establishment of a nationwide integrated SCM is expected to result in overall efficiency
improvements in all area’s of procurement, production and logistics operations. Thisnot only leads to financial benefits, but should also contribute to improved
environmental performance, as a result of reduced package material wastages,2

improved production yields, energy savings, and reduced emissions from optimized
transportation networks.
A New Platform for Sustained CompetitivenessThe new National SCM platform and information systems under CCNBC will be
leveraged in the coming years to seek further efficiency improvement with supplier
operations and ongoing service improvements with national and regional customers. It
forms the basis for intensive cross-enterprise collaboration with our business partners.
About the Coca-Cola System in JapanThe Coca-Cola System in Japan offers over 25 brands of beverages in more than 60
flavors and 200 packages.

Along with Coca-Cola, recognized as the world’s

best-known brand, the Coca-Cola System in Japan markets several leading brands,
including Georgia coffee, Sokenbicha blended tea, Aquarius sport drink and Qoo low
fruit content drink. For more information about the Coca-Cola System in Japan, please
visit our website at www.coca-cola.co.jp.

MEDIA CONTACT:

03-5466-8120
Public Affairs & Corporate Citizenship
Coca-Cola (Japan) Company, Limited###3

FACT SHEET
Coca-Cola National Beverages Company, Limited (As of November 1, 2004)•Foundation:

April 1, 2003•

Address:

Roppongi Hills North Tower 6-2-31 Roppongi,
Minato-Ku, Tokyo 106-0032•Capital:¥5,010,500,000(Capital Reserve: ¥5,000,000,000)•Fiscal Year:•Business Objective

January - December

1. Planning, survey and consulting with regard to material procurement, production,and logistics (supply chain) of soft drinks
2. Manufacturing, purchasing and sales of soft drinks, syrups and powders for softdrinks.
3. Purchasing and sales of materials (cans, PET and glass bottles, etc.) andequipment (vending machines, dispensers and parts, etc.) with regard tomanufacturing and sales of soft drinks.
4. All other work related to the above.
•Production volume: Approximately 200 million physical cases (Year 2004 estimate)•Customers: Coca-Cola Bottlers

Directors and Auditors:
President and Representative Director
Guy WollaertDirector
Kunio Sugaya (Special Advisor, Coca-Cola West Japan Co., Ltd.)
Kunihisa Yamura (President and Representative Director, Michinoku Coca-Cola Bottling Co., Ltd.)
Minahiro Yatsufuji (President and Representative Director, Mikuni Coca-Cola Bottling Co., Ltd.)
Yoshimoto Aoki (President and Representative Director, Tone Coca-Cola Bottling Co., Ltd.)
Keiji Takanashi (President and Representative Director, Tokyo Coca-Cola Bottling Co. Ltd.)
Naohisa Tonomura (President and Representative Director, Coca-Cola Central Japan Co., Ltd.)
Haruhiko Inagaki (President and Representative Director, Hokuriku Coca-Cola Bottling Co., Ltd.)
Masakazu Morito (President and Representative Director, Kinki Coca-Cola Bottling Co., Ltd.)
Norio Sueyoshi (President, Representative Director and CEO, Coca-Cola West Japan Co., Ltd.)
Masahiko Uotani (President and Representative Director, Coca-Cola Japan Co. Ltd.)John Murphy (Executive Vice President and Representative Director, Coca-Cola Japan Co. Ltd.)

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Auditor
Kazuhiroiro Shirahata (Auditor, Coca-Cola National Beverage Co., Ltd.)
Shinichi Yamashita (Managing Director, Tone Coca-Cola Bottling Co., Ltd.)
Tamio Yoshimatsu (Managing Director, Kinki Coca-Cola Bottling Co., Ltd.)
Takanori Hara (Director, Corporate Planning, Coca-Cola Japan Co. Ltd.)

Shareholders: 14 Companies−

Hokkaido Coca-Cola Bottling Co., Ltd.

5.02%

−

Michinoku Coca-Cola Bottling Co., Ltd.

3.54%

−

Sendai Coca-Cola Bottling Co., Ltd.

4.09%

−Mikuni Coca-Cola Bottling Co., Ltd.

8.06%

−Tone Coca-Cola Bottling Co., Ltd.

7.68%

−Tokyo Coca-Cola Bottling Co., Ltd.

10.52%−Coca-Cola Central Japan Co., Ltd.

14.14%−Kinki Coca-Cola Bottling Co., Ltd.

10.49%−

Hokuriku Coca-Cola Bottling Co., Ltd.

4.11%

−

Shikoku Coca-Cola Bottling Co., Ltd.

3.15%

−Coca-Cola West Japan Co., Ltd.

14.49%−Minami Kyushu Coca-Cola Bottling Co., Ltd. 5.61%−

Okinawa Coca-Cola Bottling Co., Ltd.

1.40%

−

The Coca-Cola Export Corporation*

7.69%(* subsidiary of The Coca-Cola Company)<For Fuji Coca-Cola Bottling Co., Ltd and Chukyo Coca-Cola Bottling Co., Ltd,
their parent company, Coca-Cola Central Japan Co., Ltd. makes investment.
For Mikasa Coca-Cola Bottling Co., Ltd., its parent company, Coca-Cola WestJapan Co., Ltd. makes investment.>

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