##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549




|   |  |                                                                                                   
|-- |  | --------------------------------------------------------------------------------------------------
|o  |  | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|  
|OR
|  
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934          
|   |  | For the fiscal year ended March 31, 2005                                                          
|OR
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934      
|OR
|  
|o  |  | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934   
|   |  | Date of event requiring this shell company report                                                 
|   |  | For the transition period
    from           to                                                   

Commission file number 0-9929




(Exact name of Registrant as specified in its charter)




(Translation of Registrants name into English)


JAPAN


(Jurisdiction of incorporation or organization)


2-1, OHTEMACHI 1-CHOME, CHIYODA-KU, TOKYO 100-0004, JAPAN


(Address of principal executive offices)


Securities registered or to be registered pursuant to
Section 12(b) of the Act.


None


Securities registered or to be registered pursuant to
Section 12(g) of the Act.


Common Stock


(Title of class)


Securities for which there is a reporting obligation pursuant
to Section 15(d) of the Act.


None




As of March 31, 2005, 1,582,210,630 shares of
common stock were outstanding including


7,359,040 shares represented by an aggregate of 367,952
American Depositary Shares.




|      |  |     
|----- |  | ----
|Yes þ |  | No o



|          |  |          
|--------- |  | ---------
|Item 17 o |  | Item 18 þ



|      |  |     
|----- |  | ----
|Yes o |  | No þ









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##### Table of Contents



Certain References and Information






A Cautionary Note on Forward-Looking Statements








| |   |                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | changes in economic conditions that may lead to unforeseen
    developments in markets for products handled by us;                                                        
|
| |  | fluctuations in currency exchange rates that may cause
    unexpected deterioration in the value of transactions;                                                         
|
| |  | adverse political developments in the various jurisdictions
    where we operate, which among things, may create delays or
    postponements of transactions and projects;
|
| |  | changes in laws, regulations or policies in any of the countries
    where we conduct our operations; and                                                                 
|
| |  | significant changes in the competitive environment.                                                                                                                       



2



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TABLE OF CONTENTS


|                                                                                                                                        |                                                                                           |                                                                |     |     |     | 
|--------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | -------------------------------------------------------------- | --- | --- | --- | 
|                                                                                                                                        |                                                                                           | Page                                                           |    
|                                                                                                                                        |                                                                                           |                                                                |    
|PART I                                                                                                                                  |                                                                                           |                                                                | 4   |    
|                                                                                                                                        | Item 1. Identity of Directors, Senior
    Management and Advisers                         |                                                                |     | 4   |    
|                                                                                                                                        | Item 2. Offer Statistics and Expected
    Timetable                                       |                                                                |     | 4   |    
|                                                                                                                                        | Item 3. Key Information                                                                   |                                                                |     | 4   |    
|                                                                                                                                        |                                                                                           | A. Selected Financial Data                                     |     |     | 4   | 
|                                                                                                                                        |                                                                                           | B. Capitalization and Indebtedness                             |     |     | 6   | 
|                                                                                                                                        |                                                                                           | C. Reasons for the Offer and Use of
    Proceeds               |     |     | 6   | 
|                                                                                                                                        |                                                                                           | D. Risk Factors                                                |     |     | 6   | 
|                                                                                                                                        | Item 4. Information on the Company                                                        |                                                                |     | 13  |    
|                                                                                                                                        |                                                                                           | A. History and Development of the
    Company                  |     |     | 13  | 
|                                                                                                                                        |                                                                                           | B. Business Overview                                           |     |     | 19  | 
|                                                                                                                                        |                                                                                           | C. Organizational Structure                                    |     |     | 57  | 
|                                                                                                                                        |                                                                                           | D. Property, Plants and Equipment                              |     |     | 60  | 
|                                                                                                                                        | Item 5. Operating and Financial Review
    and Prospects                                  |                                                                |     | 73  |    
|                                                                                                                                        |                                                                                           | A. Operating Results                                           |     |     | 73  | 
|                                                                                                                                        |                                                                                           | B. Liquidity and Capital Resources                             |     |     | 120 | 
|                                                                                                                                        |                                                                                           | C. Research and Development                                    |     |     | 131 | 
|                                                                                                                                        |                                                                                           | D. Trend Information                                           |     |     | 132 | 
|                                                                                                                                        |                                                                                           | E. Off-balance Sheet Arrangements                              |     |     | 132 | 
|                                                                                                                                        |                                                                                           | F. Tabular Disclosure of Contractual
    Obligations           |     |     | 133 | 
|                                                                                                                                        | Item 6. Directors, Senior Management
    and Employees                                    |                                                                |     | 134 |    
|                                                                                                                                        |                                                                                           | A. Directors and Senior Management                             |     |     | 134 | 
|                                                                                                                                        |                                                                                           | B. Compensation                                                |     |     | 146 | 
|                                                                                                                                        |                                                                                           | C. Board Practices                                             |     |     | 147 | 
|                                                                                                                                        |                                                                                           | D. Employees                                                   |     |     | 154 | 
|                                                                                                                                        |                                                                                           | E. Share Ownership                                             |     |     | 154 | 
|                                                                                                                                        | Item 7. Major Shareholders and Related
    Party Transactions                             |                                                                |     | 155 |    
|                                                                                                                                        |                                                                                           | A. Major Shareholders                                          |     |     | 155 | 
|                                                                                                                                        |                                                                                           | B. Related Party Transactions                                  |     |     | 156 | 
|                                                                                                                                        |                                                                                           | C. Interests of Experts and Counsel                            |     |     | 157 | 
|                                                                                                                                        | Item 8. Financial Information                                                             |                                                                |     | 157 |    
|                                                                                                                                        |                                                                                           | A. Consolidated Statements and Other
    Financial Information |     |     | 157 | 
|                                                                                                                                        |                                                                                           | B. Significant Changes                                         |     |     | 159 | 
|                                                                                                                                        | Item 9. The Offer and Listing                                                             |                                                                |     | 159 |    
|                                                                                                                                        |                                                                                           | A. Offer and Listing Details                                   |     |     | 159 | 
|                                                                                                                                        |                                                                                           | B. Plan of Distribution                                        |     |     | 161 | 
|                                                                                                                                        |                                                                                           | C. Markets                                                     |     |     | 161 | 
|                                                                                                                                        |                                                                                           | D. Selling Shareholders                                        |     |     | 161 | 
|                                                                                                                                        |                                                                                           | E. Dilution                                                    |     |     | 161 | 
|                                                                                                                                        |                                                                                           | F. Expenses of the Issue                                       |     |     | 161 | 
|                                                                                                                                        | Item 10. Additional Information                                                           |                                                                |     | 161 |    
|                                                                                                                                        |                                                                                           | A. Share Capital                                               |     |     | 161 | 
|                                                                                                                                        |                                                                                           | B. Memorandum and Articles of
    Association                  |     |     | 161 | 
|                                                                                                                                        |                                                                                           | C. Material Contracts                                          |     |     | 169 | 
|                                                                                                                                        |                                                                                           | D. Exchange Controls                                           |     |     | 169 | 
|                                                                                                                                        |                                                                                           | E. Taxation                                                    |     |     | 170 | 
|                                                                                                                                        |                                                                                           | F. Dividends and Paying Agents                                 |     |     | 173 | 
|                                                                                                                                        |                                                                                           | G. Statement by Experts                                        |     |     | 173 | 
|                                                                                                                                        |                                                                                           | H. Documents on Display                                        |     |     | 173 | 
|                                                                                                                                        |                                                                                           | I. Subsidiary Information                                      |     |     | 174 | 
|                                                                                                                                        | Item 11. Quantitative and Qualitative
    Disclosures about Market Risk                   |                                                                |     | 174 |    
|                                                                                                                                        | Item 12. Description of Securities
    Other Than Equity Securities                       |                                                                |     | 177 |    
|PART II                                                                                                                                 |                                                                                           |                                                                | 177 |    
|                                                                                                                                        | Item 13. Defaults, Dividend Arrearages
    and Delinquencies                              |                                                                |     | 177 |    
|                                                                                                                                        | Item 14. Material Modifications to the
    Rights of Security Holders and Use of Proceeds |                                                                |     | 177 |    
|                                                                                                                                        | Item 15. Controls and Procedures                                                          |                                                                |     | 177 |    
|                                                                                                                                        | Item 16. [Reserved]                                                                       |                                                                |     | 178 |    
|                                                                                                                                        | Item 16A. Audit Committee Financial
    Expert                                            |                                                                |     | 178 |    
|                                                                                                                                        | Item 16B. Code of Ethics                                                                  |                                                                |     | 178 |    
|                                                                                                                                        | Item 16C. Principal Accountant Fees
    and Services                                      |                                                                |     | 178 |    
|                                                                                                                                        | Item 16D. Exemptions from the Listing
    Standards for Audit Committees                  |                                                                |     | 179 |    
|                                                                                                                                        | Item 16E. Purchases of Equity
    Securities by the Issuer and Affiliated Purchasers      |                                                                |     | 179 |    
|PART III                                                                                                                                |                                                                                           |                                                                | 181 |    
|                                                                                                                                        | Item 17. Financial Statements                                                             |                                                                |     | 181 |    
|                                                                                                                                        | Item 18. Financial Statements                                                             |                                                                |     | 181 |    
|                                                                                                                                        | Item 19. Exhibits                                                                         |                                                                |     | 181 |    
|EX-1.1 THE ARTICLES OF INCORPORATION OF MITSUI & CO.,LTD.,AS OF JUNE 24, 2005(ENGLISH-LANGUAGE TRANSLATION).                           
|EX-1.4 THE RULES OF THE BOARD OF CORPORATE AUDITORS OF MITSUI & CO.,LTD.,AS AMENDED ON SEPTEMBER 8, 2004(ENGLISH-LANGUAGE TRANSLATION).
|EX-8.1 LIST OF SUBSIDIARIES OF MITSUI & CO.,LTD.                                                                                       
|EX-11.1 CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS AND PROFESSIONALS.                                                                
|EX-11.2 BUSINESS CONDUCT GUIDELINES FOR EMPLOYEES AND OFFICERS OF MITSUI & CO.,LTD.                                                    
|EX-12.1 CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER OF MITSUI & CO.,LTD. REQUIRED BY RULE 13A-14(A).                              
|EX-12.2 CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER OF MITSUI & CO.,LTD. REQUIRED BY RULE 13A-14(A).                              
|EX-13.1 CERTIFICATION REQUIRED BY RULE 13A-14(B) AND SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE.                 



3



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PART I







|        |                                                       
|------- | ------------------------------------------------------
|Item 1. | Identity of Directors, Senior Management and Advisers.








|        |                                         
|------- | ----------------------------------------
|Item 2. | Offer Statistics and Expected Timetable.








|        |                 
|------- | ----------------
|Item 3. | Key Information.






|   |                         
|-- | ------------------------
|A. | Selected Financial Data.





|                                                         |                                                     |                                                                    |      |       |       |   |      |       |       |   |      |       |       |      |      |       |       |   |      |       |       | 
|-------------------------------------------------------- | --------------------------------------------------- | ------------------------------------------------------------------ | ---- | ----- | ----- | - | ---- | ----- | ----- | - | ---- | ----- | ----- | ---- | ---- | ----- | ----- | - | ---- | ----- | ----- | 
|                                                         |                                                     | In Billions of Yen, Except Amounts per Share and Common Stock Data |     
|                                                         |                                                     |                                                                    |     
|                                                         |                                                     | As of or for the Years Ended March 31,                             |     
|                                                         |                                                     |                                                                    |     
|                                                         |                                                     | 2005                                                               |      |       | 2004  |   |      | 2003  |       |   | 2002 |       |       | 2001 |     
|                                                         |                                                     |                                                                    |      |       |       |   |      |       |       |   |      |       |       |      |     
|Consolidated Income Statement Data:                      |                                                     |                                                                    |      |       |       |   |      |       |       |   |      |       |       |      |      |      
|Results of Operations:                                   |                                                     |                                                                    |      |       |       |   |      |       |       |   |      |       |       |      |      |       |       |   |      |      
|                                                         | Revenues(2)(3)                                      |                                                                    | ¥    | 3,526 |       |   | ¥    | 2,983 |       |   | ¥    | 2,785 |       |      | ¥    | 2,487 |       |   | ¥    | 2,366 |      
|                                                         | Gross
    Profit(2)(3)                              |                                                                    |      | 726   |       |   |      | 614   |       |   |      | 570   |       |      |      | 545   |       |   |      | 560   |      
|                                                         | Equity in Earnings of Associated
    Companies(3)   |                                                                    |      | 66    |       |   |      | 40    |       |   |      | 15    |       |      |      | 24    |       |   |      | 7     |      
|                                                         | Income from Continuing Operations
    (3)           |                                                                    |      | 120   |       |   |      | 74    |       |   |      | 37    |       |      |      | 60    |       |   |      | 58    |      
|                                                         | Net Income                                          |                                                                    |      | 121   |       |   |      | 68    |       |   |      | 31    |       |      |      | 55    |       |   |      | 52    |      
|                                                         | Free Cash
    Flows(4)                              |                                                                    |      | (24   | )     |   |      | (34   | )     |   |      | 48    |       |      |      | 51    |       |   |      | 141   |      
|                                                         | Income from Continuing Operations per
    Share(3): |                                                                    |      |       |       |   |      |       |       |   |      |       |       |      |      |       |       |   |      |       |      
|                                                         |                                                     | Basic                                                              |      |       | 76.10 |   |      |       | 47.04 |   |      |       | 23.43 |      |      |       | 37.97 |   |      |       | 37.16 | 
|                                                         |                                                     | Diluted                                                            |      |       | 71.70 |   |      |       | 44.44 |   |      |       | 22.17 |      |      |       | 35.63 |   |      |       | 34.88 | 
|Net Income per Share:                                    |                                                     |                                                                    |      |       |       |   |      |       |       |   |      |       |       |      |      |       |       |   |      |      
|                                                         |                                                     | Basic                                                              |      |       | 76.55 |   |      |       | 43.25 |   |      |       | 19.68 |      |      |       | 34.97 |   |      |       | 37.16 | 
|                                                         |                                                     | Diluted                                                            |      |       | 72.12 |   |      |       | 40.89 |   |      |       | 18.69 |      |      |       | 32.85 |   |      |       | 30.63 | 
|Cash Dividends Declared per Share                        |                                                     |                                                                    | 9    |       |       |   | 8    |       |       |   | 8    |       |       |      | 8    |       |       |   | 8    |      
|Cash Dividends Declared per Share in
    U.S. Dollars(1) |                                                     | $                                                                  | 0.09 |       |       | $ | 0.07 |       |       | $ | 0.07 |       |       | $    | 0.06 |       |       | $ | 0.07 |      

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|                                 |                                             |                                                                    |   |           |      |  |   |           |   |  |      |           |   |      |   |           |   |  |   |           |  
|-------------------------------- | ------------------------------------------- | ------------------------------------------------------------------ | - | --------- | ---- |  | - | --------- | - |  | ---- | --------- | - | ---- | - | --------- | - |  | - | --------- | -
|                                 |                                             | In Billions of Yen, Except Amounts per Share and Common Stock Data |  
|                                 |                                             |                                                                    |  
|                                 |                                             | As of or for the Years Ended March 31,                             |  
|                                 |                                             |                                                                    |  
|                                 |                                             | 2005                                                               |   |           | 2004 |  |   | 2003      |   |  | 2002 |           |   | 2001 |  
|                                 |                                             |                                                                    |   |           |      |  |   |           |   |  |      |           |   |      |  
|Consolidated Balance Sheet Data: |                                             |                                                                    |   |           |      |  |   |           |   |  |      |           |   |      |   |           |   |  |   |          
|Financial Position at Year-End:  |                                             |                                                                    |   |           |      |  |   |           |   |  |      |           |   |      |   |           |   |  |   |          
|                                 | Total Assets                                |                                                                    | ¥ | 7,593     |      |  | ¥ | 6,716     |   |  | ¥    | 6,541     |   |      | ¥ | 6,668     |   |  | ¥ | 6,710,    |  
|                                 | Total Shareholders Equity                  |                                                                    |   | 1,123     |      |  |   | 963       |   |  |      | 862       |   |      |   | 915       |   |  |   | 834       |  
|                                 | Long-term Debt, less Current Maturities     |                                                                    |   | 2,905     |      |  |   | 2,541     |   |  |      | 2,500     |   |      |   | 2,620     |   |  |   | 2,709     |  
|                                 | Return on Equity                            |                                                                    |   | 11.6      | %    |  |   | 7.5       | % |  |      | 3.5       | % |      |   | 6.3       | % |  |   | 6.3       | %
|                                 | Common Stock                                |                                                                    |   | 192       |      |  |   | 192       |   |  |      | 192       |   |      |   | 192       |   |  |   | 192       |  
|Other Information at Year-End:   |                                             |                                                                    |   |           |      |  |   |           |   |  |      |           |   |      |   |           |   |  |   |          
|                                 | Common Stock:                               |                                                                    |   |           |      |  |   |           |   |  |      |           |   |      |   |           |   |  |   |           |  
|                                 | Number of Shares Outstanding (in Thousands) |                                                                    |   | 1,582,211 |      |  |   | 1,581,013 |   |  |      | 1,581,377 |   |      |   | 1,583,180 |   |  |   | 1,583,675 |  
|                                 | Number of Shareholders                      |                                                                    |   | 107,034   |      |  |   | 109,722   |   |  |      | 115,267   |   |      |   | 118,700   |   |  |   | 127,137   |  






|    |                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The U.S. dollar amounts represent translations of the
    Japanese yen amounts at the rates in effect on the respective
    dividend payment dates.                                                                                                                                                                                                         
|   
|(2) | For the year ended March 31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as Interest expense, net of
    interest income. The prior year figures have been restated
    to conform to the current year presentation.
|   
|(3) | In accordance with Statement of Financial Accounting Standards
    No. 144, Accounting for the Impairment or Disposal of
    Long-Lived Assets, the prior year figures relating to
    discontinued operations have been reclassified.                                                                                                                    
|   
|(4) | Free Cash Flows represents the sum of net cash provided by
    operating activities and net cash used in investing activities.
    See Item 5. B. Liquidity and Capital
    Resources  Use of Non-GAAP Financial Measures.                                                                                                                               



| |                          
| | -------------------------
| | Exchange Rate Information





|            |  |                     |        |  |     |   |        | 
|----------- |  | ------------------- | ------ |  | --- | - | ------ | 
|            |  | Yen per U.S. Dollar |       
|            |  |                     |       
|            |  | High                |        |  | Low |  
|            |  |                     |        |  |     |  
|August 2005 |  | ¥                   | 112.12 |  |     | ¥ | 109.37 | 
|July 2005   |  |                     | 113.42 |  |     |   | 110.47 | 
|June 2005   |  |                     | 110.91 |  |     |   | 106.64 | 
|May 2005    |  |                     | 108.17 |  |     |   | 104.41 | 
|April 2005  |  |                     | 108.67 |  |     |   | 104.64 | 
|March 2005  |  |                     | 107.49 |  |     |   | 103.87 | 

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|                      |  |                     |        | 
|--------------------- |  | ------------------- | ------ | 
|                      |  | Yen per U.S. Dollar |       
|                      |  |                     |       
|Years Ended March 31, |  | Average Rate        |       
|                      |  |                     |       
|2005                  |  | ¥                   | 107.28 | 
|2004                  |  |                     | 112.75 | 
|2003                  |  |                     | 121.10 | 
|2002                  |  |                     | 125.64 | 
|2001                  |  |                     | 111.65 | 








|   |                                 
|-- | --------------------------------
|B. | Capitalization and Indebtedness.








|   |                                           
|-- | ------------------------------------------
|C. | Reasons for the Offer and Use of Proceeds.








|   |              
|-- | -------------
|D. | Risk Factors.

You should carefully consider the risks and uncertainties
described below and the other information in this annual report,
including the discussion in Item 5. Operating and
Financial Review and Prospects, as well as our
consolidated financial statements and related notes included
elsewhere in this annual report.




| |                                                                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The decrease in the volume of trade and the flow of goods
    and materials resulting from the worldwide economic downturn may
    adversely impact our business, results of operations and
    financial condition.







| |                                                                                                             
| | ------------------------------------------------------------------------------------------------------------
| | Fluctuations in commodity prices can adversely affect our
    results of operations and financial condition.



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | declines in commodity prices may result in a decrease in sales
    of those commodities in which we act as a principal or a
    decrease in sales of services in which we act as an agent. For
    instance, the operating results of the Energy Segment, which
    reflect annual production from our oil and gas activities, are
    sensitive to the price of crude oil. A decline of
    U.S.$1 per barrel in the price of crude oil adversely
    affects the revenues and equity in earnings of associated
    companies of this segment and results in a decrease in the
    segments annual net income of approximately
    ¥1 billion as of the year ended March 31, 2005;
|
| |  | because we are engaged in spot and derivative trading of
    commodities, unexpected changes in price may result in trading
    losses; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | as we invest a substantial amount of money in the production of
    commodities, a prolonged or cyclical decline in the price of
    commodities can have a long term adverse effect on our results
    of operations and financial condition and make it increasingly
    difficult for us to recover our capital investments or to divest
    our interests at prices acceptable to us, if at all.                                                                                                                                                                                                                                                                                





| |                                                                           
| | --------------------------------------------------------------------------
| | Exchange rate fluctuations may adversely affect our
    operating results.







| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to significant counterparty credit risk
    from various companies or projects with which we do business or
    to which we lend.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We provide vendor financing services and also act as guarantors
    to banks that provide financing to our customers. In addition,
    many of our customers purchase products and services from us on
    credit. At March 31, 2005, current trade receivable (less
    unearned interest and allowance for doubtful
    receivables  current) were
    ¥2,488.9 billion, representing 32.8% of our total
    assets and the recognized losses for doubtful
    receivables  current for the year ended
    March 31, 2005 and the balance of the allowance for
    doubtful receivables  current were
    ¥6.3 billion and ¥22.5 billion, respectively;
|
| |  | We engage in significant project financing activities as a
    lender or guarantor whereby we assume repayment risk; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | We have counterparty payment risks from various derivative
    transactions we enter into as part of our hedging activities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

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| |   |                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | liquidity crises arise in Japan or elsewhere in the world;                                                                                               
|
| |  | real estate prices or stock prices in Japan or other markets
    decline sharply, thereby adversely affecting the liquidity of
    our counterparties; or
|
| |  | the number of corporate bankruptcies in Japan increases.                                                                                                 



| |                                                                                     
| | ------------------------------------------------------------------------------------
| | Changes in interest rates could have an adverse effect on
    our operating results.







| |                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If the value of assets for which we act as lessor, such as
    real property and equipment, aircraft, ocean transport vessels
    and rolling stock decline, we may be forced to write down the
    value of these assets.







| |                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Declines in the market value of equity and/or debt
    securities in Japan may decrease the value of our pension assets
    which in turn may increase the cost of satisfying our unfunded
    pension obligations.







| |                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our liquidity could be adversely affected by a downgrade
    in our credit ratings, significant changes in the lending or
    investment policies of our creditors or investors.





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| |                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Due to our significant investments in marketable equity
    securities of Japanese issuers, a substantial decline in the
    Japanese stock market as experienced in the past could
    negatively affect our investment portfolio.







| |                                                                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Some of our operations are concentrated in a limited
    number of regions or countries, which could harm our business
    and results of operations if activity levels in these regions or
    countries decline.





| |   |                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------
| |  | In Russia and Brazil, our interests in the exploration,
    development and production of minerals and energy resources are
    increasing.
|
| |  | In Indonesia, we actively participate in infrastructure projects
    including the operation of power plants.                              





| |                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may not be able to successfully restructure or
    eliminate unprofitable or underperforming subsidiaries or
    associated companies in a timely manner and any efforts to do so
    may not lead to improved results of operations.



9



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| |                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------
| | Our alliances by forming joint ventures with, and
    strategic investments in, third parties may not result in
    successful operations.





| |   |                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the operational success is critically dependent on factors that
    are beyond our control such as the financial condition and
    performance of the partner companies or the strategic
    investees; or                                                                                                                                                                         
|
| |  | with respect to certain associated companies, we may fail to
    exercise adequate control over the management, operations and
    assets of the companies in which we invested or may fail to make
    major decisions without the consent of other shareholders or
    participants due to lack of common business goals and strategic
    objectives with our alliance partners.





| |                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our businesses in exploration, development and production
    of mineral resources and oil and gas may not develop in line
    with assumed costs and schedules, and are subject to the risks
    associated with estimating reserves and the operating
    performance of third party operators.





| |   |                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | development of projects may face schedule delays or cost
    overruns due to difficulties in technical conditions,
    procurement of materials, financial conditions and government
    regulations;                                  
|
| |  | reserves are estimated based on available geological, technical,
    contractual and economic information, therefore actual
    development and production may significantly differ from
    originally estimated reserves; and        
|
| |  | reserve replacement, on which future production will depend, may
    not be successfully implemented due to uncertainties such as
    failures in exploration or negotiations for acquisitions of
    known reserves with their owners.





| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | Intense competition from other Japanese general trading
    companies could have an adverse effect on our results of
    operations.





| |   |                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | stronger business associations and relationships with our
    customers, suppliers and business partners in both domestic and
    global markets; or
|
| |  | stronger global network and regional expertise, diversified
    global customer bases, greater financial engineering skills and
    market insights.



10



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| |                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------
| | We may lose the opportunities of entry to new business
    areas because of the limitation of required human
    resources.





| |                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Restrictions under environmental laws and regulations and
    any accidents relating to our use of hazardous materials could
    negatively affect our business, results of operations and
    financial condition.





| |   |                                                                  
| | - | -----------------------------------------------------------------
| |  | require us to perform site clean-ups;                            
|
| |  | require us to curtail or cease certain operations;               
|
| |  | impose fines and payments for significant environmental damage;  
|
| |  | require us to install costly pollution control
    equipment; and
|
| |  | require us to modify our operations.                             







| |                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to extensive laws and regulations in Japan
    and other countries throughout the world. Changes in these laws
    and regulations could adversely affect our results of
    operations.



11



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| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | tariffs for products and services that we provide;                                      
|
| |  | technical specifications with respect to environmental
    regulations;                 
|
| |  | income tax and duty rates; and                                                          
|
| |  | foreign exchange controls with respect to repatriation of
    investments and dividends.







| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | Employee misconduct could adversely affect our results of
    operations and reputation.







| |                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because of daily price range limitations under Japanese
    stock exchange rules, you may not be able to sell your shares of
    our common stock at a particular price on any particular trading
    day, or at all.





12



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##### Table of Contents





| |                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | As a holder of ADSs, you will have fewer rights than a
    direct shareholder and you will have to act through the
    depositary to exercise those rights.








|        |                            
|------- | ---------------------------
|Item 4. | Information on the Company.






|   |                                        
|-- | ---------------------------------------
|A. | History and Development of the Company.



| |        
| | -------
| | History

Kabushiki
Kaisha












13



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| |                    
| | -------------------
| | Recent Developments





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We are establishing more diversified and stable supply sources
    of mineral and energy resources through our global alliances
    with worldwide partners represented by the acquisition of shares
    of Valepar S.A. (the controlling shareholder of Companhia Vale
    do Rio Doce (CVRD), a Brazilian mineral resource
    producer) in September 2003 and the final investment decision in
    the second phase of development of the crude oil and LNG
    producing Sakhalin II Project jointly promoted with Royal
    Dutch/ Shell Group and Mitsubishi Corporation in May 2003. See
    Item 4.B. Business Overview  Metal
    Products & Minerals Segment  Iron &
    Steel Raw Materials Unit and Item 4.B. Business
    Overview  Energy Segment.
|
| |  | We are increasing our involvement in the power generation
    businesses. In December 2004, in partnership with International
    Power plc, a U.K. electric utility company, we completed
    the acquisition of international power generation portfolio of
    Edison Mission Energy in the United States pursuant to a share
    purchase agreement concluded by the three parties, which
    resulted in the acquisition of nine power plants by the
    partnership as of March 2005.                                                                                                                                                                                                                                                                              
|
| |  | In the food business, aiming to respond to changing demands of
    consumers in Japan by upgrading our logistics infrastructure, we
    made an equity infusion into MITSUI FOODS CO., LTD. (formerly
    Sanyu Koami Co., Ltd.), a nationwide wholesaler and the
    core of our domestic food distribution business. Additionally,
    in May 2003, we acquired a majority interest in Mitsui
    Norin Co., Ltd., a producer and seller of raw tea leaves in
    Japan. Furthermore, all the business units are establishing a
    supply chain management (SCM) system in order to
    integrate our information and logistics services with those of
    our customers. See Item 4.B. Business Overview.                                                        

14



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| |   |                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In March 2004, we increased our equity ownership in the United
    Auto Group, an auto dealer in the United States, with the goal
    of developing our automobile retail operations worldwide.                                                     
|
| |  | We are also actively pursuing new technologies and materials.
    For example, we are promoting research and development such as
    carbon nanotubes and zeolite membrane. See Item 5.C.
    Research and Development, Patents and Licenses, etc.



| |                                                                   
| | ------------------------------------------------------------------
| | Our Organizational Structure for the Year Ended
    March 31, 2003





| |   |                                            
| | - | -------------------------------------------
| |  | Metal Products & Minerals Group;           
|
| |  | Machinery, Electronics & Information Group;
|
| |  | Chemical Group;                            
|
| |  | Energy Group; and                          
|
| |  | Consumer Products & Services Group         





| |                                                                   
| | ------------------------------------------------------------------
| | Our Organizational Structure for the Year Ended
    March 31, 2004





| |   |                                                    
| | - | ---------------------------------------------------
| |  | company wide evaluation of business opportunities; 
|
| |  | re-allocation of assets and human resources; and   
|
| |  | analysis and selection of investment opportunities.





| |                                                                   
| | ------------------------------------------------------------------
| | Our Organizational Structure for the Year Ended
    March 31, 2005





15



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| |                     
| | --------------------
| | Capital Expenditures



|                                                                  |  |                 |      |  |      |  |      |      |  |  |      | 
|----------------------------------------------------------------- |  | --------------- | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|                                                                  |  | Billions of Yen |     
|                                                                  |  |                 |     
|                                                                  |  | Years Ended     |     
|                                                                  |  | March 31,       |     
|                                                                  |  |                 |     
|                                                                  |  | 2005            |      |  | 2004 |  |      | 2003 | 
|                                                                  |  |                 |      |  |      |  |      |      | 
|Investments in and advances to associated companies               |  |                 | ¥190 |  |      |  | ¥203 |      |  |  | ¥64  | 
|Acquisitions of available-for-sale securities                     |  |                 | 91   |  |      |  | 131  |      |  |  | 154  | 
|Acquisitions of held-to-maturity debt securities                  |  |                 | 2    |  |      |  | 0    |      |  |  | 4    | 
|Acquisitions of other investments                                 |  |                 | 68   |  |      |  | 47   |      |  |  | 40   | 
|Additions to property leased to others and property and equipment |  |                 | 170  |  |      |  | 113  |      |  |  | 123  | 
|Acquisitions of subsidiaries, net of cash acquired                |  |                 | 5    |  |      |  | (3   | )    |  |  | 11   | 
|                                                                  |  |                 |      |  |      |  |      |      | 
|Total                                                             |  |                 | ¥526 |  |      |  | ¥491 |      |  |  | ¥396 | 
|                                                                  |  |                 |      |  |      |  |      |      | 



16



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##### Table of Contents





|            |  |                                          |  |                            |  |                          |  |            |    | 
|----------- |  | ---------------------------------------- |  | -------------------------- |  | ------------------------ |  | ---------- | -- | 
|            |  |                                          |  |                            |  |                          |  | Investment |   
|Years Ended |  |                                          |  |                            |  | Amount                   | 
|March 31,   |  | Investee                                 |  | Country                    |  | (Billions of Yen)        | 
|            |  |                                          |  |                            |  |                          | 
|2005        |  | Sakhalin Energy Investment Company Ltd.  |  | Associated company         |  | Bermuda (United Kingdom) |  |            | 82 | 
|            |  | IPM Eagle LLC                            |  | Associated company         |  | United Kingdom           |  |            | 62 | 
|            |  | Quintiles Transnational Japan K.K.       |  | Associated company         |  | Japan                    |  |            | 9  | 
|            |  | CornerStone Research & Development, Inc. |  | Subsidiary                 |  | United States            |  |            | 9  | 
|2004        |  | Valepar S.A.                             |  | Associated company         |  | Brazil                   |  |            | 97 | 
|            |  | Sakhalin Energy Investment Company Ltd.  |  | Associated company         |  | Bermuda (United Kingdom) |  |            | 57 | 
|2003        |  | Sakhalin Energy Investment Company Ltd.  |  | Associated company         |  | Bermuda (United Kingdom) |  |            | 15 | 
|            |  | NextCom K.K.                             |  | Associated company
    (1) |  | Japan                    |  |            | 12 | 
|            |  | Mitsui E&P Middle East B.V.              |  | Subsidiary                 |  | Netherlands              |  |            | 11 | 






|    |                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Nextcom K.K. became a subsidiary as a result of the business
    combination which was taken place in the year ended
    March 31, 2005. See Note 3, BUSINESS
    COMBINATIONS, to our consolidated financial statements.












|    |                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------
|(*) | Bussan Credit Co., Ltd. changed its corporate name to
    Mitsui & Co. Financial Services Ltd. in April 2005.

17



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|                                                                                |  |                 |     |  |      |   |     |      |  |   |     | 
|------------------------------------------------------------------------------- |  | --------------- | --- |  | ---- | - | --- | ---- |  | - | --- | 
|                                                                                |  | Billions of Yen |    
|                                                                                |  |                 |    
|                                                                                |  | Years Ended     |    
|                                                                                |  | March 31,       |    
|                                                                                |  |                 |    
|                                                                                |  | 2005            |     |  | 2004 |   |     | 2003 | 
|                                                                                |  |                 |     |  |      |   |     |      | 
|Sales of investments in and collection of advances to associated
    companies  |  | ¥               | 53  |  |      | ¥ | 68  |      |  | ¥ | 10  | 
|Proceeds from sales of available-for-sale securities                            |  |                 | 22  |  |      |   | 51  |      |  |   | 66  | 
|Proceeds from maturities of available-for-sale securities                       |  |                 | 57  |  |      |   | 110 |      |  |   | 145 | 
|Proceeds from maturities of held-to-maturity debt securities                    |  |                 | 3   |  |      |   | 15  |      |  |   | 11  | 
|Proceeds from sales of other investments                                        |  |                 | 73  |  |      |   | 29  |      |  |   | 30  | 
|Proceeds from sales of property leased to others and property
    and equipment |  |                 | 79  |  |      |   | 60  |      |  |   | 62  | 
|                                                                                |  |                 |     |  |      |   |     |      | 
|Total                                                                           |  | ¥               | 287 |  |      | ¥ | 333 |      |  | ¥ | 324 | 
|                                                                                |  |                 |     |  |      |   |     |      | 



|            |  |                                     |  |         |       |        |                   |  |    | 
|----------- |  | ----------------------------------- |  | ------- | ----- | ------ | ----------------- |  | -- | 
|Years Ended |  |                                     |  |         |       | Amount |                  
|March 31,   |  | Investee                            |  | Country |       |        | (Billions of Yen) | 
|            |  |                                     |  |         |       |        |                   | 
|2005        |  | Vodafone K.K.                       |  |         | Japan |        |                   |  | 15 | 
|2004        |  | SKY Perfect Communications Inc.     |  |         | Japan |        |                   |  | 12 | 
|2003        |  | Sumitomo Mitsui Banking Corporation |  |         | Japan |        |                   |  | 11 | 
|            |  | JSAT Corporation                    |  |         | Japan |        |                   |  | 6  | 
|            |  | Mitsui Trust Holdings, Inc.         |  |         | Japan |        |                   |  | 2  | 



18



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| |   |                                                                                           
| | - | ------------------------------------------------------------------------------------------
| |  | ¥10.8 billion from the sale of our office building in
    the United Kingdom; and         
|
| |  | ¥12.8 billion from the sale of Mitsuis corporate
    residences and dormitories in Japan.








|   |                   
|-- | ------------------
|B. | Business Overview.





| |                                                  
| | -------------------------------------------------
| | Nature of Our Operations and Principal Activities







19



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##### Table of Contents





| |                                       
| | --------------------------------------
| | Seasonality of Our Business Activities





| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | Dependence on Patents and Licenses and Industrial, Commercial
    or Financial Contracts





| |                   
| | ------------------
| | Marketing Channels







| |                     
| | --------------------
| | Competitive Position





| |                       
| | ----------------------
| | Government Regulations



Regulations
with Respect to the Exploration and Production of Oil, Gas, and
Mineral Resources






20



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##### Table of Contents





Governmental
Regulations with Respect to Infrastructure Projects




Governmental
Regulations with Respect to Human Health and Environment








| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Products and Services and Principal Activities by Reportable
    Operating Segments



| |                                                                                                     
| | ----------------------------------------------------------------------------------------------------
| | The Establishment of the Five Major Operating Groups
    Structure for the Year Ended March 31, 2003





21



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##### Table of Contents







| |   |                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our five products and services focused operating segments were
    Metal Products & Minerals; Machinery,
    Electronics & Information; Chemical; Energy; and
    Consumer Products & Services; and
|
| |  | Our four region-focused operating segments were Domestic
    Branches and Offices; Americas; Europe; and Other Overseas Areas.                                                                     





| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | Abolishment of the Five Major Operating Groups Structure for
    the Year Ended March 31, 2004







| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | Reorganization of Business Units in the Head Office and
    Change in the Reportable Segments for the Year Ended
    March 31, 2005





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Domestic Branches and Offices Segment was abolished. As a
    result, the operating results previously reported by the
    Domestic Branches and Offices Segment are now reviewed by each
    of Chief Operating Officers of the related business units in the
    Head Office based on the categories of their products and
    services.                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | Reorganizations of the 18 business units were implemented
    whereby we integrated business units within the same five
    products and services focused reportable operating segments. For
    example, we combined the former Iron & Steel Raw
    Materials Unit and the former Non-Ferrous Metals Unit into the
    Iron & Steel Raw Materials and Non-Ferrous Metals
    Business Unit. Additionally, media related businesses such as
    broadcasting and content businesses previously included in the
    Machinery, Electronics & Information Segment were
    transferred to the Consumer Products & Services
    Segment. Furthermore, we introduced two new business units whose
    business activities

22



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##### Table of Contents



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | were in most cases previously reported in All Other
    as businesses handled outside the five products and services
    based reportable segments. The first is the Transportation
    Logistics Business Unit which engages in logistics services. The
    other is the Financial Markets Business Unit which engages in
    financial services, including businesses previously handled in
    the Metal Products & Minerals Segment, such as
    commodity trading. As a result, the Transportation Logistics
    Business Unit and the Financial Markets Business Unit have
    comprised a new reportable segment, the Logistics &
    Financial Markets Segment.





| |   |                                                               
| | - | --------------------------------------------------------------
| |  | Our six products and services focused operating segments were:















| |   |                                                  
| | - | -------------------------------------------------
| |  | Our three region-focused operating segments were:







(1)(2)(3)(4)(5)


Gross Profit:


|                                     |  |                                 |       |   |      |  |       |      |  |   |       |   |  |  |       |   |  |   |       |   |  |  |       |  
|------------------------------------ |  | ------------------------------- | ----- | - | ---- |  | ----- | ---- |  | - | ----- | - |  |  | ----- | - |  | - | ----- | - |  |  | ----- | -
|                                     |  | In Billions, Except Percentages |      
|                                     |  |                                 |      
|                                     |  | Years Ended March 31,           |      
|                                     |  |                                 |      
|                                     |  | 2005                            |       |   | 2004 |  |       | 2003 | 
|                                     |  |                                 |       |   |      |  |       |      | 
|Metal Products & Minerals            |  | ¥                               | 121.4 |   |      |  | 16.7  | %    |  | ¥ | 77.0  |   |  |  | 12.5  | % |  | ¥ | 71.5  |   |  |  | 12.6  | %
|Machinery, Electronics & Information |  |                                 | 137.3 |   |      |  | 18.9  |      |  |   | 128.7 |   |  |  | 21.0  |   |  |   | 121.1 |   |  |  | 21.3  |  
|Chemical                             |  |                                 | 87.1  |   |      |  | 12.0  |      |  |   | 91.1  |   |  |  | 14.8  |   |  |   | 69.3  |   |  |  | 12.2  |  
|Energy                               |  |                                 | 72.6  |   |      |  | 10.0  |      |  |   | 54.6  |   |  |  | 8.9   |   |  |   | 53.8  |   |  |  | 9.4   |  
|Consumer Products & Services         |  |                                 | 152.6 |   |      |  | 21.0  |      |  |   | 135.9 |   |  |  | 22.1  |   |  |   | 122.6 |   |  |  | 21.5  |  
|Logistics & Financial Markets        |  |                                 | 46.7  |   |      |  | 6.4   |      |  |   | 32.3  |   |  |  | 5.3   |   |  |   | 33.1  |   |  |  | 5.8   |  
|Americas                             |  |                                 | 49.9  |   |      |  | 6.9   |      |  |   | 40.7  |   |  |  | 6.6   |   |  |   | 44.6  |   |  |  | 7.8   |  
|Europe                               |  |                                 | 20.7  |   |      |  | 2.9   |      |  |   | 20.0  |   |  |  | 3.3   |   |  |   | 22.5  |   |  |  | 4.0   |  
|Other Overseas Areas                 |  |                                 | 25.8  |   |      |  | 3.6   |      |  |   | 24.1  |   |  |  | 3.9   |   |  |   | 23.5  |   |  |  | 4.1   |  
|All Other                            |  |                                 | 12.3  |   |      |  | 1.7   |      |  |   | 10.4  |   |  |  | 1.7   |   |  |   | 10.6  |   |  |  | 1.9   |  
|Adjustments and Eliminations         |  |                                 | (0.6  | ) |      |  | (0.1  | )    |  |   | (0.9  | ) |  |  | (0.1  | ) |  |   | (3.0  | ) |  |  | (0.6  | )
|                                     |  |                                 |       |   |      |  |       |      |  |   |       |   |  |  |       |   |  |  
|Consolidated Total                   |  | ¥                               | 725.8 |   |      |  | 100.0 | %    |  | ¥ | 613.9 |   |  |  | 100.0 | % |  | ¥ | 569.6 |   |  |  | 100.0 | %
|                                     |  |                                 |       |   |      |  |       |      |  |   |       |   |  |  |       |   |  |  

23



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Operating Income (Loss)*:


|                                     |  |                                 |       |   |      |  |       |      |  |   |       |   |  |  |       |   |  |   |       |   |  |  |       |  
|------------------------------------ |  | ------------------------------- | ----- | - | ---- |  | ----- | ---- |  | - | ----- | - |  |  | ----- | - |  | - | ----- | - |  |  | ----- | -
|                                     |  | In Billions, Except Percentages |      
|                                     |  |                                 |      
|                                     |  | Years Ended March 31,           |      
|                                     |  |                                 |      
|                                     |  | 2005                            |       |   | 2004 |  |       | 2003 | 
|                                     |  |                                 |       |   |      |  |       |      | 
|Metal Products & Minerals            |  | ¥                               | 68.1  |   |      |  | 34.4  | %    |  | ¥ | 28.7  |   |  |  | 22.6  | % |  | ¥ | 24.7  |   |  |  | 24.2  | %
|Machinery, Electronics & Information |  |                                 | 31.4  |   |      |  | 15.9  |      |  |   | 29.4  |   |  |  | 23.2  |   |  |   | 14.1  |   |  |  | 13.8  |  
|Chemical                             |  |                                 | 24.6  |   |      |  | 12.4  |      |  |   | 31.4  |   |  |  | 24.8  |   |  |   | 18.3  |   |  |  | 18.0  |  
|Energy                               |  |                                 | 35.5  |   |      |  | 17.9  |      |  |   | 21.7  |   |  |  | 17.1  |   |  |   | 25.7  |   |  |  | 25.2  |  
|Consumer Products & Services         |  |                                 | 32.0  |   |      |  | 16.2  |      |  |   | 23.3  |   |  |  | 18.4  |   |  |   | 21.2  |   |  |  | 20.8  |  
|Logistics & Financial Markets        |  |                                 | 18.5  |   |      |  | 9.3   |      |  |   | 10.4  |   |  |  | 8.2   |   |  |   | 10.9  |   |  |  | 10.7  |  
|Americas                             |  |                                 | 14.7  |   |      |  | 7.4   |      |  |   | 8.5   |   |  |  | 6.7   |   |  |   | 9.5   |   |  |  | 9.3   |  
|Europe                               |  |                                 | 2.4   |   |      |  | 1.2   |      |  |   | 3.0   |   |  |  | 2.4   |   |  |   | 4.2   |   |  |  | 4.1   |  
|Other Overseas Areas                 |  |                                 | 8.2   |   |      |  | 4.1   |      |  |   | 6.6   |   |  |  | 5.2   |   |  |   | 7.6   |   |  |  | 7.5   |  
|All Other                            |  |                                 | (0.5  | ) |      |  | (0.2  | )    |  |   | (1.9  | ) |  |  | (1.5  | ) |  |   | (1.8  | ) |  |  | (1.8  | )
|Adjustments and Eliminations         |  |                                 | (36.9 | ) |      |  | (18.6 | )    |  |   | (34.3 | ) |  |  | (27.1 | ) |  |   | (32.5 | ) |  |  | (31.8 | )
|                                     |  |                                 |       |   |      |  |       |      |  |   |       |   |  |  |       |   |  |  
|Consolidated Total                   |  | ¥                               | 198.0 |   |      |  | 100.0 | %    |  | ¥ | 126.8 |   |  |  | 100.0 | % |  | ¥ | 101.9 |   |  |  | 100.0 | %
|                                     |  |                                 |       |   |      |  |       |      |  |   |       |   |  |  |       |   |  |  






|  |                                                                                                                                                                                                                                                                                               
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Operating income (loss) reflects our (a) Gross Profit,
    (b) Selling, general and administrative expenses,
    (c) Provision for doubtful receivables and
    (d) Government grant for transfer of substitutional portion
    of EPF, as presented in the Statements of Consolidated Income.

Net Income (Loss):


|                                     |  |                                 |       |   |      |  |       |      |  |   |       |   |  |  |       |   |  |   |       |   |  |  |        |  
|------------------------------------ |  | ------------------------------- | ----- | - | ---- |  | ----- | ---- |  | - | ----- | - |  |  | ----- | - |  | - | ----- | - |  |  | ------ | -
|                                     |  | In Billions, Except Percentages |      
|                                     |  |                                 |      
|                                     |  | Years Ended March 31,           |      
|                                     |  |                                 |      
|                                     |  | 2005                            |       |   | 2004 |  |       | 2003 | 
|                                     |  |                                 |       |   |      |  |       |      | 
|Metal Products & Minerals            |  | ¥                               | 47.0  |   |      |  | 38.8  | %    |  | ¥ | 24.2  |   |  |  | 35.4  | % |  | ¥ | 16.1  |   |  |  | 51.8   | %
|Machinery, Electronics & Information |  |                                 | 26.4  |   |      |  | 21.8  |      |  |   | 5.9   |   |  |  | 8.6   |   |  |   | (9.2  | ) |  |  | (29.6  | )
|Chemical                             |  |                                 | (6.9  | ) |      |  | (5.7  | )    |  |   | 11.4  |   |  |  | 16.7  |   |  |   | (3.6  | ) |  |  | (11.6  | )
|Energy                               |  |                                 | 42.8  |   |      |  | 35.3  |      |  |   | 24.4  |   |  |  | 35.7  |   |  |   | 23.0  |   |  |  | 74.0   |  
|Consumer Products & Services         |  |                                 | 16.9  |   |      |  | 14.0  |      |  |   | 18.9  |   |  |  | 27.6  |   |  |   | 9.6   |   |  |  | 30.9   |  
|Logistics & Financial Markets        |  |                                 | 11.8  |   |      |  | 9.7   |      |  |   | 4.8   |   |  |  | 7.0   |   |  |   | 4.7   |   |  |  | 15.1   |  
|Americas                             |  |                                 | 12.3  |   |      |  | 10.2  |      |  |   | 0.2   |   |  |  | 0.3   |   |  |   | 3.3   |   |  |  | 10.5   |  
|Europe                               |  |                                 | 2.9   |   |      |  | 2.4   |      |  |   | 0.7   |   |  |  | 1.0   |   |  |   | 2.8   |   |  |  | 9.0    |  
|Other Overseas Areas                 |  |                                 | 13.8  |   |      |  | 11.4  |      |  |   | 10.4  |   |  |  | 15.2  |   |  |   | 8.6   |   |  |  | 27.7   |  
|All Other                            |  |                                 | 4.4   |   |      |  | 3.7   |      |  |   | 1.9   |   |  |  | 2.8   |   |  |   | 6.9   |   |  |  | 22.2   |  
|Adjustments and Eliminations         |  |                                 | (50.3 | ) |      |  | (41.6 | )    |  |   | (34.4 | ) |  |  | (50.3 | ) |  |   | (31.1 | ) |  |  | (100.0 | )
|                                     |  |                                 |       |   |      |  |       |      |  |   |       |   |  |  |       |   |  |  
|Consolidated Total                   |  | ¥                               | 121.1 |   |      |  | 100.0 | %    |  | ¥ | 68.4  |   |  |  | 100.0 | % |  | ¥ | 31.1  |   |  |  | 100.0  | %
|                                     |  |                                 |       |   |      |  |       |      |  |   |       |   |  |  |       |   |  |  

24



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The figures of Consolidated Total for the years
    ended March 31, 2004 and 2003 have been reclassified to
    conform to the change in current year presentation for
    discontinued operations in accordance with Statement of
    Financial Accounting Standards (SFAS) No. 144,
    Accounting for the Impairment or Disposal of Long-Lived
    Assets.                                                                                                                  
|   
|(2) | All Other includes business activities which
    primarily provide services, such as development and sales of
    systems, financing services, and operations services to external
    customers, and/or to us and associated companies.                                                                                                                                                                                                                                           
|   
|(3) | Net loss of Adjustments and Eliminations includes
    income and expense items that are not allocated to specific
    reportable operating segments, such as certain expenses of the
    corporate departments, and eliminations of intersegment
    transactions.                                                                                                                                                                                                                 
|   
|(4) | Transfers between operating segments are made at cost plus a
    markup.                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(5) | Starting from the year ended March 31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as interest expense, net of
    interest income. In relation to this change, the figures of
    gross profit and operating income (loss) for the years ended
    March 31, 2004 and 2003 have been restated to conform to
    the current year presentation.

25



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| |                                  
| | ---------------------------------
| | Metal Products & Minerals Segment









| |   |                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | in the Iron & Steel Products Business Unit, Mitsui
    Bussan Construction Materials Co., Ltd. (Japan), Tsuda
    Corporation (Japan), Regency Steel Asia Pte Ltd.
    (Singapore); and                                                                                                                                                                                                                      
|
| |  | in the Iron & Steel Raw Materials and Non-Ferrous
    Metals Business Unit, Mitsui Bussan Raw Materials Development
    Corp. (Japan), Mitsui Iron Ore Development Pty. Ltd.
    (Australia), Mitsui Itochu Iron Pty. Ltd. (Australia), Sesa Goa
    Limited (India), Mitsui Coal Holdings Pty. Ltd. (Australia),
    Japan Collahuasi Resources B.V. (Netherlands) and Mitalco Inc.
    (the Unites States).





| |   |                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | in the Iron & Steel Products Business Unit, Nippon
    Steel Trading Co., Ltd. (Japan), Shanghai Bao-Mit Steel
    Distribution Co., Ltd. (China) and Thai Tinplate Manufacturing
    Co., Ltd. (Thailand); and
|
| |  | in the Iron & Steel Raw Materials and Non-Ferrous
    Metals Business Unit, Valepar S.A. (Brazil) and BHP Mitsui Coal
    Pty., Ltd. (Australia).                                                              





| |                                    
| | -----------------------------------
| | Iron & Steel Products Business Unit





| |   |                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | steel sheet for automobile and electric appliances, steel plates
    for shipbuilding and heavy electric machinery, galvanized steel
    products and tin material and products;
|
| |  | steel products for oil and gas projects including oil well tube
    and line pipe;                                                                                              
|
| |  | wire rod, specialty steel and bearing;                                                                                                                                          
|
| |  | steel bars and other steel construction materials; and                                                                                                                          
|
| |  | semi-finished items including steel slabs to be processed into
    steel plates and steel billets to be processed into steel bars
    and wire rods.                            





26



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We have recently established steel service centers, galvanized
    steel plants and tin-plating facilities at our subsidiaries
    and/or joint ventures with Japanese and overseas business
    partners in order to meet the rising demand from manufacturers
    of automobiles, electric appliances and heavy electric machinery
    that have transplanted their production centers to the United
    States, Southeast Asia and China. In 2002, we participated in
    Shanghai Bao-Mit Steel Distribution Co., Ltd. (China), a joint
    venture with Shanghai Baosteel Group Corporation, a Chinese iron
    and steel manufacturing company, in order to build a network of
    steel products service centers in China. Through this associated
    company, we have been promoting the integration of service
    centers within China in order to improve operational efficiency,
    and we are actively pursuing additional investments.
|
| |  | We frequently draw upon the units logistics expertise in
    delivering a wide range materials and products in large volume
    under optimized schedule along with expertise in project
    financing. We also take advantage of the business relationships
    and marketing channels of other business units in the fields of
    energy, industrial plants, shipping and machinery. This enabled
    us to be involved in various industrial projects including the
    construction of oil and gas pipeline projects such as the
    West-East Natural Gas Pipeline project in China and the steel
    structure for the Bangkok Second International Airport Terminal.                                                                                                                                                                                                                                                                         









| |                                                                    
| | -------------------------------------------------------------------
| | Iron & Steel Raw Materials and Non-Ferrous Metals
    Business Unit







| |   |                                                                                                                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | trading, investment, logistics management and transportation
    services related to iron and steel raw materials, such as iron
    ore, coal, steel scrap, ferro-alloys and other minerals; and                                                                                                                                                                            
|
| |  | trading, investment, transportation and processing of
    non-ferrous metal ores and ingots such as: copper, lead, zinc,
    tin, nickel, aluminum, magnesium, cobalt, titanium, other
    non-ferrous metals; sales and marketing of semi-fabricated
    non-ferrous products such as construction materials; and agent
    activities in the nuclear fuel import business.

