February 24, 2007
Company
Name
Represent
ativeCode
NumberCoca-Cola West Holdings (KK)

Contact

Representative Director, CEO:
Norio Sueyoshi
2579 (listed on TSE Section 1, OSE
Section 1, Fukuoka Securities andExchange)
PR/IR Group Manager: Masahiro Takase

TEL

092-283-5718

Company
Name
Represent
ative

Minami Kyushu Coca-Cola Bottling(KK)
Representative Director and President:
Kokichi Honbo

Contact

Director/PR Officer: Katsuya Inoue

TEL

096-311-3911

Notice of Capital and Business Alliance
Today, Coca-Cola West Holdings KK (Headquarters: Fukuoka, referred to hereinafter as “CCWH”) andMinami Kyushu Coca-Cola Bottling KK (Headquarters: Kumamoto, referred to hereinafter as “MK”) havemade a basic agreement in relation to a capital and business alliance, as mentioned below.
1．Background and Objective of a Capital and Business Alliance
In light of the establishment of CCWH in July of last year, as a result of the merger of Coca-Cola WestJapan KK and Kinki Coca-Cola Bottling KK, CCWH is leading the transformation of the Coca-Cola systemin the western Japan (Northern Kyushu to the Kinki area) under the management principle of “Creating theFuture of the Beverage Business”, as a Strategic Leading Partner with The Coca-Cola Company (USA) andit wholly owned subsidiary, Coca-Cola (Japan) Company, Limited.
MK, under the management principles of “Refreshing Person to Person, Developing with the Local
Community”, has continued to execute a community-based corporate activity in its territory.
As proximate Coca-Cola bottlers, both companies have built a cooperative relationship, with a focus onmarketing activities.
In considering the diversification of consumer needs, transformation of distribution channels, and theintensified sales competition in the non-alcoholic beverage market, CCWH and MK have discussed
opportunities to further strengthen cooperative measures, and as a result have agreed to mutually strengthen
their competitiveness through a capital and business alliance, under the objective of achieving the further
growth and accelerating the corporate value of both companies.
With this alliance, both companies will proactively execute marketing activity throughout western Japan
areas including the entire Kyushu territory.
2．Brief Summary of the Business and Capital Alliance
Both parties will attempt to expand and streamline from the perspective of “product / promotion planning /development”, “procurement”, “manufacturing”, “logistics”, “sales”, “after-service”, and “accounting / IT” ,while mutually leveraging the expansion of scale.
In order to secure the effectiveness of the business alliance, CCWH will purchase 20% of MK’s outstanding
shares, as well as mutually exchange 1 director in order to further and deepen the mutual understanding.
(However, it will mutually be under the condition of the acceptance at the annual shareholders meeting,scheduled at the end of March 2007)1

【Candidate for Director at CCWH’s Annual Shareholders Meeting】
Kokichi Honbo（Minami Kyushu Coca-Cola Bottling, Representative Director, President）【Candidate for Director at MK’s Annual Shareholders Meeting】
Norio Sueyoshi（Coca-Cola West Holdings, Representative Director, CEO）
Based on the share purchase of the capital alliance, MK will be considered an equity method investee ofCCWH.
3．Schedule
February 24, 2007
Beginning of March 2007
Beginning of April 2007

Basic Agreement of the Capital and Business Alliance
Capital and Business Alliance Agreement Execution (Plan)
Share Purchase (Plan)

4．Business Outlook
The overall impact of this capital and business alliance to CCWH’s financial plan for the year ending 2007 will
be disclosed as necessary based on the future discussion of the alliance details by both companies.

2５．Overview of the Parties(as of December 31, 2006)
Coca-Cola West Holdings KK

Minami Kyushu Coca-Cola Bottling KK

Manufacturing and Sales of Food andManufacturing and Sales of Food andBeverages

Beverages（3） Date of Establishment

December 1960

August 1962（4） Head Office Address

7-9-66 Hakozaki, Higashi-Ku,

3-5-1 Minami Takae, Kumamoto City,Fukuoka City, Fukuoka Prefecture

Kumamoto PrefectureRepresentative Director, CEO:

Representative Director andNorio Sueyoshi

President: Kokichi Honbo（1） Trade Name
（2） Main Businesses（5） Representative（6） Capital

15,231 MM JPY

974 MM JPY

106,192 thousand

2,548 thousand（8） Shareholders Equity

243,491 MM JPY

40,513 MM JPY（9） Total Assets

270,398 MM JPY

51,212 MM JPY（10） Fiscal Year End

December

December（7） Number of Outstanding
shares(excl. Treasury shares)（11） Number of Employees

