Note: The following press release is an English translation of the Japanese-language original

August 27, 2009

Company Name:Japan Petroleum Exploration Co., Ltd. (JAPEX)

President:

Osamu Watanabe

Securities Code:

1662 Tokyo Stock Exchange, First Section

Inquiries:

Shigeyoshi Hasegawa
Manager, Media Relations, Media and Investor Relations Department

TEL:

03-6268-7110

Notice of Purchase of Petroleum Products Sales Unit
from Mitsubishi Materials Energy Corp.

Japan Petroleum Exploration Co., Ltd. (hereinafter “JAPEX”) is pleased to announce that it has passed aresolution at a Board of Directors’ meeting held today to enter into a stock purchase agreement underwhich Mitsubishi Materials Energy Corp. will spin off its petroleum products sales unit into a newcompany and JAPEX will purchase 90% of the issued shares of the new company.

1.

Reason for Purchase
JAPEX is conducting exploration and production activities to increase reserves of crude oil andnatural gas in Japan. Besides exploration and production activities, in its core natural gas supply
business, JAPEX is implementing gas integration as an efficient integrated operation systemcovering upstream, mid-stream, and downstream processes, aiming to develop a natural gas businessmodel organically combining its facilities and service capabilities.
In line with its natural gas sales & marketing strategy, JAPEX is working to boost sales of naturalgas and liquefied natural gas (LNG) by stepping up efforts to expand sales along existing natural gas
pipelines and extending its transportation network. This includes constructing new gas pipelines andoperating an LNG Satellite System to meet demand for LNG in regions not served by its gas
pipeline network.
Meanwhile, Mitsubishi Materials Energy’s petroleum products sales unit has a nationwide networkof marketing facilities, marketing expertise, and human resources. JAPEX believes that its purchaseof Mitsubishi Materials Energy’s petroleum products sales unit can be expected to contribute not
only to the continuation of petroleum products sales but also to the expansion of its natural gas andLNG sales, enabling it to meet the LNG requirements of Mitsubishi Materials Energy’s customers
and to use the acquired marketing facilities to develop new LNG demand and expand LNG sales.

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JAPEX is convinced that the purchase will contribute to the growth and profitability improvement ofthe JAPEX Group.

2.

Method of Acquisition
Mitsubishi Materials Energy Corp. will spin off its petroleum products sales unit through a corporate
separation (incorporation-type company split) effective November 1, 2009, and on the same day
JAPEX will purchase from Mitsubishi Materials Energy Corp. 900 of the 1,000 issued shares of thenew spin-off company.

3.

Profile of New Company Subject to Stock Purchase(1) Corporate Name

JAPEX Energy Co., Ltd.

(2) Head Office

1-11-16 Takamatsu, Toshima-ku, Tokyo(3) Representative

President & Representative Director Tadatsuna Koda
(Executive Vice President of JAPEX)(4) Business

Purchase and sale of petroleum products, etc. and LNG(5) Paid-in Capital¥90 million (provisional)(6) Issued Shares

1,000 shares (provisional)(7) Shareholder

Mitsubishi Materials Energy Corp.

(8) Date of Incorporation

November 1, 2009 (provisional)(9) End of Fiscal Year

March 31(10) Number of Employees

21100%(11) Sales in petroleum products sales unit
Fiscal year ended

Fiscal year ended

March 31, 2008

March 31, 2009

Net sales4.

¥35,043 million¥33,001 million

Profile of Mitsubishi Materials Energy Corp. (as of March 31, 2009)(1) Corporate Name

Mitsubishi Materials Energy Corp.

(2) Head Office

1-11-16 Takamatsu, Toshima-ku, Tokyo(3) Representative

Representative Director Tetsuo Kasukawa(4) Business

Sale of petroleum products, sale of LPG and general highpressure gas, sale of chemical products, sale of auto accessories(5) Paid-in Capital¥490 million(6) Shareholder

Mitsubishi Materials Corporation(7) Relationship with JAPEX

Nothing of note

2/3100%5.

Number of Shares to be Purchased, Estimated Purchase Price, and Shares Held before and afterPurchase(1) Number of shares held before change

0 shares (voting rights0%)(2) Number of shares purchased

900 shares (purchase price to be determined)

Note: The purchase price will be determined by a method agreed upon by Mitsubishi Materials Energy Corp. andJAPEX. The purchase price will be announced at a later date.

(3) Number of shares held after change

6.

900 shares (voting rights90%)

Schedule of Petroleum Products Sales Unit Purchase (Stock Purchase)
August 27, 2009Meeting of Board of Directors to approve
petroleum products sales unit purchase7.

Early September 2009

Conclusion of stock purchase agreement

November 1, 2009

Effective date of corporate separation

November 1, 2009

Effective date of stock purchase

Impact on Business Performance
Since the effective date of the purchase of shares in the new company is November 1, 2009, in thefiscal year ending March 31, 2010 the purchase is expected to have the effect of increasing
consolidated net sales by around ¥10 billion. However, the impact on consolidated operating income,ordinary income, and net income will be insignificant.

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