27



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##### Table of Contents









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In August 2002, we completed the construction of the West
    Angelas iron ore mine in Australia (as a part of the Robe River
    Joint Venture with Rio Tinto), which began shipments of iron ore
    to customers worldwide. In Australia, we also have a
    participating interest in Mount Newman Joint Venture and other
    joint ventures with BHP Billiton.                                                                             
|
| |  | In September 2003, we purchased a 15% ownership interest (or
    18.24% in terms of voting shares as of March 31, 2005), of
    Valepar S.A. (Brazil), the controlling shareholder of Companhia
    Vale do Rio Doce (CVRD) in Brazil. CVRD is a mining
    enterprise with operations that include mining of iron ore and
    other raw non-ferrous metals.                                                                                   
|
| |  | We own a 51% interest in Sesa Goa Limited (India), which
    produces iron ore and coke in India.                                                                                                                                                                                                                                                                                                                                                
|
| |  | In April 2002, we entered into a strategic alliance with Anglo
    American Plc to develop the Moura and German Creek coalmines in
    Australia, which provides us with a solid foundation for future
    growth in the coal business. We also have participating
    interests in other coal mining joint ventures including South
    Walker Creek Joint Venture and Bengalla Joint Venture with BHP
    Billiton and Rio Tinto, respectively.





|                      |  |                                 |      |                     |                        |   |       |                       |  |   |                |  |  |   |       | 
|--------------------- |  | ------------------------------- | ---- | ------------------- | ---------------------- | - | ----- | --------------------- |  | - | -------------- |  |  | - | ----- | 
|                      |  | Revenues                        |     
|                      |  |                                 |     
|                      |  | Billions of Yen                 |     
|                      |  |                                 |     
|                      |  |                                 |      | Revenues from Sales |                        |   |      
|                      |  | Revenues from Sales of Products |      |                     | of Services            |   |       |                      
|                      |  |                                 |      |                     |                        |   |       |                      
|                      |  |                                 |      | Commissions and     |                        |   |      
|                      |  | Revenues from Mineral           |      |                     | Revenues from Sales of |   |       | Trading Margins on    |  |   |               
|Years Ended March 31, |  | Producing Activities            |      |                     | Other Products(*)      |   |       | Intermediary Services |  |   | Total Revenues | 
|                      |  |                                 |      |                     |                        |   |       |                       |  |   |                | 
|2005                  |  | ¥                               | 88.0 |                     |                        | ¥ | 134.3 |                       |  | ¥ | 18.5           |  |  | ¥ | 240.8 | 
|2004                  |  |                                 | 49.9 |                     |                        |   | 136.4 |                       |  |   | 16.9           |  |  |   | 203.2 | 
|2003                  |  |                                 | 34.7 |                     |                        |   | 113.7 |                       |  |   | 15.6           |  |  |   | 164.0 | 






|    |                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------
|(*) | Revenues from sales of other products mainly consist of sales of
    scrap metals and non-ferrous metals such as copper and aluminum.



28



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IRON ORE


|                    |               |                                       |                                       |                  |                                             |                                       |                                       |               |        |        |                          |                           |                         |                  |                 
|------------------- | ------------- | ------------------------------------- | ------------------------------------- | ---------------- | ------------------------------------------- | ------------------------------------- | ------------------------------------- | ------------- | ------ | ------ | ------------------------ | ------------------------- | ----------------------- | ---------------- | ----------------
|                    |               |                                       |                                       |                  |                                             |                                       |                                       | Mitsuis      |        |        | Other Major Participants
|Joint Venture or    |               | Mitsuis Subsidiary or                |                                       | Name of          |                                             |                                       |                                       | Percentage of |        |        | and Their Percentages of
|Investee(1)         |               | Associated Company(2)                 |                                       | Mines(3)         |                                             | Location                              |                                       | Ownership     |        |        | Ownership               
|                    |               |                                       |                                       |                  |                                             |                                       |                                       |               |        |        |                         
|Robe River Iron     |               |                                       |                                       |                  |                                             |                                       |                                       |               |        |        |                          |                           |                         |                 
|                    | Associates    |                                       | Mitsui Iron Ore                       |                  | Pannawonica                                 |                                       | Pilbara Region,                       |               |        | 33.00% |                          |                           | Rio Tinto               |                  | 53.00%          
|                    |               | Development Pty. Ltd.                 |                                       | West Angelas     |                                             | Western Australia                     |                                       |               |        |        |                          | Nippon Steel              |                         | 10.50%          
|                    |               |                                       |                                       |                  |                                             |                                       |                                       |               |        |        |                          | Sumitomo Metal Industries |                         | 3.50%           
|                   
|Mount Newman Joint  |               |                                       |                                       |                  |                                             |                                       |                                       |               |        |        |                          |                           |                         |                 
|                    | Venture       |                                       | Mitsui Itochu Iron Pty. Ltd.          |                  | Mount Whaleback                             |                                       | Pilbara Region,
    Western Australia |               |        | 7.00%  |                          |                           | BHP Billiton
    Itochu |                  | 85.00%
    8.00%
|Yandi Joint Venture |               | Mitsui Iron Ore Development Pty. Ltd. |                                       | Marillana Creek  |                                             | Pilbara Region,
    Western Australia |                                       |               | 7.00%  |        |                          | BHP Billiton
    Itochu   |                         | 85.00%
    8.00%
|Mount Goldsworthy   |               |                                       |                                       |                  |                                             |                                       |                                       |               |        |        |                          |                           |                         |                 
|                    | Joint Venture |                                       | Mitsui Iron Ore Development Pty. Ltd. |                  | North Area (Yarrie) (Nimingarra)
    Area C |                                       | Pilbara Region,
    Western Australia |               |        | 7.00%  |                          |                           | BHP Billiton
    Itochu |                  | 85.00%
    8.00%
|Sesa Goa Limited    |               | Sesa Goa Limited                      |                                       | Codli
    Sonshi |                                             | Goa, India                            |                                       |               | 51.00% |        |                          | (publicly listed company) |                         |                 
|                    |               |                                       |                                       | Chitrandurga     |                                             |                                       |                                       |               |        |        |                          |                           |                         |                 
|                    |               |                                       |                                       | Hopset           |                                             | Karnataka, India                      |                                       |               |        |        |                          |                           |                         |                 

COAL


|                       |           |                                    |                                    |          |                                   |                            |                       |               |        |        |                          |                                           |                |                              |       
|---------------------- | --------- | ---------------------------------- | ---------------------------------- | -------- | --------------------------------- | -------------------------- | --------------------- | ------------- | ------ | ------ | ------------------------ | ----------------------------------------- | -------------- | ---------------------------- | ------
|                       |           |                                    |                                    |          |                                   |                            |                       | Mitsuis      |        |        | Other Major Participants
|Joint Venture or       |           | Mitsuis Subsidiary or             |                                    | Name of  |                                   |                            |                       | Percentage of |        |        | and Their Percentages of
|Investee(1)            |           | Associated Company(2)              |                                    | Mines(3) |                                   | Location                   |                       | Ownership     |        |        | Ownership               
|                       |           |                                    |                                    |          |                                   |                            |                       |               |        |        |                         
|BHP Mitsui Coal        |           |                                    |                                    |          |                                   |                            |                       |               |        |        |                          |                                           |                |                             
|                       | Pty. Ltd. |                                    | BHP Mitsui Coal Pty.
    Ltd.      |          | Riverside
    South Walker  Creek |                            | Queensland, Australia |               |        | 20.00% |                          |                                           | BHP Billiton   |                              | 80.00%
|Bengalla Joint Venture |           | Mitsui Coal Holdings
    Pty. Ltd. |                                    | Bengalla |                                   | New South Wales, Australia |                       |               | 10.00% |        |                          | Rio Tinto
    Wesfarmers
    Taiwan Power |                | 40.00%
    40.00%
    10.00%
|Kestrel Joint Venture  |           | Mitsui Coal Holdings
    Pty. Ltd. |                                    | Kestrel  |                                   | Queensland, Australia      |                       |               | 20.00% |        |                          | Rio Tinto                                 |                | 80.00%                      
|Moura Joint Venture    |           | Mitsui Coal Holdings
    Pty. Ltd. |                                    | Moura    |                                   | Queensland, Australia      |                       |               | 49.00% |        |                          | Anglo American                            |                | 51.00%                      
|German Creek Joint     |           |                                    |                                    |          |                                   |                            |                       |               |        |        |                          |                                           |                |                             
|                       | Venture   |                                    | Mitsui Coal Holdings
    Pty. Ltd. |          | German Creek                      |                            | Queensland, Australia |               |        | 30.00% |                          |                                           | Anglo American |                              | 70.00%






|    |                                                                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The term Investee refers only to Sesa Goa Limited
    and BHP Mitsui Coal Pty. Ltd.                                                                                                                                                                                                                                                                                      
|   
|(2) | Mitsuis Subsidiary or Associated Company
    indicates names of the companies through which we own our
    interests in the joint ventures or the investee. Sesa Goa
    Limited is a Mitsuis subsidiary in which it directly owns
    a 51% voting share. BHP Mitsui Coal Pty. Ltd. is a Mitsuis
    associated company in which it directly owns a 20% voting share.

29



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Name of Mines indicates the names of principal
    producing mines.                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(4) | In addition to the above-mentioned coal mining projects, through
    Mitsui Coal Holdings Pty. Ltd., we have small interests in two
    projects in Australia mainly promoted by Anglo American, namely,
    Moranbah North Joint Venture in Queensland and Drayton Joint
    Venture in New South Wales. Our percentage of ownership and
    annual production capacity of Moranbah North Joint Venture and
    Drayton Joint Venture are 4.75%, 3.9 million tons and
    3.83%, 5.1 million tons, respectively.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We participate in Compania Minera Dona Ines de Collahuasi SCM
    (Chile), a copper mine development company, in which we hold a
    7.43% interest. The project, which commenced its commercial
    production in 1998, has been developed jointly with Anglo
    American Plc and Falconbridge Ltd. and has annual production
    capacity of about 500,000 tons of copper per annum. In addition,
    we have a 1.25% interest in Minera Los Pelambres in Chile whose
    production capacity is about 360,000 tons of copper per annum.                                                                                                                                                              
|
| |  | We own an undivided interest in both Eastalco and Intalco,
    aluminum smelting companies in the United States, providing
    access to 147,000 tons of aluminum ingots annually. Combining
    the metal taken from these companies with other sources, we have
    the capability to supply 220,000 tons of aluminum ingots
    annually. Those primary aluminum ingots are sold to the
    customers in Japan and the United States.                                                                                                                                                                                                                                                                 
|
| |  | We participated in a nickel-cobalt mining and refining project
    at Rio Tuba area in the Republic of Philippines which has been
    developed jointly with Sumitomo Metal Mining Co., Ltd., Sojitz
    Corporation (formerly Nissho Iwai Corporation) and a local
    partner. This project is expected to produce nickel-cobalt mixed
    sulfide through a high-pressure acid leaching process, an
    advanced processing technology for nickel production. In
    addition, in April 2005, we, jointly with Sumitomo Metal Mining
    Co., Ltd., concluded an agreement for participation in the Goro
    Nickel Development Project in New Caledonia, which had been
    promoted by Inco Limited.

30



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| |                                                 
| | ------------------------------------------------
| | Machinery, Electronics & Information
    Segment





| |   |                                                              
| | - | -------------------------------------------------------------
| |  | Power, Transportation & Plant Projects Business Unit;        
|
| |  | Machinery Business Unit; and                                 
|
| |  | Information, Electronics and Telecommunication Business Unit.











| |   |                                                                          
| | - | -------------------------------------------------------------------------
| |  | assess the commercial and technical feasibility of the projects;         
|
| |  | design projects utilizing our financial, legal and industrial
    skills;
|
| |  | select and invite capable partners; and                                  
|
| |  | arrange and/or assist the syndication of financing.                      









31



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##### Table of Contents





| |                                                         
| | --------------------------------------------------------
| | Power, Transportation & Plant Projects Business
    Unit







| |   |                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------
| |  | energy related projects such as oil and gas development
    projects, oil refineries, LNG manufacturing facilities, and
    pipelines;
|
| |  | electric power projects such as power plants, power transmission
    and substation facilities;                                       
|
| |  | water supply projects such as desalination plant, wastewater
    processing facilities and water supply and sewerage facilities;      
|
| |  | transportation related business such as railway rolling stock
    and railway facilities and systems;                                 
|
| |  | social infrastructure projects such as construction of airport,
    port facilities, road and other public facilities;                
|
| |  | basic industry projects such as iron, non-ferrous metals,
    chemical plants; and.                                                   
|
| |  | environment-related projects such as waste disposal and
    recycling plants.                                                         







| |   |                                                                                                                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the Commonwealth of Independent States (CIS) and
    the Middle East, we were engaged in the structuring and the
    arrangement of debt and equity project financing for various
    natural gas energy projects. Together with export credit
    agencies and commercial banks, we also extended loans to project
    participants.
|
| |  | We acted as the Engineering, Procurement and Construction
    (EPC) contractor for various oil and gas production
    projects and for the construction of infrastructure facilities
    including power plants and petrochemical plants whereby we
    procured manufacturing equipment from Japanese and overseas
    subcontractors. 
|
| |  | For gas pipeline projects such as Cabiunas and Malhas which were
    promoted by Petrobras in Brazil, we were engaged in the
    structuring and the arrangement of debt, equity and lease
    financing. We also extended loans to the project participants.                                                                             
|
| |  | In a lead-free gasoline production project in Indonesia known as
    the Blue Sky Project, we were engaged in the structuring and the
    arrangement of debt and equity project financings. We also
    extended loans to the project participants.                                                                                      
|
| |  | As the primary EPC contractor, we are constructing the 790
    megawatt Council Bluffs Energy Center Unit 4 coal fired power
    plant in Iowa, the United States, whereby we have subcontracted
    to Japanese and the United States subcontractors.                                                                                    

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| |   |                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For the Taiwan High Speed Rail project, we are a commercial
    leader of a consortium consisting of Japanese railway car
    manufacturers and general trading companies, which supplied
    rolling stock and transportation facilities.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In December 2004, we, together with International Power plc,
    completed the acquisition of the international power generation
    portfolio (nine power plants in total 4,514 megawatt as of
    March 2005) of MEC International BV, a Dutch holding
    company owned by Edison Mission Energy, and in July 2005
    acquired additionally the Saltend 1,200 megawatt combined cycle
    power plant from Calpine Corporation. We established IPM Eagle
    LLP (United Kingdom) jointly with International Power plc to
    hold and manage these power generation businesses;                                                                                                                      
|
| |  | We have formed a joint venture with Calpine Corporation to
    construct, own and operate the 1,005 megawatt combined
    cycle power plants called Greenfield Energy Center which has
    secured a 20 year Clean Energy Supply contract with Ontario
    Power Authority of Ontario, Canada; and                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | We own a 36.324% interest in P.T. Paiton Energy
    (Indonesia), an Indonesian power producer, which owns a 1,230
    megawatt coal fired power plant in East Java, Indonesia.
    P.T. Paiton Energy sells electricity to
    P.T. Perusahaan Listrik Negara, an electric utility company
    owned by the Indonesian government, under a power purchase
    agreement. In December 2002, an amendment to the original power
    purchase agreement became effective, thereby resolving a series
    of disputes between P.T. Paiton Energy and
    P.T. Perusahaan Listrik Negara, which were caused in large
    part by the regional financial crisis in Asia, particularly, in
    Indonesia in 1997.











| |                        
| | -----------------------
| | Machinery Business Unit



33



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##### Table of Contents







| |   |                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | import and export, assembly and manufacturing, distribution and
    dealership of motor vehicles, motor cycles and their parts;
    retail finance and automobile auction business;
|
| |  | sales and trading of tanker, LNG carrier, container vessel,
    cargo vessel; operation of own vessel; chartering vessel; and
    ocean vessel related finance;                    
|
| |  | trading of aircraft and helicopter, leasing of aircraft, and
    trading of other products such as defense related equipment,
    aerospace system and aircraft engine; and        
|
| |  | trading of industrial machinery including mining and
    construction equipment, production equipment and machining tool.                                                          







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We have operated a subsidiary P.T. Bussan Auto Finance
    (Indonesia), a retail finance company for Yamaha motorcycles
    since 1997;                                                                                                                                                                                                                                                                               
|
| |  | We have been handling the logistics operations of automobile
    parts for Toyotas manufacturing operations in North
    America and Europe;                                                                                                                                                                                                                                                                         
|
| |  | We have increased our ownership in United Auto Group, Inc.
    (UAG), an automobile dealership group in the United
    States, to about 15.5% and by combining what we learned from our
    involvement in UAG with our knowledge of the global market, we
    continue to explore other opportunities to expand into retail
    dealership operations in developing market such as Russia, China
    and India; and
|
| |  | We have also invested in an auction business for used cars as a
    business partner of Japan Automobile Auction, Inc.
    (J.A.A.), an auction trader in Japan. In order to
    establish ourselves in the automobile auction business, together
    with J.A.A., we established an automobile auction joint venture
    company in Germany.                                                                       







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| |                                                                 
| | ----------------------------------------------------------------
| | Information, Electronics and Telecommunication Business
    Unit







| |   |                                                       
| | - | ------------------------------------------------------
| |  | network and systems integration (NI/ SI) businesses;
|
| |  | business process outsourcing services;                
|
| |  | mobile communication businesses;                      
|
| |  | semiconductors related businesses; and                
|
| |  | display related businesses.                           





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We provide integrated hardware and software solutions such as
    system building, network infrastructure devices, enterprise
    applications and network security service. These solutions are
    provided through subsidiaries and associated companies such as
    NextCom K.K. (Japan) and Nihon Unisys, Ltd. (Japan).
    In December 2004, NextCom K.K., a formerly associated
    company, BSI Co., Ltd., a software development and
    marketing subsidiary, and ADAM NET Ltd., a data
    telecommunications equipment marketing subsidiary, merged to
    seek synergies of comprehensive information technology services.
    NextCom K.K. remains as the surviving company among them and
    became a subsidiary. For more information, see Note 3,
    BUSINESS COMBINATIONS, to our consolidated financial
    statements. Nihon Unisys, Ltd. is a publicly listed company in
    Japan in which Mitsui and Unisys Corporation in the United
    States hold a 28.91% each of voting stocks as of March 31,
    2005;
|
| |  | We are focusing on business process outsourcing services as the
    crucial business fields, through our subsidiary TOYO
    Officemation, Inc. (Japan). While it has been engaged in
    distribution of information processing devices such as optical
    character reader (OCR) and information input device.
    Recently, it has focused on enterprise information management
    such as customer information input, management and operation;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We are promoting various mobile communication businesses through
    alliances with domestic cell phone service providers and
    manufacturers. In 1990s we had established three regional
    companies in Japan that were engaged in sales agency of
    telecommunications line and related businesses. They were
    consolidated in one company as Mitsui & Associates
    Telepark Corporation (Japan) in April 2001 that changed
    corporate name as Telepark Corp. (Japan) in October 2004.
    Telepark Corp. is one of the major distributors of cell phones
    in Japan and sold 3.1 million cell phones for the year
    ended March 31, 2005. Telepark Corp. went public in Japan
    in April 2004;                                                                                                            
|
| |  | While Bussan Microelectronics Corp. had been our core
    semiconductor trading subsidiary, we acquired another trading
    company, TEKSEL Co., Ltd., to broaden our customer base and
    product portfolio in 2002. To maximize synergies of the combined
    operations, in 2002 we established Xion Holdings, Inc.(*)
    (Japan) as a holding company for these two subsidiaries. And in
    2004 in partnership with World Peace Group, a large scale
    distributor of electronic components and computer products who
    has its headquarter in Taipei and has various marketing channels
    in Asian countries, we established TEKSEL WPG Ltd. (Hong Kong)
    in order to provide semiconductor related products and services
    mainly for Japanese customers who are shifting their production
    to China; and
|
| |  | The shift of electronic device production to China has
    intensified since 2002, prompting our Information, Electronics
    and Telecommunication Business Unit to allocate additional human
    and capital resources to bolster our Chinese business. We
    concluded a broad strategic partnership agreement with SVA
    (GROUP) CO., LTD., a Chinese electronics manufacturer,
    and set up a joint venture company in Shanghai to market the
    strategic products of SVA (GROUP) CO., LTD. in China
    and worldwide.                                                                                                                                                                                                                                                                                              





| |                 
| | ----------------
| | Chemical Segment














|    |                                                                                              
|--- | ---------------------------------------------------------------------------------------------
|(*) | Xion Holdings, Inc. changed its corporate name to Xion
    Electronics, Inc. in January 2005.

36



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| |                                
| | -------------------------------
| | Organic Chemicals Business Unit







| |   |                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | petrochemical products such as Olefins, Aromatics, Styrene
    Monomer, Vinyl Chloride Monomer;                                                             
|
| |  | synthetic fiber intermediates such as Para-Xylene, Terephthalic
    Acid, Ethylene Glycol, Acrylonitrile;                                                   
|
| |  | industrial chemicals such as Phenol, Bis-Phenols, Acetone,
    Acetic Acid;                                                                                 
|
| |  | Methanol and Ammonia;                                                                                                                                       
|
| |  | specialty chemicals such as polyurethane raw materials,
    detergent intermediates, oleo chemicals, functional dyes and
    natural chemicals;             
|
| |  | life science products such as pharmaceutical products and
    intermediates, feed additives, food ingredients and development
    of biotechnology business;
|
| |  | agriscience products such as agricultural chemicals and
    intermediates, natural agricultural chemicals and biological
    agricultural chemicals; and    
|
| |  | fertilizer and its raw materials including phosphate and
    promotion of greenery, agriculture and environmental business.                                 









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| |                                                 
| | ------------------------------------------------
| | Plastics & Inorganic Chemicals Business
    Unit







| |   |                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | basic inorganic materials such as sulfur, sulfuric acid, salt,
    titanium ore and iodine;                                                                                                                                 
|
| |  | inorganic products such as soda ash, caustic soda, catalyst,
    industrial gas and titanium oxide;                                                                                                                         
|
| |  | electronic materials such as electrolytic copper foil, optical
    fiber, and high-purity chemicals employed in semiconductor
    production;                                                                               
|
| |  | plastic materials and products such as polyvinyl chloride,
    elastomers, polyolefin, ABS resin, engineering plastics,
    polystyrene, plastic food containers, wrapping materials,
    industrial films and carbon fiber;
|
| |  | additives of plastic such as elasticizer, stabilizer and
    pigment; and                                                                                                                                                   

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| |   |                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------
| |  | SCM related businesses for production and distribution of office
    automation equipment, cell phone and electric appliances.









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A subsidiary, Bussan Nanotech Research Institute Inc.
    (Japan)(*), succeeded in developing technology to produce
    high-quality carbon nanotubes, and completed construction of its
    prototype facility. It has drawn attention and generated
    expectations for the creation of new business opportunities,
    which include use in development of new and high performance
    plastic materials by compounding nanotubes with plastics and in
    semiconductors to take advantage of their high degree of
    conductivity.
|
| |  | We have been developing and promoting the commercialization of
    ethanol separation technology by using zeolite membranes, which
    will improve the energy efficiency of biomass ethanol production.                                                                                                                                                                                                                                                                                                                                  












|    |                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(*) | Carbon Nanotech Research Institute Inc. was merged with
    Bio Nanotec Research Institute Inc. and Device Nanotech
    Research Institute Inc. to form the newly established Bussan
    Nanotech Research Institute Inc. in April 2004.

39



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| |               
| | --------------
| | Energy Segment













| |   |                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Abu Dhabi Gas Liquefaction Limited in Abu Dhabi, in which we
    hold a 15% interest in LNG production and exporting activities,
    and which has some 5 million tonnes per annum LNG
    production capacity;
|
| |  | Northwest Shelf JV (NWS JV) in Australia, in which
    we hold an 8.33% interest in LNG production and exporting
    activities, and which has some 11.7 million tonnes per
    annum production capacity;   
|
| |  | Qatar Liquefied Gas Company Ltd. in Qatar, in which we hold a
    7.5% interest in LNG production and exporting activities, and
    which has some 9.6 million tonnes per annum production
    capacity; and   
|
| |  | Oman LNG L.L.C. in Oman, in which we hold a 2.77% interest in
    LNG production and exporting activities, and which has some
    6.6 million tonnes per annum production capacity.                            





40



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42



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exploration and development of natural gas and production of LNG
    require significant capital and financial commitments. Moreover,
    this involves a broad range of logistical and technological
    expertise ranging from linking suppliers to distributors and
    consumers while developing plants in order to efficiently
    extract and liquefy the natural gas for transportation and then
    re-gasifying the LNG. Up until the mid-1990s, purchase
    commitments by buyers with full take or pay
    obligations for a period of 20 years or more had been an
    essential element for equity holders, distributors and sellers
    of LNG projects to make the capital and financial commitment to
    build LNG production facilities. These equity investors had
    resisted making a capital and financial commitment without being
    able to fully securing stable long-term purchase commitments. In
    recent years, however, equity holders of several LNG projects
    have been making investments without fully securing long-term
    purchase commitments from buyers.
|
| |  | Due to technological innovations in the last decade, LNG
    producers have successfully reduced capital costs with respect
    to the construction of LNG production plants and LNG vessels.
    Technological innovation has also enabled the producers to
    increase the design capacities of LNG production plants and LNG
    vessels allowing them to benefit from economies of scale. These
    technological developments allow LNG to be more competitive with
    other types of energy sources.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | In response to the needs of LNG buyers to adjust the supply and
    demand balance for LNG, the spot LNG market has been expanding,
    whereby the percentage of spot trades in the worldwide LNG
    contracts rose to 11.6% in 2004 from 1.3% in 1992.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | In addition to traditional core LNG markets in Japan, Republic
    of Korea and Taiwan, the market is rapidly expanding in Europe
    and the United States. At the same time, new markets have been
    emerging in countries such as China and India due to an
    increasing demand for electricity. Considering the sizable
    economies of these countries and the increasing popularity of
    LNG as clean energy, the LNG market has been
    developing rapidly worldwide.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        





| |                                     
| | ------------------------------------
| | Consumer Products & Services Segment



43



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| |                             
| | ----------------------------
| | Foods & Retail Business Unit







| |   |                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Import and domestic/offshore trade of wheat, barley, soybeans,
    corn, fats and oils, raw sugar, and rice;                                                                                                                                                    
|
| |  | Import and domestic/offshore trade of processed foods such as
    canned products, frozen foods and condiments, liquor, beverages
    such as coffee, tea and juice, dairy products, and foodstuffs
    such as marine products, animal products and vegetables;
|
| |  | Import and domestic trade of packaging, wrapping materials, and
    miscellaneous daily goods;                                                                                                                                                                  
|
| |  | Manufacturer of beverages, beverage ingredients, boilers, and
    sugar-based products;                                                                                                                                                                         
|
| |  | Domestic distribution and sales through the nationwide
    wholesaler subsidiary MITSUI FOODS CO., LTD. (Japan); and                                                                                                                                            
|
| |  | Support services, such as supply chain management, for example
    logistics management, and product planning and development for
    retailers.                                                                                                                








|    |                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------
|(*) | Shin Mitsui Sugar Co., Ltd. (Japan) changed its corporate name
    to Mitsui Sugar Co., Ltd. (Japan) in April 2005.

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| |   |                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the cereals and grains area, we have formed a joint venture,
    United Harvest, LLC, with CHS Inc., an agricultural
    cooperative in the United States. Our exports of wheat from the
    United States are among the best, amounting to approximately
    four million tons per annum.
|
| |  | Ventura Foods, LLC, another joint venture formed with
    CHS Inc., is one of the largest suppliers of cooking oils
    for the institutional market in the United States. We invest in
    this company through WILSEY FOODS, INC.                                                          















| |   |                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | inventory management and procurement of foodstuffs, processed
    foods, and packaging based on sales information obtained from
    retailers, which enables more efficient and less expensive
    distribution from manufacturers to retailer stores and cost
    reductions; and
|
| |  | proposals for developing new products and services, and support
    in the form of traceability for securing food safety.                                                                                                                                                         



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| |   |                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | supply sundry goods and consumables, such as processed food,
    liquor, fast food, toys, and games, to more than ten thousand
    7-Eleven stores in Japan;             
|
| |  | supply food materials, containers, and packaging materials to
    vendors who supply boxed lunches, pre-cooked meals, and
    processed food to 7-Eleven stores in Japan;
|
| |  | supply various temperature-controlled products to 7-Eleven
    stores in Japan; and                                                                                      
|
| |  | supply cold products through the affiliate company Beijing
    Sanxin Refrigeration Logistics Co., Ltd. to 7-Eleven stores
    in Beijing.                               







| |   |                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | IT and logistics technology (LT) know-how for
    providing high-quality and low-cost services;                                                                                     
|
| |  | capital strength to withstand the acquisition of fixed assets
    and the purchases of businesses required for distribution and
    otherwise demonstrating our business capabilities;
|
| |  | quick decision-making and execution in marketing and
    investing; and                                                                                                               
|
| |  | the ability to procure a wide variety of products in all regions
    by maintaining our credibility and a good reputation in the
    market.                                          



| |                        
| | -----------------------
| | Lifestyle Business Unit







| |   |                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | apparel and non-apparel textile materials such as fibers, yarns
    and fabrics; and technical collaboration in these products field;                              
|
| |  | apparel products, related product development and manufacturing
    of those products; and brand merchandise-related businesses
    including equity participation;
|
| |  | non-apparel products such as interior and furniture, general
    merchandise and consumer goods; and                                                               
|
| |  | industrial materials such as paper and pulp.                                                                                                                       

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| |   |                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------
| |  | original equipment manufacturing (OEM) business for
    domestic apparel manufacturers; and                                                   
|
| |  | business transactions involving branded luxury and accessible
    luxury products from Europe and the United States for the
    Japanese market.















| |   |                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We supply a wide range of top-quality consumer goods imported
    from around the world, which include high-quality Sonicare
    ultrasonic toothbrushes, Brunswick bowling equipment and
    systems, MAGLITE handy flashlights, and top-of-the-line Lladro
    porcelain;
|
| |  | We trade woodchip and pulp, furthermore, we develop several
    afforestation projects in Australia, some of which are jointly
    promoted with several Japanese partners including paper
    manufacturing companies; and                                                
|
| |  | As for paper and ceramic products, we closely partner with
    Japanese manufacturers and participate in joint venture
    production operations in China to sell products there and export
    them from China, as well as handling products in and from Japan.           

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| |                               
| | ------------------------------
| | Consumer Service Business Unit





| |   |                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | real estate development including construction, sale and leasing
    of houses, condominiums and office buildings and related
    construction material businesses and development of commercial
    facilities;
|
| |  | media-related service business including broadcasting, content
    service, television shopping channels, software service,
    amusement business and Internet-based marketing service;                        
|
| |  | outsourcing services including catering, uniform rental,
    building maintenance, and temporary personnel service, child
    care service;                                                                     
|
| |  | medical service and health care related businesses such as
    nursing care-related services, clinic facilities and medical
    related information service.                                                    











| |                                      
| | -------------------------------------
| | Logistics & Financial Markets Segment



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| |   |                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | in the Financial Markets Business Unit, Mitsui & Co.
    Energy Risk Management Ltd. (United Kingdom), Mitsui &
    Co. Precious Metals, Inc. (United States), Mitsui Bussan Futures
    Ltd. (Japan); and
|
| |  | in the Transportation Logistics Business Unit, Nitto Logistics
    Co., Ltd. (Japan), Mitsuibussan Insurance and
    Consulting Co., Ltd. (Japan), Tri-Net (Japan) Inc. (Japan).                          





| |                                
| | -------------------------------
| | Financial Markets Business Unit





| |   |                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | dealing in derivative financial instruments such as foreign
    exchange and financial futures; and trading of and investment in
    debt and equity securities;                     
|
| |  | trading in precious metals, non-ferrous metals listed on the
    London Metal Exchange and derivative commodity instruments for
    energy, agricultural foods and other commodities;
|
| |  | financial equity investments including principal investment and
    venture capital operation;                                                                                       
|
| |  | real estate investment trusts (REIT) related business                                                                                                                              
|
| |  | development, origination and sales of financial products;
    investment in and portfolio management of financial
    products; and                                                  
|
| |  | leasing business                                                                                                                                                                     





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| |                                       
| | --------------------------------------
| | Transportation Logistics Business Unit







| |   |                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | international and domestic transport services including
    transportation of plants and other special cargos, tramper
    shipping, and airfreight;
|
| |  | warehousing and port services; operation, construction and
    management of warehouses and harbor facilities;                                      
|
| |  | insurance agency and consultation for insurance;                                                                                                    
|
| |  | solution providing service on logistics including SCM; and                                                                                          
|
| |  | REIT and other liquidating businesses related to logistics
    related facilities.                                                                  









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| |                 
| | ----------------
| | Americas Segment













| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Iron & Steel Products Division maintains alliances
    with steel mills, steel processors, and customers in the U.S.
    and other countries. Working closely with solution providers, it
    specializes in SCM of steel products, manages inventory and
    process arrangements. This division has been focusing on
    business activities through subsidiaries and associated
    companies such as Mitsui Steel, Inc. for steel products sales
    and demand chain management (DCM) services, Mitsui
    Steel Development Co., Inc. which holds Mi-Tech Steel Inc.
    (steel service center), PK U.S.A., Inc. (automotive steel
    stamping), Hannibal Industries, Inc. (steel tube and pallet rack
    manufacturing); Mitsui Tubular Products, Inc. (steel pipe
    sales), and TAMCO (steel bar manufacturing and sales).
|
| |  | The Iron & Raw Materials and Non-Ferrous Metals
    Division specializes in iron and steel raw materials, coal,
    primary aluminum, aluminum alloy, copper cathode, and
    non-ferrous materials. The division is supported by
    relationships with subsidiaries jointly held with the Head
    Office, for example, Raw Materials Development Co., Ltd. and
    Mitalco Inc. both in which the division has equity share of 20%.                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | The Power, Transportation & Plant Projects Division
    deals in power, energy, transportation, and industrial and
    infrastructure projects in the Americas through close
    coordination with the Head Office. In addition, subsidiaries
    such as Hydro Capital Corp. for waste water treatment
    projects in Mexico and MIT Wind Power, Inc. for wind power
    generation in Texas are engaged in this business field.                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | The Machinery Division deals in motor vehicles, ship and marine
    projects, aircraft and construction and industrial machinery.
    The Division works closely with United Auto Group, Hino Motors,
    Chevron, Modec International, Embraer, JetBlue and Komatsu.
    Particularly, its activities are seen in investment to
    distribution & retails of automobile/construction
    machinery/outdoor power equipment, newbuilding ship tonnage
    provider to oil major/shipping companies, aircraft leasing for
    the growing regional airlines.                                                                                                                                                                                                                                                                                
|
| |  | The Organic Chemicals Division and the Plastics &
    Inorganic Chemicals Division are engaged in the domestic and
    international trade of various organic and inorganic chemicals
    and chemical intermediates, plastic resins, compounds and final
    products, pharmaceutical intermediates, food additives,
    fertilizer and crop protection chemicals, and petrochemicals.
    This division has extended business activities thorough
    subsidiaries such as Bioproducts, Inc. Recent development of this                                                                                                                                                                                                                                                                                                                   

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | division toward a new business is an acquisition of CornerStone
    Research & Development Inc., which focuses on
    processing and packaging of healthcare foods and chemicals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | The Energy Division specializes in global trading of petroleum
    products, including crude oil, heavy oil and petroleum coke, as
    well as importation of LNG. This division has a subsidiary
    Westport Petroleum, Inc. in which Mitsui U.S.A. has 65.0% equity
    share and the remaining share is owned by the Head office.
    Westport Petroleum, Inc. is engaged in sales, trading and
    commercial and operational services to the energy industry with
    respect to pipeline and cargo trading of gasoline, jet fuel,
    diesel, refinery feedstocks, cutterstocks, bunker fuel, and fuel
    oils throughout the United States and major international energy
    markets. These transactions by Westport Petroleum, Inc. account
    for one of major part of our revenues from sales of products
    groupwide.
|
| |  | The food division deals in grain, coffee, meats, vegetables,
    eggs, juices, dairy products, frozen foods, feedstuff, edible
    oils and canned foods. Notably, this division has a subsidiary
    United Grain Corp, which is engaged in export facility operation
    for wheat and barley.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | The Life commerce division focuses on consumer-oriented business
    development. This division has a subsidiary Portac, Inc. a
    lumber mill, which produces dimension lumber and specialty items
    for U.S consumption and export. In other area, the division has
    an equity share in MBK Real Estate Ltd., a real estate
    subsidiary jointly held with the Head Office and engaged in
    development and homebuilding services                                                                                                                                                                                                                                                                                                                                                                                         



| |               
| | --------------
| | Europe Segment













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| |                             
| | ----------------------------
| | Other Overseas Areas Segment









| |      
| | -----
| | China









53



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In March 2003, we entered into a comprehensive strategic
    alliance with China Postal Logistics Co., Ltd. Through this
    alliance, we are now in a position to utilize the facilities and
    distribution networks of Chinas postal service, the China
    State Post Bureau.                                                                                                                                                                                                                                                                
|
| |  | Through Mitsui International Logistics and Trade (Suzhou) Co.,
    Ltd., which is referred in the business activities of the
    Plastics & Inorganic Chemicals Business Unit, we also
    became the first trading company to gain the right to conduct
    imports and exports under our own name outside a bonded area. We
    plan to use this subsidiary to handle merchandise flows to and
    from China, mainly to serve the Chinese bases of Japanese
    companies. Mitsui & Co., (China) Ltd. has minority
    share in this subsidiary.



| |             
| | ------------
| | ASEAN Region





| |        
| | -------
| | Oceania





| |                
| | ---------------
| | The Middle East





| |               
| | --------------
| | Southwest Asia



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| |                  
| | -----------------
| | All Other Segment









| |   |                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Bussan Credit Co., Ltd. (Japan)(*) is engaged in financial
    services such as commercial loan and cash management service,
    mainly provided to domestic subsidiaries and associated companies
|
| |  | Mitsui Knowledge Industry Co., Ltd. (Japan) is engaged in
    planning, development, maintenance and operation of computer
    systems                                                            
|
| |  | Mitsui & Co., Asia Investment Ltd. (Singapore) is
    engaged in-house financial services in the South East Asian
    region.                                                                     






|    |                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------
|(*) | Bussan Credit Co., Ltd. (Japan) changed its corporate name to
    Mitsui & Co. Financial Services Ltd. in April 2005.



| |                  
| | -----------------
| | Principal Markets



|                           |                               |                       |         |         |               |   |         |               |  |   |         |       | 
|-------------------------- | ----------------------------- | --------------------- | ------- | ------- | ------------- | - | ------- | ------------- |  | - | ------- | ----- | 
|                           |                               | In Billions of Yen    |        
|                           |                               |                       |        
|                           |                               | Years Ended March 31, |        
|                           |                               |                       |        
|                           |                               |                       |         | 2004    |               |   | 2003    |              
|                           |                               | 2005                  |         |         | (As Restated) |   |         | (As Restated) | 
|                           |                               |                       |         |         |               |   |         |               | 
|Revenues(1),(2)            |                               |                       |         |         |               |   |         |               |  |   |         |      
|Distribution by Commodity: |                               |                       |         |         |               |   |         |               |  |   |         |      
|                           | Iron and Steel                |                       | ¥       | 407.1   |               |   | ¥       | 312.9         |  |   | ¥       | 281.8 | 
|                           | Non-Ferrous Metals            |                       |         | 161.4   |               |   |         | 157.2         |  |   |         | 152.1 | 
|                           | Machinery                     |                       |         | 269.2   |               |   |         | 305.0         |  |   |         | 304.8 | 
|                           | Electronics & Information     |                       |         | 144.8   |               |   |         | 119.8         |  |   |         | 108.1 | 
|                           | Chemicals                     |                       |         | 729.1   |               |   |         | 520.1         |  |   |         | 463.4 | 
|                           | Energy                        |                       |         | 1,048.4 |               |   |         | 954.6         |  |   |         | 831.0 | 
|                           | Foods                         |                       |         | 473.6   |               |   |         | 389.5         |  |   |         | 393.2 | 
|                           | Textiles                      |                       |         | 43.0    |               |   |         | 32.8          |  |   |         | 37.9  | 
|                           | General Merchandise           |                       |         | 96.1    |               |   |         | 84.8          |  |   |         | 88.8  | 
|                           | Property and Service Business |                       |         | 153.0   |               |   |         | 106.2         |  |   |         | 123.5 | 
|                           |                               |                       |         |         |               |   |         |               | 
|Consolidated Total         |                               | ¥                     | 3,525.7 |         |               | ¥ | 2,982.9 |               |  | ¥ | 2,784.6 |      
|                           |                               |                       |         |         |               |   |         |               | 








|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Starting from the year ended March 31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as interest expense, net of
    interest income. In relation to this change, the figures of
    revenues for the years ended March 31, 2004 and 2003 have
    been restated to conform to the current year presentation.

55



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|    |                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | In accordance with SFAS No. 144, revenues from
    discontinued operations are eliminated from each product amount
    and Consolidated Total. The figures the years ended
    March 31, 2004 and 2003 have been reclassified to conform
    to the current year presentation.

(1)(2)(3)


|                   |  |                       |          |      |               |   |          |               |  |   |          | 
|------------------ |  | --------------------- | -------- | ---- | ------------- | - | -------- | ------------- |  | - | -------- | 
|                   |  | In Billions of Yen    |         
|                   |  |                       |         
|                   |  | Years Ended March 31, |         
|                   |  |                       |         
|                   |  |                       |          | 2004 |               |   | 2003     |              
|                   |  | 2005                  |          |      | (As Restated) |   |          | (As Restated) | 
|                   |  |                       |          |      |               |   |          |               | 
|Japan              |  | ¥                     | 7,736.5  |      |               | ¥ | 7,189.3  |               |  | ¥ | 7,102.7  | 
|United States      |  |                       | 1,096.3  |      |               |   | 831.6    |               |  |   | 808.3    | 
|United Kingdom     |  |                       | 200.4    |      |               |   | 159.7    |               |  |   | 154.1    | 
|China              |  |                       | 608.1    |      |               |   | 421.2    |               |  |   | 350.9    | 
|All Other          |  |                       | 3,973.7  |      |               |   | 3,682.3  |               |  |   | 3,058.2  | 
|                   |  |                       |          |      |               |   |          |               | 
|Consolidated Total |  | ¥                     | 13,615.0 |      |               | ¥ | 12,284.1 |               |  | ¥ | 11,474.2 | 
|                   |  |                       |          |      |               |   |          |               | 








|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Total trading transactions is a voluntary disclosure and
    represents the gross transaction volume or the nominal aggregate
    value of the sales contracts in which we act as principal and
    transactions in which we serve as agent. Total trading
    transactions is not meant to represent sales or revenues in
    accordance with U.S. GAAP. Total trading transactions
    should not be construed as equivalent to, or a substitute or
    proxy for, revenues, or as an indicator of our operating
    performance, liquidity or cash flows generated by operating,
    investing or financing activities. A substantial part of total
    trading transactions represents transactions in which title to
    and payment for the goods pass through us without physical
    acquisition and delivery through our inventories. We have
    included the information concerning total trading transactions
    because it is used by similar Japanese trading companies as an
    industry benchmark, and we believe it is a useful supplement to
    results of operations data as a measure of our performance
    compared to other similar Japanese trading companies. Total
    trading transactions is included in the measure of segment
    profit and loss reviewed by the chief operating decision maker.
    See Notes 2, BASIS OF FINANCIAL STATEMENTS AND
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES and 17,
    SEGMENT INFORMATION accompanying the consolidated
    financial statements for further discussion.
|   
|(2) | Starting from the year ended March 31, 2005, we changed the
    presentation of financing revenues and costs of certain
    subsidiaries engaged mainly in external consumer financing,
    which were formerly reported as interest expense, net of
    interest income. In relation to this change, the figures of
    total trading transactions for the years ended March 31,
    2004 and 2003 have been restated to conform to the current year
    presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(3) | Total trading transactions are attributed to countries based on
    the location of customers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(4) | In accordance with SFAS No. 144, total trading
    transactions to external customers from discontinued operations
    are eliminated from each geographic area amount and
    Consolidated Total. The figures for the years ended
    March 31, 2004 and 2003 have been reclassified to conform
    to the current year presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(5) | Total trading transactions to the customers located in China,
    which were previously included in All Other, were
    separately presented in consideration of the importance of the
    amount for the year ended March 31, 2005. The figures for
    the years ended March 31, 2004 and 2003 have been restated
    to conform to the current year presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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|   |                          
|-- | -------------------------
|C. | Organizational Structure.





|                                     |  |                                                      |  |                |  |                                                                           |  |           |        |  |        | 
|------------------------------------ |  | ---------------------------------------------------- |  | -------------- |  | ------------------------------------------------------------------------- |  | --------- | ------ |  | ------ | 
|                                     |  |                                                      |  |                |  |                                                                           |  | Ownership |        |  | Voting
|                                     |  |                                                      |  | Country of     |  |                                                                           |  | Interest  |        |  | Power 
|Operating Segment                    |  | Company                                              |  | Incorporation  |  | Principal Business                                                        |  | (%)       |        |  | (%)   
|                                     |  |                                                      |  |                |  |                                                                           |  |           |        |  |       
|Metal Products & Minerals            |  | Mitsui Iron Ore Development Pty. Ltd.                |  | Australia      |  | Mining and sales of Australian iron ore                                   |  |           | 100.00 |  |        | 
|                                     |  | Sesa Goa Limited                                     |  | India          |  | Mining and sales of Indian iron ore and processing and sales of
    coke  |  |           | 51.00  |  |        | 
|                                     |  | Mitsui Itochu Iron Pty. Ltd.                         |  | Australia      |  | Mining and sales of Australian iron ore                                   |  |           | 70.00  |  |        | 
|                                     |  | Mitsui Coal Holdings Pty. Ltd.                       |  | Australia      |  | Investments in Australian coal business                                   |  |           | 100.00 |  |        | 
|                                     |  | Japan Collahuasi Resources B.V.                      |  | Netherlands    |  | Investments in a copper mine in Chile                                     |  |           | 61.90  |  |        | 
|                                     |  | Raw Materials Development Co., Ltd.                  |  | United States  |  | Investments in ferrous raw materials business                             |  |           | 100.00 |  |        | 
|                                     |  | Mitsui Bussan Raw Materials Development Corp.        |  | Japan          |  | Wholesale of ferrous and non- ferrous scrap and ferroalloys               |  |           | 100.00 |  |        | 
|                                     |  | Mitalco Inc.                                         |  | United States  |  | Aluminum smelting                                                         |  |           | 100.00 |  |        | 
|                                     |  | Mitsui & Co. Metals Ltd.                             |  | Japan          |  | Copper and aluminum metals marketing                                      |  |           | 100.00 |  |        | 
|                                     |  | Mitsui Bussan Construction Materials Co., Ltd.       |  | Japan          |  | Sales of construction materials and semi-assembled steel products         |  |           | 100.00 |  |        | 
|                                     |  | Tsuda
    Corporation(1)                             |  | Japan          |  | Wholesale of steel products                                               |  |           | 100.00 |  |        | 
|                                     |  | Regency Steel Asia Pte Ltd.                          |  | Singapore      |  | Wholesale and retail sale of steel products                               |  |           | 85.00  |  |        | 
|                                     |  |                                                      |  |                |  |                                                                           |  |           |        |  |        | 
|Machinery, Electronics & Information |  | MBK Project Holdings Ltd.                            |  | Japan          |  | Investments in manufacturers of plant-related materials and
    equipment |  |           | 100.00 |  |        | 
|                                     |  | Mitsui Rail Capital Holdings, Inc.                   |  | United States  |  | Freightcar leasing and management                                         |  |           | 100.00 |  |        | 
|                                     |  | Mitsui Power Ventures Limited                        |  | United Kingdom |  | Investments in power generation business                                  |  |           | 100.00 |  |        | 
|                                     |  | Mitsui Bussan Plant & Project Corp.                  |  | Japan          |  | Sales of chemical plants and heavy machinery equipment                    |  |           | 100.00 |  |        | 
|                                     |  | Clio Marine Inc.                                     |  | Liberia        |  | Shipping business                                                         |  |           | 100.00 |  |        | 
|                                     |  | Mitsui Bussan Transportation System Co.,
    Ltd.(2) |  | Japan          |  | Monorail, new transportation systems and railway-related
    machinery    |  |           | 100.00 |  |        | 
|                                     |  | Toyota Chile S.A.                                    |  | Chile          |  | Import and sales of automobiles and auto parts in Chile                   |  |           | 100.00 |  |        | 
|                                     |  | P.T. Bussan Auto Finance                             |  | Indonesia      |  | Motorcycle retail finance                                                 |  |           | 90.00  |  |        | 
|                                     |  | CM Pacific Maritime Corporation                      |  | Liberia        |  | Shipping business                                                         |  |           | 100.00 |  |        | 
|                                     |  | Mitsui Automotive Europe B.V.                        |  | Netherlands    |  | Investments in automotive related companies and trades of
    automobiles |  |           | 100.00 |  |        | 
|                                     |  | Lepta Shipping Co., Ltd.                             |  | Liberia        |  | Shipping business                                                         |  |           | 100.00 |  |        | 
|                                     |  | Tombo Aviation Inc.                                  |  | United States  |  | Purchase, sales and leasing of aircraft                                   |  |           | 100.00 |  |        | 
|                                     |  | Mitsui Bussan Aerospace Co., Ltd.                    |  | Japan          |  | Sales of helicopters and defence related systems                          |  |           | 100.00 |  |        | 

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|                  |  |                                                |  |                |  |                                                                                           |  |           |        |  |        |       
|----------------- |  | ---------------------------------------------- |  | -------------- |  | ----------------------------------------------------------------------------------------- |  | --------- | ------ |  | ------ | ------
|                  |  |                                                |  |                |  |                                                                                           |  | Ownership |        |  | Voting
|                  |  |                                                |  | Country of     |  |                                                                                           |  | Interest  |        |  | Power 
|Operating Segment |  | Company                                        |  | Incorporation  |  | Principal Business                                                                        |  | (%)       |        |  | (%)   
|                  |  |                                                |  |                |  |                                                                                           |  |           |        |  |       
|                  |  | Tombo Capital Corporation                      |  | Japan          |  | Purchase, sales and leasing of aircraft                                                   |  |           | 100.00 |  |        |       
|                  |  | Telepark
    Corp.(3)                          |  | Japan          |  | Sales of mobile phones and related telecommunication services                             |  |           | 65.41  |  |        |       
|                  |  | Xion Electronics,
    Inc.(4)                  |  | Japan          |  | Investments in semiconductor device sales companies                                       |  |           | 100.00 |  |        |       
|                  |  | Toyo Officemation, Inc.                        |  | Japan          |  | Design, operation and maintenance of information systems                                  |  |           | 100.00 |  |        |       
|                  |  | NextCom K.K.                                   |  | Japan          |  | Network integrator focused on multi-vendor and in-house
    developed solutions           |  |           | 47.72  |  |        | 47.46 
|                  |  |                                                |  |                |  |                                                                                           |  |           |        |  |        |       
|Chemical          |  | P.T. Kaltim Pasifik Amoniak                    |  | Indonesia      |  | Production and sales of anhydrous ammonia                                                 |  |           | 55.00  |  |        |       
|                  |  | Novus International, Inc.                      |  | United States  |  | Production, marketing and sales of various feed supplements                               |  |           | 65.00  |  |        |       
|                  |  | Fertilizantes Mitsui S.A. Industria e Comercio |  | Brazil         |  | Production and sales of fertilizers                                                       |  |           | 100.00 |  |        |       
|                  |  | Nikken Fine Chemicals Co., Ltd.                |  | Japan          |  | Production and sales of sorbitol and related organic chemical
    products                |  |           | 100.00 |  |        |       
|                  |  | Mitsui Bussan Agro Business Co., Ltd.          |  | Japan          |  | Development and sales of fertilizers and agricultural products                            |  |           | 100.00 |  |        |       
|                  |  | MITSUI BUSSAN SOLVENT & COATING CO., LTD.      |  | Japan          |  | Domestic sales, export and import, off-shore trade of solvents
    and coating materials  |  |           | 100.00 |  |        |       
|                  |  | Daito Chemical Co., Ltd.                       |  | Japan          |  | Production and sales of industrial chemicals                                              |  |           | 70.00  |  |        |       
|                  |  | Mitsui Bussan Plastics Co., Ltd.               |  | Japan          |  | Wholesale of raw materials and products of plastics                                       |  |           | 100.00 |  |        |       
|                  |  | Nippon Trading Co., Ltd.                       |  | Japan          |  | Sales of plastics and chemicals                                                           |  |           | 48.34  |  |        | 48.82 
|                  |  | Bussan Nanotech Research Institute
    Inc.(5) |  | Japan          |  | Research and development of nano- products                                                |  |           | 100.00 |  |        |       
|                  |  |                                                |  |                |  |                                                                                           |  |           |        |  |        |       
|Energy            |  | Mittwell Energy Resources Pty., Ltd.           |  | Australia      |  | Sales of crude oil and condensate, development of Casino gas
    field in Australia       |  |           | 100.00 |  |        |       
|                  |  | Wandoo Petroleum Pty Ltd                       |  | Australia      |  | Exploration, development and production of oil and natural gas                            |  |           | 70.00  |  |        | 100.00
|                  |  | Mitsui E&P Australia Pty Limited               |  | Australia      |  | Exploration and development of oil and natural gas                                        |  |           | 100.00 |  |        |       
|                  |  | Mitsui E&P Middle East B.V.                    |  | Netherlands    |  | Exploration, development and production of oil and natural gas                            |  |           | 77.89  |  |        | 60.00 
|                  |  | Mitsui Gas Development Qatar B.V.              |  | Netherlands    |  | Development and production of natural gas and condensate                                  |  |           | 100.00 |  |        |       
|                  |  | Mitsui LNG Nederland B.V.                      |  | Netherlands    |  | Investments in Qatar LNG project                                                          |  |           | 100.00 |  |        |       
|                  |  | Mitsui & Co. (E&P) B.V.                        |  | Netherlands    |  | Exploration, development, production and investments in oil and
    natural gas resources |  |           | 100.00 |  |        |       
|                  |  | Arcadia Petroleum Ltd.                         |  | United Kingdom |  | Physical and future trading of crude oil                                                  |  |           | 100.00 |  |        |       
|                  |  | Mitsui Oil Co., Ltd.                           |  | Japan          |  | Sales of petroleum products in Japan                                                      |  |           | 89.93  |  |        |       
|                  |  | Endeavour Resources Limited                    |  | United Kingdom |  | Investments in Japan Australia LNG (MIMI) Pty. Ltd.                                       |  |           | 100.00 |  |        |       
|                  |  | Mitsui Sakhalin Holdings B.V.                  |  | Netherlands    |  | Investments in Sakhalin Energy Investment                                                 |  |           | 100.00 |  |        |       

