Diversification

In October 1993, after undertaking a review of what type of group we should be in the 21st century, wereasserted development of business in the energy field as a key focus. Specifically, we aim to diversify businesses in fields that complement and add value to gas operations and increase the use of natural gas, including comprehensive engineering services, the supply of chemicals and cold energy utilization. At thesame time, we are looking for new business opportunities in non-energy related fields. In respect of our 48
affiliated companies, we are working to strengthen their operating foundations and foster autonomy withan eye on taking them public in the future.

Consolidated Subsidiaries

22Tokyo Gas Energy Co., Ltd.

Sales of liquefied petroleum gas (LPG) and coke

Tokyo Gas Chemicals Co., Ltd.

Sales of gas for industry and chemicals

Tokyo Oxygen and Nitrogen Co., Ltd.

Production and wholesale of liquefied oxygen and nitrogen

Tokyo Gas Urban Development Co., Ltd.

Real estate leasing, management and brokerage, etc.

Park Tower Hotel Co., Ltd.

Hotel management

KANPAI CO., LTD.

Gas facilities construction and gas appliance sales

Gastar Co., Ltd.

Production and wholesale of gas appliances

TG Credit Service Co., Ltd.

Leasing of information equipment, gas appliances and office equipment,
and credit administration connected with gas appliances and installations

Chiba Gas Co., Ltd.

Supply of gas to Chiba City and surrounding cities

Tsukuba Gakuen Gas Co., Ltd.

Supply of gas in Tsukuba City

Tokyo Gas Engineering Co., Ltd.

Comprehensive engineering services with a particular focus on energyrelated work

TG Information Network Co., Ltd.

Information processing services, software development and sales ofcomputer equipment, etc.

TG Enterprise Co., Ltd.

Financial administration and building leasing for Tokyo Gas and relatedcompanies

LEFT
A room at the Park Hyatt Tokyo, managed by Park Tower Hotel Co., Ltd.
The modern interior and superb view of the Shinjuku district make a staya truly memorable experience.
RIGHT
A super deep-freeze warehouse for tuna is one example of the cold energy
utilization of LNG.

TOKYO GAS Annual Report 1999

Topics
Key Ingredient For Breakthrough Diagnostic Method
Since 1989, Tokyo Gas has been working on a process to separate and condense
13C-Methane from natural gas. A plant to produce 13C-Methane for commercial

use—the first of its type in the world—has commenced operations and the first
shipments are scheduled for 2000. The 13C-Methane will be processed into 13CCO2 by Tokyo Gas Chemicals and sold to Otsuka Pharmaceutical Co., Ltd. foruse in a breakthrough drug that we developed with them. The drug diagnoses
the existence of Helicobacter pylori, a common cause of gastritis and gastric ulcers,
and will make for more patient-friendly diagnoses of these ailments.

Mapping Technology
TUMSY, or Total Utility Mapping System, a cutting-edge computer mapping
system developed by Tokyo Gas and sold by Tokyo Gas Engineering is one
example of how technology developed for internal use can be commercialized
23

outside the company. Originally developed to map the intricate maze of subterranean gas pipelines in our service area—previously 28,000 paper maps wereused—TUMSY is also finding application in other facility management fields
such as water and sewage facility management, road administration and cityplanning. TUMSY enables the effective management of essential lifelines and is
now an integral part of ensuring a safe and dependable service to customers.

Rare Gas Demand Sparks Establishment of New Company
On April 1, 1998, consolidated subsidiary Tokyo Gas Chemicals establishedTokyo Rare Gases Company Limited, a joint venture with Tokyo Kouatsu Co.,
Ltd., to make further advances into the rapidly expanding domestic rare gas
market. Rare gases—neon, krypton and xenon—are in strong demand for new
applications such as plasma display panels for large-screen televisions andexcimer lasers. Found in minute quantities in the atmosphere, rare gases areproduced at a limited number of locations in the world and are thus mainly
imported into Japan. The new company is receiving supplies from U.S.-based
Praxair, Inc. and leveraging Tokyo Kouatsu’s existing packing facilities to set
itself apart from other companies.

Annual Report 1999 TOKYO GAS