November 8, 2006
To Whom It May Concern:
Company Name: The Sumitomo Warehouse Co., Ltd.
Representative: Shoichi Abe, President(Code: 9303, First Section at TSE and OSE)
Contact: Jun Nomoto
General Manager, Overseas Business Department
Phone: 03-3297-2517
Notice concerning Establishment of New Company in China

The Sumitomo Warehouse Co., Ltd. (“Sumitomo Warehouse”) hereby gives notice that it
will implement to build warehouse facilities by acquiring land use right simultaneously withthe establishment of a subsidiary in Shanghai, as follows:1.

Purpose of Establishment of Subsidiary

Sumitomo Warehouse and its affiliate companies (“Sumitomo Warehouse Group”) haveaimed and endeavored to strengthen its overseas network as the first priority in its
business strategy whereby it will render great support through its logistics services to thecustomers, which have been extending their operations in overseas markets, in the
globalization of their supply chain.

Above all, Sumitomo Warehouse Group has

focused on China, in which Japanese enterprises have increasingly extended theiroperations, and thus far Sumitomo Warehouse has established nineteen (19) operationalbases in China, including Shanghai, Beijing, Qingdao, Hong Kong, Shenzhen, Guangzou,Wuhan, etc., with constantly increasing actual achievements.

In addition, lastSeptember, Sumitomo Warehouse made Enshu Truck Co., Ltd., a company which
produces consistent results in trucking services in China, its subsidiary in order to more
efficiently meet customers’ demand for convenience.

In view of this background,

Sumitomo Warehouse has additionally established a new subsidiary in Shanghai, wherean active demand for warehouse services is further expected and which will enable
Sumitomo Warehouse to provide its customers with high quality services through theinnovative facilities.

2.

Outline of New Company(1) Company Name:

住友倉儲（中国）有限公司(Reference in English: Sumitomo Warehouse (China) Ltd.)(2) Representative:

Koki Sugihara, Head Representative(3) Location:

No.118 North Land in Shanghai, Jinqiao Export Processing
Zone, (South Area), Shanghai, China(4) Incorporation Date:

November 3, 2006

(5) Scope of Businesses: Warehouseservices,

merchandise

processing,

warehouse
land

cargo

operations,transportation

services,

packaging, other incidental logistics services, etc., andconsulting service concerning logistics services

3.

(6) Fiscal Year-End:

December 31(7) Capital:

US$20,000 thousand (Approximately 2,365 million yen)

(8) Capital Investor:

The Sumitomo Warehouse Co., Ltd. 100%

Outline of Facilities
The new company is planning to acquire the land use right to the land with an area ofapproximately 39,000 m2 that has been owned by Shanghai Jinqiao Export Processing
Zone Development Company Limited, and shall build warehouse facilities with two (2)buildings and approximately 39,000 m2 of total floor space. The scheduled warehousefacilities will be equipped with the most innovative inventory management system andcargo tracking system developed by Sumitomo Warehouse, and in addition thereto, adelivery center of electric and electronic components, an automobile components center,etc., for which there has been a sharply increasing demand in the Shanghai district, will-2-

be built. Construction of these warehouse facilities is scheduled to be commenced earlynext year and completed by the end of the year.

In Shanghai, Sumitomo Warehouse owns Sumitomo Warehouse (Shanghai) Ltd., which
operates bonded warehouses with an area of approximately 35,000 m2 in Outer Gaoqiao
Free Trade Zone, Pudong New Area, etc., and Shanghai Sumiso International Logistics
Co., Ltd., which is the first FDI (foreign direct investment) type of forwarding company(the capital contribution ratios are 70% by Sumitomo Warehouse and 30% by Shanghai
Foreign Economic & Trade Investment (Group) Co., Ltd.), whereby Sumitomo
Warehouse has extensively met the needs of customers who are engaged in activities inthe Eastern China district.

In addition, it is expected that the said warehouse facilities

to be newly constructed in Jinqiao Export Processing Zone will greatly contribute to theenhancement of the logistics function outside Free Trade Zone. In responding to thedemand for the logistics services which are expected to further increase in Shanghai, wewill seek to provide high-quality logistics services to meet the satisfaction of customers.
4.

5.

Schedule for Incorporation of Subsidiary(1) Authorized Date for Business Commencement:

November 3, 2006

(2) Date of Subscription Payment:

November 20, 2006 (scheduled)

Effect on Future Financial Results

The incorporation of a subsidiary will have a minimal effect on the consolidated businessperformance of Sumitomo Warehouse for the fiscal year ending March 31, 2007.
(For your reference)
Jinqiao Export Processing Zone is typical of a developed district which has been adjusted
to be an “export processing zone” after its ratification by the State Council of China in
1990 ahead of other districts in China, with a total area of 27 km2, and it has attracted
approximately four hundred (400) foreign companies, including Japanese companies.
In addition, Jinqiao Export Processing Zone has an ideal location with a distance of 11-3-km to Pudong International Airport, 19 km to Outer Gaoqiao port and 18 km to the urban
area of Shanghai.

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