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|                              |  |                                                    |  |                |  |                                                                   |  |           |        |  |        |      
|----------------------------- |  | -------------------------------------------------- |  | -------------- |  | ----------------------------------------------------------------- |  | --------- | ------ |  | ------ | -----
|                              |  |                                                    |  |                |  |                                                                   |  | Ownership |        |  | Voting
|                              |  |                                                    |  | Country of     |  |                                                                   |  | Interest  |        |  | Power 
|Operating Segment             |  | Company                                            |  | Incorporation  |  | Principal Business                                                |  | (%)       |        |  | (%)   
|                              |  |                                                    |  |                |  |                                                                   |  |           |        |  |       
|                              |  | Mitsui Oil (Asia) Pte. Ltd.                        |  | Singapore      |  | Physical and future trading of crude oil and petroleum products   |  |           | 100.00 |  |        |      
|                              |  | Mitsui Liquefied Gas Co., Ltd.                     |  | Japan          |  | Sales of liquefied petroleum gas in Japan                         |  |           | 89.93  |  |        |      
|                              |  | Overseas Petroleum Corporation                     |  | Japan          |  | Exploration, development and investments in oil and gas           |  |           | 96.55  |  |        |      
|                              |  |                                                    |  |                |  |                                                                   |  |           |        |  |        |      
|Consumer Products & Services  |  | Mitsui Norin Co., Ltd.                             |  | Japan          |  | Manufacture and sales of food products                            |  |           | 51.85  |  |        | 87.63
|                              |  | MITSUI FOODS CO., LTD.                             |  | Japan          |  | Wholesale of foods and beverages                                  |  |           | 99.87  |  |        |      
|                              |  | WILSEY FOODS, INC.                                 |  | United States  |  | Investments in processed oil food company                         |  |           | 90.00  |  |        |      
|                              |  | DAI-ICHI BROILER CO., LTD.                         |  | Japan          |  | Production, processing, and sales of broilers                     |  |           | 72.33  |  |        |      
|                              |  | Retail System Service Co., Ltd.                    |  | Japan          |  | Sales of sundries and foodstuff to retailers                      |  |           | 100.00 |  |        |      
|                              |  | Mitsui Bussan Inter-fashion Ltd.                   |  | Japan          |  | Planning and management of production and distribution of apparel |  |           | 100.00 |  |        |      
|                              |  | Bussan Real Estate Development Co., Ltd.           |  | Japan          |  | Real estate sales, leasing and management                         |  |           | 100.00 |  |        |      
|                              |  | MBK Laguna Inc.                                    |  | United States  |  | Investments in real estate-related businesses                     |  |           | 100.00 |  |        |      
|                              |  | Mitsui Bussan House-Techno, Inc.                   |  | Japan          |  | Housing business                                                  |  |           | 100.00 |  |        |      
|                              |  |                                                    |  |                |  |                                                                   |  |           |        |  |        |      
|Logistics & Financial Markets |  | Mitsui & Co. Energy Risk Management Ltd.           |  | United Kingdom |  | Energy derivatives dealing                                        |  |           | 100.00 |  |        |      
|                              |  | Mitsui & Co. Precious Metals, Inc.                 |  | United States  |  | Trading of precious metals                                        |  |           | 100.00 |  |        |      
|                              |  | Mitsui Bussan Futures Ltd.                         |  | Japan          |  | Future commodities brokering                                      |  |           | 100.00 |  |        |      
|                              |  | Nitto Logistics Co., Ltd.                          |  | Japan          |  | Warehousing, customs clearance and real estate leasing            |  |           | 100.00 |  |        |      
|                              |  | Bussan Capital Corp.                               |  | Japan          |  | Securities investment, commercial finance and related activities  |  |           | 100.00 |  |        |      
|                              |  | Mitsuibussan Insurance and Consulting Co., Ltd.    |  | Japan          |  | Property and casualty insurance consignment and agency services   |  |           | 100.00 |  |        |      
|                              |  | Tri-Net (Japan) Inc.                               |  | Japan          |  | International integrated transportation services                  |  |           | 100.00 |  |        |      
|                              |  | Tri-Net Logistics (Asia) Pte. Ltd.                 |  | Singapore      |  | International integrated transportation services                  |  |           | 100.00 |  |        |      
|                              |  |                                                    |  |                |  |                                                                   |  |           |        |  |        |      
|Americas                      |  | Mitsui & Co. (U.S.A.), Inc.                        |  | United States  |  | Trade                                                             |  |           | 100.00 |  |        |      
|                              |  | Mitsui & Co. (Canada) Ltd.                         |  | Canada         |  | Trade                                                             |  |           | 100.00 |  |        |      
|                              |  | Mitsui Brasileira Importação e Exportação
    S.A. |  | Brazil         |  | Trade                                                             |  |           | 100.00 |  |        |      
|                              |  | Mitsui Steel Development Co., Inc.                 |  | United States  |  | Investments in steel-related businesses                           |  |           | 100.00 |  |        |      
|                              |  | Mitsui Steel, Inc.                                 |  | United States  |  | Wholesale and SCM service of steel products                       |  |           | 100.00 |  |        |      
|                              |  | Channel Terminal Corp.                             |  | United States  |  | Investments in tank leasing business                              |  |           | 100.00 |  |        |      
|                              |  | Champions Pipe & Supply, Inc.                      |  | United States  |  | Sales of steel pipes                                              |  |           | 94.00  |  |        |      
|                              |  | Mitsui Tubular Products, Inc.                      |  | United States  |  | Sales of steel pipes                                              |  |           | 100.00 |  |        |      
|                              |  | Mitsui Auto Steel Canada Inc.                      |  | Canada         |  | Warehouse services for storage and handling of auto steel         |  |           | 100.00 |  |        |      
|                              |  | Mitsui Comtek Corp.                                |  | United States  |  | Electronics and IT-related business                               |  |           | 100.00 |  |        |      

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|                     |  |                                          |  |                  |  |                                                                          |  |           |        |  |        |      
|-------------------- |  | ---------------------------------------- |  | ---------------- |  | ------------------------------------------------------------------------ |  | --------- | ------ |  | ------ | -----
|                     |  |                                          |  |                  |  |                                                                          |  | Ownership |        |  | Voting
|                     |  |                                          |  | Country of       |  |                                                                          |  | Interest  |        |  | Power 
|Operating Segment    |  | Company                                  |  | Incorporation    |  | Principal Business                                                       |  | (%)       |        |  | (%)   
|                     |  |                                          |  |                  |  |                                                                          |  |           |        |  |       
|                     |  | CornerStone Research & Development, Inc. |  | United States    |  | Processing and packaging of healthcare foods and supplements             |  |           | 100.00 |  |        |      
|                     |  | Westport Petroleum, Inc.                 |  | United States    |  | International trading of petroleum products and crude oil                |  |           | 100.00 |  |        |      
|                     |  | Portac, Inc.                             |  | United States    |  | Manufacture of lumber and lumber products                                |  |           | 100.00 |  |        |      
|                     |  |                                          |  |                  |  |                                                                          |  |           |        |  |        |      
|Europe               |  | Mitsui & Co. Europe PLC                  |  | United Kingdom   |  | Management of business in Europe and Africa                              |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. UK PLC                      |  | United Kingdom   |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. International (Europe) B.V. |  | Netherlands      |  | Investments and financial services                                       |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. Deutschland GmbH            |  | Germany          |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. Benelux S.A./N.V.           |  | Belgium          |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. France S.A.S.               |  | France           |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. Italia S.p.A.               |  | Italy            |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  |                                          |  |                  |  |                                                                          |  |           |        |  |        |      
|Other Overseas Areas |  | Mitsui & Co. (Hong Kong) Ltd.            |  | Hong Kong, China |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. (Shanghai) Ltd.             |  | China            |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. (Taiwan) Ltd.               |  | Taiwan           |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. (Thailand) Ltd.             |  | Thailand         |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  | Mitsiam International Ltd.               |  | Thailand         |  | Trade                                                                    |  |           | 52.91  |  |        | 55.00
|                     |  | Mitsui & Co. (Australia) Ltd.            |  | Australia        |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  | Mitsui & Co. (Middle East) E.C.          |  | Bahrain          |  | Trade                                                                    |  |           | 100.00 |  |        |      
|                     |  |                                          |  |                  |  |                                                                          |  |           |        |  |        |      
|All Other            |  | Bussan Credit Co.,
    Ltd.(6)           |  | Japan            |  | Financial services                                                       |  |           | 100.00 |  |        |      
|                     |  | Mitsui Knowledge Industry Co., Ltd.      |  | Japan            |  | Planning, development, maintenance and operation of computer
    systems |  |           | 67.35  |  |        | 67.37
|                     |  | Mitsui & Co., Asia Investment Ltd.       |  | Singapore        |  | Financial services                                                       |  |           | 100.00 |  |        |      






|    |                                                                                             
|--- | --------------------------------------------------------------------------------------------
|(1) | Changed its corporate name to SINTSUDA CORPORATION in April 2005                            
|   
|(2) | Changed its corporate name from Bussan Transportation System
    Co., Ltd. in July 2004     
|   
|(3) | Changed its corporate name from Mitsui & Associates
    Telepark Corporation in October 2004
|   
|(4) | Changed its corporate name from Xion Holdings, Inc. in January
    2005                     
|   
|(5) | Changed its corporate name from Carbon Nanotech Research
    Institute Inc. in April 2004   
|   
|(6) | Changed its corporate name to Mitsui & Co. Financial
    Services Ltd. in April 2005        






|   |                                
|-- | -------------------------------
|D. | Property, Plants and Equipment.



|                                     |  |          |  |                     |  |                                    
|------------------------------------ |  | -------- |  | ------------------- |  | -----------------------------------
|Property, Plants and                 |  |          |  |                     |  |                                    
|Equipment Description                |  |          |  | Size or Annual      |  |                                    
|(Holder or Lessee Other than Mitsui) |  | Location |  | Production Capacity |  | User of Property                   
|                                     |  |          |  |                     |  |                                    
|                                     |  |          |  | (Sft: Square feet,  |  |                                    
|                                     |  |          |  | Mt: Metric Ton)     |  |                                    
|In Japan:                            |  |          |  |                     |  |                                    
|Mitsuibussan Building                |  | Tokyo    |  | 1,321,572 Sft       |  | Office use (Corporate Headquarters)
|Osaka Mitsuibussan Building          |  | Osaka    |  | 463,404 Sft         |  | Office use                         

60



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|                                                                                              |  |               |  |                     |  |                                         
|--------------------------------------------------------------------------------------------- |  | ------------- |  | ------------------- |  | ----------------------------------------
|Property, Plants and                                                                          |  |               |  |                     |  |                                         
|Equipment Description                                                                         |  |               |  | Size or Annual      |  |                                         
|(Holder or Lessee Other than Mitsui)                                                          |  | Location      |  | Production Capacity |  | User of Property                        
|                                                                                              |  |               |  |                     |  |                                         
|                                                                                              |  |               |  | (Sft: Square feet,  |  |                                         
|                                                                                              |  |               |  | Mt: Metric Ton)     |  |                                         
|Nagoya Mitsuibussann Building                                                                 |  | Nagoya        |  | 152,471 Sft         |  | Office use                              
|Hibiya Central Building                                                                       |  | Tokyo         |  | 509,841 Sft         |  | Office building for lease               
|Bussan Building Annex                                                                         |  | Tokyo         |  | 210,705 Sft         |  | Office building for lease               
|Company Housing & Dormitory                                                                   |  | Chiba         |  | 39,331 Sft          |  | Employees residential facility         
|Human Resource Development Center                                                             |  | Shizuoka      |  | 25,372 Sft          |  | Training facility                       
|Land and equipment (Mitsui Liquefied Gas Co., Ltd.)                                           |  | Ishikawa      |  | 852,072 Sft         |  | Liquefied petroleum gas terminal        
|Wakamatsu Building & Shinsuna Bayside Building (Bussan
    Real Estate Development Co., Ltd.) |  | Tokyo         |  | 172,406 Sft         |  | Office building for lease               
|Land (MITSUI FOODS Co., LTD)                                                                  |  | Saitama       |  | 71,171 Sft          |  | Distribution center                     
|Land and equipment (DAI-ICHI BROILER CO., LTD.)                                               |  | Aomori        |  | 46,102 Sft          |  | Broiler processing factory              
|Land and equipment (Mitsui Norin Co., Ltd.)                                                   |  | Yamanashi     |  | 339,871 Sft         |  | Tea leaf processing factory             
|Sun East Shinonome Building & Sun East Tatsumi Building
    (Nitto Logistics Co., Ltd.)       |  | Tokyo         |  | 129,221 Sft         |  | Office use and office building for lease
|Tojin Building (TOSHIN SOKO KAISHA, LTD.)                                                     |  | Tokyo         |  | 26,759 Sft          |  | Office use and office building for lease
|Overseas:                                                                                     |  |               |  |                     |  |                                         
|Office Space (Mitsui & Co. (U.S.A.), Inc.)                                                    |  | United States |  | 199,524 Sft         |  | Office space leased from others         
|Equipment (Mitsui Coal Holdings Pty. Ltd.)                                                    |  | Australia     |  | 7,760,000 Mt        |  | Mining equipment for coal               
|Land and plants (Mitalco Inc.)                                                                |  | United States |  | 465,098 Sft         |  | Aluminium smelting factory              
|Equipment (Mitsui Iron Ore Development Pty. Ltd.)                                             |  | Australia     |  | 21,099,000 Mt       |  | Mining equipment for iron ore           
|Equipment (Mitsui-Itochu Iron Pty. Ltd.)                                                      |  | Australia     |  | 2,449,000 Mt        |  | Mining equipment for iron ore           
|Equipment (Sesa Goa Limited)                                                                  |  | India         |  | 2,573,000 Mt        |  | Mining equipment for iron ore           
|Land and plants (P.T. Kaltim Pasifik Amoniak)                                                 |  | Indonesia     |  | 579,397 Sft         |  | Ammonia manufacturing plant             
|Land and plants (Novus International, Inc.)                                                   |  | United States |  | 636,826 Sft         |  | Methionine production facility          
|Shopping centers (MBK Newport Inc.)                                                           |  | United States |  | 186,237 Sft         |  | Leasing asset                           
|Chemical tank yard (Mitsui & Co. (U.S.A.), Inc.)                                              |  | United States |  | 11,495,355 Sft      |  | Chemical tank                           






|    |                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Information on our mining activities related to Mitsui Coal
    Holdings Pty. Ltd., Mitsui Iron Ore Development Pty. Ltd., and
    Mitsui Itochu Iron Pty. Ltd. that are located in Australia is
    shown in Iron and Steel Raw Materials Unit of
    B. Business Overview in this Item and
    Mining Activities below.

61



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| |   |                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Clio Marine Inc. (Liberia), Lepta Shipping Co., Ltd. (Liberia)
    and LPG Transport Service Ltd. (Bermuda) own ocean vessels
    leased to foreign and domestic shipping companies whose combined
    book value amounting to ¥26 billion;
|
| |  | Mitsui Rail Capital Holdings, Inc. (the United States) owns
    rolling stock mainly leased to railway companies in the Unites
    States amounting to ¥8 billion as book value; and                                                       
|
| |  | Tombo Aviation Inc. (the United States) and Tombo Capital
    Corporation (Japan) own aircraft leased to foreign and domestic
    airline companies amounting to ¥25 billion as book
    value of the total of two companies.              









62



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##### Table of Contents





| |                  
| | -----------------
| | Mining Activities



IRON ORE


Name of Joint Venture or
Investee(1)


Entity by which Mitsui Participates in the Mining Activity
and its Ownership Interest


Area of Mining Operation (Region, State, Country)


|                                                                                             |                 |         |          |                                                        |          |                          |  |                        |          |  |          |                                                                                                                                                                                                                                 |             |                                                                                                                                                                           |      |          |              |                                                        |  | 
|-------------------------------------------------------------------------------------------- | --------------- | ------- | -------- | ------------------------------------------------------ | -------- | ------------------------ |  | ---------------------- | -------- |  | -------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | -------- | ------------ | ------------------------------------------------------ |  | 
|                                                                                            
|                                                                                             |                 | Type of |          |                                                       
|Name of                                                                                      |                 |         | Mineral  |                                                        | Fe Basis |                          |  | Means of Access to the |          |  |          | Type of                                                                                                                                                                                                                         |             |                                                                                                                                                                          
|Mines(2)                                                                                     |                 |         | Location |                                                        |          | Resources(3)             |  | (%)                    |          |  | Property |                                                                                                                                                                                                                                 | Title/Lease |                                                                                                                                                                           | Mine |          | Power Source
|                                                                                            
|Robe River Iron Associates                                                                  
|Mitsui Iron Ore Development Pty. Ltd. (33%)                                                  |                 |         |          |                                                        |          |                          |  |                        |          |  |          |                                                                                                                                                                                                                                
|Pilbara Region, Western Australia, Australia                                                 |                 |         |          |                                                        |          |                          |  |                        |          |  |          |                                                                                                                                                                                                                                
|                                                                                            
|                                                                                             | Mesa J          |         |          | Near Pannawonica, 200 km southwest of Cape Lambert     |          | Pisolite                 |  |                        | 57.1     |  |          | Railway and port in Cape Lambert (owned by Robe River Iron
    Associates and operated by Pilbara Iron Pty Ltd.)                                                                                                                |             | Agreements for life of mine with Government of Western Australia                                                                                                          |      | Open pit |              | Supplied by Pilbara Iron Pty Ltd.                     
|                                                                                             | West Angelas    |         |          | West Angelas, 330 km southeast of Cape Lambert         |          | Marra Mamba              |  |                        | 62.2     |  |          | Same as above                                                                                                                                                                                                                   |             | Same as above                                                                                                                                                             |      | Open pit |              | Same as above                                         
|                                                                                            
|Mount Newman Joint Venture                                                                  
|Mitsui Itochu Iron Pty. Ltd. (10%) (Mitsui share of Mitsui
    Itochu Iron Pty. Ltd. is 70%)
|Pilbara Region, Western Australia, Australia                                                 |                 |         |          |                                                        |          |                          |  |                        |          |  |          |                                                                                                                                                                                                                                
|                                                                                            
|                                                                                             | Mt. Whaleback   |         |          | Near the town of Newman, 426 km south of Port Headland |          | Brockman
    Marra Mamba |  |                        | 62.262.6 |  |          | Railway (owned and operated by Mount Newman Joint Venture) and
    port in Port Headland (owned and operated by Mount Newman Joint
    Venture)                                                                                 |             | Mineral lease granted in 1967 under the Iron Ore (Mount Newman)
    Agreement Act 1964 scheduled to expire in 2009 with rights for
    successive renewals for 21 years   |      | Open pit |              | Supplied by Alinta Ltd. (partially owned by the state)
|                                                                                            
|Yandi Joint Venture                                                                         
|Mitsui Iron Ore Development Pty. Ltd. (7%)                                                  
|Pilbara Region, Western Australia, Australia                                                
|                                                                                            
|                                                                                             | Marillana Creek |         |          | 92 km north of Newman, 310 km south of Port Headland   |          | Channel Iron  Deposit    |  |                        | 57.6     |  |          | Rail spur (owned by Yandi Joint Venture) connected to the main
    Newman/ Hedland line (owned and operated by Mount Newmani Joint
    Venture) and port inn Port Hedland (ownd and operated by Mount
    Newman Joint Venture) |             | Mining lease granted in 1991 under the Iron Ore (Marillana
    Creek) Agreement Act 1991 scheduled to expire in 2012 with the
    right to extend for additional 42 years |      | Open pit |              | Supplied by Alinta Ltd. (partially owned by state)    
|                                                                                            

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|                                             |             |                              |          |                                                       |                  |              |      |                        |      |                                                                                                                                                           |          |                                                                                                                                                                                                                                                                                                           |             |                                                              |      |                                                    |              |                                                    |  |                  
|-------------------------------------------- | ----------- | ---------------------------- | -------- | ----------------------------------------------------- | ---------------- | ------------ | ---- | ---------------------- | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | -------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | ------------------------------------------------------------ | ---- | -------------------------------------------------- | ------------ | -------------------------------------------------- |  | -----------------
|                                            
|                                             |             | Type of                      |          |                                                      
|Name of                                      |             |                              | Mineral  |                                                       | Fe Basis         |              |      | Means of Access to the |      |                                                                                                                                                           |          | Type of                                                                                                                                                                                                                                                                                                   |             |                                                             
|Mines(2)                                     |             |                              | Location |                                                       |                  | Resources(3) |      | (%)                    |      |                                                                                                                                                           | Property |                                                                                                                                                                                                                                                                                                           | Title/Lease |                                                              | Mine |                                                    | Power Source
|                                            
|Mount Goldsworthy Joint Venture             
|Mitsui Iron Ore Development Pty. Ltd. (7%)  
|Pilbara Region, Western Australia, Australia
|                                            
|North Area(Yarrie)(Nimingarra)               |             | 210 km east of Port Headland |          | Nimingarra                                            |                  |              | 61.9 |                        |      | Railway (owned and operated by Mount Goldsworthy Joint Venture)
    and port in Port Headland (owned and operated by Mount
    Goldsworthy Joint Venture) |          | Multiple mineral leases under the Iron Ore (Mount Goldsworthy)
    Agreement Act 1964 and the Iron Ore (Goldsworthy
    Nimingarra) Agreement Act 1972. The last one expires in 2014,
    with rights of renewal over these leases for successive 21-year
    periods.                                   |             | Open pit                                                     |      | Supplied by Alinta Ltd. (partially owned by state)
|                                             | Area C      |                              |          | 120 km northwest of Newman, 37  km southwest of Yandi |                  | Marra Mamba  |      |                        | 62.2 |                                                                                                                                                           |          | Rail spur (owned by Goldsworthy Joint Venture) connecting to the
    Yandi spur line (owned by Yandi Joint Venture) and then onto the
    main Newman/ Hedland line (owned and operated by Mount Newman
    Joint Venture) and port in Port Hedland (owned and operated by
    Goldsworthy Joint Venture) |             | Same as above                                                |      | Open pit                                           |              | Supplied by Alinta Ltd. (partially owned by state)
|                                            
|Sesa Goa Limited                            
|Sesa Goa Limited (51%)                      
|Goa and Karnataka, India                    
|                                            
|                                             | Codli       |                              |          |                                                       | Goa, India       |              |      | Fines/Lumps            |      |                                                                                                                                                           | 54.0     |                                                                                                                                                                                                                                                                                                           |             | Barge and port in Mormugao                                   |      | Combination of own lease and sub lease             |              | Open pit                                           |  | Supplied by state
|                                             | Sonshi      |                              |          |                                                       | Goa, India       |              |      | Fines/Lumps            |      |                                                                                                                                                           | 54.0     |                                                                                                                                                                                                                                                                                                           |             | Barge and port in Mormugao                                   |      | Combination of own lease and sub lease             |              | Open pit                                           |  | Supplied by state
|                                             | Chitradurga |                              |          |                                                       | Karnataka, India |              |      | Fines/Lumps            |      |                                                                                                                                                           | 60.0     |                                                                                                                                                                                                                                                                                                           |             | Railway, truck and shipping facility at Mormugao and Chennai |      | Combination of own lease and sub lease             |              | Open pit                                           |  | Supplied by state
|                                             | Hospet      |                              |          |                                                       | Karnataka, India |              |      | Fines/Lumps            |      |                                                                                                                                                           | 60.0     |                                                                                                                                                                                                                                                                                                           |             | Railway, truck and shipping facility at Mormugao and Chennai |      | Combination of own lease and sub lease             |              | Open pit                                           |  | Supplied by state
|                                            



|    |                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The term Investee refers only to Sesa Goa Limited.                                                                                                                                
|   
|(2) | Name of Mines indicates the names of principal
    producing mines.                                                                                                               
|   
|(3) | Pisolite, Marra Mamba,
    Brockman, Channel Iron Deposit and
    Nimingarra refer to the types of iron ore that are
    found in the Pilbara region of Western Australia.

64



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##### Table of Contents



COAL


Name of Joint Venture or Investee


Entity by which Mitsui Participates in the Mining Activity
and its
Ownership Interest(2)


Area of Mining Operation (Region, State, Country)


|                                      |                    |  |          |                                                  |                    |                                     |  |                                              |         |                                                                         |       |             |  |                  |  | 
|------------------------------------- | ------------------ |  | -------- | ------------------------------------------------ | ------------------ | ----------------------------------- |  | -------------------------------------------- | ------- | ----------------------------------------------------------------------- | ----- | ----------- |  | ---------------- |  | 
|                                     
|Name of                               |                    |  | Type of  |                                                  | Means of Access to |                                     |  |                                              | Type of |                                                                         | Power
|Mines(3)                              |                    |  | Location |                                                  |                    | Resources                           |  | the Property                                 |         | Title/Lease                                                             |       | Mine        |  | Source          
|                                     
|BHP Mitsui Coal Pty. Ltd.            
|BHP Mitsui Coal Pty.
    Ltd.(1)(20%)
|Queensland, Australia                
|                                     
|                                      | Riverside          |  |          | In the Bowen Basin, 145 km west of Mackay        |                    | Metallurgical coal                  |  | Railway (Queensland Rail) and port in Mackay |         | Leases granted by State and renewable subject to States
    discretion |       | Open pit    |  | State owned grid
|                                      | South Walker Creek |  |          | In the Bowen Basin, 145 km west of Mackay        |                    | Metallurgical coal                  |  | Same as above                                |         | Same as above                                                           |       | Open pit    |  | State owned grid
|                                     
|Bengalla Joint Venture               
|Mitsui Coal Holdings Pty. Ltd. (10%) 
|New South Wales, Australia           
|                                     
|                                      | Bengalla           |  |          | West of Muswellbrook in the Upper Hunter Valley  |                    | Metallurgical coal and thermal coal |  | Railway and port at Newcastle                |         | Leases granted by State                                                 |       | Open pit    |  | State owned grid
|                                     
|Kestrel Joint Venture                
|Mitsui Coal Holdings Pty. Ltd. (20%) 
|Queensland, Australia                
|                                     
|                                      | Kestrel            |  |          | In the Bowen Basin, 300 km west of Rockhampton   |                    | Metallurgical coal and thermal coal |  | Railway and port at Gladstone                |         | Leases granted by State                                                 |       | Underground |  | State owned grid
|                                     
|Moura Joint Venture                  
|Mitsui Coal Holdings Pty. Ltd. (49%) 
|Queensland, Australia                
|                                     
|                                      | Moura              |  |          | In the Bowen Basin 185 km southwest of Gladstone |                    | Metallurgical coal and thermal coal |  | Railway and port at Gladstone                |         | Leases granted by State                                                 |       | Open pit    |  | State owned grid
|                                     
|German Creek Joint Venture           
|Mitsui Coal Holdings Pty. Ltd. (30%) 
|Queensland, Australia                
|                                     
|                                      | German Creek       |  |          | In the Bowen Basin, 250 km southwest of Mackay   |                    | Metallurgical coal                  |  | Railway and port at Gladstone                |         | Leases granted by State                                                 |       | Underground |  | State owned grid
|                                     



|    |                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | BHP Mitsui Coal Pty. Ltd. indicates the name of the
    company established by BHP Billiton plc and Mitsui.                                                                                                                                                                    
|   
|(2) | BHP Mitsui Coal Pty. Ltd. is our associated company in which
    Mitsui has 20% interest. Mitsui Coal Holdings Pty. Ltd. is our
    subsidiary which owns interests in Bengalla Joint Venture,
    Kestrel Joint Venture, Moura Joint Venture and German Creek
    Joint Venture.
|   
|(3) | Name of mines indicates the names of principal
    producing mines.                                                                                                                                                                                                            

65



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IRON ORE


Name of Joint Venture or Investee


Entity by which Mitsui Participates in the Mining Activity
and its Ownership Interest


Area of Mining Operation (Region, State, Country)





Robe River Iron Associates


Mitsui Iron Ore Development Pty. Ltd. (33%)


Pilbara Region, Western Australia, Australia


|             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|            
|Mesa J       |  | The development of Robe River project began in 1962(*) near
    Pannawonica. The Robe River project was commissioned and the
    first shipment was made in 1972. Iron ore reserves at the
    Mesa J production Base provide the cornerstone of
    Pannawonicas sinter fines and lump output. Development of
    Mesa J began in 1992, and all mine administration,
    workshops, warehousing and other support facilities were
    integrated there in 1994. Process Plant 1 was commissioned in
    1999 and Process Plant 2 in 2001. The plant processes
    clay-contaminated pisolite, sub-grade material which was once
    discarded, to reduce contaminants and retain on-specification
    ore. Total material hauled at Mesa J is between 65 and
    75 million tonnes per year. From this production base, the
    joint venture produces approximately 32 million tonnes of
    iron ore each year.
|West Angelas |  | The development of West Angelas began in 1998. Mining of ore
    commenced in March 2002. The West Angelas deposits contain Marra
    Mamba type iron ore with higher iron content than Robe
    Rivers Mesa J mine. The West Angelas operation is
    comprised of an open pit mine; a crushing and screening ore
    processing plant producing lump and sinter fines iron ore, as
    well as stockpiling, reclaiming and train-loading facilities.
    Expansion of West Angelas mine is well advanced to increase its
    capacity from its current 20 million tonnes per year to
    25 million tonnes per year by the third quarter of 2005.                                                                                                                                                                                                                                                               
|            



|    |                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(*) | The Robe River project was originally started by Cleveland
    Cliffs Iron Company, an iron and steel producer in the United
    States. Since then, there were major changes in ownership before
    Rio Tinto took a 53% stake in Robe River Iron Associates in 2000.

Mount Newman Joint Venture


Mitsui Itochu Iron Pty. Ltd. (10%) (Mitsui share of Mitsui
Itochu Iron Pty. Ltd. is 70%)


Pilbara Region, Western Australia, Australia


|                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|---------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                
|Mount  Whaleback |  | The joint venture began production in 1969 at the Mount
    Whaleback ore body. Today, production continues to be sourced
    from the major Mount Whaleback ore body and is complemented by
    production from other ore bodies. The facilities at Mount
    Whaleback include primary and secondary crushing plants with a
    nominal capacity of 35 million tonnes of product per year,
    a heavy media beneficiation plant with an annual capacity of
    8 million tonnes and a train-loading facility. The mining
    plant and port facilities were originally built in the late
    1960s and have been maintained and enhanced many times
    since then. The Rapid Growth Project 2 (RGP2) was
    approved in October 2004. The project comprises increases in
    mine, rail and port capacity through the development of Ore
    Body 18, purchases of additional rolling stock and a new
    car dumper at Finucane Island. Engineering activities are well
    advanced, tendering procurement processes are underway and
    initial site activities have commenced. The project will
    increase installed capacity at Western Australian Iron Ore to
    118 million tonnes per annum by the second half of 2006.
    Development costs are estimated at U.S.$575 million.
    (Mitsui share U.S.$40 million).




Yandi Joint Venture


Mitsui Iron Ore Development Pty. Ltd. (7%)


Pilbara Region, Western Australia, Australia


|                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|               
|Marillana Creek |  | Development of the ore body began in 1991. This included
    construction of a rail connection to the existing Newman/
    Headland rail line, crushing and screening facilities with an
    annual capacity of 10 million tonnes, ore stacker, mine
    load-out tunnel, and on-site administration infrastructure. The
    mines first shipment of iron ore was in March 1992.
    Following a number of modifications between 1994 and 2003,
    Yandis capacity has been increased to 42 million
    tonnes per year, including both fine and lump ores.
|               

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##### Table of Contents



Mount Goldsworthy Joint Venture


Mitsui Iron Ore Development Pty. Ltd. (7%)


Pilbara Region, Western Australia, Australia


|                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                
|North Area (Yarrie) (Nimingarra) |  | Mount Goldsworthy was commissioned in 1966 in North Area. The
    original Goldsworthy mine was closed in 1982 and mining
    operations ceased at Shay Bay in 1993. Since then, mining has
    continued from the adjacent Nimingarra mine and Yarrie mine.                                                                                                                                                                                                                                                                                                                                                
|Area C                           |  | The Area C Mine is operated by the Mount Goldsworthy Joint
    Venture under the POSMAC JV arrangement. Area C Mine is
    located near the mines operated by the Yandi Joint Venture and
    it was officially opened in October 2003. First ore was railed
    from Area C to Port Headland in August 2003, with the first
    shipment of ore departing the port in September 2003.
    Area C represents the largest undeveloped Marra Mamba
    resource in the Pilbara region. The project involves developing
    mine infrastructure and a rail spur link to the existing Yandi/
    Newman railway.
|                                

Sesa Goa Limited


Sesa Goa Limited (51%)


Goa and Karnataka, India


|                   |  |                                                                                                                                                                                                                                                                                                                            
|------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                  
|Codli Sonshi       |  | Sesa Goa Limited commenced operations in 1954 in North Goa,
    India. Sesa Goas main mining operations are at the Codli
    and Sonshi mines. Goan ore tends to be relatively high in
    alumina content, and most Goan ore is beneficiated to raise the
    iron content. We acquired 51% interest in Sesa Goa in 1996.
|Chitradurga Hospet |  | The main operation in Karnataka is at Chitradurga mine. A second
    mine is located at Hospet. These mines are equidistant from the
    part of Mormugao and Chennai and ore can be shipped from either
    port.                                                                                                         

COAL


Name of Joint Venture or Investee


Entity by which Mitsui Participates in the Mining Activity
and its Ownership Interest


Area of Mining Operation (Region, State, Country)





BHP Mitsui Coal Pty. Ltd.


BHP Mitsui Coal Pty. Ltd. (20%)


Queensland, Australia


|                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------------------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                  
|Riverside          |  | In 1983, the joint venture commissioned the Riverside mine.
    Riverside mine produces metallurgical coal and has a production
    capacity of three million tonnes per year. Reserves from
    Riverside were depleted in March 2005.                                                                                                                                                                                                                
|South Walker Creek |  | South Walker Creek became operational in 1998. It produces
    pulverized coal injection fuel and minor quantities of by-
    product energy coal. South Walker Creek has a production
    capacity of four million tonnes per year. Exploration has
    increased the reserve base in the past year. BHP Mitsui Coal
    holds undeveloped leases in the Bowen Basin (principally, the
    areas of Wards Well, Poitrel, Kemmis-Walker and Nebo West).
|                  

Bengalla Joint Venture


Mitsui Coal Holdings Pty. Ltd. (10%)


New South Wales, Australia


|         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        
|Bengalla |  | Development consent was granted in 1996 and production commenced
    in 1999. Coal & Allied, Rio Tintos subsidiary in
    Australia, acquired its interest in Bengalla in 2001. Its coal
    preparation plant has a washing capacity of 8 million
    tonnes per year giving nominal product of 6.6 million
    tonnes per year. Its plant equipment consists of three stage
    double roll crushers, dense medium cyclones, spirals, a froth
    flotation unit, screen bowl centrifuges and automatic
    stackers/reclaimers.
|        

67



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##### Table of Contents



Kestrel Joint Venture


Mitsui Coal Holdings Pty. Ltd. (20%)


Queensland, Australia


|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       
|Kestrel |  | The Kestrel Coal mine, previously known as Gordonstone Mine
    commenced operation in 1992. Coal is extracted by underground
    mining. The mine has two longwall units that are operated
    alternately to minimize downtime and ensure seamless production
    and reliability. The Kestrel Preparation Plant has been designed
    to allow the mine to produce low ash coking coal and high energy
    thermal coal. Production in 2004 was 3.3 million tonnes
    saleable high quality coking coal and export thermal coal, and
    the production is expected to rise to 5.5 million tonnes in
    a few years.
|       

Moura Joint Venture


Mitsui Coal Holdings Pty. Ltd. (49%)


Queensland, Australia


|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     
|Moura |  | The Moura Mine commenced operation in 1961. Since 1994, all
    production at Moura has been from its surface operation.
    Production tonnage has been increasing steadily throughout the
    years. Originally the mine was operated by BHP Mitsui Coal Pty
    Ltd, and after a few changes of ownership, Anglo Coal acquired a
    51% share in 2002. In September 2003, the adjacent Theodore
    deposit was developed which further expanded its capacity. Anglo
    Coal Australia and Mitsui Coal Holdings intend to recapitalise
    their existing operations at the Moura mine and to establish two
    additional operations on adjacent tenures. The new and expanded
    operations will be known as the Dawson Complex. Joint
    ventures capital expenditure is estimated in excess of
    U.S.$600 million and will include a new coal preparation
    plant, additional mining equipment, a coal conveying system for
    transporting coal, rail load out facilities and administration
    buildings. The additional coal will be made available for the
    market in 2007, and consequently annual production will increase
    from existing 7.0 million tonnes to 12.7 million
    tonnes of metallurgical and thermal coals.
|     

German Creek Joint Venture


Mitsui Coal Holdings Pty. Ltd. (30%)


Queensland, Australia


|             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|            
|German Creek |  | Open pit mining commenced in 1981. Underground mining in the
    Central Colliery area started in 1984, while underground mining
    in the Southern Colliery area began in 1988. Grasstree is a new
    underground mine being developed within our existing German
    Creek operations lease area. This mine will produce hard coking
    coal for our export markets. The mine construction commenced in
    2001, underground development work is now underway and the
    project is on schedule to commence full production in 2006. Lake
    Lindsay is a potential new open cut mine adjacent to German
    Creek. Exploration and feasibility studies are currently
    underway to bring this new mine to production in 2006, gradually
    increasing up to full production in 2009.

68



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##### Table of Contents



Production Tonnage


IRON ORE


|                                |                                          |                                       |  |                                   |           |                        |         |        |          |  |        |            |  |  |          |        |  |            |        |       |          |  |         |        |  |  |        |        | 
|------------------------------- | ---------------------------------------- | ------------------------------------- |  | --------------------------------- | --------- | ---------------------- | ------- | ------ | -------- |  | ------ | ---------- |  |  | -------- | ------ |  | ---------- | ------ | ----- | -------- |  | ------- | ------ |  |  | ------ | ------ | 
|                                |                                          |                                       |  |                                   |           | In Thousands of Tonnes |        
|                                |                                          |                                       |  |                                   |           |                        |        
|                                |                                          |                                       |  |                                   |           | Year Ended March 31,   |        
|                                |                                          |                                       |  |                                   |           |                        |        
|                                |                                          |                                       |  |                                   |           | 2005                   |         |        | 2004     |  |        | 2003       | 
|                                |                                          |                                       |  |                                   |           |                        |         |        |          |  |        |            | 
|Joint Venture or Investee and   |                                          | Mitsuis Subsidiary or                |  |                                   |           | Total                  |         |        | Mitsuis |  |        | Total      |  |  | Mitsuis |        |  | Total      |        |       | Mitsuis | 
|Name of Mines                   |                                          | Associated Company                    |  | Location                          |           | Production             |         |        | Share    |  |        | Production |  |  | Share    |        |  | Production |        |       | Share    | 
|                                |                                          |                                       |  |                                   |           |                        |         |        |          |  |        |            |  |  |          |        |  |            |        |       |          | 
|Robe River Iron Associates      |                                          | Mitsui Iron Ore Development Pty. Ltd. |  | Pilbara Region, Western Australia |           |                        |         |        |          |  |        |            |  |  |          |        |  |            |        |       |          |  |         |        |  |  |        |       
|                                | Pannawonica                              |                                       |  |                                   |           |                        |         | 31,024 |          |  |        | 10,238     |  |  |          | 30,240 |  |            |        | 9,979 |          |  |         | 31,155 |  |  |        | 10,281 | 
|                                | West Angelas                             |                                       |  |                                   |           |                        |         | 19,560 |          |  |        | 6,455      |  |  |          | 14,181 |  |            |        | 4,680 |          |  |         | 7,342  |  |  |        | 2,423  | 
|Mount Newman Joint Venture      |                                          | Mitsui Itochu Iron Pty. Ltd.          |  | Pilbara Region, Western Australia |           |                        |         |        |          |  |        |            |  |  |          |        |  |            |        |       |          |  |         |        |  |  |        |       
|                                | Mt. Whaleback                            |                                       |  |                                   |           |                        |         | 34,991 |          |  |        | 2,449      |  |  |          | 36,333 |  |            |        | 2,543 |          |  |         | 30,348 |  |  |        | 2,124  | 
|Yandi Joint Venture             |                                          | Mitsui Iron Ore Development Pty. Ltd. |  | Pilbara Region, Western Australia |           |                        |         |        |          |  |        |            |  |  |          |        |  |            |        |       |          |  |         |        |  |  |        |       
|                                | Marillana Creek                          |                                       |  |                                   |           |                        |         | 40,898 |          |  |        | 2,863      |  |  |          | 40,548 |  |            |        | 2,838 |          |  |         | 35,410 |  |  |        | 2,479  | 
|Mount Goldsworthy Joint Venture |                                          | Mitsui Iron Ore Development Pty. Ltd. |  | Pilbara Region, Western Australia |           |                        |         |        |          |  |        |            |  |  |          |        |  |            |        |       |          |  |         |        |  |  |        |       
|                                | North Area
    (Yarrie)
    (Nimingarra) |                                       |  |                                   |           |                        |         | 5,292  |          |  |        | 370        |  |  |          | 7,006  |  |            |        | 490   |          |  |         | 8,101  |  |  |        | 567    | 
|                                | Area C                                   |                                       |  |                                   |           |                        |         | 16,753 |          |  |        | 1,173      |  |  |          | 3,736  |  |            |        | 262   |          |  |         |       |  |  |        |       | 
|Sesa Goa Limited                |                                          | Sesa Goa Limited                      |  | India                             |           |                        |         |        |          |  |        |            |  |  |          |        |  |            |        |       |          |  |         |        |  |  |        |       
|                                | Codli, Sonshi                            |                                       |  |                                   | Goa       |                        |         | 2,983  |          |  |        | 1,521      |  |  |          | 2,941  |  |            |        | 1,500 |          |  |         | 2,402  |  |  |        | 1,225  | 
|                                | Chitradurga, Hospet                      |                                       |  |                                   | Karnataka |                        |         | 2,063  |          |  |        | 1,052      |  |  |          | 1,556  |  |            |        | 794   |          |  |         | 1,255  |  |  |        | 640    | 
|                                |                                          |                                       |  |                                   |           |                        |         |        |          |  |        |            |  |  |          |        |  |            |        |       |          | 
|                                |                                          |                                       |  | TOTAL                             |           |                        | 153,564 |        |          |  | 26,121 |            |  |  | 136,541  |        |  |            | 23,086 |       |          |  | 116,013 |        |  |  | 19,739 |       
|                                |                                          |                                       |  |                                   |           |                        |         |        |          |  |        |            |  |  |          |        |  |            |        |       |          | 

Production Tonnage


COAL


|                                   |                    |                                       |  |                            |  |                        |        |       |          |  |       |            |  |  |          |       |  |            |       |     |          |  |        |       |  |  |       |     | 
|---------------------------------- | ------------------ | ------------------------------------- |  | -------------------------- |  | ---------------------- | ------ | ----- | -------- |  | ----- | ---------- |  |  | -------- | ----- |  | ---------- | ----- | --- | -------- |  | ------ | ----- |  |  | ----- | --- | 
|                                   |                    |                                       |  |                            |  | In Thousands of Tonnes |       
|                                   |                    |                                       |  |                            |  |                        |       
|                                   |                    |                                       |  |                            |  | Year Ended March 31,   |       
|                                   |                    |                                       |  |                            |  |                        |       
|                                   |                    |                                       |  |                            |  | 2005                   |        |       | 2004     |  |       | 2003       | 
|                                   |                    |                                       |  |                            |  |                        |        |       |          |  |       |            | 
|Joint Venture or Investee and      |                    | Mitsuis Subsidiary or                |  |                            |  | Total                  |        |       | Mitsuis |  |       | Total      |  |  | Mitsuis |       |  | Total      |       |     | Mitsuis | 
|Name of Mines                      |                    | Associated Company                    |  | Location                   |  | Production             |        |       | Share    |  |       | Production |  |  | Share    |       |  | Production |       |     | Share    | 
|                                   |                    |                                       |  |                            |  |                        |        |       |          |  |       |            |  |  |          |       |  |            |       |     |          | 
|BHP Mitsui Coal Pty. Ltd.          |                    | Mitsui Iron Ore Development Pty. Ltd. |  | Queensland, Australia      |  |                        |        |       |          |  |       |            |  |  |          |       |  |            |       |     |          |  |        |       |  |  |       |    
|                                   | Riverside          |                                       |  |                            |  |                        |        | 3,323 |          |  |       | 665        |  |  |          | 2,641 |  |            |       | 528 |          |  |        | 3,402 |  |  |       | 680 | 
|                                   | South Walker Creek |                                       |  |                            |  |                        |        | 3,658 |          |  |       | 732        |  |  |          | 3,927 |  |            |       | 785 |          |  |        | 3,341 |  |  |       | 668 | 
|Bengalla Joint Venture             |                    | Mitsui Coal Holdings Pty. Ltd.        |  | New South Wales, Australia |  |                        | 5,312  |       |          |  | 531   |            |  |  | 6,203    |       |  |            | 620   |     |          |  | 5,385  |       |  |  | 539   |    
|Kestrel Joint Venture              |                    | Mitsui Coal Holdings Pty. Ltd.        |  | Queensland, Australia      |  |                        | 3,282  |       |          |  | 656   |            |  |  | 3,322    |       |  |            | 664   |     |          |  | 4,091  |       |  |  | 818   |    
|Moura Joint Venture                |                    | Mitsui Coal Holdings Pty. Ltd.        |  | Queensland, Australia      |  |                        | 7,023  |       |          |  | 3,441 |            |  |  | 5,964    |       |  |            | 2,922 |     |          |  | 5,845  |       |  |  | 2,786 |    
|German Creek Joint Venture
    (1) |                    | Mitsui Coal Holdings Pty. Ltd.        |  | Queensland, Australia      |  |                        | 5,782  |       |          |  | 1,735 |            |  |  | 5,422    |       |  |            | 1,627 |     |          |  | 2,905  |       |  |  | 872   |    
|                                   |                    |                                       |  |                            |  |                        |        |       |          |  |       |            |  |  |          |       |  |            |       |     |          | 
|                                   |                    |                                       |  | TOTAL                      |  |                        | 28,380 |       |          |  | 7,760 |            |  |  | 27,479   |       |  |            | 7,146 |     |          |  | 24,969 |       |  |  | 6,363 |    
|                                   |                    |                                       |  |                            |  |                        |        |       |          |  |       |            |  |  |          |       |  |            |       |     |          | 






|    |                                                                        
|--- | -----------------------------------------------------------------------
|(1) | Reflects production tonnage from our participation since July
    2002.

