March 8, 2007

CompanyCoca-Cola West Holdings (KK)

NameCompany

Minami Kyushu Coca-Cola Bottling

Name(KK)

Represent

Representative Director, CEO:Represent

Representative Director and President:

ative

Norio Sueyoshi

ativeKokichi Honbo

Code2579 (listed on TSE Section 1, OSE

NumberSection 1, Fukuoka Securities andExchange)

Contact

PR / IR Group Manager: Masahiro Takase

Contact

Director / PR Officer: Katsuya InoueTEL

092-283-5718

TEL

096-311-3911

Capital / Business Alliance and 3rd Party Share Allocation Notice
In the Capital and Business Alliance Notice released on February 24th 2007, the Coca-Cola West Holdings
Company (HQ: Fukuoka, hereinafter referred to as “CCWH”) and Minami Kyushu Coca-Cola BottlingCompany (HQ: Kumamoto, hereinafter referred to as “MK”) announced that both companies executed a basic
capital and business alliance agreement. Consequentially, the aforementioned parties have executed a capitaland business alliance agreement today, whereby CCWH purchases 3rd party allocation shares issues by MK.
The details are as follows.
1. MK: Contents of 3rd Party Share Allocation (Issuance of New Shares)（1）Number of New Shares Issued637,000 Common Shares（2）Issues Price / Share

17,000 JPY Per Share（3）Aggregate Issue Price

10,829,000,000 JPY（4）Increase in Capital Stock / Share

8,500 JPY

(5) Total Increase in Capital Stock

5,414,500,000 JPY（6）Offer Date

April 3rd, 2007 (Tuesday)（7）Payment Date

April 3rd, 2007 (Tuesday)（8）Allocated Party and Number of Shares CCWH / 637,000 Shares(9) The matters specified in each of the preceding items shall be subject to approval at the MK generalshareholders meeting to be held on March 23, 2007 and the filing under the Securities and Exchange
Law coming into effect.
【Reference】
MK: Number of Shares Outstanding

2,548,000 Shares (Current Capital Stock 974 MM JPY)

Increase in Shares Issuance

637,000 Shares (Increased in Capital Stock

Post Issuance Shares Outstanding

3,185,000 Shares (Post Issuance Capital Stock 6,388 MM JPY)

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5,414 MM JPY)

After the increase in share, CCWH will retain 20% of MK’s outstanding shares, whereby becoming
the 3rd largest shareholder of MK.

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2. Schedule
March 8, 2007

Execution of Business and Capital Alliance Agreement

March 23, 2007

MK General Annual Shareholders Meeting (Shares Issuance Approval)

April 3rd, 2007

Offer Date and Payment Date

3. Business Outlook
As a result of these initiatives set forth, MK will be considered as an equity method investee of CCWH.

Theoverall impact of this capital and business alliance to CCWH’s financial results for the year ending 2007 will
be disclosed as necessary based on the future discussion of the alliance details by both companies

4. 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 Prefecture

Representative Director, CEO:

Representative Director andNorio Sueyoshi

President: Kokichi Hombo（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 JPY51,212 MM JPY（10） Fiscal Year End

December

December（11） Number of Employees

268

1,935

（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％（7） Number of Outstandingshares(excl. Treasury shares)

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

3Mitsubishi 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 year
ended in

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

December
2006)(Notice)
１．The above data is based on a non-consolidated basis.
２．The figures for MK are different from the figures released on Feb. 24, and are final. The figures for CCWH are the sameas that of the announcement on Feb. 24.

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5.

Business Performance 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）

16,86011,83012,321

Ordinary 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【Non-Consolidated】
Year EndedYear EndedYear EndedDecember 2004

December 2005

December 2006

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）

40.00

40.00

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

5,4353,056

Ordinary Profits（MM JPY）

7,623

7,472

4,031

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

Year EndedYear EndedYear Ended

December 2004

December 2005

December 2006

【Non-Consolidated】

Revenues（MM JPY）

83,92780,01576,757

Operating Profits（MM JPY）

4,784

3,088

3,436

Ordinary Profits（MM JPY）

6,154

5,303

4,289

Net Profits（MM JPY）

2,790

379

1,289

Earnings Per Share（JPY）

1,314.40

162.77506.21Dividends Per Share（JPY）

320.00500.00500.00Book Value Per Share（JPY）

32,724.52

32,634.03

15,899.93(Notice)
１． The figures for MK are different from that released on February 24, and are final.

5The figures for CCWH arethe same as that of the announcement on Feb. 24.
２．Additionally, the decrease in book value per share from December 2006 to December 2007 (Consolidatedand Non-Consolidated) for MK is mainly as a result of a de-merger on January 1, 2006. The net losses forDecember 2006 on a consolidated basis are mainly due to losses from impairments.
３．Both company’s Dec. 2006 dividends per share have not been approved by their annual general shareholders
meeting, scheduled in Mar.ch 2007.

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