268（12） Major Shareholders andRicoh Company, Limited

15.11％

Satsuma Shuzo KK

27.19％

Equity Percentages

Kirin Brewery Company,

10.46％MCA Holdings KK

25.42％

4.76％

Honbo Shuzo KK

10.09％

4.30％

Honbo Shoten KK

7.70％

1,935

LimitedThe New Technology
Development Foundation
Japan Trustee Services
Bank, Limited
Mellon Bank Treaty Clients

3.76％

Omnibus（13） Main Banks

Nishi-Nippon City Bank, Limited

Mitsubishi UFJ Bank, Limited

The Sumitomo Trust & Banking

Higo Bank, Limited

Company, Limited

Miyazaki Bank, Limited

Mizuho Corporate Bank, Limited

Oita Bank, Limited

Mitsubishi UFJ Bank, Limited

Kagoshima Bank, Limited
Bank of Minami Nippon, Limited（14） Relationship

CapitalNone

PersonalNone

Trading

MK accounts for 1,156MM JPY of CCWH’s total revenues(Fiscal yearended inDecember3December2006)

CCWH accounts for 2MM JPY of MK’s total revenues.

(Notice)
１．The above is based on a non-consolidated basis
２．MK’s figures above has not been approved by its board of directors meeting yet.

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６．Business Performances of the Parties in the last 3 years(1) CCWH【Consolidated】
Year EndedYear EndedYear Ended

December 2004

December 2005

December 2006

Revenues（MM JPY）

253,248245,874

327,821

Operating Profits（MM JPY）

16,86011,83012,321Ordinary Profits（MM JPY）

17,065

12,256

13,225

Net Profits（MM JPY）

8,564

7,305

7,570

Earnings Per Share（JPY）

108.80

93.42

82.22

Book Value Per Share（JPY）

2,149.99

2,228.79

2,358.05

Year EndedYear EndedYear Ended

December 2004

December 2005

December 2006

【Non-Consolidated】

Revenues（MM JPY）

195,066

186,953

191,632

Operating Profits（MM JPY）

15,024

11,857

4,581

Ordinary Profits（MM JPY）

15,545

12,477

5,406

Net Profits（MM JPY）

8,353

7,938

3,439

Earnings Per Share（JPY）

106.20101.7337.35

Dividends Per share（JPY）

40.0040.00

42.00

Book Value Per Share（JPY）

2,104.59

2,191.59

2,292.91

Year EndedYear EndedYear Ended

December 2004

December 2005

December 2006

(2) MK【Consolidated】

Revenues（MM JPY）

111,008

107,201

90,887

Operating Profits（MM JPY）

6,562

5,435

3,056

Ordinary Profits（MM JPY）

7,623

7,472

4,081

Net Profits（MM JPY）

3,548

3,097(682)

Earnings Per Share（JPY）

1,667.02

1,453.58(267.92)

Book Value Per Share（JPY）

35,244.41

36,416.35

16,742.62【Non-Consolidated】
Year EndedYear EndedYear Ended

December 2004

December 2005

December 2006Revenues（MM JPY）

83,92780,01576,757

Operating Profits（MM JPY）

4,784

3,088

3,436

Ordinary Profits（MM JPY）

6,154

5,303

4,332

Net Profits（MM JPY）

2,790

379

1,289

Earnings Per Share（JPY）

1,314.40

162.77506.22

Dividends Per Share（JPY）

320.00500.00500.00Book Value Per Share（JPY）
32,724.52
32,634.03
15,899.93(Notice)
１． MK’s figures for December 2006 have not been approved by its board of directors meeting. Additionally, thedecrease in book value per share from December 2006 to December 2007 (Consolidated and Non-Consolidated)5

for MK is mainly as a result of a de-merger on January 1, 2006. The net losses for December 2006 on aconsolidated basis are mainly due to losses from impairments.
２．Both company’s December 2006 dividends per share have not been approved by their annual generalshareholders meeting, scheduled in March 2007.

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7．Sales Territory

CCWH (Prefectures)：Nara, Shiga, Wakayama, Osaka, Kyoto,Hyogo, Hiroshima, Okayama,
Yamaguchi, Tottori, Shimane, Fukuoka,Saga, Nagasaki

MK (Prefectures)：
Kumamoto, Kagoshima, Miyazaki,Oita

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