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##### Table of Contents



Reserve Tonnage


IRON
ORE(1)


|                                       |                     |                                           |  |                                   |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          |  |       |       |  |  |     |     | 
|-------------------------------------- | ------------------- | ----------------------------------------- |  | --------------------------------- | --------- | --------------------- | ----- | --- | -------- |  | --- | ------- |  |  | -------- | ----- |  | ------- | --- | --- | -------- |  | ----- | ----- |  |  | --- | --- | 
|                                       |                     |                                           |  |                                   |           | In Millions of Tonnes |      
|                                       |                     |                                           |  |                                   |           |                       |      
|                                       |                     |                                           |  |                                   |           | Year Ended March 31,  |      
|                                       |                     |                                           |  |                                   |           |                       |      
|                                       |                     |                                           |  |                                   |           | 2005                  |       |     | 2004     |  |     | 2003    | 
|                                       |                     |                                           |  |                                   |           |                       |       |     |          |  |     |         | 
|Joint Venture or Investee and          |                     |                                           |  |                                   |           | Total                 |       |     | Mitsuis |  |     | Total   |  |  | Mitsuis |       |  | Total   |     |     | Mitsuis | 
|Name of Mines                          |                     | Mitsuis Subsidiary or Associated Company |  | Location                          |           | Reserve               |       |     | Share    |  |     | Reserve |  |  | Share    |       |  | Reserve |     |     | Share    | 
|                                       |                     |                                           |  |                                   |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          | 
|Robe River Iron Associates
    (2)     |                     | Mitsui Iron Ore Development Pty. Ltd.     |  | Pilbara Region, Western Australia |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          |  |       |       |  |  |     |    
|                                       | Pannawonica         |                                           |  |                                   |           |                       |       | 172 |          |  |     | 57      |  |  |          | 200   |  |         |     | 66  |          |  |       | 230   |  |  |     | 76  | 
|                                       | West Angelas        |                                           |  |                                   |           |                       |       | 418 |          |  |     | 138     |  |  |          | 440   |  |         |     | 145 |          |  |       | 455   |  |  |     | 150 | 
|Mount Newman Joint Venture
    (3)     |                     | Mitsui Itochu Iron Pty. Ltd.              |  | Pilbara Region, Western Australia |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          |  |       |       |  |  |     |    
|                                       | Mt. Whaleback       |                                           |  |                                   |           |                       |       | 955 |          |  |     | 67      |  |  |          | 1,026 |  |         |     | 72  |          |  |       | 1,193 |  |  |     | 84  | 
|Yandi Joint
    Venture(3)             |                     | Mitsui Iron Ore Development Pty. Ltd.     |  | Pilbara Region, Western Australia |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          |  |       |       |  |  |     |    
|                                       | Marillana Creek     |                                           |  |                                   |           |                       |       | 901 |          |  |     | 63      |  |  |          | 641   |  |         |     | 45  |          |  |       | 687   |  |  |     | 48  | 
|Mount Goldsworthy Joint
    Venture(3) |                     | Mitsui Iron Ore Development Pty. Ltd.     |  | Pilbara Region, Western Australia |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          |  |       |       |  |  |     |    
|                                       | North Area          |                                           |  |                                   |           |                       |       | 13  |          |  |     | 1       |  |  |          | 21    |  |         |     | 2   |          |  |       | 28    |  |  |     | 2   | 
|                                       | (Yarrie)            |                                           |  |                                   |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          |  |       |       |  |  |     |     | 
|                                       | (Nimingarra)        |                                           |  |                                   |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          |  |       |       |  |  |     |     | 
|                                       | Area C              |                                           |  |                                   |           |                       |       | 499 |          |  |     | 35      |  |  |          | 204   |  |         |     | 14  |          |  |       | 209   |  |  |     | 15  | 
|Sesa Goa Limited                       |                     | Sesa Goa Limited                          |  | India                             |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          |  |       |       |  |  |     |    
|                                       | Codli, Sonshi       |                                           |  |                                   | Goa       |                       |       | 55  |          |  |     | 28      |  |  |          | 55    |  |         |     | 28  |          |  |       | 53    |  |  |     | 27  | 
|                                       | Chitradurga, Hospet |                                           |  |                                   | Karnataka |                       |       | 30  |          |  |     | 15      |  |  |          | 20    |  |         |     | 10  |          |  |       | 20    |  |  |     | 10  | 
|                                       |                     |                                           |  |                                   |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          | 
|                                       |                     |                                           |  | TOTAL                             |           |                       | 3,043 |     |          |  | 404 |         |  |  | 2,607    |       |  |         | 382 |     |          |  | 2,875 |       |  |  | 412 |    
|                                       |                     |                                           |  |                                   |           |                       |       |     |          |  |     |         |  |  |          |       |  |         |     |     |          | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reserve of Robe River Iron Associates is proved + probable
    marketable reserve. (Marketable reserve is tonnage
    after accounting for extraction and beneficiation losses.)
    Reserve amounts of Mt. Newman, Yandi, Mt. Goldsworthy
    and Sesa Goa consist of proved + probable recoverable
    reserve. (Recoverable reserve is tonnage after
    accounting for extraction losses.)
|   
|(2) | Reserves of Robe River Iron Associates indicate reserves as of
    the end of December 2004, 2003 and 2002, respectively. 2005
    reserves mean reserves as of the end of December 2004.                                                                                                                                                                                                         
|   
|(3) | Reserves of Mount Newman Joint Venture, Yandi Joint Venture and
    Mount Goldsworthy Joint Venture indicate reserves as of the end
    of June 2004, 2003 and 2002, respectively. 2005 reserves means
    reserves as of the end of June 2004.                                                                                                                                                   

COAL(1)


|                                   |                    |                                       |  |                            |  |                       |     |    |          |  |     |         |  |  |          |    |  |         |     |    |          |  |     |    |  |  |     |    | 
|---------------------------------- | ------------------ | ------------------------------------- |  | -------------------------- |  | --------------------- | --- | -- | -------- |  | --- | ------- |  |  | -------- | -- |  | ------- | --- | -- | -------- |  | --- | -- |  |  | --- | -- | 
|                                   |                    |                                       |  |                            |  | In Millions of Tonnes |    
|                                   |                    |                                       |  |                            |  |                       |    
|                                   |                    |                                       |  |                            |  | Year Ended March 31,  |    
|                                   |                    |                                       |  |                            |  |                       |    
|                                   |                    |                                       |  |                            |  | 2005                  |     |    | 2004     |  |     | 2003    | 
|                                   |                    |                                       |  |                            |  |                       |     |    |          |  |     |         | 
|Joint Venture or Investee and      |                    | Mitsuis Subsidiary or                |  |                            |  | Total                 |     |    | Mitsuis |  |     | Total   |  |  | Mitsuis |    |  | Total   |     |    | Mitsuis | 
|Name of Mines                      |                    | Associated Company                    |  | Location                   |  | Reserve               |     |    | Share    |  |     | Reserve |  |  | Share    |    |  | Reserve |     |    | Share    | 
|                                   |                    |                                       |  |                            |  |                       |     |    |          |  |     |         |  |  |          |    |  |         |     |    |          | 
|BHP Mitsui Coal Pty. Ltd.          |                    | Mitsui Iron Ore Development Pty. Ltd. |  | Queensland, Australia      |  |                       |     |    |          |  |     |         |  |  |          |    |  |         |     |    |          |  |     |    |  |  |     |   
|                                   | Riverside          |                                       |  |                            |  |                       |     | 3  |          |  |     | 1       |  |  |          | 5  |  |         |     | 1  |          |  |     | 7  |  |  |     | 1  | 
|                                   | South Walker Creek |                                       |  |                            |  |                       |     | 92 |          |  |     | 18      |  |  |          | 96 |  |         |     | 19 |          |  |     | 60 |  |  |     | 12 | 
|Bengalla Joint Venture             |                    | Mitsui Coal Holdings Pty. Ltd.        |  | New South Wales, Australia |  |                       | 161 |    |          |  | 16  |         |  |  | 166      |    |  |         | 17  |    |          |  | 185 |    |  |  | 19  |   
|Kestrel Joint Venture              |                    | Mitsui Coal Holdings Pty. Ltd.        |  | Queensland, Australia      |  |                       | 120 |    |          |  | 24  |         |  |  | 123      |    |  |         | 25  |    |          |  | 127 |    |  |  | 25  |   
|Moura Joint Venture                |                    | Mitsui Coal Holdings Pty. Ltd.        |  | Queensland, Australia      |  |                       | 208 |    |          |  | 102 |         |  |  | 132      |    |  |         | 65  |    |          |  | 97  |    |  |  | 48  |   
|German Creek Joint Venture
    (2) |                    | Mitsui Coal Holdings Pty. Ltd.        |  | Queensland, Australia      |  |                       | 78  |    |          |  | 23  |         |  |  | 90       |    |  |         | 27  |    |          |  | 111 |    |  |  | 33  |   
|                                   |                    |                                       |  |                            |  |                       |     |    |          |  |     |         |  |  |          |    |  |         |     |    |          | 
|                                   |                    |                                       |  | TOTAL                      |  |                       | 662 |    |          |  | 184 |         |  |  | 612      |    |  |         | 154 |    |          |  | 587 |    |  |  | 138 |   
|                                   |                    |                                       |  |                            |  |                       |     |    |          |  |     |         |  |  |          |    |  |         |     |    |          | 

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|    |                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Proved + Probable Marketable Reserve (Marketable
    Reserve is tonnage after accounting for extraction and
    processing and preparation losses.)
|   
|(2) | Reflects production tonnage from our participation since July
    2002 onwards.                                                                      



Production Tonnage (for the year ended December 31)


|                   |       |  |          |  |      |            |  |  |          |  |  |            |     |  |          |  |       |  |  |  |     | 
|------------------ | ----- |  | -------- |  | ---- | ---------- |  |  | -------- |  |  | ---------- | --- |  | -------- |  | ----- |  |  |  | --- | 
|Millions of Tonnes |      
|                   |      
|2004               |       |  | 2003     |  |      | 2002       | 
|                   |       |  |          |  |      |            | 
|Total              |       |  | Mitsuis |  |      | Total      |  |  | Mitsuis |  |  | Total      |     |  | Mitsuis | 
|Production         |       |  | Share    |  |      | Production |  |  | Share    |  |  | Production |     |  | Share    | 
|                   |       |  |          |  |      |            |  |  |          |  |  |            |     |  |          | 
|                   | 211.3 |  |          |  | 10.8 |            |  |  | 188.3    |  |  |            | 9.6 |  |          |  | 168.7 |  |  |  | 8.6 | 

Proven and Probable Reserves (as of December 31)


|                   |         |  |          |  |       |         |  |  |          |  |  |         |       |  |          |  |          |  |  |  |       | 
|------------------ | ------- |  | -------- |  | ----- | ------- |  |  | -------- |  |  | ------- | ----- |  | -------- |  | -------- |  |  |  | ----- | 
|Millions of Tonnes |        
|                   |        
|2004               |         |  | 2003     |  |       | 2002    | 
|                   |         |  |          |  |       |         | 
|Total              |         |  | Mitsuis |  |       | Total   |  |  | Mitsuis |  |  | Total   |       |  | Mitsuis | 
|Reserve            |         |  | Share    |  |       | Reserve |  |  | Share    |  |  | Reserve |       |  | Share    | 
|                   |         |  |          |  |       |         |  |  |          |  |  |         |       |  |          | 
|                   | 6,869.1 |  |          |  | 350.3 |         |  |  | 4,926.20 |  |  |         | 251.6 |  |          |  | 4,458.60 |  |  |  | 227.7 | 

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| |                                 
| | --------------------------------
| | Oil and Gas Producing Activities





| |                       
| | ----------------------
| | Production Information

|                     |  |                           |   |  |                        |  |        |        |  |  |           |  |  |      |    |  |         |  |   |        |  |  |           |  |  |  |    |  |  |  |    | 
|-------------------- |  | ------------------------- | - |  | ---------------------- |  | ------ | ------ |  |  | --------- |  |  | ---- | -- |  | ------- |  | - | ------ |  |  | --------- |  |  |  | -- |  |  |  | -- | 
|                     |  | Millions of Barrels       |   |  | Billions of Cubic Feet | 
|                     |  |                           |   |  |                        | 
|                     |  | Crude Oil, Condensate and |   |  |                       
|                     |  | Natural Gas Liquids(1)    |   |  | Natural Gas(1)         | 
|                     |  |                           |   |  |                        | 
|                     |  | Middle                    |   |  |                        |  | Middle |        |  | 
|Year Ended March 31, |  | East                      |   |  | Oceania                |  |        | Others |  |  | Worldwide |  |  | East |    |  | Oceania |  |   | Others |  |  | Worldwide | 
|                     |  |                           |   |  |                        |  |        |        |  |  |           |  |  |      |    |  |         |  |   |        |  |  |           | 
|2005                 |  |                           | 3 |  |                        |  | 6      |        |  |  | 5         |  |  |      | 14 |  |         |  | 9 |        |  |  | 49        |  |  |  | 34 |  |  |  | 92 | 
|2004                 |  |                           | 2 |  |                        |  | 8      |        |  |  | 5         |  |  |      | 15 |  |         |  |  |        |  |  | 45        |  |  |  | 29 |  |  |  | 74 | 
|2003                 |  |                           | 3 |  |                        |  | 8      |        |  |  | 4         |  |  |      | 15 |  |         |  |  |        |  |  | 41        |  |  |  | 24 |  |  |  | 65 | 





| |                            
| | ---------------------------
| | Proved Reserve Information:



| |                
| | ---------------
| | Proved Reserves

|                     |  |                           |    |  |                        |  |        |        |  |  |           |  |  |      |     |  |         |  |    |        |  |  |           |  |  |  |      |  |  |  |       | 
|-------------------- |  | ------------------------- | -- |  | ---------------------- |  | ------ | ------ |  |  | --------- |  |  | ---- | --- |  | ------- |  | -- | ------ |  |  | --------- |  |  |  | ---- |  |  |  | ----- | 
|                     |  | Millions of Barrels       |    |  | Billions of Cubic Feet | 
|                     |  |                           |    |  |                        | 
|                     |  | Crude Oil, Condensate and |    |  |                       
|                     |  | Natural Gas Liquids(1)    |    |  | Natural Gas(1)         | 
|                     |  |                           |    |  |                        | 
|                     |  | Middle                    |    |  |                        |  | Middle |        |  | 
|Year Ended March 31, |  | East                      |    |  | Oceania                |  |        | Others |  |  | Worldwide |  |  | East |     |  | Oceania |  |    | Others |  |  | Worldwide | 
|                     |  |                           |    |  |                        |  |        |        |  |  |           |  |  |      |     |  |         |  |    |        |  |  |           | 
|At March 31, 2005    |  |                           | 24 |  |                        |  | 78     |        |  |  | 92        |  |  |      | 194 |  |         |  | 75 |        |  |  | 840       |  |  |  | 1393 |  |  |  | 2,308 | 
|At March 31, 2004    |  |                           | 23 |  |                        |  | 49     |        |  |  | 127       |  |  |      | 199 |  |         |  | 84 |        |  |  | 873       |  |  |  | 965  |  |  |  | 1,922 | 
|At March 31, 2003    |  |                           | 28 |  |                        |  | 52     |        |  |  | 71        |  |  |      | 151 |  |         |  |   |        |  |  | 1,200     |  |  |  | 221  |  |  |  | 1,421 | 



| |                                 
| | --------------------------------
| | Proved Developed
    Reserves(2)

|                     |  |                           |    |  |                        |  |        |        |  |  |           |  |  |      |    |  |         |  |    |        |  |  |           |  |  |  |    |  |  |  |     | 
|-------------------- |  | ------------------------- | -- |  | ---------------------- |  | ------ | ------ |  |  | --------- |  |  | ---- | -- |  | ------- |  | -- | ------ |  |  | --------- |  |  |  | -- |  |  |  | --- | 
|                     |  | Millions of Barrels       |    |  | Billions of Cubic Feet | 
|                     |  |                           |    |  |                        | 
|                     |  | Crude Oil, Condensate and |    |  |                       
|                     |  | Natural Gas Liquids(1)    |    |  | Natural Gas(1)         | 
|                     |  |                           |    |  |                        | 
|                     |  | Middle                    |    |  |                        |  | Middle |        |  | 
|Year Ended March 31, |  | East                      |    |  | Oceania                |  |        | Others |  |  | Worldwide |  |  | East |    |  | Oceania |  |    | Others |  |  | Worldwide | 
|                     |  |                           |    |  |                        |  |        |        |  |  |           |  |  |      |    |  |         |  |    |        |  |  |           | 
|At March 31, 2005    |  |                           | 24 |  |                        |  | 20     |        |  |  | 18        |  |  |      | 62 |  |         |  | 75 |        |  |  | 356       |  |  |  | 82 |  |  |  | 513 | 
|At March 31, 2004    |  |                           | 23 |  |                        |  | 21     |        |  |  | 19        |  |  |      | 63 |  |         |  | 84 |        |  |  | 330       |  |  |  | 69 |  |  |  | 483 | 
|At March 31, 2003    |  |                           | 28 |  |                        |  | 26     |        |  |  | 18        |  |  |      | 72 |  |         |  |   |        |  |  | 364       |  |  |  | 58 |  |  |  | 436 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | 1 barrel of crude oil = 5,800 cubic feet of natural gas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(2) | The proportion of Proved Developed Reserves to Proved Developed
    and Undeveloped Reserves is about 25 percent as of
    March 31, 2005 and relatively low. The expected costs to
    develop these undeveloped reserves are estimated to be
    ¥314 billion in total as of March 31, 2005. The
    major undeveloped reserves are attributable to an associated
    company in Russia and an associated company in Australia. It is
    expected to commence the production of crude oil in 2006 and LNG
    in 2007, for the associated company in Russia. In relation to
    the associated company in Australia, the production of crude oil
    and LNG has already commenced at the existing facilities. The
    drilling of additional development wells will be performed over
    the project life according to the drilling program of the
    project.



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|        |                                             
|------- | --------------------------------------------
|Item 5. | Operating and Financial Review and Prospects






|   |                  
|-- | -----------------
|A. | Operating Results















73



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##### Table of Contents



Key Performance Measures Under Managements
Discussion




Gross Profit, Operating
Income* and Equity in Earnings of Associated Companies




Trends in the Price of and
Supply-Demand for Mineral Resources and Energy




Investment Plans and
Financial Leverage









|  |                 
|- | ----------------
|* | Operating Income





74



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##### Table of Contents



Results of Operations




| |                                                            
| | -----------------------------------------------------------
| | Summary of Operations for the Year Ended March 31,
    2005



| |                      
| | ---------------------
| | Operating Environment





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The global economy expanded steadily, driven by growth in the
    United States as well as emerging countries in Asia,
    particularly China, and other regions. Contributing factors
    included higher consumption and housing investment resulting
    from historically low interest rates as well as acceleration of
    demand for motor vehicles and firm infrastructure developments
    in emerging economies.                                                                                         
|
| |  | These factors contributed to a substantial increase in global
    trade, supported by very strong demand from Asia, particularly
    China, and spurred the rising trend in commodity prices such as
    crude oil, iron ore, coal and non-ferrous metals since the
    previous fiscal year.                                                                                                                                                                                                                     
|
| |  | The Japanese economy continued to recover in the first half of
    the year under review, underpinned by strong exports to
    high-growth areas of Asia, and higher capital expenditure as
    corporate earnings improved in Japan. In the second half of the
    fiscal year, however, economic recovery slowed down especially
    in the manufacturing section in response to inventory
    adjustments in the home electronic equipment and IT-related
    markets as well as concerns about oil price rise.
|
| |  | The Bank of Japan continued its quantitative easing policy, and
    short-term interest rates remained very low. In the United
    States, meanwhile, the Federal Reserve Board (FRB)
    began progressively raising interest rates beginning in June
    2004 in order to restrain inflationary expectations.                                                                                                                                                                                                 

Summary of Operations for
the Year Ended March 31, 2005






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Gross profit increased by ¥111.9 billion, or 18.2%, to
    ¥725.8 billion for the year ended March 31, 2005,
    compared with ¥613.9 billion for the year ended
    March 31, 2004. Overseas subsidiaries in the Metal
    Products & Minerals Segment generated higher gross
    profit due to price rises and increased shipments of iron ore
    and coal while gross profit grew in the Energy Segment supported
    by higher crude oil prices. In addition, market transactions in
    areas such as commodity derivatives and oil trading performed
    well.
|
| |  | Net other income and expenses increased ¥25.1 billion,
    or 4.8%, to ¥550.2 billion for the year ended
    March 31, 2005, compared to ¥525.1 billion for
    the year ended March 31, 2004.                                                                                                                                                                                                                                                                                                                                                                       



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Compensation and other charges related to DPF incident of
    ¥36.0 billion was recorded for user response plans
    including free product replacement and compensation for relevant
    subsidy providers relating to diesel particulate filters
    (DPFs), which is discussed in Discussion and
    Analysis of Operating Results for the Year Ended March 31,
    2005  Compensation and Other Charges Related to DPF
    incident below.
|
| |  | Selling, general and administrative expenses increased
    ¥24.5 billion in the year ended March 31, 2005,
    largely because there was no government grant for the transfer
    of the substitutional portion of the Employee Pension Fund
    (EPF, compared to ¥17.2 billion recorded
    in the year ended March 31, 2004.                                                                                                                  

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | With regard to loss on write-down of securities and other
    expense  net, the figures recorded in these
    categories for the year under review reflect the absence of
    large one-time expenses such as those recorded in the year ended
    March 31, 2004 of ¥21.7 billion for the
    write-down of securities relating to investment in the Japanese
    telecommunications carrier POWERDCOM, Inc. and
    ¥13.7 billion for the settlement of an antitrust
    lawsuit filed against a feed ingredient manufacturing subsidiary
    Bioproducts, Inc. (the United States).



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Equity in earnings of associated companies rose by
    ¥25.8 billion, or 64.3%, to ¥65.9 billion
    for the year ended March 31, 2005, compared with
    ¥40.1 billion for the year ended March 31, 2004.
    As was the case with gross profit, this reflected the strong
    performance of associated companies in the Metal
    Products & Minerals Segment and the Energy Segment that
    benefited from the rise in commodity prices.









| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Discussion and Analysis of Operating Results for the Year
    Ended March 31, 2005



| |         
| | --------
| | Revenues







| |                  
| | -----------------
| | Sales of Products



76



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##### Table of Contents







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Revenues from sales of chemicals rose ¥208.2 billion
    principally because of increases in Mitsuis sales of
    petrochemical products, reflecting higher prices for petroleum
    products due to higher crude oil prices, and increases in volume
    driven by the strong demand in China and other Asian countries.                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Revenues from sales of energy increased by
    ¥86.3 billion. The average crude oil price (basis of
    Japan Crude Cocktail) during the year ended March 31, 2005
    was U.S.$36 per barrel, compared to U.S.$29 for the year
    ended March 31, 2004, driven by strong demand from China
    and uncertainty in supply from the Middle East and other areas.
    In this environment, revenues from sales of crude oil and oil
    products increased at Westport Petroleum Inc. (the United
    States) and revenues increased domestically as oil product sales
    companies, Mitsui Oil Co., Ltd. (Japan) and Kokusai
    Oil & Chemical Co., Ltd. (Japan) were able to transfer
    higher crude oil cost in their wholesale and retail pricing.
|
| |  | Revenues from sales of iron and steel increased
    ¥85.3 billion. In the year ended March 31, 2005,
    with long-term contract prices for iron ore 18.6% higher than in
    the year ended March 31, 2004, subsidiaries in mineral
    resource business such as Sesa Goa Limited (India) and Mitsui
    Iron Ore Development Pty. Ltd. (Australia) achieved higher
    revenues. Also, supported by a strong market for steel products
    in North America, China and elsewhere in Asia, Champions
    Pipe & Supply, Inc. (the United States), engaged in oil
    pipe sales, recorded higher revenues.                                                                                                                                             

Sales
of Services








| |            
| | -----------
| | Other Sales







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Derivative trading revenues were ¥45.4 billion for the
    year ended March 31, 2005, an increase of
    ¥27.2 billion from ¥18.2 billion for the
    year ended March 31, 2004. The principal reasons for this
    increase were strong crude oil trading performance at Arcadia
    Petroleum Ltd. (United Kingdom) and strong energy derivatives
    trading at Mitsui & Co. Energy Risk Management Ltd.
    (United Kingdom) in the context of extremely high volatility in
    the crude oil market; and
|
| |  | Leasing revenues were ¥55.4 billion for the year ended
    March 31, 2005, an increase of ¥13.2 billion from
    ¥42.2 billion for the year ended March 31, 2004.                                                                                                                                                                                                                                                                                                                                            

77



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| |             
| | ------------
| | Gross Profit



| |                                                
| | -----------------------------------------------
| | Gross Profit Classified by Category of Revenues



|                                    |  |                       |        |      |             |  |      |        |  |  |          |  |  |    |      |   |          |  |        |   |  |  |      |   
|----------------------------------- |  | --------------------- | ------ | ---- | ----------- |  | ---- | ------ |  |  | -------- |  |  | -- | ---- | - | -------- |  | ------ | - |  |  | ---- | --
|                                    |  | Billions of Yen       |       
|                                    |  |                       |       
|                                    |  | Years Ended March 31, |        |      |            
|                                    |  |                       |        |      |            
|                                    |  |                       |        | 2004 |             |  |     
|                                    |  | 2005                  |        |      | As Restated |  |      | Change | 
|                                    |  |                       |        |      |             |  |      |        | 
|                                    |  | GP                    |        |      | GP Ratio    |  |      | GP     |  |  | GP Ratio |  |  | GP |      |   | GP Ratio | 
|                                    |  |                       |        |      |             |  |      |        |  |  |          |  |  |    |      |   |          | 
|Gross profit from sales of products |  |                       | ¥296.6 |      |             |  | 10.0 | %      |  |  | ¥197.4   |  |  |    | 7.9  | % |          |  | ¥ 99.2 |   |  |  | 2.1  | % 
|Gross profit from sales of services |  |                       | 366.2  |      |             |  | 84.1 | %      |  |  | 383.1    |  |  |    | 90.2 | % |          |  | (16.9  | ) |  |  | (6.1 | )%
|Gross profit from other sales       |  |                       | 63.0   |      |             |  | 57.4 | %      |  |  | 33.4     |  |  |    | 48.8 | % |          |  | 29.6   |   |  |  | 8.6  | % 
|                                    |  |                       |        |      |             |  |      |        |  |  |          |  |  |    |      |   |          | 
|Total                               |  |                       | ¥725.8 |      |             |  | 20.6 | %      |  |  | ¥613.9   |  |  |    | 20.6 | % |          |  | ¥111.9 |   |  |  | 0.0  | % 
|                                    |  |                       |        |      |             |  |      |        |  |  |          |  |  |    |      |   |          | 









| |                                             
| | --------------------------------------------
| | Gross Profit Classified by Operating Segment





| |   |                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Metal Products & Minerals Segment recorded
    significant increases, as the market for metal raw materials and
    products rose on strong demand from Asia, particularly China,
    along with an

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | increase in transaction volume. For the year ended
    March 31, 2005, iron ore prices under long term contracts
    rose 18.6%. Sesa Goa Limited (India) and Mitsui Iron Ore
    Development Pty. Ltd. (Australia) recorded major increases. And
    Mitsui Coal Holdings Pty. Ltd. (Australia), which is involved in
    the development of metallurgical coal and thermal coal, also
    increased gross profit. Steel products operations for the year
    ended March 31, 2005 generally maintained similar levels of
    transaction volume to the year ended March 31, 2004, amid
    price rises and tight demand, with higher gross profit at Mitsui
    and at domestic and overseas subsidiaries.
|
| |  | In the Energy Segment, Arcadia Petroleum Ltd. (United Kingdom)
    generated significant profit increases as a result of focusing
    on crude oil trading after reporting losses on petroleum product
    trading in the year ended March 31, 2004. Mitsui E&P
    Middle East B.V. (Netherlands), which is engaged in crude oil
    production in Oman, and Mittwell Energy Resources Pty. Ltd.
    (Australia), our crude oil and condensate focused subsidiary,
    saw increased gross profit reflecting rising oil prices.                                                                                                                                                                            
|
| |  | The Consumer Products & Services Segment was firm on
    the sale of large-scale commercial facilities and residential
    subdivisions by MBK Real Estate Ltd. (the United States), along
    with Mitsuis commodity trading including grain and raw
    sugar. Moreover, as Mitsui Norin Co., Ltd. (Japan) became a
    subsidiary from the second quarter of the year ended
    March 31, 2004, gross profit for the year ended
    March 31, 2005  the first year of a full-year
    contribution  rose ¥5.1 billion compared to
    the year ended March 31, 2004.                                                                                                                                  
|
| |  | In the Logistics & Financial Markets Segment,
    Mitsui & Co. Energy Risk Management Ltd. (United
    Kingdom) generated increases in energy derivative trading
    reflecting the extremely high volatility in the crude oil
    market. Mitsuis commodities derivative and foreign
    exchange transactions also produced good results.                                                                                                                                                                                                                                                                                                                                                                
|
| |  | In the Americas Segment, there were broad expansions in gross
    profit at steel product subsidiaries including Mitsui Steel
    Development Co., Inc. (the United States) driven by active
    demand and firm market prices. Portac, Inc. (the United States),
    our lumber and lumber products subsidiary, also saw increased
    gross profit on surging lumber prices.                                                                                                                                                                                                                                                                                                                              





| |                                             
| | --------------------------------------------
| | Selling, General and Administrative Expenses





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Personnel expenses were ¥257.3 billion for the year
    ended March 31, 2005, a decrease of ¥3.3 billion
    from ¥260.6 billion for the year ended March 31,
    2004. Personnel expenses at Mitsui improved significantly
    because of a ¥19.2 billion reduction in amortization
    of unrecognized net actuarial loss, and operating results for
    the year ended March 31, 2005 were not impacted by a
    ¥10.5 billion settlement loss recorded during the year
    ended March 31, 2004 in relation to the completion of the
    transfer to the Japanese government of the substitutional
    portion of the Mitsui Employee Pension Fund (EPF).
    Meanwhile, there was a considerable increase in personnel
    expenses mainly at overseas subsidiaries. Especially, personnel
    expenses at Mitsui & Co. Energy Risk Management Ltd.
    (United Kingdom) and Arcadia Petroleum Ltd. (United Kingdom), on
    the back of major increases in gross profit from commodities
    trading, rose ¥4.6 billion and ¥3.6 billion,
    respectively, due to large increases in performance linked
    bonuses to traders.

79



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Communication and information expenses were
    ¥38.6 billion for the year ended March 31, 2005,
    an increase of ¥5.2 billion over
    ¥33.4 billion for the year ended March 31, 2004.
    This increase resulted from the introduction of a new enterprise
    resource planning system and implementation of a total overhaul
    of office automation equipment in Mitsui.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | Selling, general and administrative expenses other than
    personnel and communication and information expenses were
    ¥176.7 billion in the year ended March 31, 2005,
    an increase of ¥22.1 billion from
    ¥154.6 billion for the year ended March 31, 2004.
    There was an increased expense of ¥7.4 billion at
    domestic subsidiaries, mainly due to the ¥3.0 billion
    increases at the above-mentioned Mitsui Norin Co., Ltd. (Japan).
    Telepark Corp. (Japan) also recorded an increase of
    ¥1.9 billion reflecting the expanded cell phone
    business. Overseas subsidiaries recorded an increase of
    ¥7.9 billion, including ¥1.0 billion at
    P.T. Bussan Auto Finance (Indonesia), reflecting an
    expansion in business activities. There was also an increased
    expense of ¥6.4 billion including office
    administration costs and various stamp duties.





| |                                   
| | ----------------------------------
| | Provision for Doubtful Receivables







| |                                         
| | ----------------------------------------
| | Interest Expense, Net of Interest Income





| |   |                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | At Mitsui Sakhalin Holdings B.V. (Netherlands), investments
    increased to Sakhalin Energy Investment Company Ltd. (Bermuda),
    and interest expenses rose ¥1.8 billion on the
    resultant increase in borrowings; and
|
| |  | Interest expenses at Mitsui & Co. (U.S.A) Inc. (the
    United States) rose ¥1.7 billion reflecting a rise in
    U.S. dollar interest rate.                                                                                





| |   |                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The average of the month-end Japanese yen three-month LIBOR
    remained 0.05%, roughly unchanged from the 0.06% during the year
    ended March 31, 2004, as the Bank of Japan maintained its
    existing very low interest rate policy. The average interest
    rate on 10-year Japanese Government Bonds was 1.52%, rising from
    the 1.16% during the year ended March 31, 2004, as

80



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| |   |                                                                                                                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | yields slipped gradually in line with the emergence of
    perceptions of a slowing in the business cycle, after a rise to
    1.9% in June 2004 on the back of an improvement in global
    business sentiment; and                                                                                                                                              
|
| |  | The average of the month-end U.S. dollar three-month LIBOR
    during the year ended March 31, 2005 was 2.13%, up from the
    1.16% during the year ended March 31, 2004, reflecting the
    gradual rise in the Federal Funds target rate to 3.0% by the FRB
    in the period between June 2004 and May 2005, even as the FRB
    maintained its easing stance.



| |                
| | ---------------
| | Dividend Income





| |                                                                   
| | ------------------------------------------------------------------
| | Government Grant for Transfer of Substitutional Portion of
    EPF





| |                                  
| | ---------------------------------
| | Gain on Sales of Securities  Net







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the Machinery, Electronics & Information Segment, we
    reported a ¥7.2 billion gain on the sale of shares in
    Vodafone K.K., a Japanese cell-phone carrier, in response to a
    tender offer, and a ¥4.1 billion gain in
    Mitsui & Associates Telepark Corporation (Japan), a
    subsidiary engaged in sales of mobile devices and fixed
    telecommunication lines, following its initial public offering
    and listing on the second section of the Tokyo Stock Exchange.
    (Mitsui & Associates Telepark Corporation changed its
    name to Telepark Corp. in October 2004.) Also in December 2004,
    in connection with the merger of a formerly associated company
    (equity method investee) NextCom K.K. (public company in
    Japan), a software development and marketing subsidiary BSI Co.,
    Ltd. (non-public company), and a data telecommunications
    equipment marketing subsidiary ADAM NET Ltd. (non-public
    company), Mitsui was allotted shares in NextCom K.K. in exchange
    for shares in two subsidiaries and recorded a
    ¥3.7 billion gain from the exchange of shares of those
    two subsidiaries to the extent of the share-down;
|
| |  | In the Consumer Products & Services Segment, we
    recorded a combined ¥4.0 billion gain on sales of
    shares of netprice, ltd. and VeriTrans, Inc. when they were
    listed on domestic stock exchanges; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | In the Chemical and the Other Overseas Areas Segments, we sold
    shares in Bangkok Polyethylene Public Company Limited, a maker
    of high density polyethylene, and recorded a gain of
    ¥3.9 billion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    



81



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| |                                          
| | -----------------------------------------
| | Gain on Issuance of Stock by a Subsidiary





| |                                 
| | --------------------------------
| | Loss on Write-Down of Securities











| |                                                                     
| | --------------------------------------------------------------------
| | (Gain) Loss on Disposal or Sales of Property and
    Equipment  Net







82



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| |                                     
| | ------------------------------------
| | Impairment Loss of Long-Lived Assets







| |   |                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the Metal Products & Minerals Segment, we reported a
    ¥6.5 billion impairment loss on plant facilities at an
    aluminum smelting subsidiary, Mitalco Inc. (the United States),
    reflecting the rising trend of electricity costs;
|
| |  | We recorded a ¥3.3 billion impairment loss on land for
    development purposes and a loss of ¥1.3 billion on
    land for lease, both held domestically by Mitsui; and                                                                     
|
| |  | In the Energy Segment, Mitsui Oil Co., Ltd. (Japan) recorded an
    impairment loss of ¥2.3 billion mainly on gas stations.                                                                                                                 





| |   |                                                                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Impairment losses on Mitsuis corporate residences and
    dormitories of ¥8.0 billion were recorded due to a
    decline in land prices in Japan. The corporate residences and
    dormitories on which we recorded impairment losses during the
    year ended March 31, 2004 had been acquired mainly in the
    early 1990s;
|
| |  | In the Machinery, Electronics & Information Segment,
    there were impairment losses of ¥4.3 billion that
    resulted from the exit from and disposal of certain business at
    NBI Corporation (formerly Toyo Valve Co., Ltd.) and Mitsui
    Bussan Machinery Co., Ltd.;                                                   
|
| |  | A combined ¥2.8 billion loss was reported at two
    domestic subsidiaries that operate golf courses; and                                                                                                                                                                                                                       
|
| |  | In the Energy Segment, Mitsui Oil Co., Ltd. (Japan) reported
    ¥1.7 billion in impairment losses in connection with
    the restructuring of its gas stations.                                                                                                                                                                





| |                                                       
| | ------------------------------------------------------
| | Compensation and Other Charges Related to DPF Incident







83



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##### Table of Contents







Other
Expense  Net






| |   |                                                                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the recording of ¥2.5 billion in exploration expenses,
    reflecting an expansion in exploration activities at our
    petroleum and gas development and production subsidiaries,
    including Wandoo Petroleum Pty Ltd. (Australia); and                                                                                 
|
| |  | the recording of ¥2.0 billion in restructuring-related
    charges, mainly representing costs related to the termination of
    an indemnity agreement which had been made in connection with
    the sale of a ceramic building materials and fiberboard business
    at Mitsui Wood Systems, Inc. (Japan) in October 2001.





| |   |                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | litigation charges of ¥13.7 billion related to the
    settlement of an antitrust lawsuit filed against our subsidiary,
    Bioproducts, Inc. (the United States), which manufactures and
    sells feed ingredient; and                             
|
| |  | restructuring-related charges of ¥6.3 billion, of
    which main elements included a combined ¥3.7 billion
    for Mitsui Bussan Machinery Co., Ltd. (Japan) and NBI
    Corporation (Japan) in the Machinery, Electronics &
    Information Segment.







| |             
| | ------------
| | Income Taxes







| |   |                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | increases in the effect of taxation on dividends from
    subsidiaries and corporate joint ventures (an increase of 5.7
    points from the year ended March 31, 2004); and                                                                                                                                                                                                        
|
| |  | increases in valuation allowance provided on deferred tax assets
    (an increase of 3.6 points over the year ended March 31,
    2004), due mainly to the increase in valuation allowance on
    deferred tax assets on the impairment loss of certain of
    Mitsuis investments recorded in the past years as a result
    of a change in a policy to sell certain investments.



84



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| |                                               
| | ----------------------------------------------
| | Minority Interests in Earnings of Subsidiaries







| |                                                                               
| | ------------------------------------------------------------------------------
| | Equity in Earnings of Associated Companies  Net
    (After Income Tax Effect)





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Since the second quarter of the year ended March 31, 2004,
    equity in earnings of Valepar S.A. (Brazil), a holding company
    of the Brazilian iron ore and mineral resources company,
    Companhia Vale do Rio Doce (CVRD), have been
    included. In the Metal Products & Minerals Segment,
    earnings of Valepar S.A. and Compania Minera Dona Ines de
    Collahuasi SCM (Chile) increased to ¥6.4 billion and
    ¥7.8 billion, respectively, for the year ended
    March 31, 2005, compared to ¥2.5 billion and
    ¥1.9 billion, respectively, for the year ended
    March 31, 2004.                                                                                                                                                                                                            
|
| |  | In the Energy Segment, earnings increased significantly at Japan
    Australia LNG (MIMI) Pty Ltd. (Australia) which is involved
    in natural gas, crude oil and condensate exploration,
    development and marketing in West Australia, due to rising oil
    prices and increased production on the back of facility
    expansion. Mitsui Oil Exploration Co., Ltd. (Japan) which is
    chiefly engaged in the production of gas and crude oil in
    offshore Thailand, also recorded an increase to
    ¥2.7 billion for the year ended March 31, 2005
    from ¥1.1 billion for the year ended March 31,
    2004, mainly due to rises in oil prices. Also, Sakhalin Energy
    Investment Company Ltd. (Bermuda) increased earnings on rising
    crude oil prices and an increase in production volume.
|
| |  | In the Logistics & Financial Markets Segment, Mitsui
    Leasing & Development Co. Ltd. (Japan) increased to
    ¥2.5 billion for the year ended March 31, 2005
    from ¥0.9 billion for the year ended March 31,
    2004 reflecting the strong performance of its machinery and
    shipping lease business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | In the Machinery, Electronics & Information Segment,
    P.T. Paiton Energy (Indonesia) posted earnings of
    ¥2.9 billion for the year ended March 31, 2005,
    continuing the firm performance seen for the year ended
    March 31, 2004. Automobile sales associated companies
    overseas continued to show solid performance for the year ended
    March 31, 2005. There was also a new contribution of
    ¥1.1 billion from United Auto Group Inc. (the United
    States), an automobile dealer which became an associated company
    during the year ended March 31, 2005.                                                                                                                                                                                                                          



| |                                                                               
| | ------------------------------------------------------------------------------
| | Income (Loss) from Discontinued Operations  Net
    (After Income Tax Effect)





| |   |                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Shirasagi Golf Club Co., Ltd. (Japan), a subsidiary reported in
    the All Other Segment, had been engaged in the operation of a
    membership golf club in Japan, which had reported consecutive
    losses since the opening of the golf club because both the
    number of customers and the average sale per

85



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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | customer had declined. In these business conditions, as it was
    very unlikely that Shirasagi Golf Club Co., Ltd. would be able
    to improve its earnings and pay off its debts in the future,
    Mitsui disposed of other than by sales the operation during the
    year ended March 31, 2005. For the year ended
    March 31, 2005, the income from discontinued operation of
    Shirasagi Golf Club Co., Ltd. was ¥0.7 billion,
    partially reversing losses in previous years.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Takeoka Golf Club, a domestic subsidiary in the All Other
    Segment, which had been engaged in the operation of a public
    golf club in Japan, suffered from a declining number of visitors
    due to keen competition with other golf clubs adjacent to the
    golf club and was disposed of by sale during the year ended
    March 31, 2004. The business was disposed of and we
    recorded ¥3.5 billion in losses  net (after
    income tax effect). We also posted a loss from disposal of
    Global Octanes Corporation (the United States) and other two
    subsidiaries, which had managed Global Octanes Texas Limited
    Partnership, and had been engaged in the manufacture and sale of
    Methyl Tertiary-Butyl Ether (MTBE), as its partners,
    but had dissolved the partnership and disposed of the operations
    during the year ended March 31, 2004.





| |                                                                                  
| | ---------------------------------------------------------------------------------
| | Cumulative Effect of Change in Accounting Principle (After
    Income Tax Effect)







| |                                                            
| | -----------------------------------------------------------
| | Summary of Operations for the Year Ended March 31,
    2004

Operating Environment






| |   |                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Major expansion in the exports and imports by emerging economies
    including those in Asia, drove the growth of the world economy.
    The Chinese economy reported an exceptionally strong performance
    with its government seeking sustainable economic growth and
    showing a cautious attitude in its monetary and foreign exchange
    policies to avoid overheating of the economy;
|
| |  | There was marked overall appreciation in international commodity
    prices reflecting increasing demand from Asian countries,
    especially from China;                                                                                                                                                                                                                                       

86



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| |   |                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Japanese economy began to recover gradually along with the
    improvement in the world economic conditions and the apparent
    reduction in the risks of a recession arising from instability
    of the Japanese financial system;
|
| |  | As a result of the improvement in the Japanese economy, stock
    prices in Japan bottomed out from the beginning of the year
    ended March 31, 2004; and                                                                              
|
| |  | Major countries around the world maintained their low interest
    rate policies.                                                                                                                                                        

Summary of Operations for
the Year Ended March 31, 2004






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Gross profit and equity in earnings of associated
    companies  net (after income tax effect) benefited
    from rising commodity market prices driven by strong demand in
    China and other Asian countries for energy and mineral
    resources. As a result, the Metal Products & Minerals
    Segment improved its operating results and the Energy Segment
    continued to perform well as compared with the year ended
    March 31, 2003;                                                                                                                                                                                                                                                                                                   
|
| |  | Increased overseas demand for plant projects, automobiles and
    ocean vessels improved gross profit in the Machinery,
    Electronics & Information Segment and higher prices and
    increased demand for petrochemical products, including ammonia
    and olefin, improved the results of operations of the Chemical
    Segment. Charges for impairment losses on leased property and
    equipment, investments in securities and receivables in the
    Machinery, Electronics & Information Segment and losses
    resulting from the discontinued operations of North American
    petrochemical subsidiaries in the Chemical Segment were reduced
    for the year ended March 31, 2004 as compared to the year
    ended March 31, 2003; and
|
| |  | The turnaround of MITSUI FOODS CO., LTD. (Japan), formerly Sanyu
    Koami Co., Ltd., that had recorded a net loss for the year ended
    March 31, 2003 due to impairment losses on non-marketable
    equity securities and unused land and for the year ended
    March 31, 2002 due to an expense with respect to an early
    retirement program and provision for doubtful receivables
    contributed to the improvement in the Consumer
    Products & Services Segment.                                                                                                                                                                                                                                                                        





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Gross profit increased by ¥44.3 billion to
    ¥613.9 billion for the year ended March 31, 2004
    compared with ¥569.6 billion for the year ended
    March 31, 2003; and                                                                                                                                                                                                                                                                      
|
| |  | Equity in earnings of associated companies  net
    (after income tax effect) rose by ¥24.8 billion to
    ¥40.1 billion for the year ended March 31, 2004.
    Associated companies in the natural resources business
    contributed to this growth, while there were significant losses
    for the year ended March 31, 2003 from associated companies
    in the Machinery, Electronics & Information Segment and
    the Chemical Segment.





87



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| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Discussion and Analysis of Operating Results for the Year
    Ended March 31, 2004



| |         
| | --------
| | Revenues



| |                  
| | -----------------
| | Sales of Products





| |                  
| | -----------------
| | Sales of Services





| |            
| | -----------
| | Other Sales





| |             
| | ------------
| | Gross Profit



| |                                                
| | -----------------------------------------------
| | Gross Profit Classified by Category of Revenues



|                                    |  |                       |        |  |             |  |       |        |  |  |          |  |  |    |       |  |          |  |       |   |  |  |      |   
|----------------------------------- |  | --------------------- | ------ |  | ----------- |  | ----- | ------ |  |  | -------- |  |  | -- | ----- |  | -------- |  | ----- | - |  |  | ---- | --
|                                    |  | Billions of Yen       |       
|                                    |  |                       |       
|                                    |  | Years Ended March 31, |        |  |            
|                                    |  |                       |        |  |            
|                                    |  | 2004                  |        |  | 2003        |  |       |       
|                                    |  | As Restated           |        |  | As Restated |  |       | Change | 
|                                    |  |                       |        |  |             |  |       |        | 
|                                    |  | GP                    |        |  | GP Ratio    |  |       | GP     |  |  | GP Ratio |  |  | GP |       |  | GP Ratio | 
|                                    |  |                       |        |  |             |  |       |        |  |  |          |  |  |    |       |  |          | 
|Gross profit from sales of products |  |                       | ¥197.4 |  |             |  | 7.9%  |        |  |  | ¥185.7   |  |  |    | 8.0%  |  |          |  | ¥11.7 |   |  |  | (0.1 | )%
|Gross profit from sales of services |  |                       | 383.1  |  |             |  | 90.2% |        |  |  | 345.1    |  |  |    | 88.6% |  |          |  | 38.0  |   |  |  | 1.6  | % 
|Gross profit from other sales       |  |                       | 33.4   |  |             |  | 48.8% |        |  |  | 38.8     |  |  |    | 49.7% |  |          |  | (5.4  | ) |  |  | (0.9 | )%
|                                    |  |                       |        |  |             |  |       |        |  |  |          |  |  |    |       |  |          | 
|Total                               |  |                       | ¥613.9 |  |             |  | 20.6% |        |  |  | ¥569.6   |  |  |    | 20.5% |  |          |  | ¥44.3 |   |  |  | 0.1  | % 
|                                    |  |                       |        |  |             |  |       |        |  |  |          |  |  |    |       |  |          | 

88



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| |                                             
| | --------------------------------------------
| | Gross Profit Classified by Operating Segment



|                                     |  |                 |        |  |      |  |        |        |  |  |       | 
|------------------------------------ |  | --------------- | ------ |  | ---- |  | ------ | ------ |  |  | ----- | 
|                                     |  | Billions of Yen |       
|                                     |  |                 |       
|                                     |  | Years Ended     |        |  |     
|                                     |  | March 31,       |        |  |     
|                                     |  |                 |        |  |     
|Segment                              |  | 2004            |        |  | 2003 |  |        | Change | 
|                                     |  |                 |        |  |      |  |        |        | 
|Chemical                             |  |                 | ¥ 91.1 |  |      |  | ¥ 69.3 |        |  |  | ¥21.8 | 
|Machinery, Electronics & Information |  |                 | 128.7  |  |      |  | 121.1  |        |  |  | 7.6   | 
|Consumer Products & Services         |  |                 | 135.9  |  |      |  | 122.6  |        |  |  | 13.3  | 
|Metal Products & Minerals            |  |                 | 77.0   |  |      |  | 71.5   |        |  |  | 5.5   | 



| |   |                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Growth in the Chemical Segment was due to higher market prices
    for ammonia and other petrochemicals resulting from the rising
    crude oil and natural gas prices;                                                                                                                                                                                                                               
|
| |  | Results in the Machinery, Electronics & Information
    Segment benefited from a higher volume of transactions for
    construction of oil refineries and power plants, sales of
    automobiles, ocean vessels and cell phones;                                                                                                                                                                      
|
| |  | In the Consumer Products & Services Segment, newly
    acquired subsidiary Mitsui Norin Co., Ltd. (Japan), a producer
    and seller of tea leaves, made a new contribution while MITSUI
    FOODS CO., LTD. (Japan) also recorded higher sales mainly to
    supermarkets in Japan; and                                                                                                              
|
| |  | In the Metal Products & Minerals Segment, gross profit
    increased at an iron ore subsidiary Sesa Goa Limited (India),
    because of growing iron ore exports to China and higher market
    prices of its products in India, and at Mitsui Iron Ore
    Development Pty. Ltd. (Australia), reflecting increased
    shipments of iron ore driven by the demand from China and other
    countries.



| |                                             
| | --------------------------------------------
| | Selling, General and Administrative Expenses



89



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##### Table of Contents







| |   |                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | At Mitsui, pension costs increased sharply due to a
    ¥13.0 billion increase in amortization of the
    unrecognized net actuarial loss; and                             
|
| |  | A settlement loss of ¥10.5 billion was incurred due to
    the completion of the transfer to the Japanese government of the
    substitutional portion of the Mitsuis EPF.







| |                                   
| | ----------------------------------
| | Provision for Doubtful Receivables







| |                                         
| | ----------------------------------------
| | Interest Expense, Net of Interest Income







| |                
| | ---------------
| | Dividend Income





| |                                                                           
| | --------------------------------------------------------------------------
| | Gain on Securities Contributed to an Employee Retirement
    Benefit Trust



90



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| |                                                                   
| | ------------------------------------------------------------------
| | Government Grant for Transfer of Substitutional Portion of
    EPF





| |                                  
| | ---------------------------------
| | Gain on Sales of Securities  Net







| |                                 
| | --------------------------------
| | Loss on Write-Down of Securities











| |                                                                     
| | --------------------------------------------------------------------
| | (Gain) Loss on Disposal or Sales of Property and
    Equipment  Net





91



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| |                                     
| | ------------------------------------
| | Impairment Loss of Long-Lived Assets





| |   |                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Impairment losses on Mitsuis corporate residences and
    dormitories of ¥8.0 billion were recorded due to a
    further decline in land prices in Japan. The corporate
    residences and dormitories on which we recorded impairment
    losses during the year ended March 31, 2004 had been
    acquired mainly in early 1990s;
|
| |  | In the Machinery, Electronics & Information Segment,
    there were impairment losses of ¥4.3 billion that
    resulted from the exit from and disposal of certain businesses
    at NBI Corporation (Japan), formerly Toyo Valve Co., Ltd. and
    Mitsui Bussan Machinery Co., Ltd. (Japan); and                                  
|
| |  | Impairment losses were also recorded at two domestic
    subsidiaries that operate golf courses.                                                                                                                                                                                                                                    





| |   |                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For the year ended March 31, 2003, there was an impairment
    loss of ¥9.4 billion on MD-11 leased aircraft due to a
    substantial decline in the fair value of this type of aircraft.
    For the year ended March 31, 2004, a similar loss on our
    leased aircraft was not significant;                                                            
|
| |  | In the Energy Segment, there was an impairment loss of
    ¥9.2 billion mainly related to gas stations operated
    by Mitsui Oil & Gas Co., Ltd. (Japan), which was
    divided into Mitsui Oil Co., Ltd. and Mitsui Liquefied Gas Co.,
    Ltd. in December 2004, and Kokusai Oil & Chemical Co.,
    Ltd. (Japan) for the year ended March 31, 2003; and
|
| |  | MITSUI FOODS CO., LTD. (Japan) recorded an impairment loss on
    unused land in Japan for the year ended March 31, 2003.                                                                                                                                                                                                                                  



| |                    
| | -------------------
| | Other Expense  Net





| |   |                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | litigation charges of ¥13.7 billion related to the
    settlement of an antitrust lawsuit filed against our United
    States subsidiary, Bioproducts, Inc., which manufactures and
    sells feed ingredient; and                  
|
| |  | restructuring charges of ¥7.0 billion arising from
    certain subsidiaries such as Mitsui Bussan Machinery Co., Ltd.
    (Japan) and NBI Corporation (Japan). For more information, see
    Note 25, EXIT OR DISPOSAL ACTIVITIES.







| |             
| | ------------
| | Income Taxes



92



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| |                                               
| | ----------------------------------------------
| | Minority Interests in Earnings of Subsidiaries





| |                                                                               
| | ------------------------------------------------------------------------------
| | Equity in Earnings of Associated Companies  Net
    (After Income Tax Effect)





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the Energy Segment, earnings increased at Japan Australia LNG
    (MIMI) Pty. Ltd. (Australia), which operates in Western
    Australia, as both sales volumes and crude oil prices rose;                                                                                                                                                                                                                                                                                   
|
| |  | In the Metal Products & Minerals Segment, the operating
    results of Valepar S.A. (Brazil), the holding company of
    Companhia Vale do Rio Doce (CVRD), were included
    from the second quarter of the year ended March 31, 2004,
    and there were higher earnings of Compania Minera Dona Ines de
    Collahuasi SCM (Chile), a copper mine development company
    reflecting rising copper prices from around the middle of the
    year ended March 31, 2004; and
|
| |  | In the Machinery, Electronics & Information Segment,
    earnings rose at P.T. Paiton Energy in Indonesia due to
    higher electric power sales volume and at overseas automobile
    sales subsidiaries.                                                                                                                                                                                                                                                                     





| |   |                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an other than temporary decline in the value of investments in
    NextCom K.K. (Japan), formerly an associated company engaged in
    the information technology business, as a result of the sharp
    decline in its stock price, and an increase in the reserve for
    impaired loans at Furukawa Industrial S.A. Produtos Eletrico
    (Brazil), a telecommunications associated company; and
|
| |  | an impairment loss on a production facility of Vinylchloride
    (Malaysia) Sdn. Bhd., an overseas associated company in the
    chemical business.                                                                                                                                                                                                                                                





| |                                                                      
| | ---------------------------------------------------------------------
| | Loss from Discontinued Operations  Net (After
    Income Tax Effect)







| |   |                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Transpacific Glycols, Inc. (the United States), a subsidiary
    reported in both the Chemical and Americas Segments, which had
    been engaged in the sale of ethylene glycol, had ceased its sales

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | operations during the year ended March 31, 2003 due to its
    declining performance caused by overall market
    conditions; and                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Pacific Ammonia Inc. (the United States), a subsidiary reported
    in the Chemical Segment, which had been engaged in the
    manufacture and sale of ammonia primarily on the West Coast of
    the United States, had suffered from high natural gas costs, its
    main raw material ingredient, and a relatively weak ammonia
    price due to a worldwide oversupply. Due to this business
    environment, Pacific Ammonia Inc. recognized an impairment loss
    on fixed assets during the year ended March 31, 2003 based
    on a plan to dispose of the operation by sale.





| |                                                                                  
| | ---------------------------------------------------------------------------------
| | Cumulative Effect of Change in Accounting Principle (After
    Income Tax Effect)



Operating Results by Operating Segment










94



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Operating segment
information




| |             
| | ------------
| | Gross profit

|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |       |   |  |   |      |  
|------------------------------------ |  | --------------------- | ----- | - | ------ | - | ----- | ------ |  | - | ----------- | - |  | ----------- | ----- | - |  | - | ---- | -
|                                     |  | Billions of Yen       |      
|                                     |  |                       |      
|                                     |  | Years Ended March 31, |       |   |       
|                                     |  |                       |       |   | Change |   |       | Change | 
|                                     |  | 2005                  |       |   | 2004   |   |       | 2003   |  |   | (20052004) |   |  | (20042003) |      
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      
|Metal Products & Minerals            |  | ¥                     | 121.4 |   |        | ¥ | 77.0  |        |  | ¥ | 71.5        |   |  | ¥           | 44.4  |   |  | ¥ | 5.5  |  
|Machinery, Electronics & Information |  |                       | 137.3 |   |        |   | 128.7 |        |  |   | 121.1       |   |  |             | 8.6   |   |  |   | 7.6  |  
|Chemical                             |  |                       | 87.1  |   |        |   | 91.1  |        |  |   | 69.3        |   |  |             | (4.0  | ) |  |   | 21.8 |  
|Energy                               |  |                       | 72.6  |   |        |   | 54.6  |        |  |   | 53.8        |   |  |             | 18.0  |   |  |   | 0.8  |  
|Consumer Products & Services         |  |                       | 152.6 |   |        |   | 135.9 |        |  |   | 122.6       |   |  |             | 16.7  |   |  |   | 13.3 |  
|Logistics & Financial Markets        |  |                       | 46.7  |   |        |   | 32.3  |        |  |   | 33.1        |   |  |             | 14.4  |   |  |   | (0.8 | )
|Americas                             |  |                       | 49.9  |   |        |   | 40.7  |        |  |   | 44.6        |   |  |             | 9.2   |   |  |   | (3.9 | )
|Europe                               |  |                       | 20.7  |   |        |   | 20.0  |        |  |   | 22.5        |   |  |             | 0.7   |   |  |   | (2.5 | )
|Other Overseas Areas                 |  |                       | 25.8  |   |        |   | 24.1  |        |  |   | 23.5        |   |  |             | 1.7   |   |  |   | 0.6  |  
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      
|Total                                |  |                       | 714.1 |   |        |   | 604.4 |        |  |   | 562.0       |   |  |             | 109.7 |   |  |   | 42.4 |  
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      
|All Other                            |  |                       | 12.3  |   |        |   | 10.4  |        |  |   | 10.6        |   |  |             | 1.9   |   |  |   | (0.2 | )
|Adjustments and Eliminations         |  |                       | (0.6  | ) |        |   | (0.9  | )      |  |   | (3.0        | ) |  |             | 0.3   |   |  |   | 2.1  |  
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      
|Consolidated Total                   |  |                       | 725.8 |   |        |   | 613.9 |        |  |   | 569.6       |   |  |             | 111.9 |   |  |   | 44.3 |  
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      

