December 21, 2005

Company nameKinki Coca-Cola Bottling Company, Ltd.

Representative

Masakazu Morito, President
Stock code No:

2576, listed on the Tokyo Stock Exchange(First Section) and Osaka Securities Exchange (First Section)
Inquiry

Reiji Goh, Public Relations Manager(Phone: 06-6330-2191)

Company nameCoca-Cola West Japan Company, Ltd.

Representative

Norio Sueyoshi, President and CEO

Stock code No:

2579, listed on the Tokyo Stock Exchange (First Section),
Osaka Securities Exchange (First Section), and Fukuoka StockExchange

Inquiry

Hijiri Morita, Executive Corporate Officer
Administration Division Manager(Phone: 092-641-8588)

Announcement of Business Tie-up between
Kinki Coca-Cola Bottling and Coca-Cola West Japan

Kinki Coca-Cala Bottling Co., Ltd. (headquartered in Osaka) and Coca-Cola West Japan Co., Ltd. (headquarteredin Fukuoka) are pleased to announce that we have reached basic agreement today to tie up their business in thebelow-mentioned manner, with a view of possible management integration in the future.
The two companies, in cooperation with Coca-Cola (Japan) Co., Ltd., will work hand-in-hand to jointly promote
specific projects to maximize synergy effects arising from their cooperative relations closer than heretofore, so as
to strengthen our market development power and improve our customer and consumer services. At the same time,
we plan to join forces to strengthen our operational systems and IT infrastructures for market research, etc., from along-term standpoint.

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1.

Purpose of the tie-up
Also in the past, the two companies have been cooperating beyond the bounds of bottler territories by
setting up a variety of joint projects to increase competitiveness in our respective markets. However, afterwitnessing drastically changing soft drink market environments in recent years, including diversifying
distribution channels, decreasing retail prices, and intensifying competition, we have realized urgent need toreform ourselves, deciding to establish more comprehensive business ties in order to sustain our current
growth.
Through this business tie-up, both companies plan to expand strategic options, improve the quality ofmanagement, and get the best out of the synergy of functional cooperation.

2.

Contents of the tie-up(1) Upgrading customer services
The two companies will collaborate to upgrade and reinforce services to extensively-operating
chain-store customers as well as local customers in our respective territories by standardizing operations
and reforming sales and distribution capabilities to bolster proposition-type marketing and store-frontsales.
(2) Reinforcing supply chain
We will also work together to reinforce manufacturing technologies, increase beverage freshness, andstreamline distribution in collaboration with the integrated supply chain strategy for the entire
Coca-Cola system being propelled by Coca-Cola National Beverages Co., Ltd. At the same time, wewill study on consolidating our subsidiaries in manufacturing and distribution areas.
(3) Upgrading operational information system
The two companies will consolidate and streamline the operational information system, one of the mostimportant business infrastructures, to sort out information systems requiring continued investment andto deal with the so-called year 2007 problem when a large number of highly skilled employees of bothcompanies will reach their retirement age.
(4) Increasing consumer satisfaction
We will also collaborate to create even higher values to consumers and increase CSR focusing on
consumer satisfaction.

In addition, we will begin joint efforts to expand our vending machine

networks to provide consumers with new and useful vending opportunities.
3.

Timetable
December 21, 2005: Basic business tie-up agreement concluded

4.

Impact on future business performance
How this business tie-up is expected to affect the future business performances of the two companies will bedisclosed as soon as it has been studied and defined.

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Outlines of the two companies(As of June 30, 2005)(1) Company nameKinki Coca-Cola Bottling Co.

Coca-Cola West Japan Co.

(2) Major businessManufacture and sale of beverages andManufacture and sale of beverages andfoods

foods

September, 1960

December, 1960

description(3) Date offoundation(4) Head office

7-9-31 Senrigaoka, Settsu City, Osakaaddress

7-9-66 Hakozaki, Higashi Ward, Fukuoka
City, Fukuoka Pref.

(5) Representative

Masakazu Morito, President

Norio Sueyoshi, President & CEO(6) Capital

10,948 million yen

15,231 million yen(7) No of shares

62,591,000 shares

82,898,000 shares(8) Equity

72,009 million yen

165,034 million yen(9) Total assets

106,349 million yen

184,788 million yen

outstanding(10) Fiscal closing

December

December(11) Number of938

1,819

Kirin Brewery: 41.19%

Ricoh: 20.26%

Shareholders

Mitsubishi Foods & Packaging

New Technology Developmentand ratios

Machinery: 13.86%

Foundation: 6.39%

Japan Trustee Services Bank: 3.64%

Coca-Cola Holdings West Japan: 4.92%

Master Trust Bank of Japan: 3.50%

Chase Manhattan Bank NA London:

Company employees: 2.71%

4.56%

employees(12) Major

Nishi-Nippon City Bank: 4.47%

36.

Business results of the two companies in the past three years (consolidated)(1) Kinki Coca-Cola Bottling Company(In million yen)
Fiscal year ended in

Fiscal year ended in

Fiscal year ended in

December 2002

December 2003

December 2004

Sales

183,349

182,862

193,082

Current profit

5,475

5,323

7,808

Net profit or loss

161

-8,934

3,638

Net profit/loss per share

2.58-144.38

56.27

18.00

18.00

21.00

1,324.74

1,264.36

1,203.94(in yen)Dividend per share (inyen)
Shareholders’ equity pershare (in yen)
(2) Cola-Cola West Japan Company(In million yen)
Fiscal year ended in

Fiscal year ended inFiscal year ended in

December 2002

December 2003

December 2004

Sales

247,737

240,825

253,248

Current profit

17,00519,895

17,065

Net profit or loss

7,086

9,380

8,564

Net profit/loss per share

85.48

116.25108.80

34.00

36.00

40.00

2,009.39

2,089.94

2,149.99(in yen)Dividend per share (inyen)
Shareholders’ equity pershare (in yen)4