95



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| |                        
| | -----------------------
| | Operating Income (Loss)

|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      |   |  |   |      |  
|------------------------------------ |  | --------------------- | ----- | - | ------ | - | ----- | ------ |  | - | ----------- | - |  | ----------- | ---- | - |  | - | ---- | -
|                                     |  | Billions of Yen       |      
|                                     |  |                       |      
|                                     |  | Years Ended March 31, |       |   |       
|                                     |  |                       |       |   | Change |   |       | Change | 
|                                     |  | 2005                  |       |   | 2004   |   |       | 2003   |  |   | (20052004) |   |  | (20042003) |     
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |     
|Metal Products & Minerals            |  | ¥                     | 68.1  |   |        | ¥ | 28.7  |        |  | ¥ | 24.7        |   |  | ¥           | 39.4 |   |  | ¥ | 4.0  |  
|Machinery, Electronics & Information |  |                       | 31.4  |   |        |   | 29.4  |        |  |   | 14.1        |   |  |             | 2.0  |   |  |   | 15.3 |  
|Chemical                             |  |                       | 24.6  |   |        |   | 31.4  |        |  |   | 18.3        |   |  |             | (6.8 | ) |  |   | 13.1 |  
|Energy                               |  |                       | 35.5  |   |        |   | 21.7  |        |  |   | 25.7        |   |  |             | 13.8 |   |  |   | (4.0 | )
|Consumer Products & Services         |  |                       | 32.0  |   |        |   | 23.3  |        |  |   | 21.2        |   |  |             | 8.7  |   |  |   | 2.1  |  
|Logistics & Financial Markets        |  |                       | 18.5  |   |        |   | 10.4  |        |  |   | 10.9        |   |  |             | 8.1  |   |  |   | (0.5 | )
|Americas                             |  |                       | 14.7  |   |        |   | 8.5   |        |  |   | 9.5         |   |  |             | 6.2  |   |  |   | (1.0 | )
|Europe                               |  |                       | 2.4   |   |        |   | 3.0   |        |  |   | 4.2         |   |  |             | (0.6 | ) |  |   | (1.2 | )
|Other Overseas Areas                 |  |                       | 8.2   |   |        |   | 6.6   |        |  |   | 7.6         |   |  |             | 1.6  |   |  |   | (1.0 | )
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |     
|Total                                |  |                       | 235.4 |   |        |   | 163.0 |        |  |   | 136.2       |   |  |             | 72.4 |   |  |   | 26.8 |  
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |     
|All Other                            |  |                       | (0.5  | ) |        |   | (1.9  | )      |  |   | (1.8        | ) |  |             | 1.4  |   |  |   | (0.1 | )
|Adjustments and Eliminations         |  |                       | (36.9 | ) |        |   | (34.3 | )      |  |   | (32.5       | ) |  |             | (2.6 | ) |  |   | (1.8 | )
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |     
|Consolidated Total                   |  |                       | 198.0 |   |        |   | 126.8 |        |  |   | 101.9       |   |  |             | 71.2 |   |  |   | 24.9 |  
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |     



| |                                                    
| | ---------------------------------------------------
| | Equity in Earnings (Losses) of Associated Companies

|                                     |  |                       |      |        |      |   |      |             |  |   |      |  
|------------------------------------ |  | --------------------- | ---- | ------ | ---- | - | ---- | ----------- |  | - | ---- | -
|                                     |  | Billions of Yen       |     
|                                     |  |                       |     
|                                     |  | Years Ended March 31, |     
|                                     |  |                       |     
|                                     |  |                       |      | Change |     
|                                     |  | 2005                  |      |        | 2004 |   |      | (20052004) | 
|                                     |  |                       |      |        |      |   |      |             | 
|Metal Products & Minerals            |  | ¥                     | 22.4 |        |      | ¥ | 8.6  |             |  | ¥ | 13.8 |  
|Machinery, Electronics & Information |  |                       | 8.2  |        |      |   | 7.7  |             |  |   | 0.5  |  
|Chemical                             |  |                       | 2.5  |        |      |   | (1.2 | )           |  |   | 3.7  |  
|Energy                               |  |                       | 24.5 |        |      |   | 14.5 |             |  |   | 10.0 |  
|Consumer Products & Services         |  |                       | 3.7  |        |      |   | 6.3  |             |  |   | (2.6 | )
|Logistics & Financial Markets        |  |                       | 2.4  |        |      |   | 0.2  |             |  |   | 2.2  |  
|Americas                             |  |                       | 1.6  |        |      |   | (2.5 | )           |  |   | 4.1  |  
|Europe                               |  |                       | 0.1  |        |      |   | 0.2  |             |  |   | (0.1 | )
|Other Overseas Areas                 |  |                       | 0.5  |        |      |   | 0.4  |             |  |   | 0.1  |  
|                                     |  |                       |      |        |      |   |      |             | 
|Total                                |  |                       | 65.9 |        |      |   | 34.2 |             |  |   | 31.7 |  
|                                     |  |                       |      |        |      |   |      |             | 
|All Other                            |  |                       | 0.4  |        |      |   | (0.1 | )           |  |   | 0.5  |  
|Adjustments and Eliminations         |  |                       | (0.4 | )      |      |   | 6.0  |             |  |   | (6.4 | )
|                                     |  |                       |      |        |      |   |      |             | 
|Consolidated Total                   |  |                       | 65.9 |        |      |   | 40.1 |             |  |   | 25.8 |  
|                                     |  |                       |      |        |      |   |      |             | 

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| |                  
| | -----------------
| | Net Income (Loss)

|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |       |   |  |   |      |  
|------------------------------------ |  | --------------------- | ----- | - | ------ | - | ----- | ------ |  | - | ----------- | - |  | ----------- | ----- | - |  | - | ---- | -
|                                     |  | Billions of Yen       |      
|                                     |  |                       |      
|                                     |  | Years Ended March 31, |       |   |       
|                                     |  |                       |       |   | Change |   |       | Change | 
|                                     |  | 2005                  |       |   | 2004   |   |       | 2003   |  |   | (20052004) |   |  | (20042003) |      
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      
|Metal Products & Minerals            |  | ¥                     | 47.0  |   |        | ¥ | 24.2  |        |  | ¥ | 16.1        |   |  | ¥           | 22.8  |   |  | ¥ | 8.1  |  
|Machinery, Electronics & Information |  |                       | 26.4  |   |        |   | 5.9   |        |  |   | (9.2        | ) |  |             | 20.5  |   |  |   | 15.1 |  
|Chemical                             |  |                       | (6.9  | ) |        |   | 11.4  |        |  |   | (3.6        | ) |  |             | (18.3 | ) |  |   | 15.0 |  
|Energy                               |  |                       | 42.8  |   |        |   | 24.4  |        |  |   | 23.0        |   |  |             | 18.4  |   |  |   | 1.4  |  
|Consumer Products & Services         |  |                       | 16.9  |   |        |   | 18.9  |        |  |   | 9.6         |   |  |             | (2.0  | ) |  |   | 9.3  |  
|Logistics & Financial Markets        |  |                       | 11.8  |   |        |   | 4.8   |        |  |   | 4.7         |   |  |             | 7.0   |   |  |   | 0.1  |  
|Americas                             |  |                       | 12.3  |   |        |   | 0.2   |        |  |   | 3.3         |   |  |             | 12.1  |   |  |   | (3.1 | )
|Europe                               |  |                       | 2.9   |   |        |   | 0.7   |        |  |   | 2.8         |   |  |             | 2.2   |   |  |   | (2.1 | )
|Other Overseas Areas                 |  |                       | 13.8  |   |        |   | 10.4  |        |  |   | 8.6         |   |  |             | 3.4   |   |  |   | 1.8  |  
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      
|Total                                |  |                       | 167.0 |   |        |   | 100.9 |        |  |   | 55.3        |   |  |             | 66.1  |   |  |   | 45.6 |  
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      
|All Other                            |  |                       | 4.4   |   |        |   | 1.9   |        |  |   | 6.9         |   |  |             | 2.5   |   |  |   | (5.0 | )
|Adjustments and Eliminations         |  |                       | (50.3 | ) |        |   | (34.4 | )      |  |   | (31.1       | ) |  |             | (15.9 | ) |  |   | (3.3 | )
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      
|Consolidated Total                   |  |                       | 121.1 |   |        |   | 68.4  |        |  |   | 31.1        |   |  |             | 52.7  |   |  |   | 37.3 |  
|                                     |  |                       |       |   |        |   |       |        |  |   |             |   |  |             |      



| |                        
| | -----------------------
| | Operating Income (Loss)





| |                                                            
| | -----------------------------------------------------------
| | Results of Operations for the Year Ended March 31,
    2005



| |                                  
| | ---------------------------------
| | Metal Products & Minerals Segment

|                                           |  |                 |       |  |      |   |      |        |  |   |      | 
|------------------------------------------ |  | --------------- | ----- |  | ---- | - | ---- | ------ |  | - | ---- | 
|                                           |  | Billions of Yen |      
|                                           |  |                 |      
|                                           |  | Years Ended     |       |  |     
|                                           |  | March 31,       |       |  |     
|                                           |  |                 |       |  |     
|                                           |  | 2005            |       |  | 2004 |   |      | Change | 
|                                           |  |                 |       |  |      |   |      |        | 
|Gross profit                               |  | ¥               | 121.4 |  |      | ¥ | 77.0 |        |  | ¥ | 44.4 | 
|Operating income                           |  |                 | 68.1  |  |      |   | 28.7 |        |  |   | 39.4 | 
|Equity in earnings of associated companies |  |                 | 22.4  |  |      |   | 8.6  |        |  |   | 13.8 | 
|Net income                                 |  |                 | 47.0  |  |      |   | 24.2 |        |  |   | 22.8 | 





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For the year ended March 31, 2005, iron ore prices under
    long-term contracts rose by 18.6% over the year ended
    March 31, 2004, resulting in major increases in gross
    profit at Sesa Goa Limited (India) and Mitsui Iron Ore
    Development Pty. Ltd. (Australia). Sesa Goa Limited in
    particular contributed a ¥12.2 billion increase
    compared to the year ended March 31, 2004, supported by the
    expansion of sales to China. At Mitsui Iron Ore Development Pty,
    Ltd., shipments (on our equity production basis) increased to
    21.4 million tons for the year ended March 31, 2005
    compared to 18.7 million tons for the year ended
    March 31, 2004 on the back of expanded production at the
    West Angelas mine which came on line in March 2002.

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Due to the price rise for long-term contracts for thermal coal
    and metallurgical coal for the year ended March 31, 2005,
    Mitsui Coal Holdings Pty. Ltd. (Australia) recorded a
    ¥5.3 billion increase in gross profit compared to the
    year ended March 31, 2004. Representative prices for
    Australian metallurgical coal rose to U.S.$57 per ton/FOB
    for the year ended March 31, 2005 compared to
    U.S.$47 per ton/FOB for the year ended March 31, 2004.
|
| |  | We recorded a combined gross profit increase of
    ¥12.6 billion in the steel products businesses in this
    segment, as profit margins expanded due to the steady
    transaction volume mainly in the domestic market and Asia, amid
    a tightening in supply and demand for various steel products.                                                                                                                                                                          







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the second quarter of the year ended March 31, 2004, we
    sold our shares in Caemi Mineração e Metalurgia S.A.
    to the Brazilian iron ore and mineral resources company
    Companhia Vale do Rio Doce (CVRD) at the same time
    as acquiring 18.24% of the outstanding voting shares in Valepar
    S.A. (Brazil), the holding company of CVRD. Our equity in
    earnings of Valepar S.A. for the year ended March 31, 2005
    was ¥6.4 billion, a ¥3.9 billion increase
    compared to the year ended March 31, 2004, also reflecting
    the positive impact of higher mineral resource prices on its
    financial performance.
|
| |  | Our equity in earnings in the copper mine joint venture,
    Compania Minera Dona Ines de Collahuasi SCM (Chile), for the
    year ended March 31, 2005 was ¥7.8 billion, an
    increase of ¥5.9 billion compared to the year ended
    March 31, 2004. Average copper prices over the year as
    listed on the London Metals Exchange (LME) rose to
    U.S.$3,000 per ton/ FOB for the year ended March 31,
    2005 from U.S.$2,046 per ton/ FOB for the year ended
    March 31, 2004.                                                                                                                                                    





| |   |                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The year ended March 31, 2005 saw reduced gains on sales of
    securities, reflecting the absence of the ¥4.4 billion
    gain recorded from the sale of shares in Caemi
    Mineração e Metalurgia S.A. for the year ended
    March 31, 2004.
|
| |  | We recorded ¥6.5 billion in impairment losses on plant
    facilities at an aluminum smelting subsidiary, Mitalco Inc. (the
    United States) for the year ended March 31, 2005,
    reflecting the rising trend of electricity costs.         



| |                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------
| | Short-and Long-Term Outlook on Prices and Supply-Demand
    Balance for Iron & Steel Raw Materials, and Our Equity
    Production



| |                                             
| | --------------------------------------------
| | Short-Term Pricing and Supply-Demand Balance



98



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| |   |                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Iron ore prices rose 71.5% compared to the year ended
    March 31, 2005, on a pure ore content basis.                                                                                                            
|
| |  | Prices for representative Australian metallurgical coal rose to
    U.S.$125 per ton/ FOB for the year ending March 31,
    2006, a 120% rise over the U.S.$57 per ton/ FOB for the
    year ended March 31, 2005.





| |   |                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------
| |  | Estimated impact on net income from a change of U.S.$1 per
    ton in iron ore price: Approximately ¥2.6 billion.
|
| |  | Estimated impact on net income from a change of U.S.$1 per
    ton in coal price: Approximately ¥0.6 billion.    







| |                                                                                                      
| | -----------------------------------------------------------------------------------------------------
| | Middle- and Long-Term Price Outlook and Supply-Demand Balance
    and Trends in our Equity Production





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We are at present expanding the operation at the West Angelas
    mine, a joint venture with Rio Tinto, in order to raise iron ore
    production capacity to 25 million tons per annum from the
    present 20 million tons within 2005. With respect to joint
    ventures promoted with BHP Billiton, we are expanding to raise
    the combined iron ore production capacity to 118 million
    tons from 110 million tons by the year ending
    March 31, 2007.
|
| |  | At the Moura/ Theodore mines, a joint venture with Anglo Coal
    Australia Pty Ltd., we have decided to boost annual coal
    production from the present capacity of 7.2 million tons to
    12.7 million tons by 2007.                                                                                                                                                                                                                                            





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Machinery, Electronics & Information
Segment


|                                           |  |                 |       |  |      |   |       |        |  |   |      | 
|------------------------------------------ |  | --------------- | ----- |  | ---- | - | ----- | ------ |  | - | ---- | 
|                                           |  | Billions of Yen |      
|                                           |  |                 |      
|                                           |  | Years Ended     |       |  |     
|                                           |  | March 31,       |       |  |     
|                                           |  |                 |       |  |     
|                                           |  | 2005            |       |  | 2004 |   |       | Change | 
|                                           |  |                 |       |  |      |   |       |        | 
|Gross profit                               |  | ¥               | 137.3 |  |      | ¥ | 128.7 |        |  | ¥ | 8.6  | 
|Operating income                           |  |                 | 31.4  |  |      |   | 29.4  |        |  |   | 2.0  | 
|Equity in earnings of associated companies |  |                 | 8.2   |  |      |   | 7.7   |        |  |   | 0.5  | 
|Net income                                 |  |                 | 26.4  |  |      |   | 5.9   |        |  |   | 20.5 | 





| |   |                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Growth in cell phone agency sales by Telepark Corp., leading to
    an increase in gross profit of ¥3.6 billion. NextCom
    K.K. (Japan), an associated company in the year ended
    March 31, 2004, was merged with two of Mitsuis
    subsidiaries to become a subsidiary in the third quarter of the
    year ended March 31, 2005, resulting in growth of
    ¥4.0 billion.
|
| |  | In the year ended March 31, 2004, there was a significant
    contribution from plant and transportation projects such as a
    power station and railway project in Malaysia, and an oil
    refinery in Russia. In the year ended March 31, 2005
    execution of such large contracts declined and gross profit
    decreased slightly.                                        
|
| |  | Business expansion of P.T. Bussan Auto Finance (Indonesia),
    a motorcycle retail finance company, resulted in growth of
    ¥1.7 billion. In general, overseas subsidiaries in the
    automotive field recorded increased gross profit.                                                                                                                                       









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For the year ended March 31, 2004 there was a
    ¥21.7 billion impairment loss on Mitsuis
    investment in a telecommunications carrier POWEREDCOM, Inc. in
    consideration of the deterioration in its financial position.
    Moreover, in connection with our effort toward reevaluating and
    restructuring the business of subsidiaries and associated
    companies for the year ended March 31, 2004, we reorganized
    the business of NBI Corporation (Japan), formerly known as Toyo
    Valve Co., Ltd. and Mitsui Bussan Machinery Co., Ltd. (Japan),
    which led to impairment losses on property and equipment of
    ¥4.3 billion and other expense-net of
    ¥3.7 billion; and
|
| |  | Gains on the sale of shares in Japanese cell-phone carrier
    Vodafone K.K. for the year ended March 31, 2005 amounted to
    ¥7.2 billion. As a result of the listing of TelePark
    Corp. (Japan) on the Tokyo Stock Exchange, we recognized a
    ¥1.7 billion gain on issuance of stock by a subsidiary                                                                                                                                                                                                                                                                                                                                                                                            

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| |  |                                                                                                                                                                                                                                                                                                                                                                      
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | and a ¥4.1 billion gain on the sale of securities. In
    December 2004, following the merger of associated company
    NextCom K.K. (Japan) with the two subsidiaries ADAM NET Ltd.
    (Japan) and BSI Co., Ltd. (Japan), Mitsui made a gain of
    ¥3.7 billion through the receipt of shares in NextCom
    K.K., in exchange for shares in the two subsidiaries.

Chemical Segment


|                                                    |  |                 |      |   |      |   |      |        |  |   |       |  
|--------------------------------------------------- |  | --------------- | ---- | - | ---- | - | ---- | ------ |  | - | ----- | -
|                                                    |  | Billions of Yen |     
|                                                    |  |                 |     
|                                                    |  | Years Ended     |      |   |     
|                                                    |  | March 31,       |      |   |     
|                                                    |  |                 |      |   |     
|                                                    |  | 2005            |      |   | 2004 |   |      | Change | 
|                                                    |  |                 |      |   |      |   |      |        | 
|Gross profit                                        |  | ¥               | 87.1 |   |      | ¥ | 91.1 |        |  | ¥ | (4.0  | )
|Operating income                                    |  |                 | 24.6 |   |      |   | 31.4 |        |  |   | (6.8  | )
|Equity in earnings (losses) of associated companies |  |                 | 2.5  |   |      |   | (1.2 | )      |  |   | 3.7   |  
|Net (loss) income                                   |  |                 | (6.9 | ) |      |   | 11.4 |        |  |   | (18.3 | )











| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For the year ended March 31, 2005, Mitsui discovered that
    false data had been produced and submitted to authorities for
    diesel particulate filters (DPFs) manufactured by
    its subsidiary PUREarth Incorporated and sold by Mitsui. The
    Tokyo Metropolitan Government and other bodies provided
    subsidies to the purchasers of these DPFs. Mitsui established a
    user response plan including the free replacement of DPFs and
    has been proceeding with full compensation of relevant
    subsidies, which resulted in a ¥36.0 billion loss for
    the year ended March 31, 2005 as compensation and other
    charges related to DPF incident.
|
| |  | For the year ended March 31, 2004, this segment recorded a
    loss of ¥2.8 billion (after income tax effect) which
    was the segments share basis for the settlement of
    antitrust lawsuits involving Bioproducts, Inc. (the United
    States), a subsidiary jointly owned by this segment with its 20%
    equity interest and Mitsui & Co. (U.S.A.), Inc. that
    produced choline chloride, a feed ingredient.                                                                                                                                                                                                                                                  
|
| |  | For the year ended March 31, 2005, we sold our shares in
    Bangkok Polyethylene Public Company Limited, a manufacturer of
    high-density polyethylene in Thailand, which had been jointly
    owned by the Chemical Segment and the Other Overseas Areas
    Segment. Of the ¥3.9 billion realized in the sale,
    this Segments share came to ¥2.5 billion.                                                                                                                                                                                                                                                                                                          

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Energy Segment


|                                           |  |                 |       |  |      |  |       |        |  |  |       | 
|------------------------------------------ |  | --------------- | ----- |  | ---- |  | ----- | ------ |  |  | ----- | 
|                                           |  | Billions of Yen |      
|                                           |  |                 |      
|                                           |  | Years Ended     |       |  |     
|                                           |  | March 31,       |       |  |     
|                                           |  |                 |       |  |     
|                                           |  | 2005            |       |  | 2004 |  |       | Change | 
|                                           |  |                 |       |  |      |  |       |        | 
|Gross profit                               |  |                 | ¥72.6 |  |      |  | ¥54.6 |        |  |  | ¥18.0 | 
|Operating income                           |  |                 | 35.5  |  |      |  | 21.7  |        |  |  | 13.8  | 
|Equity in earnings of associated companies |  |                 | 24.5  |  |      |  | 14.5  |        |  |  | 10.0  | 
|Net income                                 |  |                 | 42.8  |  |      |  | 24.4  |        |  |  | 18.4  | 







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For the year ended March 31, 2004 Arcadia Petroleum Ltd.
    (United Kingdom) recorded a loss in petroleum products trading,
    from which it withdrew. For the year ended March 31, 2005
    Arcadia Petroleum Ltd. concentrated on crude oil trading and its
    gross profit improved by ¥13.5 billion from the year
    ended March 31, 2004;                                                                                                                           
|
| |  | Among overseas subsidiaries engaged in the development,
    production and sale of oil and gas, Mitsui E&P Middle
    East B.V. (Netherlands), which develops and produces oil
    and gas in Oman, increased gross profit by
    ¥3.3 billion, reflecting the rise in oil prices and an
    increase in sales volume. In addition, Mittwell Energy Resources
    Pty., Ltd. (Australia), which sells crude oil and condensate,
    recorded an increase of ¥1.7 billion; and
|
| |  | Domestic petroleum product sales showed strong performance,
    successfully passing higher oil prices on to their wholesale and
    retail pricing. Combined gross profits of three of our domestic
    sales subsidiaries  Mitsui Oil Co., Ltd., Mitsui
    Liquefied Gas Co., Ltd. (which was separated out from Mitsui Oil
    Co., Ltd. in December 2004) and Kokusai Oil & Chemical
    Co., Ltd.  increased by ¥4.7 billion for
    the year ended March 31, 2005.  







102



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| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | Short- and Long-Term Outlook on Prices and Supply-Demand
    Balance for Energy, and Our Equity Production



| |                                             
| | --------------------------------------------
| | Short-Term Pricing and Supply-Demand Balance







| |                                                                                                      
| | -----------------------------------------------------------------------------------------------------
| | Middle- and Long-Term Price Outlook and Supply-Demand Balance
    and Trends in Our Equity Production





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the past, the market has grown mainly with long-term purchase
    contracts by power and gas companies operating in Japan and the
    Far East. Expansion of incumbent oil and gas projects and green
    field projects coming on stream will increase the volume of
    supply to the market, while demand, which has traditionally
    centered around the Far East, will be joined by growing demand
    from Europe and the United States, while huge markets in China
    and India would emerge. Therefore, globalization both in terms
    of supply and demand is expected to progress. In addition, as
    the opportunity for supply and demand adjustments in these
    markets increase, LNG is expected to become a more marketable
    commodity.
|
| |  | Those long-term purchase contracts with Japanese companies in
    many projects are expected to come due for renewal around 2010,
    and more flexible terms reflecting the above-mentioned
    supply-demand trends will be requested from the buyers. In
    evaluating the opportunity for the expansion of incumbent
    projects and the participation into green field projects, we are
    putting emphasis on securing stable supply as well as
    diversifying our source of supply to ensure better flexibility.                                                                                                                                                                                                                                       



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Consumer Products & Services Segment


|                                           |  |                 |        |  |      |  |        |        |  |  |       |  
|------------------------------------------ |  | --------------- | ------ |  | ---- |  | ------ | ------ |  |  | ----- | -
|                                           |  | Billions of Yen |       
|                                           |  |                 |       
|                                           |  | Years Ended     |        |  |     
|                                           |  | March 31,       |        |  |     
|                                           |  |                 |        |  |     
|                                           |  | 2005            |        |  | 2004 |  |        | Change | 
|                                           |  |                 |        |  |      |  |        |        | 
|Gross profit                               |  |                 | ¥152.6 |  |      |  | ¥135.9 |        |  |  | ¥16.7 |  
|Operating income                           |  |                 | 32.0   |  |      |  | 23.3   |        |  |  | 8.7   |  
|Equity in earnings of associated companies |  |                 | 3.7    |  |      |  | 6.3    |        |  |  | (2.6  | )
|Net income                                 |  |                 | 16.9   |  |      |  | 18.9   |        |  |  | (2.0  | )





| |   |                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | There was a ¥4.5 billion increase at MBK Real Estate
    Ltd. (the United States) resulting from strong sales of large
    commercial facilities and residential properties;                                                                                                     
|
| |  | With the acquisition of Mitsui Norin Co., Ltd. (Japan) in the
    second quarter of the year ended March 31, 2004, gross
    profit for the year ended March 31, 2005 increased by
    ¥5.1 billion from year ended March 31, 2004
    reflecting its full year contribution; and
|
| |  | Mitsuis profit margin on commodity trading in corn,
    soybeans, raw sugar and other agricultural commodities
    increased, following rises in the markets for those commodities.                                                                                             









| |   |                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | While we recorded a combined ¥4.0 billion gain on
    sales of shares in netprice, ltd. and VeriTrans, Inc., both
    IT-related companies, when they were listed on domestic stock
    exchanges in the year ended March 31, 2005, we recorded
    ¥6.7 billion gain on the sale of SKY Perfect
    Communications Inc. for the year ended March 31, 2004.
|
| |  | Considering a deterioration in financial conditions due to
    sluggish advertising revenue at satellite broadcasters BS-I,
    INCORPORATED and BS Japan Corporation, we recorded losses on
    these shares of ¥1.9 billion and
    ¥1.2 billion, respectively.                                                                                          

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Logistics & Financial Markets Segment


|                                           |  |                 |       |  |      |  |       |        |  |  |       | 
|------------------------------------------ |  | --------------- | ----- |  | ---- |  | ----- | ------ |  |  | ----- | 
|                                           |  | Billions of Yen |      
|                                           |  |                 |      
|                                           |  | Years Ended     |       |  |     
|                                           |  | March 31,       |       |  |     
|                                           |  |                 |       |  |     
|                                           |  | 2005            |       |  | 2004 |  |       | Change | 
|                                           |  |                 |       |  |      |  |       |        | 
|Gross profit                               |  |                 | ¥46.7 |  |      |  | ¥32.3 |        |  |  | ¥14.4 | 
|Operating income                           |  |                 | 18.5  |  |      |  | 10.4  |        |  |  | 8.1   | 
|Equity in earnings of associated companies |  |                 | 2.4   |  |      |  | 0.2   |        |  |  | 2.2   | 
|Net income                                 |  |                 | 11.8  |  |      |  | 4.8   |        |  |  | 7.0   | 









Americas Segment


|                                                    |  |                 |      |  |      |   |      |        |  |   |      | 
|--------------------------------------------------- |  | --------------- | ---- |  | ---- | - | ---- | ------ |  | - | ---- | 
|                                                    |  | Billions of Yen |     
|                                                    |  |                 |     
|                                                    |  | Years Ended     |      |  |     
|                                                    |  | March 31,       |      |  |     
|                                                    |  |                 |      |  |     
|                                                    |  | 2005            |      |  | 2004 |   |      | Change | 
|                                                    |  |                 |      |  |      |   |      |        | 
|Gross profit                                        |  | ¥               | 49.9 |  |      | ¥ | 40.7 |        |  | ¥ | 9.2  | 
|Operating income                                    |  |                 | 14.7 |  |      |   | 8.5  |        |  |   | 6.2  | 
|Equity in earnings (losses) of associated companies |  |                 | 1.6  |  |      |   | (2.5 | )      |  |   | 4.1  | 
|Net income                                          |  |                 | 12.3 |  |      |   | 0.2  |        |  |   | 12.1 | 





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Europe Segment


|                                           |  |                 |      |  |      |   |      |        |  |   |      |  
|------------------------------------------ |  | --------------- | ---- |  | ---- | - | ---- | ------ |  | - | ---- | -
|                                           |  | Billions of Yen |     
|                                           |  |                 |     
|                                           |  | Years Ended     |      |  |     
|                                           |  | March 31,       |      |  |     
|                                           |  |                 |      |  |     
|                                           |  | 2005            |      |  | 2004 |   |      | Change | 
|                                           |  |                 |      |  |      |   |      |        | 
|Gross profit                               |  | ¥               | 20.7 |  |      | ¥ | 20.0 |        |  | ¥ | 0.7  |  
|Operating income                           |  |                 | 2.4  |  |      |   | 3.0  |        |  |   | (0.6 | )
|Equity in earnings of associated companies |  |                 | 0.1  |  |      |   | 0.2  |        |  |   | (0.1 | )
|Net income                                 |  |                 | 2.9  |  |      |   | 0.7  |        |  |   | 2.2  |  









Other Overseas Areas Segment


|                                           |  |                 |       |  |      |  |       |        |  |  |      | 
|------------------------------------------ |  | --------------- | ----- |  | ---- |  | ----- | ------ |  |  | ---- | 
|                                           |  | Billions of Yen |      
|                                           |  |                 |      
|                                           |  | Years Ended     |       |  |     
|                                           |  | March 31,       |       |  |     
|                                           |  |                 |       |  |     
|                                           |  | 2005            |       |  | 2004 |  |       | Change | 
|                                           |  |                 |       |  |      |  |       |        | 
|Gross profit                               |  |                 | ¥25.8 |  |      |  | ¥24.1 |        |  |  | ¥1.7 | 
|Operating income                           |  |                 | 8.2   |  |      |  | 6.6   |        |  |  | 1.6  | 
|Equity in earnings of associated companies |  |                 | 0.5   |  |      |  | 0.4   |        |  |  | 0.1  | 
|Net income                                 |  |                 | 13.8  |  |      |  | 10.4  |        |  |  | 3.4  | 



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| |          
| | ---------
| | All Other

|                                                    |  |                 |       |   |      |  |       |        |  |  |      | 
|--------------------------------------------------- |  | --------------- | ----- | - | ---- |  | ----- | ------ |  |  | ---- | 
|                                                    |  | Billions of Yen |      
|                                                    |  |                 |      
|                                                    |  | Years Ended     |       |   |     
|                                                    |  | March 31,       |       |   |     
|                                                    |  |                 |       |   |     
|                                                    |  | 2005            |       |   | 2004 |  |       | Change | 
|                                                    |  |                 |       |   |      |  |       |        | 
|Gross profit                                        |  |                 | ¥12.3 |   |      |  | ¥10.4 |        |  |  | ¥1.9 | 
|Operating loss                                      |  |                 | (0.5  | ) |      |  | (1.9  | )      |  |  | 1.4  | 
|Equity in earnings (losses) of associated companies |  |                 | 0.4   |   |      |  | (0.1  | )      |  |  | 0.5  | 
|Net income                                          |  |                 | 4.4   |   |      |  | 1.9   |        |  |  | 2.5  | 











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Results of Operations for the Year Ended March 31,
2004


Metal Products & Minerals Segment


|                 |  |                 |       |  |      |  |       |        |  |  |      | 
|---------------- |  | --------------- | ----- |  | ---- |  | ----- | ------ |  |  | ---- | 
|                 |  | Billions of Yen |      
|                 |  |                 |      
|                 |  | Years Ended     |       |  |     
|                 |  | March 31,       |       |  |     
|                 |  |                 |       |  |     
|                 |  | 2004            |       |  | 2003 |  |       | Change | 
|                 |  |                 |       |  |      |  |       |        | 
|Gross profit     |  |                 | ¥77.0 |  |      |  | ¥71.5 |        |  |  | ¥5.5 | 
|Operating income |  |                 | 28.7  |  |      |  | 24.7  |        |  |  | 4.0  | 
|Net income       |  |                 | 24.2  |  |      |  | 16.1  |        |  |  | 8.1  | 















| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the iron and steel raw material operations, we sold shares of
    Caemi Mineração e Metalurgia S.A. in September 2003
    under a sales contract in March 2003 with CVRD, a Brazilian
    producer of iron ore and other minerals, and recognized a gain
    of ¥4.4 billion. At the same time, Mitsui acquired an
    18.24% voting share of the outstanding shares of Valepar S.A.
    (Brazil), a controlling shareholder of CVRD that owns a 52.3%
    voting share of CVRD. Due to the strong performance of CVRD, our
    equity in earnings of Valepar S.A. for the year ended
    March 31, 2004 was ¥2.5 billion; and
|
| |  | In the non-ferrous metal operations, equity in earnings of
    Compania Minera Dona Ines de Collahuasi SCM (Chile), a copper
    mine development company in Chile, rose to
    ¥1.9 billion as the global market price of copper
    increased from around the middle of the year ended
    March 31, 2004.                                                                                                                                                                                                                                                                                                                     

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Machinery, Electronics & Information
Segment


|                  |  |                 |        |  |      |  |        |        |  |  |       | 
|----------------- |  | --------------- | ------ |  | ---- |  | ------ | ------ |  |  | ----- | 
|                  |  | Billions of Yen |       
|                  |  |                 |       
|                  |  | Years Ended     |        |  |     
|                  |  | March 31,       |        |  |     
|                  |  |                 |        |  |     
|                  |  | 2004            |        |  | 2003 |  |        | Change | 
|                  |  |                 |        |  |      |  |        |        | 
|Gross profit      |  |                 | ¥128.7 |  |      |  | ¥121.1 |        |  |  | ¥ 7.6 | 
|Operating income  |  |                 | 29.4   |  |      |  | 14.1   |        |  |  | 15.3  | 
|Net income (loss) |  |                 | 5.9    |  |      |  | (9.2   | )      |  |  | 15.1  | 





| |   |                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the contribution of large-scale electrical machinery and plant
    projects, including a power plant in Malaysia and an oil
    refinery in Russia;                                                                                                                                                                                                                                           
|
| |  | in the information technology category, the increase at
    Mitsui & Associates Telepark Corporation (Japan), which
    changed its name to Telepark Corp in October 2004, by
    ¥3.0 billion reflected the introduction of new cell
    phone models which raised the sales volume and the contribution
    by newly acquired subsidiaries including Cablenet Saitama Co.,
    Ltd. (Japan).
|
| |  | higher gross profit at automobile sales companies and logistics
    and transportation companies in certain areas of the
    world; and                                                                                                                                                                                                                                                       
|
| |  | increased sales and lease operations for ocean transport vessels
    as market prices, including the price of used vessels, climbed,
    despite lower gains on sales of leased aircraft.                                                                                                                                                                                                     











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##### Table of Contents







| |   |                                                                                     
| | - | ------------------------------------------------------------------------------------
| |  | increasing sales volume of electric power at P.T. Paiton
    Energy (Indonesia); and
|
| |  | increased production and sales of automobile companies in Canada
    and Indonesia. 

Chemical Segment


|                  |  |                 |       |  |      |  |       |        |  |  |       | 
|----------------- |  | --------------- | ----- |  | ---- |  | ----- | ------ |  |  | ----- | 
|                  |  | Billions of Yen |      
|                  |  |                 |      
|                  |  | Years Ended     |       |  |     
|                  |  | March 31,       |       |  |     
|                  |  |                 |       |  |     
|                  |  | 2004            |       |  | 2003 |  |       | Change | 
|                  |  |                 |       |  |      |  |       |        | 
|Gross profit      |  |                 | ¥91.1 |  |      |  | ¥69.3 |        |  |  | ¥21.8 | 
|Operating income  |  |                 | 31.4  |  |      |  | 18.3  |        |  |  | 13.1  | 
|Net income (loss) |  |                 | 11.4  |  |      |  | (3.6  | )      |  |  | 15.0  | 













110



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Energy Segment


|                 |  |                 |       |  |      |  |       |        |  |  |      |  
|---------------- |  | --------------- | ----- |  | ---- |  | ----- | ------ |  |  | ---- | -
|                 |  | Billions of Yen |      
|                 |  |                 |      
|                 |  | Years Ended     |       |  |     
|                 |  | March 31,       |       |  |     
|                 |  |                 |       |  |     
|                 |  | 2004            |       |  | 2003 |  |       | Change | 
|                 |  |                 |       |  |      |  |       |        | 
|Gross profit     |  |                 | ¥54.6 |  |      |  | ¥53.8 |        |  |  | ¥0.8 |  
|Operating income |  |                 | 21.7  |  |      |  | 25.7  |        |  |  | (4.0 | )
|Net income       |  |                 | 24.4  |  |      |  | 23.0  |        |  |  | 1.4  |  











Consumer Products & Services Segment


|                 |  |                 |        |  |      |  |        |        |  |  |       | 
|---------------- |  | --------------- | ------ |  | ---- |  | ------ | ------ |  |  | ----- | 
|                 |  | Billions of Yen |       
|                 |  |                 |       
|                 |  | Year Ended      |        |  |     
|                 |  | March 31,       |        |  |     
|                 |  |                 |        |  |     
|                 |  | 2004            |        |  | 2003 |  |        | Change | 
|                 |  |                 |        |  |      |  |        |        | 
|Gross profit     |  |                 | ¥135.9 |  |      |  | ¥122.6 |        |  |  | ¥13.3 | 
|Operating income |  |                 | 23.3   |  |      |  | 21.2   |        |  |  | 2.1   | 
|Net income       |  |                 | 18.9   |  |      |  | 9.6    |        |  |  | 9.3   | 



111



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##### Table of Contents







| |   |                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the real estate operations after a strong performance for the
    year ended March 31, 2003 that was driven by the sales of
    condominiums in Japan and the sale of a large United States
    commercial facility by MBK Real Estate Ltd. (the United
    States); and
|
| |  | the general merchandise operations due to our lower trading
    transactions involved in sports and leisure activities for the
    year ended March 31, 2004.                                                                                                           





Logistics & Financial Markets Segment


|                 |  |                 |       |  |      |  |       |        |  |  |       |  
|---------------- |  | --------------- | ----- |  | ---- |  | ----- | ------ |  |  | ----- | -
|                 |  | Billions of Yen |      
|                 |  |                 |      
|                 |  | Years Ended     |       |  |     
|                 |  | March 31,       |       |  |     
|                 |  |                 |       |  |     
|                 |  | 2004            |       |  | 2003 |  |       | Change | 
|                 |  |                 |       |  |      |  |       |        | 
|Gross profit     |  |                 | ¥32.3 |  |      |  | ¥33.1 |        |  |  | ¥(0.8 | )
|Operating income |  |                 | 10.4  |  |      |  | 10.9  |        |  |  | (0.5  | )
|Net income       |  |                 | 4.8   |  |      |  | 4.7   |        |  |  | 0.1   |  







Americas Segment


|                 |  |                 |       |  |      |  |       |        |  |  |       |  
|---------------- |  | --------------- | ----- |  | ---- |  | ----- | ------ |  |  | ----- | -
|                 |  | Billions of Yen |      
|                 |  |                 |      
|                 |  | Years Ended     |       |  |     
|                 |  | March 31,       |       |  |     
|                 |  |                 |       |  |     
|                 |  | 2004            |       |  | 2003 |  |       | Change | 
|                 |  |                 |       |  |      |  |       |        | 
|Gross profit     |  |                 | ¥40.7 |  |      |  | ¥44.6 |        |  |  | ¥(3.9 | )
|Operating income |  |                 | 8.5   |  |      |  | 9.5   |        |  |  | (1.0  | )
|Net income       |  |                 | 0.2   |  |      |  | 3.3   |        |  |  | (3.1  | )



112



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Europe Segment


|                 |  |                 |       |  |      |  |       |        |  |  |       |  
|---------------- |  | --------------- | ----- |  | ---- |  | ----- | ------ |  |  | ----- | -
|                 |  | Billions of Yen |      
|                 |  |                 |      
|                 |  | Years Ended     |       |  |     
|                 |  | March 31,       |       |  |     
|                 |  |                 |       |  |     
|                 |  | 2004            |       |  | 2003 |  |       | Change | 
|                 |  |                 |       |  |      |  |       |        | 
|Gross profit     |  |                 | ¥20.0 |  |      |  | ¥22.5 |        |  |  | ¥(2.5 | )
|Operating income |  |                 | 3.0   |  |      |  | 4.2   |        |  |  | (1.2  | )
|Net income       |  |                 | 0.7   |  |      |  | 2.8   |        |  |  | (2.1  | )





Other Overseas Areas Segment


|                 |  |                 |       |  |      |  |       |        |  |   |      |  
|---------------- |  | --------------- | ----- |  | ---- |  | ----- | ------ |  | - | ---- | -
|                 |  | Billions of Yen |      
|                 |  |                 |      
|                 |  | Years Ended     |       |  |     
|                 |  | March 31,       |       |  |     
|                 |  |                 |       |  |     
|                 |  | 2004            |       |  | 2003 |  |       | Change | 
|                 |  |                 |       |  |      |  |       |        | 
|Gross profit     |  |                 | ¥24.1 |  |      |  | ¥23.5 |        |  | ¥ | 0.6  |  
|Operating income |  |                 | 6.6   |  |      |  | 7.6   |        |  |   | (1.0 | )
|Net income       |  |                 | 10.4  |  |      |  | 8.6   |        |  |   | 1.8  |  







| |          
| | ---------
| | All Other

|                        |  |                 |       |   |      |  |       |        |  |  |       |  
|----------------------- |  | --------------- | ----- | - | ---- |  | ----- | ------ |  |  | ----- | -
|                        |  | Billions of Yen |      
|                        |  |                 |      
|                        |  | Years Ended     |       |   |     
|                        |  | March 31,       |       |   |     
|                        |  |                 |       |   |     
|                        |  | 2004            |       |   | 2003 |  |       | Change | 
|                        |  |                 |       |   |      |  |       |        | 
|Gross profit            |  |                 | ¥10.4 |   |      |  | ¥10.6 |        |  |  | ¥(0.2 | )
|Operating income (loss) |  |                 | (1.9  | ) |      |  | (1.8  | )      |  |  | (0.1  | )
|Net income              |  |                 | 1.9   |   |      |  | 6.9   |        |  |  | (5.0  | )





113



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Inflation




Critical Accounting Policies and Estimates








| |                                
| | -------------------------------
| | Impairment of Long-Lived Assets



|                  |  |                 |        |  |      |  |        |      |  |  |        | 
|----------------- |  | --------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                  |  | Billions of Yen |       
|                  |  |                 |       
|                  |  | As of March 31, |       
|                  |  |                 |       
|                  |  | 2005            |        |  | 2004 |  |        | 2003 | 
|                  |  |                 |        |  |      |  |        |      | 
|Long-lived assets |  |                 | ¥845.9 |  |      |  | ¥829.5 |      |  |  | ¥835.3 | 
|Impairment loss   |  |                 | 21.5   |  |      |  | 21.2   |      |  |  | 23.9   | 





114



---



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| |                                   
| | ----------------------------------
| | Allowance for Doubtful Receivables









115



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| |                                    
| | -----------------------------------
| | Impairment of Investment Securities





|                                 |  |                       |       |            |      |   |      |      |            |   |       |  |  |            |      |  |      |   |       |  |  |   |      | 
|-------------------------------- |  | --------------------- | ----- | ---------- | ---- | - | ---- | ---- | ---------- | - | ----- |  |  | ---------- | ---- |  | ---- | - | ----- |  |  | - | ---- | 
|                                 |  | Billions of Yen       |      
|                                 |  |                       |      
|                                 |  | Years Ended March 31, |      
|                                 |  |                       |      
|                                 |  | 2005                  |       |            | 2004 |   |      | 2003 |           
|                                 |  |                       |       |            |      |   |      |      |           
|                                 |  |                       |       | Impairment |      |   |      |      | Impairment |   |       |  |  | Impairment |     
|                                 |  | Cost                  |       |            | Loss |   |      | Cost |            |   | Loss  |  |  | Cost       |      |  | Loss |  
|                                 |  |                       |       |            |      |   |      |      |            |   |       |  |  |            |      |  |      |  
|Marketable equity securities     |  | ¥                     | 191.0 |            |      | ¥ | 0.6  |      |            | ¥ | 178.6 |  |  | ¥          | 1.1  |  |      | ¥ | 140.5 |  |  | ¥ | 15.6 | 
|Non-marketable equity securities |  |                       | 214.1 |            |      |   | 15.9 |      |            |   | 216.6 |  |  |            | 29.7 |  |      |   | 234.0 |  |  |   | 22.3 | 
|                                 |  |                       |       |            |      |   |      |      |            |   |       |  |  |            |      |  |      |  
|Total                            |  | ¥                     | 405.1 |            |      | ¥ | 16.5 |      |            | ¥ | 395.2 |  |  | ¥          | 30.8 |  |      | ¥ | 374.5 |  |  | ¥ | 37.9 | 
|                                 |  |                       |       |            |      |   |      |      |            |   |       |  |  |            |      |  |      |  











116



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| |                      
| | ---------------------
| | Pension Benefit Costs











|                                                                                |  |                     |      |   |                  |  |       |  
|------------------------------------------------------------------------------- |  | ------------------- | ---- | - | ---------------- |  | ----- | -
|                                                                                |  | Billions of Yen     |     
|                                                                                |  |                     |     
|                                                                                |  | Impact of Change in |      |   |                 
|                                                                                |  | Assumption on       |      |   | Impact of Change | 
|                                                                                |  | NPPC for the Year   |      |   | in Assumption on | 
|                                                                                |  | Ending              |      |   | PBO as of        | 
|                                                                                |  | March 31, 2006      |      |   | March 31, 2005   | 
|                                                                                |  |                     |      |   |                  | 
|50 basis point decrease in discount rate                                        |  |                     | 1.8  |   |                  |  | 14.0  |  
|50 basis point increase in discount rate                                        |  |                     | (1.5 | ) |                  |  | (13.1 | )
|50 basis point decrease in expected long-term rate of return on
    plan assets |  |                     | 1.0  |   |                  |  |      |  
|50 basis point increase in expected long-term rate of return on
    plan assets |  |                     | (1.0 | ) |                  |  |      |  



117



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| |                    
| | -------------------
| | Tax Asset Valuation





| |               
| | --------------
| | First Category





| |                
| | ---------------
| | Second Category





| |               
| | --------------
| | Third Category





| |                
| | ---------------
| | Fourth Category







| |               
| | --------------
| | Fifth Category







118



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New Accounting Standards




| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | The Meaning of Other-than-Temporary Impairment and Its
    Application to Certain Investments









| |                
| | ---------------
| | Inventory Costs









| |                                
| | -------------------------------
| | Exchanges of Nonmonetary Assets









| |                    
| | -------------------
| | Share-Based Payment



119



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| |                                                                                     
| | ------------------------------------------------------------------------------------
| | Accounting for Stripping Costs Incurred During Production in
    the Mining Industry









| |                                         
| | ----------------------------------------
| | Conditional Asset Retirement Obligations










B.     Liquidity and Capital
Resources


Use of Non-GAAP Financial Measures






| |                         
| | ------------------------
| | Net Debt-to-Equity Ratio







| |   |                                                               
| | - | --------------------------------------------------------------
| |  | our capacity to meet debt repayments; and                     
|
| |  | leverage to improve return on equity in our capital structure.

120



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| |   |                                                      
| | - | -----------------------------------------------------
| |  | accounts payables, derivative liabilities and others;
|
| |  | capital lease obligations; and                       
|
| |  | SFAS No. 133 fair value adjustment.                  







|                                                     |                                                      |                 |         |        |      |   |         |        |  
|---------------------------------------------------- | ---------------------------------------------------- | --------------- | ------- | ------ | ---- | - | ------- | ------ | -
|                                                     |                                                      | Billions of Yen |        
|                                                     |                                                      |                 |        
|                                                     |                                                      | As of March 31, |        
|                                                     |                                                      |                 |        
|                                                     |                                                      | 2005            |         |        | 2004 |  
|                                                     |                                                      |                 |         |        |      |  
|Short-term debt                                      |                                                      | ¥               | 615.4   |        |      | ¥ | 646.7   |       
|Long-term debt                                       |                                                      |                 | 3,196.9 |        |      |   | 2,898.9 |       
|Less eliminating factors included in long-term debt: |                                                      |                 |         |        |      |   |         |       
|                                                     | Accounts payables, derivative liabilities and others |                 |         | (193.0 | )    |   |         | (147.6 | )
|                                                     | Capital lease obligations                            |                 |         | (21.3  | )    |   |         | (19.2  | )
|Less SFAS No. 133 fair value adjustment              |                                                      |                 | (58.2   | )      |      |   | (43.2   | )     
|                                                     |                                                      |                 |         |        |      |  
|Adjusted interest bearing debt                       |                                                      |                 | 3,539.8 |        |      |   | 3,335.6 |       
|Less cash and cash equivalents and time deposits     |                                                      |                 | (819.9  | )      |      |   | (685.0  | )     
|                                                     |                                                      |                 |         |        |      |  
|Net interest bearing debt                            |                                                      | ¥               | 2,719.9 |        |      | ¥ | 2,650.6 |       
|                                                     |                                                      |                 |         |        |      |  
|Shareholders equity                                 |                                                      | ¥               | 1,122.8 |        |      | ¥ | 963.3   |       
|                                                     |                                                      |                 |         |        |      |  
|Net DER (times)                                      |                                                      |                 | 2.42    |        |      |   | 2.75    |       
|                                                     |                                                      |                 |         |        |      |  



|                     |  |  |      |  |  |  |      | 
|-------------------- |  |  | ---- |  |  |  | ---- | 
|Adjusted DER (times) |  |  | 3.15 |  |  |  | 3.46 | 





| |               
| | --------------
| | Free Cash Flow



121



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|                                          |  |                 |        |   |      |   |        |      |  |   |      |  
|----------------------------------------- |  | --------------- | ------ | - | ---- | - | ------ | ---- |  | - | ---- | -
|                                          |  | Billions of Yen |       
|                                          |  |                 |       
|                                          |  | As of March 31, |       
|                                          |  |                 |       
|                                          |  | 2005            |        |   | 2004 |   |        | 2003 | 
|                                          |  |                 |        |   |      |   |        |      | 
|Net cash provided by operating activities |  | ¥               | 200.1  |   |      | ¥ | 100.1  |      |  | ¥ | 52.1 |  
|Net cash used in investing activities     |  |                 | (224.0 | ) |      |   | (134.2 | )    |  |   | (4.2 | )
|                                          |  |                 |        |   |      |   |        |      | 
|Free Cash Flow                            |  | ¥               | (23.9  | ) |      | ¥ | (34.1  | )    |  | ¥ | 47.9 |  
|                                          |  |                 |        |   |      |   |        |      | 

Finance and Liquidity Management




| |                                             
| | --------------------------------------------
| | Funding and Treasury Policies and Objectives







| |                
| | ---------------
| | Funding Sources







122



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| |               
| | --------------
| | Credit Ratings



|                |  |     |      |  |         |  |     |     |  |  |     |  
|--------------- |  | --- | ---- |  | ------- |  | --- | --- |  |  | --- | -
|                |  | R&I |      |  | Moodys |  |     | S&P | 
|                |  |     |      |  |         |  |     |     | 
|Short-term debt |  |     | a-1+ |  |         |  | P-1 |     |  |  | A-2 |  
|Long-term debt  |  |     | AA-  |  |         |  | A2  |     |  |  | A-  | *






|  |                                                                                 
|- | --------------------------------------------------------------------------------
|* | The credit rating by S&P on long-term debt was provided
    without our request.





| |   |                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the gradually improving financial profiles on the Japanese
    general trading companies, with evidence of an upswing in
    operating income and equity in earnings of associated companies
    supported by the progress in restructuring unprofitable
    businesses, and sound performance in their trading of energy and
    metal businesses;
|
| |  | the reduction in the risk from investments and loans, due to
    proper management of the risks involved in investments and
    loans, with the resulting improvement in the risk balance
    between shareholders equity and investments and loans; and                                                                                          
|
| |  | the continuation of our strategy to strengthen our profitability
    after credit costs.                                                                                                                                                                                                                                                           



Credit ratings are an assessment by the rating agencies of
the credit risks associated with us and are based on information
provided by us and other sources that the rating agencies
consider reliable. Lower ratings generally result in higher
borrowing costs and reduced access to capital markets. Credit
ratings do not constitute a recommendation to buy, sell or hold
securities and are subject to change or withdrawal by each of
rating agencies at any time. As rating agencies may have
different criteria in evaluating the risk


123



---



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associated with a company, you should evaluate each rating
independently of other ratings. Ratings may be changed without
pre-notice at any time.




| |                     
| | --------------------
| | Liquidity Management























124



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| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | Investment Plans and Financial Policies of the Current
    Medium-Term Strategic and Financial Plan

















Non-Exchange Traded Commodity Contracts at Fair
Value




Transactions With Related Parties




125



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Assets, Liabilities and Shareholders Equity






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Cash and cash equivalents increased by ¥153.5 billion
    from the year ended March 31, 2004, mainly derived from our
    long-term borrowings and issuance of bonds.                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | As a result of increased business transactions and rising prices
    in various markets, accounts receivables and inventories
    increased by ¥156.9 billion and by
    ¥83.9 billion, respectively, mainly at subsidiaries in
    the Energy Segment, the Metal Products & Minerals
    Segment, and the Americas Segment. As a result of an increase in
    the derivative assets of Mitsui & Co. Energy Risk
    Management Ltd. (United Kingdom) and other subsidiaries in the
    Logistics & Financial Markets Segment, other current
    assets increased by ¥74.1 billion.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In addition to a ¥178.3 billion increase in accounts
    payables corresponding to the above-mentioned increase in
    accounts receivables, the increase in derivative liabilities of
    Mitsui & Co. Energy Risk Management Ltd. and others led
    to a ¥92.1 billion increase in other current
    liabilities, corresponding to the above-mentioned increase in
    the derivative assets.
|
| |  | On the other hand, short-term debts declined by
    ¥31.4 billion, mainly due to the redemption of
    Mitsuis commercial papers. Similarly, there was a decline
    of ¥65.7 billion in current maturities of long-term
    debt through repayments by Mitsui on the due date.                                                                                                                



126



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Investments in and advances to associated companies increased
    due to our investment in the preferred stock of Sakhalin Energy
    Investment Company Ltd. (Bermuda) of ¥82.4 billion and
    through our investment in IPM Eagle LLP (United Kingdom) of
    ¥63.4 billion that purchased Edison Mission
    Energys overseas power plant business portfolio. In
    addition, there was an ¥84.2 billion increase due to
    the increase in our equity in earnings of associated companies
    for the year ended March 31, 2005 and a
    ¥28.1 billion increase reflecting an increase in
    unrealized holding gains on available-for-sale securities in
    relation to the investment in INPEX CORPORATION
    (INPEX) owned by our associated company Mitsui Oil
    Exploration Co., Ltd. (Japan) following INPEXs initial
    public offering.
|
| |  | Other investments increased due to the increase in unrealized
    holding gains on available-for-sale securities of
    ¥23.7 billion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           







Cash Flows


|                                                             |  |                       |        |   |      |   |        |      |  |   |       |  
|------------------------------------------------------------ |  | --------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ----- | -
|                                                             |  | Billions of Yen       |       
|                                                             |  |                       |       
|                                                             |  | Years Ended March 31, |       
|                                                             |  |                       |       
|                                                             |  | 2005                  |        |   | 2004 |   |        | 2003 | 
|                                                             |  |                       |        |   |      |   |        |      | 
|Net cash provided by operating activities                    |  | ¥                     | 200.1  |   |      | ¥ | 100.1  |      |  | ¥ | 52.1  |  
|Net cash used in investing activities                        |  |                       | (224.0 | ) |      |   | (134.2 | )    |  |   | (4.2  | )
|Net cash provided (used in) by financing activities          |  |                       | 171.3  |   |      |   | (12.2  | )    |  |   | 17.8  |  
|Effect of exchange rate changes on cash and cash equivalents |  |                       | 6.1    |   |      |   | (10.2  | )    |  |   | (4.5  | )
|Net increase (decrease) in cash and cash equivalents         |  |                       | 153.5  |   |      |   | (56.5  | )    |  |   | 61.2  |  
|Cash and cash equivalents at beginning of year               |  |                       | 638.3  |   |      |   | 694.8  |      |  |   | 633.6 |  
|Cash and cash equivalents at end of year                     |  |                       | 791.8  |   |      |   | 638.3  |      |  |   | 694.8 |  

127



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| |                                                    
| | ---------------------------------------------------
| | Cash Flows during the Year Ended March 31,
    2005



| |                                     
| | ------------------------------------
| | Cash Flows from Operating Activities





| |   |                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Operating income which increased steadily in the Metal
    Products & Minerals Segment, Energy Segment, and other
    segments                                                                                                                                                                                                                         
|
| |  | Dividends received from associated companies as well as our
    investment in third parties amounting to
    ¥53.6 billion, mainly from investments in our mineral
    resource and energy related associated companies such as Japan
    Australia LNG (MIMI) Pty. Ltd. (Australia), Valepar S.A.
    (Brazil), and other Middle Eastern LNG companies
|
| |  | Total payments, in relation to contributions to our defined
    benefit pension plan and payments under unfunded severance
    indemnities plans amounting to ¥30.9 billion                                                                                                                                                                            
|
| |  | A one-time payment of ¥8.1 billion for compensation
    and other charges related to DPF incident                                                                                                                                                                                                                                                      
|
| |  | Payments of ¥56.9 billion for corporate income taxes                                                                                                                                                                                                                                                                                                   





| |   |                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Operating income which increased by ¥71.2 billion in
    total, and by operating segment mainly attributable to a
    ¥39.4 billion increase in the Metal
    Products & Minerals Segment and a
    ¥13.8 billion increase at the Energy Segment.
|
| |  | Dividends received from associated companies as well as our
    investments in third parties showed further increase.                                                                                                                            



| |                                     
| | ------------------------------------
| | Cash Flows from Investing Activities





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A total of ¥190.4 billion was paid for investments in
    and advances to associated companies. This included
    ¥80.7 billion* investment in preferred stock of
    Sakhalin Energy Investment Company Ltd. (Bermuda) and an
    investment of ¥62.2 billion* in IPM Eagle LLP (United
    Kingdom) that purchased Edison Mission Energys overseas
    power generation business portfolio. Deduction of a
    ¥52.7 billion proceeds from sales of investments in
    and collection of advances to associated companies resulted in a
    net cash outflow of ¥137.7 billion.
|
| |  | A total of ¥68.5 billion was used on acquisition of
    debt securities for fund management purposes, mainly by Mitsui
    and its financing subsidiaries, and ¥59.8 billion was
    obtained as proceeds from maturities of debt securities. While
    ¥14.5 billion was provided by the sale of shares in
    Vodafone K.K., ¥8.9 billion was used in the purchase
    of shares in CornerStone Research & Development, Inc.
    (the United States).                                                                                                                           





| |   |                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Payments of ¥64.4 billion* for the acquisition of
    mineral rights and other fixed assets in the Enfield crude oil
    project in Western Australia
|
| |  | Payments of ¥17.2 billion for the acquisition of
    facilities for the development of iron ore and coal                                             










128



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| |   |                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Payments of ¥16.0 billion for purchasing rolling stock
    and ocean vessels for lease, and proceeds of
    ¥17.0 billion from the sale of aircraft, rolling stock
    and ocean vessels for lease
|
| |  | A proceed of ¥10.8 billion from the sale of our office
    building in the United Kingdom                                                                                                         
|
| |  | Proceeds of ¥12.8 billion from the sale of
    Mitsuis corporate residences and dormitories                                                                                                      





| |                                     
| | ------------------------------------
| | Cash Flows from Financing Activities





| |   |                                                                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | An increase in long-term and short-term debt of
    ¥183.8 billion, mainly consisting of the increased
    long-term borrowings and issuance of long-term bonds by Mitsui,
    Mitsui & Co. (U.S.A.) Inc. and other trading
    subsidiaries. Of this amount, ¥141.2 billion was
    procured by Mitsui.                                                       
|
| |  | In response to increasing demand for funds for our investments
    and acquisition of fixed assets, we increased our level of
    long-term fund procurement, taking advantage of a favorable
    financial market environment. As a result, that our long-term
    debt increased by ¥120.7 billion in long-term
    borrowings and by ¥55.0 billion in bonds.
|
| |  | Other major cash flows from financing activities included a
    ¥2.6 billion proceed from the issuance of stock of
    Telepark Corp. (Japan), and payments of ¥14.2 billion
    for cash dividends.                                                                                                                                                           





| |                                             
| | --------------------------------------------
| | Cash and Cash Equivalents at End of the Year





| |                                                                       
| | ----------------------------------------------------------------------
| | Cash Flows in the Current Medium-Term Strategic and
    Financial Plan





| |   |                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our analysis of the trends in mineral resource and energy prices
    and their expected influence on our operating results for the
    year ending March 31, 2006 suggests that rising resource
    and energy prices will continue to support growth in net income
    and operating cash flows in the year ending March 2006.
|
| |  | Many investments in our current Medium-Term Strategic and
    Financial Plan ending March 2006 will be made in the fields of
    mineral resources and energy. It will take a long time to begin
    generating cash inflow from those investments.                                                                            

129



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| |                                                    
| | ---------------------------------------------------
| | Cash Flows during the Year Ended March 31,
    2004



| |                                     
| | ------------------------------------
| | Cash Flows from Operating Activities





| |   |                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | operating income in almost all segments, especially in the Metal
    Products & Minerals Segment and the Chemical Segment;
    and                                                    
|
| |  | dividends from associated companies and unrelated investees,
    particularly those operating in the natural resources business
    (e.g., iron and steel raw materials, oil and gas).







| |   |                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------
| |  | ¥21.9 billion higher operating income; and                                                                 
|
| |  | ¥25.9 billion decline in contributions to defined
    benefit plans from ¥26.0 billion to
    ¥0.1 billion.





| |                                     
| | ------------------------------------
| | Cash Flows from Investing Activities





| |   |                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------
| |  | ¥124.8 billion cash inflow from proceeds from
    maturities of debt securities held by financing subsidiaries;       
|
| |  | proceeds of ¥49.8 billion from the sale of investments
    in Caemi Mineração e Metalurgia S.A. (Brazil);             
|
| |  | payment of ¥97.1 billion for investment in Valepar
    S.A. (Brazil); and                                             
|
| |  | payment of ¥56.7 billion for the purchase of preferred
    stock of Sakhalin Energy Investment Company Ltd. (Bermuda).





| |   |                                                                                  
| | - | ---------------------------------------------------------------------------------
| |  | purchases of mining facilities in the Metal Products &
    Minerals Segment;     
|
| |  | purchases of aircraft, rolling stock and ocean transport vessels
    for leasing;
|
| |  | proceeds from sales of leased aircraft and ocean transport
    vessels; and      
|
| |  | proceeds from sales of Mitsuis residences and dormitories.                      





| |                                     
| | ------------------------------------
| | Cash Flows from Financing Activities



130



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| |   |                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | there was an increase in borrowings at the above-mentioned
    financing subsidiary in Japan to finance early repayments of
    Mitsuis trade payables during the year ended
    March 31, 2003; and
|
| |  | Mitsui and the domestic financial subsidiary increased the
    repayments of short-term debt.                                                                                                        



| |                                         
| | ----------------------------------------
| | Cash and Cash Equivalents at End of Year






C.     Research &
Development














131



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##### Table of Contents












D.     Trend Information







E.     Off-Balance Sheet
Arrangements






| |           
| | ----------
| | Guarantees





|                        |  |                    |     |  |             |   |    |             |  |   |   | 
|----------------------- |  | ------------------ | --- |  | ----------- | - | -- | ----------- |  | - | - | 
|                        |  | Billions of Yen    |    
|                        |  |                    |    
|                        |  | Maximum            |     |  | Recourse    |   |    | Carrying    | 
|                        |  | Potential Amount   |     |  | Provisions/ |   |    | Amount of   | 
|As of March 31, 2005:   |  | of Future Payments |     |  | Collateral  |   |    | Liabilities | 
|                        |  |                    |     |  |             |   |    |             | 
|Financial Guarantees    |  | ¥                  | 194 |  |             | ¥ | 31 |             |  | ¥ | 3 | 
|Performance Guarantees  |  |                    | 33  |  |             |   | 6  |             |  |   | 0 | 
|Market Value Guarantees |  |                    | 73  |  |             |   | 42 |             |  |   |  | 

|                        |  |                    |     |  |             |   |    |             |  |   |   | 
|----------------------- |  | ------------------ | --- |  | ----------- | - | -- | ----------- |  | - | - | 
|                        |  | Billions of Yen    |    
|                        |  |                    |    
|                        |  | Maximum            |     |  | Recourse    |   |    | Carrying    | 
|                        |  | Potential Amount   |     |  | Provisions/ |   |    | Amount of   | 
|As of March 31, 2004:   |  | of Future Payments |     |  | Collateral  |   |    | Liabilities | 
|                        |  |                    |     |  |             |   |    |             | 
|Financial Guarantees    |  | ¥                  | 258 |  |             | ¥ | 41 |             |  | ¥ | 6 | 
|Performance Guarantees  |  |                    | 37  |  |             |   | 6  |             |  |   | 0 | 
|Market Value Guarantees |  |                    | 62  |  |             |   | 36 |             |  |   |  | 

132



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| |                           
| | --------------------------
| | Sales of Trade Receivables





| |                           
| | --------------------------
| | Variable Interest Entities





| |                                 
| | --------------------------------
| | Commitments on Deferred Payments






F.     Tabular Disclosure of
Contractual Obligations




|                          |       |                 |       |                       |            |   |       |            |  |   |            |       |  |            |     |     |  |   |       |       | 
|------------------------- | ----- | --------------- | ----- | --------------------- | ---------- | - | ----- | ---------- |  | - | ---------- | ----- |  | ---------- | --- | --- |  | - | ----- | ----- | 
|                          |       | Billions of Yen |      
|                          |       |                 |      
|                          |       |                 |       | Payment Due by Period |           
|                          |       |                 |       |                       |           
|                          |       | Balance as of   |       |                       |            |   | After |           
|Contractual Obligations   |       | March 31, 2005  |       |                       | March 2006 |   |       | March 2008 |  |   | March 2010 |       |  | March 2010 |    
|                          |       |                 |       |                       |            |   |       |            |  |   |            |       |  |            |    
|Long-Term Debt            |       | ¥               | 3,118 |                       |            | ¥ | 255   |            |  | ¥ | 704        |       |  | ¥          | 664 |     |  | ¥ | 1,495 |      
|Capital Lease Obligations |       |                 | 23    |                       |            |   | 6     |            |  |   | 8          |       |  |            | 2   |     |  |   | 7     |      
|Operating Leases          |       |                 | 105   |                       |            |   | 22    |            |  |   | 29         |       |  |            | 19  |     |  |   | 35    |      
|Purchase Obligations      |       |                 | 2,317 |                       |            |   | 774   |            |  |   | 803        |       |  |            | 305 |     |  |   | 435   |      
|                          |       |                 |       |                       |            |   |       |            |  |   |            |       |  |            |    
|                          | Total |                 | ¥     | 5,563                 |            |   | ¥     | 1,057      |  |   | ¥          | 1,544 |  |            | ¥   | 990 |  |   | ¥     | 1,972 | 
|                          |       |                 |       |                       |            |   |       |            |  |   |            |       |  |            |    



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|        |                                            
|------- | -------------------------------------------
|Item 6. | Directors, Senior Management and Employees.






|   |                                 
|-- | --------------------------------
|A. | Directors and Senior Management.













| |                                                         
| | --------------------------------------------------------
| | Directors, Corporate Auditors and Executive
    Officers



Directors


|                  |  |                      
|----------------- |  | ---------------------
|Name              |  | Position             
|                  |  |                      
|Nobuo Ohashi      |  | Chairman and Director
|Shoei Utsuda      |  | Executive Director   
|Tetsuya Matsuoka  |  | Executive Director   
|Masataka Suzuki   |  | Executive Director   
|Gempachiro Aihara |  | Executive Director   
|Yushi Nagata      |  | Executive Director   
|Hiroshi Tada      |  | Executive Director   
|Yasunori Yokote   |  | Executive Director   

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|                      |  |                                                                                                         
|--------------------- |  | --------------------------------------------------------------------------------------------------------
|Name                  |  | Position                                                                                                
|                      |  |                                                                                                         
|Kazuya Imai           |  | Executive Director                                                                                      
|Akishige
    Okada(1) |  | Director; Advisor, Sumitomo Mitsui Banking Corporation                                                  
|Akira
    Chihaya(1)  |  | Director; Representative Director and Chairman of the Board of
    Directors of Nippon Steel Corporation






|    |                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Mr. Akishige Okada and Mr. Akira Chihaya are external
    directors as provided for in Item 7-2, Clause 2,
    Article 188 of the Commercial Code of Japan. See
    Item 6.C. Board Practices.

Corporate
Auditors


|                         |  |                                                                                              
|------------------------ |  | ---------------------------------------------------------------------------------------------
|Name                     |  | Position                                                                                     
|                         |  |                                                                                              
|Tasuku
    Kondo(2)      |  | Corporate Auditor                                                                            
|Hiroshi
    Matsuura(2)  |  | Corporate Auditor                                                                            
|Ko
    Matsukata(3)      |  | Corporate Auditor, Senior Consultant, Mitsui Sumitomo Marine and
    Fire Insurance Co., Ltd.
|Yasutaka
    Okamura(3)  |  | Corporate Auditor, Member of the Japan Federation of Bar
    Associations.                   
|Hideharu
    Kadowaki(3) |  | Corporate Auditor, Chairman of the Institute, The Japan Research
    Institute, Limited      






|    |                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Mr. Tasuku Kondo and Mr. Hiroshi Matsuura are
    Corporate Auditors of full-time service as provided for in
    Clause 2, Article 18, of the Law Concerning
    Special Measures under the Commercial Code with Respect to
    Audit, etc. of Corporations of Japan.
|   
|(3) | Mr. Ko Matsukata, Mr. Yasutaka Okamura and
    Mr. Hideharu Kadowaki are external Corporate Auditors as
    provided for in Clause 1, Article 18 of the
    aforementioned law.                                                                                        

Executive Officers


|                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|----------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name              |  | Title and Principal Position                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Shoei Utsuda      |  | President and Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Yasuo Hayashi     |  | Executive Vice President; Managing Director, Mitsui &
    Co. Europe PLC                                                                                                                                                                                                                                                                                                                                                                                                    
|Tetsuya Matsuoka  |  | Executive Vice President; Power, Transportation & Plant
    Projects Business Unit; Machinery Business Unit; Information,
    Electronics and Telecommunication Business Unit; Financial
    Markets Business Unit; Transportation Logistics Business Unit                                                                                                                                                                                                                  
|Masataka Suzuki   |  | Executive Vice President; Organic Chemicals Business Unit;
    Plastics & Inorganic Chemicals Business Unit;
    Foods & Retail Business Unit; Lifestyle Business Unit;
    Consumer Service Business Unit                                                                                                                                                                                                                                                                  
|Gempachiro Aihara |  | Senior Executive Managing Officer, Regional Managing Director,
    Asia; DPF Matters                                                                                                                                                                                                                                                                                                                                                                                        
|Yushi Nagata      |  | Senior Executive Managing Officer; Corporate Staff Division
    (Information Strategic Planning Division, Corporate Planning and
    Strategy Division, Corporate Administrative Division, Corporate
    Communications Division, Investor Relations Division); Overall
    Administrative Divisions of Business Units; New Business
    Promotion; Chief Operating Officer, Business Process
    Re-Engineering Project Headquarters; Director, Mitsui &
    Co. Europe PLC
|Hiroshi Tada      |  | Senior Executive Managing Officer; Iron & Steel
    Products Business Unit; Iron & Steel Raw Materials and
    Non-Ferrous Metals Business Unit; Energy Business Unit                                                                                                                                                                                                                                                                                                       

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|                   |  |                                                                                                                                                                                                                                                                                                                                                                   
|------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name               |  | Title and Principal Position                                                                                                                                                                                                                                                                                                                                      
|                   |  |                                                                                                                                                                                                                                                                                                                                                                   
|Yasunori Yokote    |  | Senior Executive Managing Officer; Corporate Staff Division
    (Secretariat, Compliance & Operational Control
    Division, Human Resources & General Affairs Division,
    Legal Division); Chief Compliance Officer; Chief Privacy
    Officer; Environmental Matters; Deputy Chief Operating Officer,
    Business Process Re-Engineering Project Headquarters
|Kazuya Imai        |  | Senior Executive Managing Officer; Chief Financial Officer;
    Deputy Chief Operating Officer, Business Process Re-Engineering
    Project Headquarters; Director, Mitsui & Co.(U.S.A),
    Inc.                                                                                                                                                                 
|Toshihiro Soejima  |  | Senior Executive Managing Officer; Chief Representative of
    Mitsui & Co., Ltd. in China                                                                                                                                                                                                                                                                        
|Motokazu Yoshida   |  | Executive Managing Officer; Chairman for the Americas                                                                                                                                                                                                                                                                                                             
|Yoshiyuki Izawa    |  | Executive Managing Officer; General Manager, Osaka Office                                                                                                                                                                                                                                                                                                         
|Osamu Mori         |  | Executive Managing Officer; Chief Operating Officer, Financial
    Markets Business Unit                                                                                                                                                                                                                                                                          
|Satoru Miura       |  | Executive Managing Officer; General Manager, Nagoya Office                                                                                                                                                                                                                                                                                                        
|Masayoshi Sato     |  | Executive Managing Officer; Chief Operating Officer,
    Foods & Retail Business Unit                                                                                                                                                                                                                                                                             
|Ken Abe            |  | Executive Managing Officer; Chief Operating Officer,
    Iron & Steel Raw Materials and Non-Ferrous Metals
    Business Unit                                                                                                                                                                                                                                      
|Takao Sunami       |  | Executive Managing Officer; Chief Operating Officer, Machinery
    Business Unit                                                                                                                                                                                                                                                                                  
|Junichi Matsumoto  |  | Executive Managing Officer; Chief Operating Officer,
    Transportation Logistics Business Unit                                                                                                                                                                                                                                                                   
|Shunichi Miyazaki  |  | Executive Managing Officer; General Manager, Internal Auditing
    Division                                                                                                                                                                                                                                                                                       
|Hiroshi Ito        |  | Executive Managing Officer; Chief Operating Officer, Consumer
    Service Business Unit                                                                                                                                                                                                                                                                           
|Takeshi Ohyama     |  | Managing Officer; General Representative of Mitsui &
    Co., Ltd. in Indonesia                                                                                                                                                                                                                                                                                   
|Shinjiro Ogawa     |  | Managing Officer; Chief Operating Officer, Information,
    Electronics and Telecommunication Business Unit                                                                                                                                                                                                                                                       
|Toshimasa Furukawa |  | Managing Officer; Chief Operating Officer, Power,
    Transportation & Plant Projects Business Unit                                                                                                                                                                                                                                                               
|Akio Ikeda         |  | Managing Officer; Chairman & Managing Director,
    Mitsui & Co. (Australia) Ltd.                                                                                                                                                                                                                                                                                 
|Jitsuro Terashima  |  | Managing Officer; President, Mitsui Global Strategic Studies
    Institute                                                                                                                                                                                                                                                                                        
|Motonori Murakami  |  | Managing Officer; General Manager, General Accounting &
    Risk Management Division                                                                                                                                                                                                                                                                              
|Kyoichi Endo       |  | Managing Officer; Managing Director, Mitsui & Co. UK PLC                                                                                                                                                                                                                                                                                                          
|Toshio Awata       |  | Managing Officer; General Manager, Information Strategic
    Planning Division; Chief Information Officer                                                                                                                                                                                                                                                         
|Koji Nakamura      |  | Managing Officer; Chief Operating Officer, Plastics &
    Inorganic Chemicals Business Unit                                                                                                                                                                                                                                                                       
|Toru Kitamura      |  | Managing Officer; Chief Operating Officer, Lifestyle Business
    Unit                                                                                                                                                                                                                                                                                            
|Kenichi Yamamoto   |  | Managing Officer; General Manager, Human Resources &
    General Affairs Division                                                                                                                                                                                                                                                                                 
|Masaaki Murakami   |  | Managing Officer; President, Mitsui & Co.(CANADA) Ltd.                                                                                                                                                                                                                                                                                                            

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|                  |  |                                                                                   
|----------------- |  | ----------------------------------------------------------------------------------
|Name              |  | Title and Principal Position                                                      
|                  |  |                                                                                   
|Kiyotaka Watanabe |  | Managing Officer; Chief Operating Officer, Iron & Steel
    Products Business Unit
|Masaaki Fujita    |  | Managing Officer; Deputy Chief Operating Officer,
    Foods & Retail Business Unit
|Junichi Mizonoue  |  | Managing Officer; Chief Operating Officer, Organic Chemicals
    Business Unit    
|Takao Omae        |  | Managing Officer; President, Mitsui Brasileira
    Importação e Exportação S.A.   
|Norinao Iio       |  | Managing Officer; Chief Operating Officer, Energy Business Unit                   
|Osamu Koyama      |  | Managing Officer; Executive Vice President, Mitsui &
    Co. (U.S.A), Inc.        



|                 |  |                                                                                        |  |                                                                                                                                   
|---------------- |  | -------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------
|Directors        |  |                                                                                       
|Name             |  | Nobuo Ohashi                                                                          
|Date of Birth    |  | September 13, 1938                                                                    
|Current Position |  | Chairman and Director (since April 1, 2004)                                           
|Prior Positions  |  |  1994                                                                                 |  | A member of Board of Directors (Director, General Manager of
    Seoul Office)                                                    
|                 |  |  1996                                                                                 |  | Director, Chief Operating Officer of Foods Unit                                                                                   
|                 |  |  1997                                                                                 |  | Executive Managing Director, Chief Operating Officer of Foods
    Unit                                                            
|                 |  |  1998                                                                                 |  | Executive Managing Director, General Manager of Corporate
    Planning Division                                                   
|                 |  |  1999                                                                                 |  | Senior Executive Managing Director, General Manager of Corporate
    Planning Division                                            
|                 |  |  2000                                                                                 |  | Executive Vice President                                                                                                          
|                 |  |  2002 /4                                                                              |  | Executive Vice President, President of Consumer
    Products & Services Group                                                     
|                 |  |  2002/10                                                                              |  | Chairman and Executive Director                                                                                                   
|                
|Name             |  | Shoei Utsuda                                                                          
|Date of Birth    |  | February 12, 1943                                                                     
|Current Position |  | President and Chief Executive Officer , Executive Director
    (since October 1, 2002)
|Prior Positions  |  |  1997                                                                                 |  | A member of Board of Directors (Director, General Manager of
    Machinery, Electronics & Information Administrative
    Division)
|                 |  |  1998                                                                                 |  | Director, Chief Operating Officer of Information Business Unit                                                                    
|                 |  |  2000                                                                                 |  | Executive Managing Director, General Manager of Corporate
    Planning Division                                                   
|                 |  |  2002/4                                                                               |  | Senior Executive Managing Officer, Chief Strategic Officer,
    Responsible for Administration Division                           

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|                 |  |                                                                                                                     |  |                                                                                                                                                                                         
|---------------- |  | ------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name             |  | Tetsuya Matsuoka                                                                                                   
|Date of Birth    |  | January 5, 1945                                                                                                    
|Current Position |  | Executive Vice President , Executive Director (since
    April 1, 2005)                                            
|Prior Positions  |  |  1998                                                                                                              |  | A member of Board of Directors (Director, General Manager of
    Metals Administrative Division)                                                                                        
|                 |  |  1999                                                                                                              |  | Director, Chief Operating Officer of Non-Ferrous Metals Unit                                                                                                                            
|                 |  |  2001                                                                                                              |  | Executive Managing Director, Managing Director of
    Mitsui & Co. Europe PLC, Managing Director of
    Mitsui & Co. UK PLC and Chairman of Mitsui &
    Co. International (Europe) B.V.
|                 |  |  2002                                                                                                              |  | Senior Executive Managing Officer & Chief Strategic
    Officer, Responsible for Administration Division                                                                                
|                 |  |  2003                                                                                                              |  | Executive Director, Senior Executive Managing Officer and Chief
    Operating Officer of Business Process Re-Engineering Project
    Headquarters                                       
|                 |  |  2004                                                                                                              |  | Senior Executive Managing Officer                                                                                                                                                       
|                
|Name             |  | Masataka Suzuki                                                                                                    
|Date of Birth    |  | April 2, 1944                                                                                                      
|                 |  | Executive Vice President , Executive Director (since
    April 1,                                                  
|Current Position |  | 2005)                                                                                                               |  |                                                                                                                                                                                         
|Prior Positions  |  |  1999                                                                                                              |  | A member of Board of Directors (Director, Chief Operating
    Officer of Textile & Fashion Unit)                                                                                        
|                 |  |  2002/4                                                                                                            |  | Executive Managing Officer, Chief Operating Officer of
    Textile & Fashion Unit, Consumer Products &
    Services Group                                                               
|                 |  |  2002/10                                                                                                           |  | Executive Managing Officer, President of Consumer
    Products & Services Group                                                                                                         
|                 |  |  2003                                                                                                              |  | Executive Director, Senior Executive Managing Officer                                                                                                                                   
|                
|Name             |  | Gempachiro Aihara                                                                                                  
|Date of Birth    |  | October 3, 1943                                                                                                    
|Current Position |  | Senior Executive Managing Officer, Regional Managing Director,
    Asia; Executive Director (since October 1, 2004)
|Prior Positions  |  |  2000                                                                                                              |  | A member of Board of Directors (Director, Chief Operating
    Officer of Performance Chemicals Unit)                                                                                    
|                 |  |  2002/4                                                                                                            |  | Executive Managing Officer, General Representative of
    Mitsui & Co., Ltd. in China                                                                                                   
|                 |  |  2004 /6                                                                                                           |  | Executive Director, Senior Executive Managing Officer                                                                                                                                   

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|                 |  |                                                                                                                                                                                                                                                        |  |                                                                                                                                                       
|---------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------
|Name             |  | Yushi Nagata                                                                                                                                                                                                                                          
|Date of Birth    |  | August 30, 1946                                                                                                                                                                                                                                       
|Current Position |  | Senior Executive Managing Officer, Chief Operating Officer of
    Business Process Re-Engineering Project Headquarters ; Executive
    Director (since June 24, 2004)                                                                                 
|Prior Positions  |  |  2000                                                                                                                                                                                                                                                 |  | A member of Board of Directors (Director, Chief Operating
    Officer of Plant & Project Business Unit)                                               
|                 |  |  2001                                                                                                                                                                                                                                                 |  | Director, Operating Officer of Electric Machinery,
    Plant & Project Business Unit                                                                  
|                 |  |  2002/4                                                                                                                                                                                                                                               |  | Executive Managing Officer, Operating Officer of Electric
    Machinery, Plant & Project Business Unit, Machinery,
    Electronics & Information Group
|                 |  |  2002/10                                                                                                                                                                                                                                              |  | Executive Managing Officer, Chief Operating Officer of Electric
    Machinery, Plant & Project Business Unit                                          
|                 |  |  2004/4                                                                                                                                                                                                                                               |  | Senior Executive Managing Officer, Chief Operating Officer of
    Business Process Re-Engineering Project Headquarters                                
|                
|Name             |  | Hiroshi Tada                                                                                                                                                                                                                                          
|Date of Birth    |  | March 3, 1945                                                                                                                                                                                                                                         
|                 |  | Senior Executive Managing Officer; Executive Director (since
    June                                                                                                                                                                                 
|Current Position |  | 24, 2005)                                                                                                                                                                                                                                              |  |                                                                                                                                                       
|Prior Positions  |  |  2000                                                                                                                                                                                                                                                 |  | A member of Board of Directors (Director, Chief Operating
    Officer of Iron & Steel Raw Materials Unit)                                             
|                 |  |  2002/4                                                                                                                                                                                                                                               |  | Senior Managing Officer, Chief Operating Officer of
    Iron & Steel Raw Materials Unit, Metals Group                                                 
|                 |  |  2003                                                                                                                                                                                                                                                 |  | Executive Managing Officer, Chairman for the Americas, and
    President and Chief Executive Officer of Mitsui & Co.
    (U.S.A.), Inc.               
|                 |  |  2004/4                                                                                                                                                                                                                                               |  | Senior Executive Managing Officer                                                                                                                     
|                
|Name             |  | Yasunori Yokote                                                                                                                                                                                                                                       
|Date of Birth    |  | June 23, 1946                                                                                                                                                                                                                                         
|Current Position |  | Senior Executive Managing Officer, Chief Compliance Officer;
    Chief Privacy Officer; Environmental Matters; Deputy Chief
    Operating Officer, Business Process Re-Engineering Project
    Headquarters; Executive Director, (since April 1, 2005)
|Prior Positions  |  |  2000                                                                                                                                                                                                                                                 |  | A member of Board of Directors (Director, General Manager of
    Personnel Division)                                                                  
|                 |  |  2002/4                                                                                                                                                                                                                                               |  | Director, Senior Managing Officer, General Representative of
    Mitsui & Co., Ltd. in Indonesia                                                      
|                 |  |  2002/6                                                                                                                                                                                                                                               |  | Senior Managing Officer, General Representative of
    Mitsui & Co., Ltd. in Indonesia                                                                
|                 |  |  2004                                                                                                                                                                                                                                                 |  | Executive Director, Executive Managing Officer, Chief Compliance
    Officer                                                                          

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|                   |  |                                                                                                                                                                                                         |  |                                                                                                                                                                            
|------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name               |  | Kazuya Imai                                                                                                                                                                                            
|Date of Birth      |  | April 20, 1946                                                                                                                                                                                         
|Current Position   |  | Senior Executive Managing Officer, Chief Financial Officer,
    Deputy Chief Operating Officer, Business Process Re-Engineering
    Project Headquarters; Executive Director, (since June 24,
    2005)
|Prior Positions    |  |  2001                                                                                                                                                                                                  |  | A member of Board of Directors (Director, Executive Vice
    President of Mitsui & Co. (U.S.A.), Inc.)                                                                     
|                   |  |  2002/1                                                                                                                                                                                                |  | Director                                                                                                                                                                   
|                   |  |  2002/4                                                                                                                                                                                                |  | Director, Senior Managing Officer                                                                                                                                          
|                   |  |  2002/6                                                                                                                                                                                                |  | Senior Managing Officer                                                                                                                                                    
|                   |  |  2004                                                                                                                                                                                                  |  | Executive Managing Officer, General Manager of Internal Auditing
    Division                                                                                              
|                   |  |  2005                                                                                                                                                                                                  |  | Senior Executive Managing Officer, Chief Financial Officer,
    Deputy Chief Operating Officer, Business Process Re-Engineering
    Project Headquarters                   
|                  
|Name               |  | Akishige Okada                                                                                                                                                                                         
|Date of Birth      |  | April 9, 1938                                                                                                                                                                                          
|Current Position   |  | Director (since June 27, 2003)                                                                                                                                                                         
|Prior Positions    |  |  1991                                                                                                                                                                                                  |  | Director, The Mitsui Taiyo Kobe Bank, Ltd.                                                                                                                                 
|                   |  |  1997                                                                                                                                                                                                  |  | President , The Sakura Bank, Ltd.                                                                                                                                          
|                   |  |  2001                                                                                                                                                                                                  |  | Director, Chairman of Sumitomo Mitsui Banking Corporation                                                                                                                  
|                   |  |  2002                                                                                                                                                                                                  |  | Director, Chairman of Sumitomo Mitsui Financial Group                                                                                                                      
|                   |  |  2005                                                                                                                                                                                                  |  | Advisor, Sumitomo Mitsui Banking Corporation                                                                                                                               
|                  
|Name               |  | Akira Chihaya                                                                                                                                                                                          
|Date of Birth      |  | March 6, 1935                                                                                                                                                                                          
|Current Position   |  | Director (since June 24, 2004)                                                                                                                                                                         
|Prior Positions    |  |  1987                                                                                                                                                                                                  |  | Director of Nippon Steel Corporation                                                                                                                                       
|                   |  |  1998                                                                                                                                                                                                  |  | Representative Director and President of Nippon Steel Corporation                                                                                                          
|                   |  |  2003                                                                                                                                                                                                  |  | Director, Representative Director and Chairman of the Board of
    Directors of Nippon Steel Corporation (remaining in the same
    position on June 30,2005)              
|Corporate Auditors |  |                                                                                                                                                                                                        
|Name               |  | Tasuku Kondo                                                                                                                                                                                           
|Date of Birth      |  | August 12, 1942                                                                                                                                                                                        
|Current Position   |  | Corporate Auditor (since June 24, 2005)                                                                                                                                                                
|Prior Positions    |  |  1996                                                                                                                                                                                                  |  | A member of Board of Directors (Director, General Manager of
    Finance Division)                                                                                         
|                   |  |  1998                                                                                                                                                                                                  |  | Executive Managing Director                                                                                                                                                
|                   |  |  2002                                                                                                                                                                                                  |  | Senior Executive Managing Officer and Chief Financial Officer,
    Responsible for General Accounting Division, Finance Division
    and Corporate Risk Management Division
|                   |  |  2004                                                                                                                                                                                                  |  | Executive Vice President and Chief Financial Officer                                                                                                                       
|                   |  |  2005/4                                                                                                                                                                                                |  | Executive Director                                                                                                                                                         

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|                                                                              |  |                                                                                                  |  |                                                                                                                                                             
|----------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name                                                                          |  | Hiroshi Matsuura                                                                                
|Date of Birth                                                                 |  | May 24, 1946                                                                                    
|Current Position                                                              |  | Corporate Auditor (since June 27, 2003)                                                         
|Prior Positions                                                               |  |  1996                                                                                           |  | General Manager of Credit Division                                                                                                                          
|                                                                              |  |  2002                                                                                           |  | General Manager of Corporate Risk Management Division                                                                                                       
|                                                                             
|Name                                                                          |  | Ko Matsukata                                                                                    
|Date of Birth                                                                 |  | March 27, 1933                                                                                  
|Current Position                                                              |  | Corporate Auditor (since June 27, 1996)                                                         
|Prior Positions                                                               |  |  1990                                                                                           |  | President of Mitsui Marine and Fire Insurance Co., Ltd.                                                                                                     
|                                                                              |  |  1996                                                                                           |  | Vice Chairman of Mitsui Marine and Fire Insurance Co., Ltd.                                                                                                 
|                                                                              |  |  1997                                                                                           |  | Senior Advisor to Board of Mitsui Marine and Fire Insurance Co.,
    Ltd.                                                                                   
|                                                                              |  |  2001                                                                                           |  | Senior Consultant, Mitsui Sumitomo Marine and Fire Insurance
    Co., Ltd. (remaining in the same position on June 30, 2005)                                
|                                                                             
|Name                                                                          |  | Yasutaka Okamura                                                                                
|Date of Birth                                                                 |  | June 13, 1929                                                                                   
|Current Position                                                              |  | Corporate Auditor (since June 27, 2003)                                                         
|Prior Positions                                                               |  |  1992                                                                                           |  | Prosecutor, General                                                                                                                                         
|                                                                              |  |  1994                                                                                           |  | Attorney at Law (remaining in the same position on June 30,
    2005)                                                                                       
|                                                                              |  |  1997                                                                                           |  | Corporate Auditor of Toyota Motor Corporation (remaining in the
    same position on June 30, 2005)                                                         
|                                                                             
|Name                                                                          |  | Hideharu Kadowaki                                                                               
|Date of Birth                                                                 |  | June 20, 1944                                                                                   
|Current Position                                                              |  | Corporate Auditor (since June 24, 2004)                                                         
|Prior Positions                                                               |  |  2001                                                                                           |  | Executive Managing Director of Sumitomo Mitsui Banking
    Corporation                                                                                      
|                                                                              |  |  2003                                                                                           |  | Director, Executive Vice President of Sumitomo Mitsui Financial
    Group                                                                                   
|                                                                              |  |  2004                                                                                           |  | Chairman of the Institute, The Japan Research Institute, Limited
    (remaining in the same position on June 30, 2005)                                      
|Executive Officers (excluding Executive Officers who are also
    a Director)
|Name                                                                          |  | Yasuo Hayashi                                                                                   
|Date of Birth                                                                 |  | August 5, 1942                                                                                  
|Current Position                                                              |  | Executive Vice President, Managing Director of Mitsui &
    Co. Europe PLC (since April 1, 2004)
|Prior Positions                                                               |  |  2000                                                                                           |  | A member of Board of Directors (Executive Managing Director)                                                                                                
|                                                                              |  |  2001                                                                                           |  | Executive Managing Director, Chief Operating Officer of Electric
    Machinery, Plant & Project Business Unit, Machinery
    Electronics & Information Group
|                                                                              |  |  2002                                                                                           |  | Executive Managing Director, President of Machinery
    Electronics & Information Group                                                                     
|                                                                              |  |  2003                                                                                           |  | Senior Executive Managing Officer                                                                                                                           

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|                 |  |                                                                                                                                                              |  |                                                                                                                                                                  
|---------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name             |  | Toshihiro Soejima                                                                                                                                           
|Date of Birth    |  | November 10, 1946                                                                                                                                           
|Current Position |  | Senior Executive Managing Officer, Chief Representative of
    Mitsui & Co., Ltd. in China (since April 1, 2005)                                            
|Prior Positions  |  |  2001                                                                                                                                                       |  | A member of Board of Directors (Director, Chief Operating
    Officer of Electronics Devices Business Unit)                                                      
|                 |  |  2002/4                                                                                                                                                     |  | Director, Senior Managing Officer, Chief Operating Officer of
    Electronics Business Unit, Machinery, Electronics &
    Information Group                      
|                 |  |  2002/6                                                                                                                                                     |  | Senior Managing Officer, Chief Operating Officer of Electronics
    Business Unit, Machinery, Electronics & Information
    Group                                
|                 |  |  2003                                                                                                                                                       |  | Senior Managing Officer, General Manager of Corporate
    Planning & Strategy Division                                                                           
|                 |  |  2004                                                                                                                                                       |  | Executive Managing Officer, General Representative of
    Mitsui & Co., Ltd. in China                                                                            
|                
|Name             |  | Motokazu Yoshida                                                                                                                                            
|Date of Birth    |  | January 7, 1948                                                                                                                                             
|Current Position |  | Executive Managing Officer, Chairman for the Americas and
    President and Chief Executive Officer of Mitsui & Co.
    (U.S.A.), Inc. (since April 1, 2005)
|Prior Positions  |  |  2001                                                                                                                                                       |  | A member of Board of Directors (Director, Chief Operating
    Officer of Motor Vehicles, Marine & Aerospace Business
    Unit)                                   
|                 |  |  2002/4                                                                                                                                                     |  | Director, Senior Managing Officer Chief Operating Officer of
    Motor Vehicles, Marine & Aerospace Business Unit,
    Machinery, Electronics & Information Group
|                 |  |  2002/6                                                                                                                                                     |  | Senior Managing Officer, Chief Operating Officer of Motor
    Vehicles, Marine & Aerospace Business Unit, Machinery,
    Electronics & Information Group         
|                 |  |  2003                                                                                                                                                       |  | Executive Managing Officer, Chief Operating Officer of Motor
    Vehicles, Marine & Aerospace Business Unit                                                      
|                 |  |  2004                                                                                                                                                       |  | Executive Managing Officer, Chief Operating Officer of Machinery
    Business Unit                                                                               
|                
|Name             |  | Yoshiyuki Izawa                                                                                                                                             
|Date of Birth    |  | February 10, 1948                                                                                                                                           
|Current Position |  | Executive Managing Officer, General Manager of Osaka Office
    (since April 1, 2004)                                                                       
|Prior Positions  |  |  2000                                                                                                                                                       |  | A member of Board of Directors (Director, Chief Operating
    Officer of Information Business Unit)                                                              
|                 |  |  2002/4                                                                                                                                                     |  | Director, Senior Managing Officer, Chief Operating Officer of
    Information Business Unit, Machinery, Electronics &
    Information Group                      
|                 |  |  2002/6                                                                                                                                                     |  | Senior Managing Officer, Chief Operating Officer of Information
    Business Unit                                                                                

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|                 |  |                                                                                                                                                      |  |                                                                                                           
|---------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------
|Name             |  | Osamu Mori                                                                                                                                          
|Date of Birth    |  | January 1, 1949                                                                                                                                     
|Current Position |  | Executive Managing Officer, Chief Operating Officer of Financial
    Markets Business Unit (since April 1, 2004)                                    
|Prior Positions  |  |  2000                                                                                                                                               |  | A member of Board of Directors (Director, General Manager of
    Finance Division)                        
|                 |  |  2002/4                                                                                                                                             |  | Director, Senior Managing Officer, General Manager of Finance
    Division                                
|                 |  |  2002/6                                                                                                                                             |  | Senior Managing Officer, General Manager of Finance Division                                              
|                 |  |  2003                                                                                                                                               |  | Senior Managing Officer, Chief Operating Officer, of Financial
    Markets Business Unit                  
|                
|Name             |  | Satoru Miura                                                                                                                                        
|Date of Birth    |  | March 2, 1947                                                                                                                                       
|Current Position |  | Executive Managing Officer, General Manager of Nagoya Office
    (since April 1, 2005)                                                              
|Prior Positions  |  |  2001                                                                                                                                               |  | A member of Board of Directors (Director, Chief Operating
    Officer of Iron & Steel Products Unit)      
|                 |  |  2002/4                                                                                                                                             |  | Director, Senior Managing Officer, Chief Operating Officer of
    Iron & Steel Products Unit, Metals Group
|                 |  |  2002/6                                                                                                                                             |  | Senior Managing Officer, Chief Operating Officer of
    Iron & Steel Products Unit                        
|                 |  |  2004                                                                                                                                               |  | Executive Managing Officer, Chief Operating Officer of
    Iron & Steel Products Business Unit            
|                
|Name             |  | Masayoshi Sato                                                                                                                                      
|Date of Birth    |  | November 30, 1945                                                                                                                                   
|Current Position |  | Executive Managing Officer, Chief Operating Officer of
    Foods & Retail Business Unit (since April 1, 2004)                                       
|Prior Positions  |  |  2002                                                                                                                                               |  | Managing Officer, Chief Operating Officer of Foods Unit                                                   
|                
|Name             |  | Ken Abe                                                                                                                                             
|Date of Birth    |  | September 19, 1947                                                                                                                                  
|Current Position |  | Executive Managing Officer, Chief Operating Officer of
    Iron & Steel Raw Materials and Non-Ferrous Metals
    Business Unit (since April 1, 2004)
|Prior Positions  |  |  2002                                                                                                                                               |  | Managing Officer, General Manager of Metals Administrative
    Division                                   
|                 |  |  2003                                                                                                                                               |  | Managing Officer, Chief Operating Officer of Iron &
    Steel Raw Materials Unit                          
|                
|Name             |  | Takao Sunami                                                                                                                                        
|Date of Birth    |  | August 22, 1947                                                                                                                                     
|Current Position |  | Executive Managing Officer, Chief Operating Officer of Machinery
    Business Unit (since January 1, 2005)                                          
|Prior Positions  |  |  2002                                                                                                                                               |  | Managing Officer, General Manager of e-Mitsui Business Division                                           
|                 |  |  2003                                                                                                                                               |  | Managing Officer, General Manager of Fukuoka Office                                                       

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|                 |  |                                                                                                                                         |  |                                                                                                      
|---------------- |  | --------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------
|Name             |  | Junichi Matsumoto                                                                                                                      
|Date of Birth    |  | September 25, 1947                                                                                                                     
|Current Position |  | Executive Managing Officer, Chief Operating Officer of
    Transportation Logistics Business Unit (since April 1, 2005)                
|Prior Positions  |  |  2002                                                                                                                                  |  | Managing Officer, General Manager of Corporate Planning Division                                     
|                 |  |  2003                                                                                                                                  |  | Managing Officer, Deputy General Vice Representative of
    Mitsui & Co., Ltd. in China              
|                 |  |  2004                                                                                                                                  |  | Managing Officer, Chief Operating Officer of Transportation
    Logistics Business Unit              
|                
|Name             |  | Shunichi Miyazaki                                                                                                                      
|Date of Birth    |  | February 11, 1948                                                                                                                      
|Current Position |  | Executive Managing Officer, General Manager of Internal Auditing
    Division (since April 1, 2005)                                    
|Prior Positions  |  |  2002                                                                                                                                  |  | Managing Officer, General Manager of Consumer
    Products & Services Administrative Division        
|                
|Name             |  | Hiroshi Ito                                                                                                                            
|Date of Birth    |  | February 8, 1947                                                                                                                       
|Current Position |  | Executive Managing Officer, Chief Operating Officer of Consumer
    Service Business Unit (since April 1, 2005)                        
|Prior Positions  |  |  2003                                                                                                                                  |  | Managing Officer, Chief Operating Officer of Service Business
    Unit                               
|                 |  |  2004                                                                                                                                  |  | Managing Officer, Chief Operating Officer of Consumer Service
    Business Unit                      
|                
|Name             |  | Takeshi Ohyama                                                                                                                         
|Date of Birth    |  | May 18, 1947                                                                                                                           
|Current Position |  | Managing Officer, General Representative of Mitsui &
    Co., Ltd. in Indonesia (since April 1, 2004)                                  
|Prior Positions  |  |  2002                                                                                                                                  |  | Managing Officer, General Manager of Personnel Division                                              
|                
|Name             |  | Shinjiro Ogawa                                                                                                                         
|Date of Birth    |  | September 17, 1948                                                                                                                     
|Current Position |  | Managing Officer, Chief Operating Officer of Information,
    Electronics and Telecommunication Business Unit (since
    April 1, 2004)
|Prior Positions  |  |  2002                                                                                                                                  |  | Managing Officer, General Manager of Machinery,
    Electronics & Information Administrative Division
|                
|Name             |  | Toshimasa Furukawa                                                                                                                     
|Date of Birth    |  | December 25, 1948                                                                                                                      
|Current Position |  | Managing Officer, General Manager of Machinery,
    Electronics & Information Administrative Division
    (since April 1, 2004)        
|Prior Positions  |  |  2002                                                                                                                                  |  | Managing Officer, President of Mitsui & Co. (Taiwan)
    Ltd.                                        
|                
|Name             |  | Akio Ikeda                                                                                                                             
|Date of Birth    |  | January 1, 1947                                                                                                                        
|Current Position |  | Managing Officer, Chairman & Managing Director of
    Mitsui & Co. (Australia) Ltd. (since April 1, 2004)                              
|Prior Positions  |  |  2003                                                                                                                                  |  | Managing Officer, Chief Operating Officer of General Merchandise
    Unit                            

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|                 |  |                                                                                                                                                |  |                                                                                                              
|---------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------
|Name             |  | Jitsuro Terashima                                                                                                                             
|Date of Birth    |  | August 11, 1947                                                                                                                               
|Current Position |  | Managing Officer, President of Mitsui Global Strategic Studies
    Institute (since April 1, 2003)                                            
|                
|Name             |  | Motonori Murakami                                                                                                                             
|Date of Birth    |  | November 19, 1948                                                                                                                             
|Current Position |  | Managing Officer, General Manager of General
    Accounting & Risk Management Division (since
    April 1, 2004)                              
|Prior Positions  |  |  2003                                                                                                                                         |  | Managing Officer, General Manager of General Accounting Division                                             
|                
|Name             |  | Kyoichi Endo                                                                                                                                  
|Date of Birth    |  | October 5, 1947                                                                                                                               
|Current Position |  | Managing Officer, Managing Director of Mitsui & Co. UK
    PLC and Deputy Managing Director, Mitsui & Co. Europe
    PLC (since April 1, 2004)
|                
|Name             |  | Toshio Awata                                                                                                                                  
|Date of Birth    |  | July 28, 1948                                                                                                                                 
|Current Position |  | Managing Officer, Chief Information Officer & General
    Manager of Information Strategic Planning Division (since
    April 1, 2005)        
|Prior Positions  |  |  2004                                                                                                                                         |  | Managing Officer, Chief Information Officer & General
    Manager of Business Process Re-Engineering Division
|                
|Name             |  | Koji Nakamura                                                                                                                                 
|Date of Birth    |  | August 15, 1948                                                                                                                               
|Current Position |  | Managing Officer, Chief Operating Officer of Plastics &
    Inorganic Chemicals Business Unit (since April 1, 2004)                           
|                
|Name             |  | Toru Kitamura                                                                                                                                 
|Date of Birth    |  | March 23, 1949                                                                                                                                
|Current Position |  | Managing Officer, Chief Operating Officer of Lifestyle Business
    Unit (since April 1, 2004)                                                
|                
|Name             |  | Kenichi Yamamoto                                                                                                                              
|Date of Birth    |  | July 25, 1949                                                                                                                                 
|Current Position |  | Managing Officer General Manager of Human Resources &
    General Affairs Division (since April 1, 2005)                                      
|Prior Positions  |  |  2004                                                                                                                                         |  | Managing Officer, General Manager of Personnel Division                                                      
|                
|Name             |  | Masaaki Murakami                                                                                                                              
|Date of Birth    |  | August 10, 1949                                                                                                                               
|Current Position |  | Managing Officer, President, Mitsui & Co. (Canada) Ltd.
    (since April 1, 2005)                                                             
|Prior Positions  |  |  2004                                                                                                                                         |  | Managing Officer, General Manager of Chemical Administrative
    Division                                    
|                
|Name             |  | Kiyotaka Watanabe                                                                                                                             
|Date of Birth    |  | May 31, 1948                                                                                                                                  
|Current Position |  | Managing Officer, Chief Operating Officer of Iron &
    Steel Products Business Unit (since April 1, 2005)                                    

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|                 |  |                                                                                                             |  | 
|---------------- |  | ----------------------------------------------------------------------------------------------------------- |  | 
|Name             |  | Masaaki Fujita                                                                                             
|Date of Birth    |  | January 4, 1949                                                                                            
|Current Position |  | Managing Officer, Deputy Chief Operating Officer of
    Foods & Retail Business Unit (since April 1, 2005) 
|                
|Name             |  | Junichi Mizonoue                                                                                           
|Date of Birth    |  | February 15, 1950                                                                                          
|Current Position |  | Managing Officer, Chief Operating Officer of Organic Chemicals
    Business Unit (since April 1, 2005)     
|                
|Name             |  | Takao Omae                                                                                                 
|Date of Birth    |  | December 18, 1949                                                                                          
|Current Position |  | Managing Officer, President of Mitsui Brasileira
    Importação e Exportação S.A. (since
    April 1, 2005)
|                
|Name             |  | Norinao Iio                                                                                                
|Date of Birth    |  | March 2, 1951                                                                                              
|Current Position |  | Managing Officer; Chief Operating Officer of Energy Business
    Unit (since April 1, 2005)                
|                
|Name             |  | Osamu Koyama                                                                                               
|Date of Birth    |  | August 8, 1948                                                                                             
|Current Position |  | Managing Officer; Executive Vice President of Mitsui &
    Co. (U.S.A), Inc. (since April 1, 2005)         








|   |              
|-- | -------------
|B. | Compensation.











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|   |                 
|-- | ----------------
|C. | Board Practices.







(1)


|          |                       |                   |  |          |                     |  |  |        | 
|--------- | --------------------- | ----------------- |  | -------- | ------------------- |  |  | ------ | 
|          |                       | Length of Time    |  |          |                    
|          |                       | Served in Office  |  |          |                    
|          |                       | (From Appointment |  |          | Shareholdings as of | 
|          |                       | to June 2005)(1)  |  |          | June 30, 2005       | 
|          |                       |                   |  |          |                     | 
|Director: |                       |                   |  |          |                     |  |  |       
|          | Nobuo Ohashi          |                   |  | 11 years |                     |  |  | 57,868 | 
|          | Shoei Utsuda          |                   |  | 8 years  |                     |  |  | 36,810 | 
|          | Tetsuya Matsuoka      |                   |  | 6 years  |                     |  |  | 24,567 | 
|          | Masataka Suzuki       |                   |  | 5 years  |                     |  |  | 16,103 | 
|          | Gempachiro Aihara     |                   |  | 3 years  |                     |  |  | 12,670 | 
|          | Yushi Nagata          |                   |  | 3 years  |                     |  |  | 18,070 | 
|          | Yasunori Yokote       |                   |  | 3 years  |                     |  |  | 13,525 | 
|          | Hiroshi Tada          |                   |  | 2 years  |                     |  |  | 15,473 | 
|          | Kazuya Imai           |                   |  | 1 year   |                     |  |  | 10,926 | 
|          | Akishige
    Okada(2) |                   |  | 2 years  |                     |  |  | 0      | 
|          | Akira
    Chihaya(2)  |                   |  | 1 year   |                     |  |  | 1,000  | 






|    |                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | At Mitsuis ordinary general meeting of shareholders held
    on June 24, 2004, an amendment to the Articles of
    Incorporation was resolved whereby the normal term of office for
    Directors has been changed from two years to one year.
|   
|(2) | Mr. Akishige Okada and Mr. Akira Chihaya are external
    directors as defined in the Commercial Code of Japan.                                                                                                                                

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|                   |                          |                        |  |                  |                   |  |  |                     |  |  |  |        | 
|------------------ | ------------------------ | ---------------------- |  | ---------------- | ----------------- |  |  | ------------------- |  |  |  | ------ | 
|                   |                          |                        |  | Length of Time   |                   |  | 
|                   |                          |                        |  | Served in Office |                   |  | 
|                   |                          | Date of Expiration of  |  |                  | (From Appointment |  |  | Shareholdings as of | 
|                   |                          | Current Term of Office |  |                  | to June 2005)     |  |  | June 30, 2005       | 
|                   |                          |                        |  |                  |                   |  |  |                     | 
|Corporate Auditor: |                          |                        |  |                  |                   |  |  |                     |  |  |  |       
|                   | Tasuku Kondo             |                        |  | June 2009        |                   |  |  | Less than 1 year    |  |  |  | 23,151 | 
|                   | Hiroshi Matsuura         |                        |  | June 2007        |                   |  |  | 2 years             |  |  |  | 17,673 | 
|                   | Ko
    Matsukata(3)      |                        |  | June 2009        |                   |  |  | 9 years             |  |  |  | 13,784 | 
|                   | Yasutaka
    Okamura(3)  |                        |  | June 2007        |                   |  |  | 2 years             |  |  |  | 4,079  | 
|                   | Hideharu
    Kadowaki(3) |                        |  | June 2008        |                   |  |  | 1 year              |  |  |  | 2,276  | 






|    |                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Mr. Ko Matsukata, Mr. Yasutaka Okamura and
    Mr. Hideharu Kadowaki are external Corporate Auditors as
    defined in the Law for Special Exceptions to the Commercial Code
    of Japan Concerning Audit, etc. of Joint Stock Corporations.

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|                                                                                 |                    |                   |  |                  |                     |  |         |        | 
|-------------------------------------------------------------------------------- | ------------------ | ----------------- |  | ---------------- | ------------------- |  | ------- | ------ | 
|                                                                                 |                    | Length of Time    |  |                  |                    
|                                                                                 |                    | Served in Office  |  |                  |                    
|                                                                                 |                    | (From Appointment |  |                  | Shareholdings as of | 
|                                                                                 |                    | to June 2005)(4)  |  |                  | June 30, 2005       | 
|                                                                                 |                    |                   |  |                  |                     | 
|Executive Officer (excluding Executive Officers who are also
    a Director):    |                    |                   |  |                  |                     |  |         |       
|                                                                                 | Yasuo Hayashi      |                   |  | 5 years          |                     |  |         | 21,621 | 
|                                                                                 | Toshihiro Soejima  |                   |  | 4 years          |                     |  |         | 12,172 | 
|                                                                                 | Motokazu Yoshida   |                   |  | 4 years          |                     |  |         | 10,396 | 
|                                                                                 | Yoshiyuki Izawa    |                   |  | 5 years          |                     |  |         | 10,285 | 
|                                                                                 | Osamu Mori         |                   |  | 5 years          |                     |  |         | 23,263 | 
|                                                                                 | Satoru Miura       |                   |  | 4 years          |                     |  |         | 10,485 | 
|                                                                                 | Masayoshi Sato     |                   |  | 3 years          |                     |  |         | 10,433 | 
|                                                                                 | Ken Abe            |                   |  | 3 years          |                     |  |         | 19,319 | 
|                                                                                 | Takao Sunami       |                   |  | 3 years          |                     |  |         | 9,966  | 
|                                                                                 | Junichi Matsumoto  |                   |  | 3 years          |                     |  |         | 14,000 | 
|                                                                                 | Shunichi Miyazaki  |                   |  | 3 years          |                     |  |         | 11,191 | 
|                                                                                 | Hiroshi Ito        |                   |  | 2 years          |                     |  |         | 9,250  | 
|                                                                                 | Takeshi Ohyama     |                   |  | 3 years          |                     |  |         | 10,775 | 
|                                                                                 | Shinjiro Ogawa     |                   |  | 3 years          |                     |  |         | 10,939 | 
|                                                                                 | Toshimasa Furukawa |                   |  | 3 years          |                     |  |         | 11,260 | 
|                                                                                 | Akio Ikeda         |                   |  | 2 years          |                     |  |         | 7,874  | 
|                                                                                 | Jitsuro Terashima  |                   |  | 2 years          |                     |  |         | 17,987 | 
|                                                                                 | Motonori Murakami  |                   |  | 2 years          |                     |  |         | 18,248 | 
|                                                                                 | Kyoichi Endo       |                   |  | 1 year           |                     |  |         | 6,000  | 
|                                                                                 | Toshio Awata       |                   |  | 1 year           |                     |  |         | 4,712  | 
|                                                                                 | Koji Nakamura      |                   |  | 1 year           |                     |  |         | 8,009  | 
|                                                                                 | Toru Kitamura      |                   |  | 1 year           |                     |  |         | 1,603  | 
|                                                                                 | Kenichi Yamamoto   |                   |  | 1 year           |                     |  |         | 8,801  | 
|                                                                                 | Masaaki Murakami   |                   |  | 1 year           |                     |  |         | 16,307 | 
|                                                                                 | Kiyotaka Watanabe  |                   |  | Less than 1 year |                     |  |         | 591    | 
|                                                                                 | Masaaki Fujita     |                   |  | Less than 1 year |                     |  |         | 591    | 
|                                                                                 | Junichi Mizonoue   |                   |  | Less than 1 year |                     |  |         | 591    | 
|                                                                                 | Takao Omae         |                   |  | Less than 1 year |                     |  |         | 7,030  | 
|                                                                                 | Norinao Iio        |                   |  | Less than 1 year |                     |  |         | 295    | 
|                                                                                 | Osamu Koyama       |                   |  | Less than 1 year |                     |  |         | 0      | 
|                                                                                 |                    |                   |  |                  |                     | 
|Total Shareholdings by Directors, Corporate Auditors, and
    Executive Officers |                    |                   |  |                  |                     |  | 561,969 |       
|                                                                                 |                    |                   |  |                  |                     | 






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(4) | The rules of Executive Officers provides for the term of the
    Executive Officers as one year starting April 1 and ending
    March 31.



(5) (6)


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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (5) | In accordance with amendments of the Law for Special Exceptions
    to the Commercial Code of Japan Concerning Audit, etc. of Joint
    Stock Corporations, the number of external corporate auditors
    after the conclusion of the first ordinary general meeting of
    shareholders held with respect to the fiscal year ending on and
    after May 1, 2005, is required to be at least half the
    number of corporate auditors of a large company whose capital is
    not less than ¥500 million, or whose total debt amount
    is not less than ¥20 billion.
|
| | (6) | In accordance with the same amendment as (4), an external
    corporate auditor who is elected at the first ordinary general
    meeting of shareholders held with respect to the fiscal year
    ended on and after May 1, 2005, is defined as any person
    who has not at any time been an employee, manager or director of
    the company or of any of its subsidiaries.                                                                                                                                                                                          



| |                                                                        
| | -----------------------------------------------------------------------
| | Exemption from Certain Corporate Governance Requirements
    of NASDAQ.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Nasdaq Marketplace Rule 4350(b) requires that there be a
    distribution to shareholders of copies of our annual report
    containing our audited financial statements a reasonable period
    of time prior to our annual meeting of shareholders. In
    accordance with Japanese law, we hold an annual meeting of
    shareholders within three months after the end of each fiscal
    year. Also, in accordance with Japanese law, we distribute to
    shareholders, prior to the annual meeting of shareholders,
    copies of a report of business operations, together with our
    audited unconsolidated financial statements prepared in
    accordance with Japanese GAAP in Japanese. Concurrently with
    such distribution, we distribute Japanese GAAP audited
    unconsolidated financial statements in English to the depository
    for the ADSs, and instruct the depository to distribute the same
    to the registered ADS holders in a timely manner. The English
    version contains a statement that, upon request by an interested
    party, we will provide the party with a copy of our annual
    report on Form 20-F. As a reporting company under the
    Securities Exchange Act of 1934, we are required to prepare
    financial statements in accordance with U.S. GAAP for
    inclusion in our annual report on Form 20-F, which must be
    filed within six months after the end of each fiscal year.
|
| |  | Nasdaq Marketplace Rule 4350(c)(1) requires that a majority
    of the board of directors of each issuer be independent
    directors as defined in Rule 4200, and Rule 4350(c)(2)
    requires that independent directors of each issuer have
    regularly scheduled meetings at which only independent directors
    are present. For large Japanese companies, including us, which
    employ a corporate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | governance system based on a board of corporate auditors,
    Japans company law has no independence requirement with
    respect to directors. The task of overseeing management and
    accounting firms is assigned to the corporate auditors, who are
    separate from the companys management. Large Japanese
    companies, including us, are required to have at least one
    outside corporate auditor who must meet independence
    requirements under Japans company law. An outside
    corporate auditor is defined as a corporate auditor who has not
    served as a director, manager or any other employee of the
    company or any of its subsidiaries for the last five years prior
    to the appointment. Currently, we have three outside corporate
    auditors. Starting on the date of our ordinary meeting of
    shareholders relating to the fiscal year ending March 31,
    2006, at least 50% of our corporate auditors will be required to
    be outside corporate auditors. Also, starting on the same date,
    the independence requirements for outside corporate auditors
    will be strengthened by extending the five-year period referred
    to above to any time prior to the appointment. Our Board of
    Corporate Auditors, which, as explained below, performs
    functions similar to those of an audit committee, has regularly
    scheduled meetings at which only corporate auditors are present.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Nasdaq Marketplace Rule 4350(d)(2) requires that each
    issuer have and will continue to have an audit committee of at
    least three members, each of whom (1) is independent as
    defined under Rule 4200(a)(15), (2) meets the
    requirements of Rule 10A-3(b)(1) under the Securities
    Exchange Act of 1934, (3) has not participated in the
    preparation of the financial statements of the issuer or any
    current subsidiary thereof at any time during the past three
    years, and (4) is able to read and understand fundamental
    financial statements, including a companys balance sheet,
    income statement and cash flow statement, as required by
    Rule 4350(d)(2). Nasdaq Marketplace Rule 4350(d)(1)
    requires that each issuer have adopted a formal written audit
    committee charter specifying the items enumerated in that rule
    and that its audit committee have reviewed and reassessed the
    adequacy of the charter on an annual basis. Under Japanese law,
    we are not required to establish or maintain such an audit
    committee. Japans company law has no independence
    requirement with respect to directors of those large
    companies (defined under Japanese law as joint stock
    corporations with stated capital of ¥500 million or
    more or with total liabilities equal to or exceeding
    ¥20 billion), including Mitsui, that employ a
    corporate governance system based on a board of corporate
    auditors. In many such large companies, functions
    similar to those of such an audit committee are performed by its
    board of corporate auditors. We have established such a board of
    corporate auditors, each of whom does not concurrently serve as
    a director, manager or any other employee of the company or any
    of its subsidiaries. Under Japans company law, corporate
    auditors are elected at a general meeting of shareholders and
    are under a statutory duty to review the administration of the
    affairs of Mitsui by its directors and to examine financial
    statements and other documents and reports of Mitsui.
    Furthermore, large Japanese companies, including Mitsui, are
    required to have at least one outside corporate
    auditor who must meet additional independence requirements under
    Japans company law. Starting on the date of our ordinary
    meeting of shareholders relating to the fiscal year ending
    March 31, 2006, at least 50% of our corporate auditors will
    be required to be outside corporate auditors. An outside
    corporate auditor is currently defined as a corporate auditor
    who has not served as a director, manager or any other employee
    of the company or any of its subsidiaries for the last five
    years prior to the appointment. Starting on the date of our
    ordinary meeting of shareholders relating to the fiscal year
    ending March 31, 2006, the additional independence
    requirements for outside corporate auditors will be strengthened
    by extending the five-year period to any time prior to the
    appointment. Currently, we have five corporate auditors, three
    of whom are outside corporate auditors who meet these additional
    requirements. Mitsuis board of corporate auditors has
    adopted its own regulations setting forth the scope of its
    responsibilities and the manner in which it carries out such
    responsibilities, and certain other matters.
|
| |  | Nasdaq Marketplace Rule 4350(c)(3) requires that
    compensation of the chief executive officer of each issuer be
    determined or recommended to its board of directors for
    determination either by (i) a majority of its independent
    directors or (ii) a compensation committee comprised solely
    of independent directors and that compensation of all other
    executive officers be determined or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | recommended to the board of directors for determination either
    by (i) a majority of the independent directors or
    (ii) a compensation committee comprised solely of
    independent directors. As explained above, we are not required
    to have independent directors. With regard to director
    compensation, Japans company law requires the board of
    directors to pass a board resolution proposing director
    compensation to be submitted for approval at a general
    shareholders meeting. Within the upper limit approved at
    the shareholders meeting, the board of directors may determine
    the amount of compensation for each director. The board of
    directors, by resolution of the board of directors, may delegate
    such decision to the chief executive officer or other persons
    authorized by the board of directors. As for Mitsui, the upper
    limit of compensation for its directors approved by the general
    shareholders meeting is 60 million yen per month and
    the board of directors has determined to delegate to the chief
    executive officer the decision-making authority as to the amount
    of compensation for each director within such limit. With regard
    to employee (including officer) compensation, the board of
    directors has the authority under Japans company law to
    determine matters relating to employee compensation. The board
    of directors, by resolution of the board of directors, may
    delegate employment compensation matters to the chief executive
    officer or other persons authorized by the board of directors.
    As for Mitsui, its board of directors duly resolved the
    Regulations for the Executive Officers, which provide that
    executive officers who are also directors of the Company shall
    not be paid any compensation in their capacities as executive
    officers and that the compensation of the executive officers who
    are not directors of the Company shall be decided by the board
    of directors, or decided by the chief executive officer or other
    officer authorized by the board of directors. Mitsui determines
    compensation of its chief executive officer and other officers
    in accordance with the aforementioned procedures. Corporate
    auditors do not have any specific duties with respect to
    compensation of the chief executive officer and other executive
    officers under Japanese law. However, the duties of corporate
    auditors include a general duty to audit the affairs of the
    company to ensure that the business is being operated in
    accordance with applicable law and its charter. If the corporate
    auditors conclude, in connection with the performance of those
    duties, that the compensation of directors violated applicable
    law or the companys charter, the corporate auditors are
    required to report their conclusion to the general
    shareholders meeting and may bring a lawsuit against the
    responsible directors.
|
| |  | Nasdaq Marketplace Rule 4350(c)(4) requires that director
    nominees be selected or recommended for the board of
    directors selection either by (i) a majority of the
    independent directors or (ii) a nomination committee
    comprised solely of independent directors. Also, Nasdaq
    Marketplace Rule 4350(c)(4)(B) requires that each issuer
    have adopted a formal written charter or board resolution, as
    applicable, addressing the nominations process and such related
    matters as may be required under the U.S. federal
    securities laws. As explained above, We are not required to have
    independent directors. Under Japans company law, a
    director may be nominated by (i) a resolution of the board
    of directors or (ii) a shareholder owning one percent or
    more of the outstanding shares of a company. Approval by a
    majority of the shareholders in attendance at a general
    shareholders meeting is required to elect a director. There is
    no specific requirement that a company adopt a written charter
    or board resolution addressing the nominations process, nor is
    it customary to do so. Nominations of directors of Mitsui are
    conducted in accordance with the aforementioned procedures.
    Corporate auditors do not have any specific duties with respect
    to nomination of directors under Japanese law. However, the
    duties of corporate auditors include a general duty to audit the
    affairs of the company to ensure that the business is being
    operated in accordance with applicable law and its charter. If
    the corporate auditors conclude, in connection with the
    performance of those duties, that the nomination of directors
    violated applicable law or the companys charter, the
    corporate auditors are required to report their conclusion to
    the general shareholders meeting and may bring a lawsuit
    against the responsible directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Nasdaq Marketplace Rule 4350(f) requires that there be a
    provision in the by-laws for a quorum for any meeting of the
    holders of common stock and that such quorum be not less than
    331/3%
    of the outstanding shares of the common voting stock. In
    accordance with the Commercial Code of Japan (the
    Commercial Code), however, under our Articles of
    Incorporation no quorum is                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | required for the adoption of resolutions at a general meeting of
    shareholders, except for (i) the election of directors and
    corporate auditors for which the quorum shall not be less than
    one-third of the total voting rights and (ii) resolutions
    for other specified issues required by the Commercial Code (the
    special shareholders resolutions), including an
    amendment to the Articles of Incorporation, a reduction of
    stated capital, the removal of a director or corporate auditor,
    dissolution, merger or consolidation requiring shareholders
    resolution, the transfer of the whole or an important part of
    the business, the taking over of the whole of the business of
    any other corporation requiring shareholders resolution, share
    exchange or share transfer requiring shareholders resolution for
    the purpose of establishing 100% parent-subsidiary
    relationships, splitting of the corporation into two or more
    corporations requiring shareholders resolution, any
    offering of new shares at a specially favorable
    price (or any offering of the rights to subscribe for, or
    acquire its shares at a specially favorable
    conditions) to any persons other than shareholders, for which
    the quorum shall be at least one-third of the total voting
    rights and the approval of the holders of at least two-thirds of
    the voting rights represented at the meeting is required. This
    approach is consistent with generally accepted business
    practices of publicly-held companies in Japan.
|
| |  | Nasdaq Marketplace Rule 4350(g) provides that each issuer
    solicit proxies and provide proxy statements for all meetings of
    shareholders and provide copies of such proxy solicitation to
    Nasdaq. Currently a Japanese company whose shares are listed on
    the securities exchanges defined in the Securities and Exchange
    Law, including us, may, but is not required to, solicit proxies
    for meetings of shareholders. If such a Japanese company
    solicits proxies for a meeting of shareholders, it is required
    to provide proxy statements and documents for reference as
    provided for in the Securities and Exchange Law and provide
    copies of such proxy statements and documents for reference to
    the Kanto Local Finance Bureau.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Nasdaq Marketplace Rule 4350(h) provides that each issuer
    conduct appropriate review of all related party transactions for
    potential conflict of interest situations on an ongoing basis
    and that all such transactions be approved by the issuers
    audit committee or another independent body of the board of
    directors. Following the requirements of the Commercial Code of
    Japan, we require a Director to obtain the approval of our Board
    of Directors in order for such Director to enter into such
    transactions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Nasdaq Marketplace Rule 4350(i)(1) requires that
    shareholder approval be obtained for the issuance of the
    issuers stock in certain conditions or certain specified
    transactions described therein. The Commercial Code requires us
    to seek shareholder approval of various matters, and in certain
    instances the special shareholders resolutions as described
    above are required for approval. In addition, while the
    Commercial Code permits, in certain instances, the issuance of
    equity securities without shareholder approval, the Commercial
    Code also contains provisions requiring the timely dissemination
    of information relating to such issuance, allowing for
    opportunities for shareholders to voice their concern with such
    issuance, and mandating the election of statutory auditors whose
    fiduciary duty is to, among other things, oversee on behalf of
    the shareholders actions by the board of directors relating to
    such issuance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 





| |                                                                  
| | -----------------------------------------------------------------
| | Limitation of Liabilities of Directors and Corporate
    Auditors



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|   |           
|-- | ----------
|D. | Employees.





Operating Segment:


|                     |  |            |       |  |               |  |       |          |  |  |        |            |  |          |             |  |         |  |       |          |  |          |        |  |     |       |       |  |       |  |       |       |  |  |       |  |  |  |       |  |  |  |        | 
|-------------------- |  | ---------- | ----- |  | ------------- |  | ----- | -------- |  |  | ------ | ---------- |  | -------- | ----------- |  | ------- |  | ----- | -------- |  | -------- | ------ |  | --- | ----- | ----- |  | ----- |  | ----- | ----- |  |  | ----- |  |  |  | ----- |  |  |  | ------ | 
|                     |  | Metal      |       |  | Machinery,    |  |       |          |  |  |        | Consumer   |  |          | Logistics & |  |         |  |       |          |  | Other    |        |  |     |       |      
|                     |  | Products & |       |  | Electronics & |  |       |          |  |  |        | Products & |  |          | Financial   |  |         |  |       |          |  | Overseas |        |  | All |       |       | 
|Year Ended March 31, |  | Minerals   |       |  | Information   |  |       | Chemical |  |  | Energy |            |  | Services |             |  | Markets |  |       | Americas |  |          | Europe |  |     | Areas |       |  | Other |  |       | Total | 
|                     |  |            |       |  |               |  |       |          |  |  |        |            |  |          |             |  |         |  |       |          |  |          |        |  |     |       |       |  |       |  |       |       | 
|2005                 |  |            | 4,517 |  |               |  | 9,510 |          |  |  | 3,903  |            |  |          | 1,620       |  |         |  | 8,458 |          |  |          | 1,179  |  |     |       | 2,677 |  |       |  | 1,062 |       |  |  | 2,997 |  |  |  | 2,287 |  |  |  | 38,210 | 



Operating Segment:


|                     |  |            |       |  |               |  |       |          |  |  |        |            |  |          |          |  |         |  |        |          |  |          |        |  |     |       |       |  |       |  |       |       |  |  |       |  |  |  |       |  |  |  |        | 
|-------------------- |  | ---------- | ----- |  | ------------- |  | ----- | -------- |  |  | ------ | ---------- |  | -------- | -------- |  | ------- |  | ------ | -------- |  | -------- | ------ |  | --- | ----- | ----- |  | ----- |  | ----- | ----- |  |  | ----- |  |  |  | ----- |  |  |  | ------ | 
|                     |  |            |       |  |               |  |       |          |  |  |        | Domestic   |  |          |          |  |         |  |        |          |  |          |       
|                     |  | Metal      |       |  | Machinery,    |  |       |          |  |  |        | Consumer   |  |          | Branches |  |         |  |        |          |  | Other    |        |  |     |       |      
|                     |  | Products & |       |  | Electronics & |  |       |          |  |  |        | Products & |  |          | and      |  |         |  |        |          |  | Overseas |        |  | All |       |       | 
|Year Ended March 31, |  | Minerals   |       |  | Information   |  |       | Chemical |  |  | Energy |            |  | Services |          |  | Offices |  |        | Americas |  |          | Europe |  |     | Areas |       |  | Other |  |       | Total | 
|                     |  |            |       |  |               |  |       |          |  |  |        |            |  |          |          |  |         |  |        |          |  |          |        |  |     |       |       |  |       |  |       |       | 
|2004                 |  |            | 4,065 |  |               |  | 7,243 |          |  |  | 3,581  |            |  |          | 1,466    |  |         |  | 10,809 |          |  |          | 2,736  |  |     |       | 2,612 |  |       |  | 1,098 |       |  |  | 3,138 |  |  |  | 2,987 |  |  |  | 39,735 | 
|2003                 |  |            | 4,033 |  |               |  | 6,565 |          |  |  | 3,075  |            |  |          | 1,303    |  |         |  | 9,796  |          |  |          | 2,945  |  |     |       | 2,637 |  |       |  | 1,173 |       |  |  | 3,182 |  |  |  | 3,025 |  |  |  | 37,734 | 








|   |                 
|-- | ----------------
|E. | Share Ownership.



| |                                                         
| | --------------------------------------------------------
| | Directors, Corporate Auditors and Executive
    Officers







| |                                   
| | ----------------------------------
| | Employees Shareholding Association





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|        |                                                   
|------- | --------------------------------------------------
|Item 7. | Major Shareholders and Related Party Transactions.






|   |                    
|-- | -------------------
|A. | Major Shareholders.





|                                                     |  |                  |         |  |                      |  |       |  
|---------------------------------------------------- |  | ---------------- | ------- |  | -------------------- |  | ----- | -
|                                                     |  | Thousands of     |         |  |                     
|                                                     |  | Shares of Common |         |  | Percentage of Common | 
|Shareholders                                         |  | Stock Owned      |         |  | Stock Issued(*)      | 
|                                                     |  |                  |         |  |                      | 
|The Master Trust Bank of Japan, Ltd. (trust account) |  |                  | 170,138 |  |                      |  | 10.74 | %
|Japan Trustee Services Bank, Ltd. (trust account)    |  |                  | 124,071 |  |                      |  | 7.83  |  
|Mitsui Mutual Life Insurance Co.                     |  |                  | 51,033  |  |                      |  | 3.22  |  
|Sumitomo Mitsui Banking Corporation                  |  |                  | 40,500  |  |                      |  | 2.55  |  
|The Chuo Mitsui Trust and Banking Company, Limited   |  |                  | 37,410  |  |                      |  | 2.36  |  
|State Street Bank and Trust Company                  |  |                  | 36,311  |  |                      |  | 2.29  |  
|Nippon Life Insurance Co.                            |  |                  | 35,070  |  |                      |  | 2.21  |  
|Mizuho Corporate Bank, Ltd.                          |  |                  | 33,083  |  |                      |  | 2.08  |  
|The Bank of Tokyo-Mitsubishi, Ltd.                   |  |                  | 30,375  |  |                      |  | 1.91  |  
|Mitsui Sumitomo Insurance Co., Ltd.                  |  |                  | 24,726  |  |                      |  | 1.56  |  








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##### Table of Contents







| |                                            
| | -------------------------------------------
| | Schroder Investment Management (Japan) Ltd.

|                   |  |                        |             |  |                      |  |      |  
|------------------ |  | ---------------------- | ----------- |  | -------------------- |  | ---- | -
|                   |  | Thousands of Shares of |             |  | Percentage of Common | 
|Ownership as of    |  | Common Stock Owned     |             |  | Stock Issued         | 
|                   |  |                        |             |  |                      | 
|March 31, 2004     |  |                        | 146,045,454 |  |                      |  | 9.22 | %
|September 30, 2004 |  |                        | 132,175,833 |  |                      |  | 8.35 |  
|March 31, 2005     |  |                        | 105,825,213 |  |                      |  | 6.68 |  



| |                                            
| | -------------------------------------------
| | Mitsui Asset Trust Banking Company, Limited

|                  |  |                        |            |  |                      |  |      |  
|----------------- |  | ---------------------- | ---------- |  | -------------------- |  | ---- | -
|                  |  | Thousands of Shares of |            |  | Percentage of Common | 
|                  |  | Common Stock Owned     |            |  | Stock Issued         | 
|                  |  |                        |            |  |                      | 
|Ownership as of   |  |                        |            |  |                      |  |      |  
|November 30, 2003 |  |                        | 87,912,465 |  |                      |  | 5.55 | %
|February 22, 2005 |  |                        | 70,694,710 |  |                      |  | 4.46 |  



| |                            
| | ---------------------------
| | Mizuho Corporate Bank, Ltd.

|                |  |                        |            |  |                      |  |      |  
|--------------- |  | ---------------------- | ---------- |  | -------------------- |  | ---- | -
|                |  | Thousands of Shares of |            |  | Percentage of Common | 
|                |  | Common Stock Owned     |            |  | Stock Issued         | 
|                |  |                        |            |  |                      | 
|Ownership as of |  |                        |            |  |                      |  |      |  
|April 30, 2003  |  |                        | 76,810,314 |  |                      |  | 4.84 | %



| |                 
| | ----------------
| | Deutsche Bank AG

|                |  |                        |            |  |                      |  |      |  
|--------------- |  | ---------------------- | ---------- |  | -------------------- |  | ---- | -
|                |  | Thousands of Shares of |            |  | Percentage of Common | 
|                |  | Common Stock Owned     |            |  | Stock Issued         | 
|                |  |                        |            |  |                      | 
|Ownership as of |  |                        |            |  |                      |  |      |  
|March 31, 2004  |  |                        | 81,768,610 |  |                      |  | 5.16 | %
|May 31, 2004    |  |                        | 34,271,518 |  |                      |  | 2.16 |  












|   |                            
|-- | ---------------------------
|B. | Related Party Transactions.



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##### Table of Contents







|                                 |  |             |      |  |      |  |      | 
|-------------------------------- |  | ----------- | ---- |  | ---- |  | ---- | 
|                                 |  | Billions of |     
|                                 |  | Yen         |     
|                                 |  |             |     
|                                 |  | As of       |     
|                                 |  | March 31,   |     
|                                 |  |             |     
|                                 |  | 2005        |      |  | 2004 | 
|                                 |  |             |      |  |      | 
|Accounts receivable, trade       |  |             | ¥197 |  |      |  | ¥186 | 
|Advances to associated companies |  |             | 93   |  |      |  | 115  | 
|Accounts payable, trade          |  |             | 95   |  |      |  | 76   | 


















|   |                                  
|-- | ---------------------------------
|C. | Interests of Experts and Counsel.








|        |                       
|------- | ----------------------
|Item 8. | Financial Information.






|   |                                                         
|-- | --------------------------------------------------------
|A. | Consolidated Statements and Other Financial Information.



| |                                  
| | ---------------------------------
| | Consolidated Financial Statements



157



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##### Table of Contents





| |             
| | ------------
| | Export Sales





| |                  
| | -----------------
| | Legal Proceedings



| |                                                                          
| | -------------------------------------------------------------------------
| | Antitrust Suits against Mitsui, Mitsui U.S.A. and Novus
    International











| |                                                                  
| | -----------------------------------------------------------------
| | Antitrust Suits against Mitsui, Mitsui U.S.A. and
    Bioproducts







158



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##### Table of Contents







| |              
| | -------------
| | Other Matters





| |                
| | ---------------
| | Dividend Policy








|   |                     
|-- | --------------------
|B. | Significant Changes.








|        |                       
|------- | ----------------------
|Item 9. | The Offer and Listing.






|   |                           
|-- | --------------------------
|A. | Offer and Listing Details.







|                                      |  |                             |                    | 
|------------------------------------- |  | --------------------------- | ------------------ | 
|Name of Stock Exchange                |  | Effective Date of Delisting |                   
|                                      |  |                             |                   
|The Euronext Amsterdam Stock Exchange |  |                             | February 28, 2005  | 
|The Frankfurt Stock Exchange          |  |                             | May 2, 2005        | 
|The Luxembourg Stock Exchange         |  |                             | September 26, 2005 | 

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|                            |                |                 |   |       |                   |  |   |       |  |  |     |        |  |  |   |        | 
|--------------------------- | -------------- | --------------- | - | ----- | ----------------- |  | - | ----- |  |  | --- | ------ |  |  | - | ------ | 
|                            |                | TSE             |   |       | NASDAQ            | 
|                            |                |                 |   |       |                   | 
|                            |                | Price per Share |   |       |                  
|                            |                | of Common       |   |       | Price per ADS     | 
|                            |                | Stock (Yen)     |   |       | (U.S. dollars)(1) | 
|                            |                |                 |   |       |                   | 
|                            |                | High            |   |       | Low               |  |   | High  |  |  | Low |       
|                            |                |                 |   |       |                   |  |   |       |  |  |     |       
|Year ended March 31:        |                |                 |   |       |                   |  |   |       |  |  |     |        |  |  |   |       
|                            | 2001           |                 | ¥ | 851   |                   |  | ¥ | 605   |  |  | $   | 161.50 |  |  | $ | 98.00  | 
|                            | 2002           |                 |   | 926   |                   |  |   | 575   |  |  |     | 152.13 |  |  |   | 91.00  | 
|                            | 2003           |                 |   | 910   |                   |  |   | 531   |  |  |     | 146.75 |  |  |   | 89.40  | 
|                            | 2004           |                 |   | 946   |                   |  |   | 541   |  |  |     | 181.50 |  |  |   | 90.90  | 
|                            | 2005           |                 |   | 1,074 |                   |  |   | 773   |  |  |     | 206.20 |  |  |   | 137.50 | 
|Year ended March 31, 2004:  |                |                 |   |       |                   |  |   |       |  |  |     |        |  |  |   |       
|                            | First quarter  |                 | ¥ | 629   |                   |  | ¥ | 541   |  |  | $   | 106.59 |  |  | $ | 90.90  | 
|                            | Second quarter |                 |   | 800   |                   |  |   | 620   |  |  |     | 140.50 |  |  |   | 106.76 | 
|                            | Third quarter  |                 |   | 903   |                   |  |   | 727   |  |  |     | 162.77 |  |  |   | 136.00 | 
|                            | Fourth quarter |                 |   | 946   |                   |  |   | 770   |  |  |     | 181.50 |  |  |   | 150.80 | 
|Year ended March 31, 2005:  |                |                 |   |       |                   |  |   |       |  |  |     |        |  |  |   |       
|                            | First quarter  |                 | ¥ | 1,010 |                   |  | ¥ | 773   |  |  | $   | 191.11 |  |  | $ | 137.50 | 
|                            | Second quarter |                 |   | 946   |                   |  |   | 801   |  |  |     | 172.00 |  |  |   | 144.45 | 
|                            | Third quarter  |                 |   | 994   |                   |  |   | 841   |  |  |     | 182.00 |  |  |   | 163.98 | 
|                            | Fourth quarter |                 |   | 1,074 |                   |  |   | 910   |  |  |     | 206.20 |  |  |   | 176.94 | 
|Year ending March 31, 2006: |                |                 |   |       |                   |  |   |       |  |  |     |        |  |  |   |       
|                            | First quarter  |                 | ¥ | 1,050 |                   |  | ¥ | 908   |  |  | $   | 192.44 |  |  | $ | 171.50 | 
|Month of:                   |                |                 |   |       |                   |  |   |       |  |  |     |        |  |  |   |       
|                            | March 2005     |                 | ¥ | 1,074 |                   |  | ¥ | 975   |  |  | $   | 206.20 |  |  | $ | 181.75 | 
|                            | April 2005     |                 |   | 1,023 |                   |  |   | 923   |  |  |     | 188.95 |  |  |   | 174.51 | 
|                            | May 2005       |                 |   | 995   |                   |  |   | 908   |  |  |     | 189.89 |  |  |   | 171.50 | 
|                            | June 2005      |                 |   | 1,050 |                   |  |   | 981   |  |  |     | 192.44 |  |  |   | 180.09 | 
|                            | July 2005      |                 |   | 1,084 |                   |  |   | 1,015 |  |  |     | 193.00 |  |  |   | 182.53 | 
|                            | August 2005    |                 |   | 1,188 |                   |  |   | 1,057 |  |  |     | 218.00 |  |  |   | 185.52 | 






|    |                                                                                                
|--- | -----------------------------------------------------------------------------------------------
|(1) | All fractional figures of the prices per ADS are rounded to the
    nearest two decimal points.





160



---



##### Table of Contents








|   |                      
|-- | ---------------------
|B. | Plan of Distribution.








|   |         
|-- | --------
|C. | Markets.








|   |                      
|-- | ---------------------
|D. | Selling Shareholders.








|   |          
|-- | ---------
|E. | Dilution.








|   |                       
|-- | ----------------------
|F. | Expenses of the Issue.








|         |                        
|-------- | -----------------------
|Item 10. | Additional Information.






|   |               
|-- | --------------
|A. | Share Capital.








|   |                                        
|-- | ---------------------------------------
|B. | Memorandum and Articles of Association.



| |        
| | -------
| | General







| |             
| | ------------
| | Organization

kabushiki kaisha shogyo tokibo




| |                     
| | --------------------
| | Objects and Purposes





| |    |                                                                                                                                                                        
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | Foreign trading business, purchasing and selling business,
    wholesaling business, agency business and brokerage business,
    relating to the following commodities:



| |     |                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------
| | (1) | Ferrous and non-ferrous metals and their raw materials and
    manufactured goods, and minerals.
|
| | (2) | Coal, petroleum, natural gas and other fuels and their
    by-products.                         

161



---



##### Table of Contents





| |     |                                                                                                                                                                                                                                                                                                                                 
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (3) | All kinds of machines and appliances (including measuring
    instruments and medical apparatus), equipment including
    manufacturing equipment, communications equipment and
    antipollution equipment, rolling stock and vehicles, ships and
    boats, aerospace equipment and aircraft, and parts for the
    foregoing.
|
| | (4) | All kinds of chemical products, salt, fertilizers, high-pressure
    gas, explosives, pharmaceuticals (including medicines,
    non-medicinal drugs, medicine for veterinary use, narcotics,
    powerful poison and poison), radio isotope, toilet preparations
    and their raw materials.                                   
|
| | (5) | Cereals, sugar, oils and fats, feeds and their raw materials;
    livestocks, agricultural, dairy and marine products, processed
    foods, alcoholic beverage and other foodstuffs and drinks.                                                                                                                                 
|
| | (6) | All kinds of textile products and their raw materials.                                                                                                                                                                                                                                                                          
|
| | (7) | All kinds of fur products and raw fur.                                                                                                                                                                                                                                                                                          
|
| | (8) | Lumber, cement, other building materials and housing related
    equipment.                                                                                                                                                                                                                                                     
|
| | (9) | Rubber, pulp, paper and their manufactured goods; tobacco,
    cigars, cigarettes and sundry goods.                                                                                                                                                                                                                             



| |                                          
| | -----------------------------------------
| | (10) Industrial water and drinking water.



| |    |                                                                                                                                                                                                                                                            
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | Exploration, development, manufacturing, processing, scrapping
    and recycling business relating to the above-mentioned
    commodities.                                                                                                                 
|
| | 3. | Acquisition, planning, preservation, utilization and disposition
    of copyrights, patent rights, other intellectual property
    rights, know-how, system technology, and other software and
    acting as intermediary in such transactions.            
|
| | 4. | Information processing and supply, telecommunications business,
    broadcasting business, advertising business, publishing
    business, printing, translation, and production and sales of
    audio and visual copyright products.                      
|
| | 5. | Forestry business, sawing business and lumber processing
    business.                                                                                                                                                                                     
|
| | 6. | Movable assets leasing business.                                                                                                                                                                                                                           
|
| | 7. | Secondhand goods business.                                                                                                                                                                                                                                 
|
| | 8. | Freight forwarding and agency business, land transportation
    business, marine transportation business, port transportation
    business, freight forwarding business, customs brokerage
    business, shipping agency business and warehousing business.
|
| | 9. | Intermediary business for non-life insurance and insurance under
    the Automobile Liability Law, and offering of life insurance,
    and overseas reinsurance business for non-life insurance.                                                           



| |     |                                                                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10. | Business as contractor, design of building, supervision and
    management of various construction works.                                                                                               
|
| | 11. | Acquisition, disposition, leasing, utilization in any other
    manner and development of real estate and acting as intermediary
    in such transactions.                                              
|
| | 12. | Supply and development of hot springs.                                                                                                                                                                  
|
| | 13. | Surveying and researching business relating to land, sea and sky.                                                                                                                                       
|
| | 14. | Investment in, purchasing, selling and handling as intermediary
    of negotiable instruments, etc.                                                                                                     
|
| | 15. | Lending money, guaranteeing and assuming debts, engaging in the
    sale and purchase of various credits, dealing in foreign
    exchange transactions, and conducting any other financing
    business.
|
| | 16. | Operation and management of medical facilities, day-care
    facilities, sports facilities and restaurants, and hotel
    business and travel business.                                                 

162



---



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| |     |                                                                                                                                                                                                                                                                                                                   
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 17. | Planning, administration and implementation of various events.                                                                                                                                                                                                                                                    
|
| | 18. | Temporary personnel placement service business, employment
    agency business, and personnel guidance and training business
    for development of appropriate job skills and qualifications,                                                                                                                    
|
| | 19. | Maintenance and management of real estate.                                                                                                                                                                                                                                                                        
|
| | 20. | Investment business, commodities investment dealing service,
    commodities investment advisory service, securities investment
    advisory service, trust business, sale of beneficial interest in
    trust, management service of investment trusts, asset management
    service for investment corporations.
|
| | 21. | Generation, supply, and sale or purchase of electricity.                                                                                                                                                                                                                                                          
|
| | 22. | Administrative agency service for operations, labor and
    accounting work.                                                                                                                                                                                                                                      
|
| | 23. | Buying, selling, and derivative transactions for greenhouse
    effect gas emissions rights and related intermediary services.                                                                                                                                                                                    
|
| | 24. | Agent and intermediary for credit cards application.                                                                                                                                                                                                                                                              
|
| | 25. | Consultancy business relating to the foregoing items.                                                                                                                                                                                                                                                             
|
| | 26. | Other lines of business relating to any of the foregoing items.                                                                                                                                                                                                                                                   



| |          
| | ---------
| | Directors









| |             
| | ------------
| | Common Stock



| |                   
| | ------------------
| | Authorized capital



163



---



##### Table of Contents







| |          
| | ---------
| | Dividends







| |     |                    
| | --- | -------------------
| | (i) | its stated capital;



| |      |                     
| | ---- | --------------------
| | (ii) | its capital surplus;



| |       |                               
| | ----- | ------------------------------
| | (iii) | its accumulated legal reserve;



| |      |                                                                                 
| | ---- | --------------------------------------------------------------------------------
| | (iv) | the legal reserve to be set aside in respect of the fiscal
    period concerned;



| |     |                                                                                                                                                                                                                                      
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (v) | the excess, if any, of unamortized expenses incurred in
    preparation for commencement of business and in connection with
    research and development over the aggregate of amounts referred
    to in (ii), (iii) and (iv) above;



| |      |                                                                                                                       
| | ---- | ----------------------------------------------------------------------------------------------------------------------
| | (vi) | the subscription price or the security deposit for the
    subscription price of new shares issued by the company; and



| |       |                                                                                                                                                                                                  
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (vii) | if certain assets of the company are stated at market value
    pursuant to the provisions of the Commercial Code, the aggregate
    amount by which their market value exceeds acquisition cost.





164



---



##### Table of Contents











| |                       
| | ----------------------
| | Shareholders Meetings













| |              
| | -------------
| | Voting rights





165



---



##### Table of Contents







| |                    
| | -------------------
| | Subscription rights







| |                   
| | ------------------
| | Liquidation rights





| |            
| | -----------
| | Record date







| |                                         
| | ----------------------------------------
| | Repurchase by Mitsui of its Common Stock



166



---



##### Table of Contents









| |                   
| | ------------------
| | Transfer of shares







| |                    
| | -------------------
| | Unit share system

tangen-kabu-system.






| |                                          
| | -----------------------------------------
| | Voting rights under the unit share system





| |                                                  
| | -------------------------------------------------
| | Share certificates for less than a unit of shares



167



---



##### Table of Contents





| |                                                                      
| | ---------------------------------------------------------------------
| | Repurchase by Mitsui of shares constituting less than a full
    unit





| |                                                    
| | ---------------------------------------------------
| | Increase in purchase of the shares to make one unit





| |                                                   
| | --------------------------------------------------
| | Effect of the unit share system on holders of ADSs





| |                                       
| | --------------------------------------
| | Reporting of Substantial Shareholdings





| |                          
| | -------------------------
| | Exercise of Voting Rights



168



---



##### Table of Contents





| |                  
| | -----------------
| | Change in Control





| |                                                                       
| | ----------------------------------------------------------------------
| | Daily Price Fluctuation Limits under Japanese Stock
    Exchange Rules





Selected Daily Price Limits


|                    |  |                                 |       |         |             |  |           |  |  |   |       |  |  |   |     | 
|------------------- |  | ------------------------------- | ----- | ------- | ----------- |  | --------- |  |  | - | ----- |  |  | - | --- | 
|                    |  |                                 |       | Maximum |            
|                    |  | Previous Days Closing Price or |       |         | Daily Price | 
|                    |  | Special Quote                   |       |         | Movement    | 
|                    |  |                                 |       |         |             | 
|Greater or equal to |  | ¥                               | 200   |         |             |  | Less than |  |  | ¥ | 500   |  |  | ¥ | 80  | 
|Greater or equal to |  |                                 | 500   |         |             |  | Less than |  |  |   | 1,000 |  |  |   | 100 | 
|Greater or equal to |  |                                 | 1,000 |         |             |  | Less than |  |  |   | 1,500 |  |  |   | 200 | 








|   |                    
|-- | -------------------
|C. | Material Contracts.








|   |                   
|-- | ------------------
|D. | Exchange Controls.



| |                             
| | ----------------------------
| | Foreign Exchange Regulations





169



---



##### Table of Contents







| |                      
| | ---------------------
| | Acquisition of Shares







| |                                                                                 
| | --------------------------------------------------------------------------------
| | Acquisition of Shares upon Exercise of Subscription Rights
    Attached to Bonds





| |     
| | ----
| | ADRs





| |                                
| | -------------------------------
| | Dividends and Proceeds of Sales








|   |          
|-- | ---------
|E. | Taxation.



| |                  
| | -----------------
| | Japanese Taxation



170



---



##### Table of Contents







| |   |                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the overall tax consequences of the acquisition, ownership and
    disposition of shares or ADSs, including specifically the tax
    consequences under Japanese law;
|
| |  | the laws of the jurisdiction of which they are resident; and                                                                                                         
|
| |  | any tax treaty between Japan and their country of residence.                                                                                                         











171



---



##### Table of Contents





| |                       
| | ----------------------
| | United States Taxation



| |        
| | -------
| | General









| |                      
| | ---------------------
| | Taxation of Dividends







172



---



##### Table of Contents







| |                          
| | -------------------------
| | Taxation of Capital Gains





| |           
| | ----------
| | PFIC Rules








|   |                             
|-- | ----------------------------
|F. | Dividends and Paying Agents.








|   |                      
|-- | ---------------------
|G. | Statement by Experts.








|   |                      
|-- | ---------------------
|H. | Documents on Display.



173



---



##### Table of Contents








|   |                        
|-- | -----------------------
|I. | Subsidiary Information.








|         |                                                                
|-------- | ---------------------------------------------------------------
|Item 11. | Quantitative and Qualitative Disclosures about Market
    Risk.









| |                   
| | ------------------
| | Interest Rate Risk





| |                                    
| | -----------------------------------
| | Foreign Currency Exchange Rate Risk





| |                     
| | --------------------
| | Commodity Price Risk





| |                  
| | -----------------
| | Equity Price Risk



174



---



##### Table of Contents







| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | Risk Management of Derivative Financial Instruments and
    Other Financial Instruments







| |                                                    
| | ---------------------------------------------------
| | Risk Management of Derivative Commodity Instruments







| |    
| | ---
| | VaR





| |                                
| | -------------------------------
| | VaRs for Non-Trading Activities







175



---



##### Table of Contents





|                                    |  |                       |       |  |      |   |       |     |  |   |         |  |  |          |       |  |      |   |       |     |  |   |         |  |  |   |       |  |  |   |       | 
|----------------------------------- |  | --------------------- | ----- |  | ---- | - | ----- | --- |  | - | ------- |  |  | -------- | ----- |  | ---- | - | ----- | --- |  | - | ------- |  |  | - | ----- |  |  | - | ----- | 
|                                    |  | Millions of Yen       |      
|                                    |  |                       |      
|                                    |  | Years Ended March 31, |      
|                                    |  |                       |      
|                                    |  | 2005                  |       |  | 2004 |  
|                                    |  |                       |       |  |      |  
|                                    |  | Year End              |       |  | High |   |       | Low |  |   | Average |  |  | Year End |       |  | High |   |       | Low |  |   | Average | 
|                                    |  |                       |       |  |      |   |       |     |  |   |         |  |  |          |       |  |      |   |       |     |  |   |         | 
|Interest rate risk                  |  | ¥                     | 376   |  |      | ¥ | 1,667 |     |  | ¥ | 262     |  |  | ¥        | 870   |  |      | ¥ | 1,096 |     |  | ¥ | 1,453   |  |  | ¥ | 197   |  |  | ¥ | 983   | 
|Foreign currency exchange rate risk |  |                       | 986   |  |      |   | 1,192 |     |  |   | 244     |  |  |          | 753   |  |      |   | 535   |     |  |   | 1,179   |  |  |   | 402   |  |  |   | 738   | 
|Commodity price risk                |  |                       | 1,044 |  |      |   | 1,329 |     |  |   | 925     |  |  |          | 1,071 |  |      |   | 1,336 |     |  |   | 1,336   |  |  |   | 1,089 |  |  |   | 1,207 | 



| |                            
| | ---------------------------
| | VaRs for Trading Activities





|                                    |  |                       |       |  |      |   |       |     |  |   |         |  |  |          |       |  |      |   |       |     |  |   |         |  |  |   |       |  |  |   |       | 
|----------------------------------- |  | --------------------- | ----- |  | ---- | - | ----- | --- |  | - | ------- |  |  | -------- | ----- |  | ---- | - | ----- | --- |  | - | ------- |  |  | - | ----- |  |  | - | ----- | 
|                                    |  | Millions of Yen       |      
|                                    |  |                       |      
|                                    |  | Years Ended March 31, |      
|                                    |  |                       |      
|                                    |  | 2005                  |       |  | 2004 |  
|                                    |  |                       |       |  |      |  
|                                    |  | Year End              |       |  | High |   |       | Low |  |   | Average |  |  | Year End |       |  | High |   |       | Low |  |   | Average | 
|                                    |  |                       |       |  |      |   |       |     |  |   |         |  |  |          |       |  |      |   |       |     |  |   |         | 
|Interest rate risk                  |  | ¥                     | 0     |  |      | ¥ | 87    |     |  | ¥ | 0       |  |  | ¥        | 23    |  |      | ¥ | 1     |     |  | ¥ | 107     |  |  | ¥ | 1     |  |  | ¥ | 48    | 
|Foreign currency exchange rate risk |  |                       | 133   |  |      |   | 176   |     |  |   | 17      |  |  |          | 72    |  |      |   | 157   |     |  |   | 157     |  |  |   | 1     |  |  |   | 65    | 
|Commodity price risk                |  |                       | 2,863 |  |      |   | 3,068 |     |  |   | 2,177   |  |  |          | 2,592 |  |      |   | 2,106 |     |  |   | 2,496   |  |  |   | 1,531 |  |  |   | 2,035 | 



| |                                          
| | -----------------------------------------
| | Tabular Presentation of Equity Price Risk



|                                    |  |                 |         |                    |                |   |         |           |                    |   |         |  |  |            |         |  |           |   |         |  |  |   |         | 
|----------------------------------- |  | --------------- | ------- | ------------------ | -------------- | - | ------- | --------- | ------------------ | - | ------- |  |  | ---------- | ------- |  | --------- | - | ------- |  |  | - | ------- | 
|                                    |  | Millions of Yen |        
|                                    |  |                 |        
|                                    |  | March 31, 2005  |         |                    | March 31, 2004 |  
|                                    |  |                 |         |                    |                |  
|                                    |  |                 |         | Unrealized Holding |                |   |         |           | Unrealized Holding |  
|                                    |  | Cost            |         |                    | Fair Value     |   |         | Net Gains |                    |   | Cost    |  |  | Fair Value |         |  | Net Gains |  
|                                    |  |                 |         |                    |                |   |         |           |                    |   |         |  |  |            |         |  |           |  
|Manufacturing                       |  | ¥               | 113,654 |                    |                | ¥ | 194,101 |           |                    | ¥ | 80,447  |  |  | ¥          | 101,307 |  |           | ¥ | 172,984 |  |  | ¥ | 71,677  | 
|Commercial, finance and real estate |  |                 | 29,518  |                    |                |   | 49,193  |           |                    |   | 19,675  |  |  |            | 43,166  |  |           |   | 68,374  |  |  |   | 25,208  | 
|Transport and telecommunication     |  |                 | 17,814  |                    |                |   | 32,658  |           |                    |   | 14,844  |  |  |            | 11,150  |  |           |   | 15,589  |  |  |   | 4,439   | 
|Energy, service and others          |  |                 | 30,021  |                    |                |   | 57,145  |           |                    |   | 27,124  |  |  |            | 22,986  |  |           |   | 40,071  |  |  |   | 17,085  | 
|                                    |  |                 |         |                    |                |   |         |           |                    |   |         |  |  |            |         |  |           |  
|Total                               |  | ¥               | 191,007 |                    |                | ¥ | 333,097 |           |                    | ¥ | 142,090 |  |  | ¥          | 178,609 |  |           | ¥ | 297,018 |  |  | ¥ | 118,409 | 
|                                    |  |                 |         |                    |                |   |         |           |                    |   |         |  |  |            |         |  |           |  



176



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##### Table of Contents







|                        |                                |                    |  |           |                  |  |  |                |           |  |            |        |        |  |  |        |        | 
|----------------------- | ------------------------------ | ------------------ |  | --------- | ---------------- |  |  | -------------- | --------- |  | ---------- | ------ | ------ |  |  | ------ | ------ | 
|                        |                                | Millions of Yen    | 
|                        |                                |                    | 
|                        |                                | Available-for-Sale |  |           | Held-to-Maturity | 
|                        |                                |                    |  |           |                  | 
|                        |                                |                    |  | Aggregate |                  |  |  |                | Aggregate | 
|                        |                                | Amortized Cost     |  |           | Fair Value       |  |  | Amortized Cost |           |  | Fair Value |       
|                        |                                |                    |  |           |                  |  |  |                |           |  |            |       
|Contractual maturities: |                                |                    |  |           |                  |  |  |                |           |  |            |        |        |  |  |       
|                        | Within 1 year                  |                    |  | ¥234,870  |                  |  |  | ¥234,870       |           |  |            | ¥1,348 |        |  |  | ¥1,348 |       
|                        | After 1 year through 5 years   |                    |  | 67,981    |                  |  |  | 67,999         |           |  |            | 233    |        |  |  | 233    |       
|                        | After 5 years through 10 years |                    |  | 4,069     |                  |  |  | 4,073          |           |  |            | 10     |        |  |  | 10     |       
|                        | After 10 years                 |                    |  | 2         |                  |  |  | 2              |           |  |            |       |        |  |  |       |       
|                        |                                |                    |  |           |                  |  |  |                |           |  |            |       
|                        |                                | Total              |  |           | ¥306,922         |  |  |                | ¥306,944  |  |            |        | ¥1,591 |  |  |        | ¥1,591 | 
|                        |                                |                    |  |           |                  |  |  |                |           |  |            |       








|         |                                                        
|-------- | -------------------------------------------------------
|Item 12. | Description of Securities Other than Equity Securities.






PART II







|         |                                                 
|-------- | ------------------------------------------------
|Item 13. | Defaults, Dividend Arrearages and Delinquencies.








|         |                                                                                  
|-------- | ---------------------------------------------------------------------------------
|Item 14. | Material Modifications to the Rights of Security Holders and
    Use of Proceeds.








|         |                         
|-------- | ------------------------
|Item 15. | Controls and Procedures.



| |                                   
| | ----------------------------------
| | Disclosure Controls and Procedures







177



---



##### Table of Contents








|         |           
|-------- | ----------
|Item 16. | [Reserved]






|          |                                  
|--------- | ---------------------------------
|Item 16A. | Audit Committee Financial Expert.














|          |                
|--------- | ---------------
|Item 16B. | Code of Ethics.












|          |                                        
|--------- | ---------------------------------------
|Item 16C. | Principal Accountant Fees and Services.





|                          |  |                 |        |  |      |  |        | 
|------------------------- |  | --------------- | ------ |  | ---- |  | ------ | 
|                          |  | Millions of Yen |       
|                          |  |                 |       
|                          |  | Year Ended      |       
|                          |  | March 31,       |       
|                          |  |                 |       
|                          |  | 2005            |        |  | 2004 | 
|                          |  |                 |        |  |      | 
|Audit
    fees(1)         |  |                 | ¥1,298 |  |      |  | ¥1,223 | 
|Audit-related
    fees(2) |  |                 | 122    |  |      |  | 143    | 
|Tax
    fees(3)           |  |                 | 483    |  |      |  | 430    | 
|All other
    fees(4)     |  |                 | 37     |  |      |  | 181    | 
|                          |  |                 |        |  |      | 
|Total                     |  |                 | ¥1,940 |  |      |  | ¥1,977 | 
|                          |  |                 |        |  |      | 






|    |                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Audit fees are fees billed for professional services rendered by
    the principal accountant for the audit of our annual financial
    statements and services that are provided by the accountant in
    connection with statutory and regulatory filings or engagements.

178



---



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|    |                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Audit-related fees are fees billed for assurance and related
    services that are reasonably related to the performance of the
    audit or review of our financial statements, such as assessment
    of internal accounting controls and due diligence services in
    connection with potential business acquisitions, that are not
    reported in audit fees.
|   
|(3) | Tax fees are fees billed for professional services rendered by
    the principal accountant for tax compliance, tax advice and tax
    planning.                                                                                                                                                                                                                   
|   
|(4) | All other fees are fees billed for services provided by the
    principal accountant, other than services reported in audit
    fees, audit-related fees and tax fees, such as advisory services
    for risk management and regulatory matters.                                                                                                                   








|          |                                                                
|--------- | ---------------------------------------------------------------
|Item 16D. | Exemptions from the Listing Standards for Audit
    Committees.








|          |                                                                            
|--------- | ---------------------------------------------------------------------------
|Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated
    Purchasers.



|                                       |  |                  |         |  |                |                     |          |                    |                    |  |                    |  |  |  |     | 
|-------------------------------------- |  | ---------------- | ------- |  | -------------- | ------------------- | -------- | ------------------ | ------------------ |  | ------------------ |  |  |  | --- | 
|                                       |  |                  |         |  |                | (c) Total Number of |          |                    | (d) Maximum Number | 
|                                       |  |                  |         |  |                | Shares Purchased as |          |                    | of Shares that May | 
|                                       |  | (a) Total Number |         |  | (b) Average    |                     |          | Part of Publicly   |                    |  | Yet Be Purchased   | 
|                                       |  | of Shares        |         |  | Price Paid per |                     |          | Announced Plans or |                    |  | Under the Plans or | 
|Period                                 |  | Purchased(1)     |         |  | Share (Yen)    |                     |          | Programs           |                    |  | Programs           | 
|                                       |  |                  |         |  |                |                     |          |                    |                    |  |                    | 
|April 1, 2004  April 30, 2004         |  |                  | 56,140  |  |                |                     | ¥970.03  |                    |                    |  | N/A                |  |  |  | N/A | 
|May 1, 2004  May 31, 2004             |  |                  | 16,634  |  |                |                     | 854.26   |                    |                    |  | N/A                |  |  |  | N/A | 
|June 1, 2004  June 30, 2004           |  |                  | 25,485  |  |                |                     | 848.57   |                    |                    |  | N/A                |  |  |  | N/A | 
|July 1, 2004  July 31, 2004           |  |                  | 72,383  |  |                |                     | 829.12   |                    |                    |  | N/A                |  |  |  | N/A | 
|August 1, 2004  August 31, 2004       |  |                  | 57,811  |  |                |                     | 868.59   |                    |                    |  | N/A                |  |  |  | N/A | 
|September 1, 2004  September 30, 2004 |  |                  | 63,612  |  |                |                     | 923.27   |                    |                    |  | N/A                |  |  |  | N/A | 
|October 1, 2004  October 31, 2004     |  |                  | 93,439  |  |                |                     | 952.50   |                    |                    |  | N/A                |  |  |  | N/A | 
|November 1, 2004  November 30, 2004   |  |                  | 102,205 |  |                |                     | 918.71   |                    |                    |  | N/A                |  |  |  | N/A | 
|December 1, 2004  December 31, 2004   |  |                  | 168,910 |  |                |                     | 877.73   |                    |                    |  | N/A                |  |  |  | N/A | 
|January 1, 2005  January 31, 2005     |  |                  | 86,405  |  |                |                     | 931.93   |                    |                    |  | N/A                |  |  |  | N/A | 
|February 1, 2005  February 28, 2005   |  |                  | 84,370  |  |                |                     | 991.37   |                    |                    |  | N/A                |  |  |  | N/A | 
|March 1, 2005  March 31,
    2005(2)  |  |                  | 71,853  |  |                |                     | 1,048.64 |                    |                    |  | N/A                |  |  |  | N/A | 
|                                       |  |                  |         |  |                |                     |          |                    |                    |  |                    | 
|Total                                  |  |                  | 899,247 |  |                |                     | 922.91   |                    |                    |  | N/A                |  |  |  | N/A | 
|                                       |  |                  |         |  |                |                     |          |                    |                    |  |                    | 






|    |                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Under the Commercial Code of Japan, a holder of shares
    constituting less than one full unit may require Mitsui to
    purchase such shares at their market value (See Memorandum
    and Articles of

179



---



##### Table of Contents



|    |                                                                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | Association  Unit share
    system  Repurchase by Mitsui of shares constituting
    less than a full unit in Item 10. Additional
    Information). During the year ended March 31, 2005,
    Mitsui purchased 899,247 shares for a total purchase price
    of 829,921,816 yen upon such requests from holders of shares
    constituting less than one full unit.
|   
|(2) | On January 19, 2005, Mitsui announced that, at its Meeting
    of the Board of Directors, Mitsui decided to merge with Mitsui
    Sakhalin Development Co. Ltd. (MSD) on
    March 31, 2005.                                                                                                                                                                           







180



---



##### Table of Contents






PART III







|         |                      
|-------- | ---------------------
|Item 17. | Financial Statements.








|         |                      
|-------- | ---------------------
|Item 18. | Financial Statements.








|         |          
|-------- | ---------
|Item 19. | Exhibits.

Exhibits


|        |    |          |  |                                                                                                                                                 
|------- | -- | -------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |         
|Number  |    | Document
|        |    |         
|        | 1  | .1       |  | The Articles of Incorporation of Mitsui & Co., Ltd., as
    of June 24, 2005 (English-language translation).                                    
|        | 1  | .2*      |  | The Share Handling Regulation of Mitsui & Co., Ltd., as
    amended on June 24, 2004 (English-language translation).                            
|        | 1  | .3*      |  | The Rules of the Board of Directors of Mitsui & Co.,
    Ltd., as amended on April 1, 2004 (English-language
    translation).                  
|        | 1  | .4       |  | The Rules of the Board of Corporate Auditors of
    Mitsui & Co., Ltd., as amended on September 8,
    2004 (English-language translation).     
|        | 2  | .1**     |  | Deposit Agreement, dated October 1, 1982 among
    Mitsui & Co., Ltd., Citibank, N.A., and holders of ADRs
    and European Depositary Receipts.
|        | 8  | .1       |  | List of Subsidiaries of Mitsui & Co., Ltd.                                                                                                      
|        | 11 | .1       |  | Code of Ethics for Senior Financial Officers and Professionals.                                                                                 
|        | 11 | .2       |  | Business Conduct Guidelines for Employees and Officers of
    Mitsui & Co., Ltd.                                                                
|        | 12 | .1       |  | Certification of the principal executive officer of
    Mitsui & Co., Ltd. required by Rule 13a-14(a).                                          
|        | 12 | .2       |  | Certification of the principal financial officer of
    Mitsui & Co., Ltd. required by Rule 13a-14(a).                                          
|        | 13 | .1       |  | Certification required by Rule 13a-14(b) and
    Section 1350 of Chapter 63 of Title 18 of the
    United States Code.                          






| |   |                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------
| | * | Incorporated by reference to the corresponding exhibit to our
    annual report on Form 20-F 
     (File No. 0-9929) filed on September 30, 2004.



|   |                                                                                                                                                  
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------
|** | Incorporated by reference to the corresponding exhibit to our
    annual report on Form 20-F 
     (File No. 0-9929) filed on September 27, 2002.



181



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##### Table of Contents



MITSUI & CO., LTD. (MITSUI BUSSAN KABUSHIKI KAISHA)
AND SUBSIDIARIES


INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES




|                                                                                                      |  |      |      | 
|----------------------------------------------------------------------------------------------------- |  | ---- | ---- | 
|                                                                                                      |  | Page |     
|                                                                                                      |  |      |     
|Report of Independent Registered Public Accounting Firm                                               |  |      | F-2  | 
|Consolidated Balance Sheets, March 31, 2005 and 2004                                                  |  |      | F-3  | 
|Statements of Consolidated Income for the Years Ended
    March 31, 2005, 2004 and 2003               |  |      | F-5  | 
|Statements of Consolidated Shareholders Equity for the
    Years Ended March 31, 2005, 2004 and 2003 |  |      | F-7  | 
|Statements of Consolidated Cash Flows for the Years Ended
    March 31, 2005, 2004 and 2003           |  |      | F-9  | 
|Notes to Consolidated Financial Statements                                                            |  |      | F-10 | 
|Supplemental Information on Oil and Gas Producing Activities
    (Unaudited)                          |  |      | F-82 | 

Supplemental Information:


Schedules for the Years
Ended March 31, 2005, 2004 and 2003:






F-1



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


























F-2



---



##### Table of Contents



CONSOLIDATED BALANCE SHEETS


Mitsui & Co., Ltd. and subsidiaries


March 31, 2005 and 2004


|                                                                                            |                                                       |                                               |          |              |           |             |          |           |           |   |        |        |        | 
|------------------------------------------------------------------------------------------- | ----------------------------------------------------- | --------------------------------------------- | -------- | ------------ | --------- | ----------- | -------- | --------- | --------- | - | ------ | ------ | ------ | 
|                                                                                            |                                                       |                                               |          |              |           | Millions of |         
|                                                                                            |                                                       |                                               |          | U.S. Dollars |          
|                                                                                            |                                                       | Millions of Yen                               |          |              | (Note 2)  |            
|                                                                                            |                                                       |                                               |          |              |           |            
|                                                                                            |                                                       | 2005                                          |          |              | 2004      |             |          | 2005      |          
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|ASSETS                                                                                     
|Current Assets:                                                                             |                                                       |                                               |          |              |           |             |          |           |           |   |        |       
|Cash and cash equivalents (Notes 2 and 5)                                                   |                                                       | ¥                                             | 791,810  |              |           | ¥           | 638,299  |           |           | $ | 7,400  |       
|Time deposits                                                                               |                                                       |                                               | 28,067   |              |           |             | 46,710   |           |           |   | 262    |       
|Marketable securities (Notes 2 and 5)                                                       |                                                       |                                               | 28,077   |              |           |             | 29,337   |           |           |   | 262    |       
|Trade receivables (Note 9):                                                                 |                                                       |                                               |          |              |           |             |          |           |           |   |        |       
|                                                                                            | Notes and loans, less unearned interest               |                                               |          | 450,678      |           |             |          | 467,380   |           |   |        | 4,212  |       
|                                                                                            | Accounts (Note 8)                                     |                                               |          | 1,863,742    |           |             |          | 1,706,850 |           |   |        | 17,418 |       
|                                                                                            | Associated companies                                  |                                               |          | 197,015      |           |             |          | 186,373   |           |   |        | 1,841  |       
|                                                                                            | Allowance for doubtful receivables (Notes 2, 7 and 8) |                                               |          | (22,519      | )         |             |          | (22,498   | )         |   |        | (210   | )     
|Inventories (Notes 2 and 9)                                                                 |                                                       |                                               | 596,876  |              |           |             | 513,016  |           |           |   | 5,578  |       
|Advance payments to suppliers                                                               |                                                       |                                               | 90,901   |              |           |             | 62,038   |           |           |   | 850    |       
|Deferred tax assets  current (Notes 2 and 21)                                              |                                                       |                                               | 46,410   |              |           |             | 31,473   |           |           |   | 434    |       
|Other current assets                                                                        |                                                       |                                               | 349,622  |              |           |             | 275,496  |           |           |   | 3,268  |       
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|                                                                                            |                                                       | Total current assets                          |          |              | 4,420,679 |             |          |           | 3,934,474 |   |        |        | 41,315 | 
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|Investments and Non-current Receivables(Notes 2 and
    9):                                 |                                                       |                                               |          |              |           |             |          |           |           |   |        |       
|Investments in and advances to associated companies
    (Notes 6, 11 and 17)                |                                                       |                                               | 973,219  |              |           |             | 726,521  |           |           |   | 9,096  |       
|Other investments (Note 5)                                                                  |                                                       |                                               | 660,230  |              |           |             | 617,189  |           |           |   | 6,170  |       
|Non-current receivables, less unearned interest (Note 8)                                    |                                                       |                                               | 544,615  |              |           |             | 485,446  |           |           |   | 5,090  |       
|Allowance for doubtful receivables (Notes 7 and 8)                                          |                                                       |                                               | (100,066 | )            |           |             | (110,098 | )         |           |   | (935   | )     
|Property leased to others  at cost, less accumulated
    depreciation (Notes 8, 10 and 24) |                                                       |                                               | 183,175  |              |           |             | 230,311  |           |           |   | 1,712  |       
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|                                                                                            |                                                       | Total investments and non-current receivables |          |              | 2,261,173 |             |          |           | 1,949,369 |   |        |        | 21,133 | 
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|Property and Equipment  at Cost(Notes 2, 8, 9, 10 and 11):                                 |                                                       |                                               |          |              |           |             |          |           |           |   |        |       
|Land, land improvements and timberlands                                                     |                                                       |                                               | 207,115  |              |           |             | 220,842  |           |           |   | 1,936  |       
|Buildings, including leasehold improvements                                                 |                                                       |                                               | 317,576  |              |           |             | 329,405  |           |           |   | 2,968  |       
|Equipment and fixtures                                                                      |                                                       |                                               | 429,315  |              |           |             | 395,010  |           |           |   | 4,012  |       
|Mineral rights                                                                              |                                                       |                                               | 78,303   |              |           |             | 27,349   |           |           |   | 732    |       
|Vessels                                                                                     |                                                       |                                               | 21,002   |              |           |             | 18,215   |           |           |   | 196    |       
|Projects in progress                                                                        |                                                       |                                               | 35,727   |              |           |             | 26,224   |           |           |   | 334    |       
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|                                                                                            | Total                                                 |                                               |          | 1,089,038    |           |             |          | 1,017,045 |           |   |        | 10,178 |       
|Accumulated depreciation                                                                    |                                                       |                                               | (426,350 | )            |           |             | (417,906 | )         |           |   | (3,985 | )     
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|                                                                                            |                                                       | Net property and equipment                    |          |              | 662,688   |             |          |           | 599,139   |   |        |        | 6,193  | 
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|Intangible Assets, less Accumulated Amortization(Notes 2, 3, 12 and 14)                     |                                                       |                                               | 104,257  |              |           |             | 90,809   |           |           |   | 974    |       
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|Deferred Tax Assets  Non-current(Notes 2, 11 and 21)                                       |                                                       |                                               | 29,641   |              |           |             | 32,406   |           |           |   | 277    |       
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|Other Assets (Note 14)                                                                      |                                                       |                                               | 114,949  |              |           |             | 109,831  |           |           |   | 1,074  |       
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          
|                                                                                            |                                                       | Total                                         |          | ¥            | 7,593,387 |             |          | ¥         | 6,716,028 |   |        | $      | 70,966 | 
|                                                                                            |                                                       |                                               |          |              |           |             |          |           |          

F-3



---



##### Table of Contents



CONSOLIDATED BALANCE SHEETS  (Continued)


Mitsui & Co., Ltd. and subsidiaries


March 31, 2005 and 2004


|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |           |   |        |        |        |  
|---------------------------------------------------------------------------------- | --------------------------------------------------------------------------------- | ------------------------------------------ | --------- | ------------ | --------- | ----------- | --------- | --------- | --------- | - | ------ | ------ | ------ | -
|                                                                                   |                                                                                   |                                            |           |              |           | Millions of |          
|                                                                                   |                                                                                   |                                            |           | U.S. Dollars |          
|                                                                                   |                                                                                   | Millions of Yen                            |           |              | (Note 2)  |            
|                                                                                   |                                                                                   |                                            |           |              |           |            
|                                                                                   |                                                                                   | 2005                                       |           |              | 2004      |             |           | 2005      |          
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|LIABILITIES AND SHAREHOLDERS EQUITY                                              
|Current Liabilities:                                                               |                                                                                   |                                            |           |              |           |             |           |           |           |   |        |       
|Short-term debt (Notes 9 and 13)                                                   |                                                                                   | ¥                                          | 615,353   |              |           | ¥           | 646,746   |           |           | $ | 5,751  |       
|Current maturities of long-term debt (Notes 8, 9 and 13)                           |                                                                                   |                                            | 291,950   |              |           |             | 357,675   |           |           |   | 2,728  |       
|Trade payables:                                                                    |                                                                                   |                                            |           |              |           |             |           |           |           |   |        |       
|                                                                                   | Notes and acceptances                                                             |                                            |           | 113,481      |           |             |           | 124,321   |           |   |        | 1,060  |       
|                                                                                   | Accounts                                                                          |                                            |           | 1,645,842    |           |             |           | 1,467,516 |           |   |        | 15,382 |       
|                                                                                   | Associated companies                                                              |                                            |           | 94,805       |           |             |           | 76,360    |           |   |        | 886    |       
|Accrued expenses:                                                                  |                                                                                   |                                            |           |              |           |             |           |           |           |   |        |       
|                                                                                   | Income taxes (Notes 2 and 21)                                                     |                                            |           | 47,160       |           |             |           | 32,628    |           |   |        | 441    |       
|                                                                                   | Interest                                                                          |                                            |           | 19,570       |           |             |           | 20,210    |           |   |        | 183    |       
|                                                                                   | Other                                                                             |                                            |           | 75,299       |           |             |           | 39,522    |           |   |        | 704    |       
|Advances from customers                                                            |                                                                                   |                                            | 100,681   |              |           |             | 83,273    |           |           |   | 941    |       
|Other current liabilities (Notes 2, 21, 22 and 23)                                 |                                                                                   |                                            | 277,635   |              |           |             | 185,534   |           |           |   | 2,595  |       
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|                                                                                   |                                                                                   | Total current liabilities                  |           |              | 3,281,776 |             |           |           | 3,033,785 |   |        |        | 30,671 |  
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|Long-term Debt, less Current Maturities(Notes 8, 9, 11 and 13)                     |                                                                                   |                                            | 2,904,923 |              |           |             | 2,541,221 |           |           |   | 27,149 |       
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|Accrued Pension Costs and Liability for Severance Indemnities(Notes 2 and 14)      |                                                                                   |                                            | 39,467    |              |           |             | 52,296    |           |           |   | 369    |       
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|Deferred Tax Liabilities  Non-current(Notes 2 and 21)                             |                                                                                   |                                            | 143,566   |              |           |             | 47,387    |           |           |   | 1,341  |       
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|Commitments and Contingent Liabilities(Notes 9 and
    23)                         |                                                                                   |                                            |           |              |           |             |           |           |           |   |        |       
|Minority Interests(Note 11)                                                        |                                                                                   |                                            | 100,827   |              |           |             | 78,061    |           |           |   | 942    |       
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|Shareholders Equity(Note 15):                                                     |                                                                                   |                                            |           |              |           |             |           |           |           |   |        |       
|Common stock  no par value                                                        |                                                                                   |                                            |           |              |           |             |           |           |           |   |        |       
|                                                                                   | Authorized, 2,500,000,000 shares;                                                 |                                            |           |              |           |             |           |           |           |   |        |        |       
|                                                                                   | Issued, 1,583,687,322 shares in 2005 and
    1,583,674,837 shares in 2004         |                                            |           | 192,493      |           |             |           | 192,487   |           |   |        | 1,799  |       
|Capital surplus                                                                    |                                                                                   |                                            | 288,048   |              |           |             | 287,763   |           |           |   | 2,692  |       
|Retained earnings:                                                                 |                                                                                   |                                            |           |              |           |             |           |           |           |   |        |       
|                                                                                   | Appropriated for legal reserve                                                    |                                            |           | 37,018       |           |             |           | 36,633    |           |   |        | 346    |       
|                                                                                   | Unappropriated (Notes 6, 13, 21 and 29)                                           |                                            |           | 656,032      |           |             |           | 549,521   |           |   |        | 6,131  |       
|Accumulated other comprehensive income (loss) (Note 2):                            |                                                                                   |                                            |           |              |           |             |           |           |           |   |        |       
|                                                                                   | Unrealized holding gains and losses on available-for-sale
    securities (Note 5) |                                            |           | 100,179      |           |             |           | 69,729    |           |   |        | 936    |       
|                                                                                   | Foreign currency translation adjustments                                          |                                            |           | (142,787     | )         |             |           | (161,454  | )         |   |        | (1,334 | )     
|                                                                                   | Minimum pension liability adjustment (Note 14)                                    |                                            |           | (5,691       | )         |             |           | (5,743    | )         |   |        | (53    | )     
|                                                                                   | Net unrealized gains and losses on derivatives (Note 26)                          |                                            |           | (1,252       | )         |             |           | (3,996    | )         |   |        | (12    | )     
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|                                                                                   |                                                                                   | Total accumulated other comprehensive loss |           |              | (49,551   | )           |           |           | (101,464  | ) |        |        | (463   | )
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|Treasury stock, at cost: 1,476,692 shares in 2005 and
    2,661,783 shares in 2004 |                                                                                   |                                            | (1,212    | )            |           |             | (1,662    | )         |           |   | (11    | )     
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|                                                                                   |                                                                                   | Total shareholders equity                 |           |              | 1,122,828 |             |           |           | 963,278   |   |        |        | 10,494 |  
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          
|                                                                                   |                                                                                   | Total                                      |           | ¥            | 7,593,387 |             |           | ¥         | 6,716,028 |   |        | $      | 70,966 |  
|                                                                                   |                                                                                   |                                            |           |              |           |             |           |           |          



F-4



---



##### Table of Contents



Statements of Consolidated Income


Mitsui & Co., Ltd. and subsidiaries


Years Ended March 31, 2005, 2004 and 2003


|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |           |  |   |        |        |  | 
|----------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ------------ | -------- | - | ----------- | ----------- |  | - | --------- | --------- |  | - | ------ | ------ |  | 
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             | Millions of | 
|                                                                                                                                                      |                        |                                                                                                                                                             |           | U.S. Dollars |         
|                                                                                                                                                      |                        | Millions of Yen                                                                                                                                             |           |              | (Note 2) |  
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |  
|                                                                                                                                                      |                        |                                                                                                                                                             |           | 2004         |          |   | 2003        |             |  |  
|                                                                                                                                                      |                        |                                                                                                                                                             |           | As restated  |          |   | As restated |             |  |  
|                                                                                                                                                      |                        | 2005                                                                                                                                                        |           |              | (Note 2) |   |             | (Note 2)    |  |   | 2005      |          
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|Revenues(Notes 2, 17 and 18):                                                                                                                         |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |           |  |   |        |       
|Sales of products                                                                                                                                     |                        | ¥                                                                                                                                                           | 2,980,759 |              |          | ¥ | 2,490,014   |             |  | ¥ | 2,316,828 |           |  | $ | 27,858 |       
|Sales of services                                                                                                                                     |                        |                                                                                                                                                             | 435,210   |              |          |   | 424,473     |             |  |   | 389,653   |           |  |   | 4,067  |       
|Other sales (Note 8)                                                                                                                                  |                        |                                                                                                                                                             | 109,764   |              |          |   | 68,449      |             |  |   | 78,090    |           |  |   | 1,026  |       
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|                                                                                                                                                      | Total revenues         |                                                                                                                                                             |           | 3,525,733    |          |   |             | 2,982,936   |  |   |           | 2,784,571 |  |   |        | 32,951 | 
|                                                                                                                                                      |                        | Total Trading Transactions (Notes 2 and 17): 2005,
    ¥13,615,047 million  $127,243 million;
    2004, ¥12,284,111 million; 2003,
    ¥11,474,183 million |           |              |          |   |             |             |  |   |           |           |  |   |        |        |  | 
|Cost of Revenues(Notes 2 and 18):                                                                                                                     |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |           |  |   |        |       
|Cost of products sold                                                                                                                                 |                        |                                                                                                                                                             | 2,684,146 |              |          |   | 2,292,662   |             |  |   | 2,131,157 |           |  |   | 25,086 |       
|Cost of services sold                                                                                                                                 |                        |                                                                                                                                                             | 68,995    |              |          |   | 41,346      |             |  |   | 44,594    |           |  |   | 645    |       
|Cost of other sales (Note 8)                                                                                                                          |                        |                                                                                                                                                             | 46,789    |              |          |   | 34,985      |             |  |   | 39,250    |           |  |   | 437    |       
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|                                                                                                                                                      | Total cost of revenues |                                                                                                                                                             |           | 2,799,930    |          |   |             | 2,368,993   |  |   |           | 2,215,001 |  |   |        | 26,168 | 
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|Gross Profit                                                                                                                                          |                        |                                                                                                                                                             | 725,803   |              |          |   | 613,943     |             |  |   | 569,570   |           |  |   | 6,783  |       
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|Other Expenses (Income):                                                                                                                              |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |           |  |   |        |       
|Selling, general and administrative (Notes 2, 8,
    12, 14, 18 and 25)                                                                               |                        |                                                                                                                                                             | 518,949   |              |          |   | 494,437     |             |  |   | 453,973   |           |  |   | 4,850  |       
|Provision for doubtful receivables (Notes 2 and 7)                                                                                                    |                        |                                                                                                                                                             | 8,863     |              |          |   | 9,883       |             |  |   | 13,665    |           |  |   | 83     |       
|Interest expense, net of interest income (Notes 2 and 26):
    2005, ¥35,512 million  $332 million;
    2004, ¥30,015 million; 2003, ¥39,641 million |                        |                                                                                                                                                             | 8,097     |              |          |   | 5,898       |             |  |   | 5,774     |           |  |   | 76     |       
|Dividend income                                                                                                                                       |                        |                                                                                                                                                             | (24,570   | )            |          |   | (18,448     | )           |  |   | (16,266   | )         |  |   | (230   | )     
|Gain on securities contributed to an employee retirement benefit
    trust (Notes 5 and 14)                                                           |                        |                                                                                                                                                             |          |              |          |   |            |             |  |   | (15,831   | )         |  |   |       |       
|Government grant for transfer of substitutional portion of EPF
    (Notes 2 and 14)                                                                   |                        |                                                                                                                                                             |          |              |          |   | (17,224     | )           |  |   |          |           |  |   |       |       
|Gain on sales of securities  net (Notes 2 and 5)                                                                                                     |                        |                                                                                                                                                             | (34,856   | )            |          |   | (27,465     | )           |  |   | (11,026   | )         |  |   | (326   | )     
|Gain on issuance of stock by a subsidiary (Notes 2 and 19)                                                                                            |                        |                                                                                                                                                             | (1,677    | )            |          |   |            |             |  |   |          |           |  |   | (16    | )     
|Loss on write-down of securities (Notes 2 and 5)                                                                                                      |                        |                                                                                                                                                             | 16,544    |              |          |   | 31,024      |             |  |   | 37,907    |           |  |   | 155    |       
|(Gain) loss on disposal or sales of property and
    equipment  net (Note 25)                                                                        |                        |                                                                                                                                                             | (6,527    | )            |          |   | (4,057      | )           |  |   | 1,745     |           |  |   | (61    | )     
|Impairment loss of long-lived assets (Notes 2, 10, 12
    and 25)                                                                                     |                        |                                                                                                                                                             | 21,505    |              |          |   | 22,378      |             |  |   | 23,638    |           |  |   | 201    |       
|Compensation and other charges related to DPF incident
    (Note 22)                                                                                  |                        |                                                                                                                                                             | 36,000    |              |          |   |            |             |  |   |          |           |  |   | 336    |       
|Other expense  net (Notes 18, 20, 23 and 25)                                                                                                         |                        |                                                                                                                                                             | 7,831     |              |          |   | 28,712      |             |  |   | 11,001    |           |  |   | 73     |       
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|                                                                                                                                                      | Total other expenses   |                                                                                                                                                             |           | 550,159      |          |   |             | 525,138     |  |   |           | 504,580   |  |   |        | 5,141  | 
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|Income from Continuing Operations before Income Taxes,
    Minority Interests and Equity in Earnings(Note 21)                                         |                        |                                                                                                                                                             | 175,644   |              |          |   | 88,805      |             |  |   | 64,990    |           |  |   | 1,642  |       
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|Income Taxes(Notes 2 and 21):                                                                                                                         |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |           |  |   |        |       
|Current                                                                                                                                               |                        |                                                                                                                                                             | 65,098    |              |          |   | 45,016      |             |  |   | 39,187    |           |  |   | 608    |       
|Deferred (Note 19)                                                                                                                                    |                        |                                                                                                                                                             | 38,457    |              |          |   | 2,025       |             |  |   | (389      | )         |  |   | 360    |       
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|                                                                                                                                                      | Total                  |                                                                                                                                                             |           | 103,555      |          |   |             | 47,041      |  |   |           | 38,798    |  |   |        | 968    | 
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|Income from Continuing Operations before Minority Interests
    and Equity in Earnings                                                                |                        |                                                                                                                                                             | 72,089    |              |          |   | 41,764      |             |  |   | 26,192    |           |  |   | 674    |       
|Minority Interests in Earnings of Subsidiaries                                                                                                        |                        |                                                                                                                                                             | (17,558   | )            |          |   | (7,470      | )           |  |   | (4,412    | )         |  |   | (164   | )     
|Equity in Earnings of Associated Companies  Net
    (After Income Tax Effect)(Notes 2, 6 and 21)                                                     |                        |                                                                                                                                                             | 65,893    |              |          |   | 40,078      |             |  |   | 15,295    |           |  |   | 615    |       
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|Income from Continuing Operations                                                                                                                     |                        |                                                                                                                                                             | 120,424   |              |          |   | 74,372      |             |  |   | 37,075    |           |  |   | 1,125  |       
|Income (Loss) from Discontinued Operations  Net
    (After Income Tax Effect)(Notes 4, 21 and 25)                                                    |                        |                                                                                                                                                             | 712       |              |          |   | (3,700      | )           |  |   | (5,937    | )         |  |   | 7      |       
|Cumulative Effect of Change in Accounting Principle (After
    Income Tax Effect)(Notes 11 and 21)                                                    |                        |                                                                                                                                                             |          |              |          |   | (2,285      | )           |  |   |          |           |  |   |       |       
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          
|Net Income                                                                                                                                            |                        | ¥                                                                                                                                                           | 121,136   |              |          | ¥ | 68,387      |             |  | ¥ | 31,138    |           |  | $ | 1,132  |       
|                                                                                                                                                      |                        |                                                                                                                                                             |           |              |          |   |             |             |  |   |           |          

F-5



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##### Table of Contents



Statements of Consolidated Income  (Continued)


Mitsui & Co., Ltd. and subsidiaries


Years Ended March 31, 2005, 2004 and 2003


|                                          |                                                     |       |   |              |          |  |   |       |       |  |   |       |       |  |   |      |      | 
|----------------------------------------- | --------------------------------------------------- | ----- | - | ------------ | -------- |  | - | ----- | ----- |  | - | ----- | ----- |  | - | ---- | ---- | 
|                                          |                                                     |       |   | U.S. Dollars |         
|                                          |                                                     | Yen   |   |              | (Note 2) | 
|                                          |                                                     |       |   |              |          | 
|Net Income per Share(Notes 2, 11 and 16): |                                                     |       |   |              |          |  |   |       |       |  |   |       |       |  |   |     
|Basic:                                    |                                                     |       |   |              |          |  |   |       |       |  |   |       |       |  |   |     
|                                          | Continuing operations                               |       | ¥ | 76.10        |          |  | ¥ | 47.04 |       |  | ¥ | 23.43 |       |  | $ | 0.71 |     
|                                          | Discontinued operations                             |       |   | 0.45         |          |  |   | (2.35 | )     |  |   | (3.75 | )     |  |   | 0.01 |     
|                                          | Cumulative effect of change in accounting principle |       |   |             |          |  |   | (1.44 | )     |  |   |      |       |  |   |     |     
|                                          |                                                     |       |   |              |          |  |   |       |       |  |   |      
|                                          |                                                     | Total |   | ¥            | 76.55    |  |   | ¥     | 43.25 |  |   | ¥     | 19.68 |  |   | $    | 0.72 | 
|                                          |                                                     |       |   |              |          |  |   |       |       |  |   |      
|Diluted:                                  |                                                     |       |   |              |          |  |   |       |       |  |   |       |       |  |   |     
|                                          | Continuing operations                               |       | ¥ | 71.70        |          |  | ¥ | 44.44 |       |  | ¥ | 22.17 |       |  | $ | 0.67 |     
|                                          | Discontinued operations                             |       |   | 0.42         |          |  |   | (2.19 | )     |  |   | (3.48 | )     |  |   | 0.00 |     
|                                          | Cumulative effect of change in accounting principle |       |   |             |          |  |   | (1.36 | )     |  |   |      |       |  |   |     |     
|                                          |                                                     |       |   |              |          |  |   |       |       |  |   |      
|                                          |                                                     | Total |   | ¥            | 72.12    |  |   | ¥     | 40.89 |  |   | ¥     | 18.69 |  |   | $    | 0.67 | 
|                                          |                                                     |       |   |              |          |  |   |       |       |  |   |      



F-6



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##### Table of Contents



Statements of Consolidated Shareholders Equity


Mitsui & Co., Ltd. and subsidiaries


Years Ended March 31, 2005, 2004 and 2003


|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |       |  
|------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------- | --------------- | -------- | ------------ | -------- | - | -------- | ----------- | - | - | -------- | ------- | - | - | ----- | ----- | -
|                                                                                                 |                                                                                         |                 |          |              |          |   |          | Millions of |  
|                                                                                                 |                                                                                         |                 |          | U.S. Dollars |         
|                                                                                                 |                                                                                         | Millions of Yen |          |              | (Note 2) |  
|                                                                                                 |                                                                                         |                 |          |              |          |  
|                                                                                                 |                                                                                         | 2005            |          |              | 2004     |   |          | 2003        |   |   | 2005     |        
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|Common Stock(Note 15):                                                                           |                                                                                         |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |      
|Balance at beginning of year                                                                     |                                                                                         |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |      
|                                                                                                 | Shares issued: 2005, 2004 and
    2003  1,583,674,837 shares                           |                 | ¥        | 192,487      |          |   | ¥        | 192,487     |   |   | ¥        | 192,487 |   |   | $     | 1,799 |  
|Common stock issued upon conversion of bonds                                                     |                                                                                         |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |      
|                                                                                                 | Shares issued: 2005  12,485 shares; 2004
    and 2003  0 share                        |                 |          | 6            |          |   |          |            |   |   |          |        |   |   |       | 0     |  
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|Balance at end of year                                                                           |                                                                                         |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |      
|                                                                                                 | Shares issued: 2005  1,583,687,322 shares;
    2004 and 2003  1,583,674,837 shares    |                 | ¥        | 192,493      |          |   | ¥        | 192,487     |   |   | ¥        | 192,487 |   |   | $     | 1,799 |  
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|Capital Surplus(Note 15):                                                                        |                                                                                         |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |      
|Balance at beginning of year                                                                     |                                                                                         | ¥               | 287,763  |              |          | ¥ | 287,756  |             |   | ¥ | 287,756  |         |   | $ | 2,690 |      
|Conversion of bonds                                                                              |                                                                                         |                 | 6        |              |          |   |         |             |   |   |         |         |   |   | 0     |      
|Gain on sales of treasury stock                                                                  |                                                                                         |                 | 13       |              |          |   | 7        |             |   |   |         |         |   |   | 0     |      
|Exchange of treasury stock for subsidiarys stock                                                |                                                                                         |                 | 266      |              |          |   |         |             |   |   |         |         |   |   | 2     |      
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|Balance at end of year                                                                           |                                                                                         | ¥               | 288,048  |              |          | ¥ | 287,763  |             |   | ¥ | 287,756  |         |   | $ | 2,692 |      
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|Retained Earnings(Note 15):                                                                      |                                                                                         |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |      
|                                                                                                 | Appropriated for Legal Reserve:                                                         |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |       |  
|                                                                                                 | Balance at beginning of year                                                            |                 | ¥        | 36,633       |          |   | ¥        | 36,382      |   |   | ¥        | 35,873  |   |   | $     | 342   |  
|                                                                                                 | Transfer from unappropriated retained earnings                                          |                 |          | 385          |          |   |          | 251         |   |   |          | 509     |   |   |       | 4     |  
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|                                                                                                 | Balance at end of year                                                                  |                 | ¥        | 37,018       |          |   | ¥        | 36,633      |   |   | ¥        | 36,382  |   |   | $     | 346   |  
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|                                                                                                 | Unappropriated(Notes 6, 13, 21 and 29):                                                 |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |       |  
|                                                                                                 | Balance at beginning of year                                                            |                 | ¥        | 549,521      |          |   | ¥        | 494,038     |   |   | ¥        | 476,074 |   |   | $     | 5,136 |  
|                                                                                                 | Net income                                                                              |                 |          | 121,136      |          |   |          | 68,387      |   |   |          | 31,138  |   |   |       | 1,132 |  
|                                                                                                 | Cash dividends paid (annual rate per share: 2005,
    ¥9.0  8.4¢; 2004 and 2003, ¥8.0) |                 |          | (14,240      | )        |   |          | (12,653     | ) |   |          | (12,665 | ) |   |       | (133  | )
|                                                                                                 | Transfer to retained earnings appropriated for legal reserve                            |                 |          | (385         | )        |   |          | (251        | ) |   |          | (509    | ) |   |       | (4    | )
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|                                                                                                 | Balance at end of year                                                                  |                 | ¥        | 656,032      |          |   | ¥        | 549,521     |   |   | ¥        | 494,038 |   |   | $     | 6,131 |  
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|Accumulated Other Comprehensive Income (Loss) (After Income
    Tax Effect)(Notes 2, 15 and 21): |                                                                                         |                 |          |              |          |   |          |             |   |   |          |         |   |   |       |      
|Balance at beginning of year                                                                     |                                                                                         | ¥               | (101,464 | )            |          | ¥ | (147,138 | )           |   | ¥ | (76,918  | )       |   | $ | (948  | )    
|Unrealized holding gains and losses on available-for-sale
    securities (Note 5)                |                                                                                         |                 | 30,450   |              |          |   | 66,324   |             |   |   | (40,841  | )       |   |   | 285   |      
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|Foreign currency translation adjustments                                                         |                                                                                         |                 | 18,667   |              |          |   | (20,401  | )           |   |   | (22,384  | )       |   |   | 174   |      
|Minimum pension liability adjustment (Note 14)                                                   |                                                                                         |                 | 52       |              |          |   | 988      |             |   |   | (6,358   | )       |   |   | 0     |      
|Net unrealized gains and losses on derivatives (Note 26)                                         |                                                                                         |                 | 2,744    |              |          |   | (1,237   | )           |   |   | (637     | )       |   |   | 26    |      
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        
|Balance at end of year                                                                           |                                                                                         | ¥               | (49,551  | )            |          | ¥ | (101,464 | )           |   | ¥ | (147,138 | )       |   | $ | (463  | )    
|                                                                                                 |                                                                                         |                 |          |              |          |   |          |             |   |   |          |        

F-7



---



##### Table of Contents



Statements of Consolidated Shareholders
Equity  (Continued)


Mitsui & Co., Ltd. and subsidiaries


Years Ended March 31, 2005, 2004 and 2003


|                                                                                                          |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |         |   |   |       |     |  
|--------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | --------------- | ------- | ------------ | -------- | - | ------- | ----------- | - | - | ------- | ------- | - | - | ----- | --- | -
|                                                                                                          |                                                                                                       |                 |         |              |          |   |         | Millions of |  
|                                                                                                          |                                                                                                       |                 |         | U.S. Dollars |         
|                                                                                                          |                                                                                                       | Millions of Yen |         |              | (Note 2) |  
|                                                                                                          |                                                                                                       |                 |         |              |          |  
|                                                                                                          |                                                                                                       | 2005            |         |              | 2004     |   |         | 2003        |   |   | 2005    |        
|                                                                                                          |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |        
|Treasury Stock, at Cost(Note 15):                                                                         |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |         |   |   |       |    
|Balance at beginning of year                                                                              |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |         |   |   |       |    
|                                                                                                          | Shares in treasury: 2005  2,661,783 shares;
    2004  2,297,845 shares;
    2003  494,860 shares   |                 | ¥       | (1,662       | )        |   | ¥       | (1,378      | ) |   | ¥       | (302    | ) |   | $     | (15 | )
|Purchase of treasury stock                                                                                |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |         |   |   |       |    
|                                                                                                          | Shares purchased: 2005  1,000,990 shares;
    2004  472,590 shares;
    2003  1,802,985 shares     |                 |         | (904         | )        |   |         | (356        | ) |   |         | (1,076  | ) |   |       | (8  | )
|Sales of treasury stock                                                                                   |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |         |   |   |       |    
|                                                                                                          | Shares sold: 2005  317,200 shares;
    2004  108,652 shares;
    2003  0 share                     |                 |         | 158          |          |   |         | 72          |   |   |         |        |   |   |       | 1   |  
|Exchange of treasury stock for subsidiarys stock                                                         |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |         |   |   |       |    
|                                                                                                          | Shares exchanged: 2005  1,868,881 shares;
    2004 and 2003  0 share                                |                 |         | 1,196        |          |   |         |            |   |   |         |        |   |   |       | 11  |  
|                                                                                                          |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |        
|Balance at end of year                                                                                    |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |         |   |   |       |    
|                                                                                                          | Shares in treasury: 2005  1,476,692 shares;
    2004  2,661,783 shares;
    2003  2,297,845 shares |                 | ¥       | (1,212       | )        |   | ¥       | (1,662      | ) |   | ¥       | (1,378  | ) |   | $     | (11 | )
|                                                                                                          |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |        
|Summary of Changes in Equity from Nonowner Sources
    (Comprehensive Income (Loss))(Notes 2, 15 and 21): |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |         |   |   |       |    
|Net income                                                                                                |                                                                                                       | ¥               | 121,136 |              |          | ¥ | 68,387  |             |   | ¥ | 31,138  |         |   | $ | 1,132 |    
|                                                                                                          |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |        
|Other comprehensive income (loss) (after income tax effect):                                              |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |         |   |   |       |    
|                                                                                                          | Unrealized holding gains and losses on available-for-sale
    securities (Note 5)                     |                 |         | 30,450       |          |   |         | 66,324      |   |   |         | (40,841 | ) |   |       | 285 |  
|                                                                                                          | Foreign currency translation adjustments                                                              |                 |         | 18,667       |          |   |         | (20,401     | ) |   |         | (22,384 | ) |   |       | 174 |  
|                                                                                                          | Minimum pension liability adjustment (Note 14)                                                        |                 |         | 52           |          |   |         | 988         |   |   |         | (6,358  | ) |   |       | 0   |  
|                                                                                                          | Net unrealized gains and losses on derivatives (Note 26)                                              |                 |         | 2,744        |          |   |         | (1,237      | ) |   |         | (637    | ) |   |       | 26  |  
|                                                                                                          |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |        
|Changes in equity from nonowner sources                                                                   |                                                                                                       | ¥               | 173,049 |              |          | ¥ | 114,061 |             |   | ¥ | (39,082 | )       |   | $ | 1,617 |    
|                                                                                                          |                                                                                                       |                 |         |              |          |   |         |             |   |   |         |        



F-8



---



##### Table of Contents



Statements of Consolidated Cash Flows


Mitsui & Co., Ltd. and subsidiaries


Years Ended March 31, 2005, 2004 and 2003


|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |         |         |        |        |      |        |        |  
|------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------- | ------------------------------------- | --------------------------------------------------- | ------------ | -------- | -------- | -------- | ----------- | -------- | -------- | -------- | ------- | ------- | ------ | ------ | ---- | ------ | ------ | -
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          | Millions of |         
|                                                                                      |                                                                                   |                                       |                                                     | U.S. Dollars |         
|                                                                                      |                                                                                   | Millions of Yen                       |                                                     |              | (Note 2) |         
|                                                                                      |                                                                                   |                                       |                                                     |              |          |         
|                                                                                      |                                                                                   | 2005                                  |                                                     |              | 2004     |          |          | 2003        |          |          | 2005     |        
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        
|Operating Activities(Note 28):                                                        |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |         |         |        |        |     
|Net income                                                                            |                                                                                   | ¥                                     | 121,136                                             |              |          | ¥        | 68,387   |             |          | ¥        | 31,138   |         |         | $      | 1,132  |     
|Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |         |         |        |        |     
|                                                                                      | Depreciation and amortization                                                     |                                       |                                                     | 66,598       |          |          |          | 65,809      |          |          |          | 58,331  |         |        |        | 622  |       
|                                                                                      | Pension and severance costs, less payments                                        |                                       |                                                     | (18,575      | )        |          |          | 35,441      |          |          |          | (9,660  | )       |        |        | (174 | )     
|                                                                                      | Provision for doubtful receivables                                                |                                       |                                                     | 8,863        |          |          |          | 9,883       |          |          |          | 13,665  |         |        |        | 83   |       
|                                                                                      | Gain on securities contributed to an employee retirement benefit
    trust        |                                       |                                                     |             |          |          |          |            |          |          |          | (15,831 | )       |        |        |     |       
|                                                                                      | Government grant for transfer of substitutional portion of EPF                    |                                       |                                                     |             |          |          |          | (17,224     | )        |          |          |        |         |        |        |     |       
|                                                                                      | Gain on sales of securities  net                                                 |                                       |                                                     | (34,856      | )        |          |          | (27,465     | )        |          |          | (11,026 | )       |        |        | (326 | )     
|                                                                                      | Gain on issuance of stock by a subsidiary                                         |                                       |                                                     | (1,677       | )        |          |          |            |          |          |          |        |         |        |        | (16  | )     
|                                                                                      | Loss on write-down of securities                                                  |                                       |                                                     | 16,544       |          |          |          | 31,024      |          |          |          | 37,907  |         |        |        | 155  |       
|                                                                                      | (Gain) loss on disposal or sales of property and
    equipment  net              |                                       |                                                     | (6,527       | )        |          |          | (4,057      | )        |          |          | 1,745   |         |        |        | (61  | )     
|                                                                                      | Impairment loss of long-lived assets                                              |                                       |                                                     | 21,505       |          |          |          | 22,378      |          |          |          | 23,638  |         |        |        | 201  |       
|                                                                                      | Deferred income taxes                                                             |                                       |                                                     | 38,457       |          |          |          | 2,025       |          |          |          | (389    | )       |        |        | 360  |       
|                                                                                      | Minority interests in earnings of subsidiaries                                    |                                       |                                                     | 17,558       |          |          |          | 7,470       |          |          |          | 4,412   |         |        |        | 164  |       
|                                                                                      | Equity in earnings of associated companies, less dividends
    received           |                                       |                                                     | (33,076      | )        |          |          | (21,364     | )        |          |          | (2,258  | )       |        |        | (309 | )     
|                                                                                      | (Income) loss from discontinued operations  net
    (after income tax effect)    |                                       |                                                     | (712         | )        |          |          | 3,700       |          |          |          | 5,937   |         |        |        | (7   | )     
|                                                                                      | Cumulative effect of change in accounting principle (after
    income tax effect) |                                       |                                                     |             |          |          |          | 2,285       |          |          |          |        |         |        |        |     |       
|                                                                                      | Changes in operating assets and liabilities:                                      |                                       |                                                     |              |          |          |          |             |          |          |          |         |         |        |        |      |       
|                                                                                      |                                                                                   | Increase in trade receivables         |                                                     |              | (169,700 | )        |          |             | (127,066 | )        |          |         | (42,933 | )      |        |      | (1,586 | )     
|                                                                                      |                                                                                   | Increase in inventories               |                                                     |              | (73,375  | )        |          |             | (32,689  | )        |          |         | (27,512 | )      |        |      | (686   | )     
|                                                                                      |                                                                                   | Increase (decrease) in trade payables |                                                     |              | 209,689  |          |          |             | 45,549   |          |          |         | (12,703 | )      |        |      | 1,960  |       
|                                                                                      |                                                                                   | Advances from customers               |                                                     |              | 34,969   |          |          |             | 21,509   |          |          |         | 177     |        |        |      | 327    |       
|                                                                                      |                                                                                   | Other  net                           |                                                     |              | 3,248    |          |          |             | 14,484   |          |          |         | (2,490  | )      |        |      | 31     |       
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        
|                                                                                      |                                                                                   |                                       | Net cash provided by operating activities           |              |          | 200,069  |          |             |          | 100,079  |          |         |         | 52,148 |        |      |        | 1,870  |  
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        
|Investing Activities(Note 28):                                                        |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |         |         |        |        |     
|Net decrease (increase) in time deposits                                              |                                                                                   |                                       | 20,324                                              |              |          |          | (9,603   | )           |          |          | 40,220   |         |         |        | 190    |     
|Investments in and advances to associated companies                                   |                                                                                   |                                       | (190,388                                            | )            |          |          | (203,380 | )           |          |          | (63,769  | )       |         |        | (1,779 | )   
|Sales of investments in and collection of advances to associated
    companies        |                                                                                   |                                       | 52,675                                              |              |          |          | 67,772   |             |          |          | 10,111   |         |         |        | 492    |     
|Acquisitions of available-for-sale securities                                         |                                                                                   |                                       | (90,769                                             | )            |          |          | (131,207 | )           |          |          | (154,050 | )       |         |        | (848   | )   
|Proceeds from sales of available-for-sale securities                                  |                                                                                   |                                       | 21,864                                              |              |          |          | 51,250   |             |          |          | 66,106   |         |         |        | 204    |     
|Proceeds from maturities of available-for-sale securities                             |                                                                                   |                                       | 56,934                                              |              |          |          | 110,063  |             |          |          | 144,368  |         |         |        | 532    |     
|Acquisitions of held-to-maturity debt securities                                      |                                                                                   |                                       | (2,233                                              | )            |          |          | (17      | )           |          |          | (4,231   | )       |         |        | (21    | )   
|Proceeds from maturities of held-to-maturity debt securities                          |                                                                                   |                                       | 2,912                                               |              |          |          | 14,793   |             |          |          | 10,560   |         |         |        | 27     |     
|Acquisitions of other investments                                                     |                                                                                   |                                       | (67,506                                             | )            |          |          | (46,856  | )           |          |          | (39,838  | )       |         |        | (631   | )   
|Proceeds from sales of other investments                                              |                                                                                   |                                       | 73,436                                              |              |          |          | 28,829   |             |          |          | 30,242   |         |         |        | 686    |     
|Increase in long-term loan receivables                                                |                                                                                   |                                       | (68,111                                             | )            |          |          | (42,768  | )           |          |          | (56,169  | )       |         |        | (636   | )   
|Collection of long-term loan receivables                                              |                                                                                   |                                       | 62,829                                              |              |          |          | 76,384   |             |          |          | 84,445   |         |         |        | 587    |     
|Additions to property leased to others and property and equipment                     |                                                                                   |                                       | (170,068                                            | )            |          |          | (113,197 | )           |          |          | (123,216 | )       |         |        | (1,589 | )   
|Proceeds from sales of property leased to others and property
    and equipment       |                                                                                   |                                       | 79,324                                              |              |          |          | 59,924   |             |          |          | 62,186   |         |         |        | 742    |     
|Acquisitions of subsidiaries, net of cash acquired                                    |                                                                                   |                                       | (5,233                                              | )            |          |          | 3,859    |             |          |          | (11,208  | )       |         |        | (49    | )   
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        
|                                                                                      |                                                                                   |                                       | Net cash used in investing activities               |              |          | (224,010 | )        |             |          | (134,154 | )        |         |         | (4,243 | )      |      |        | (2,093 | )
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        
|Financing Activities(Note 28):                                                        |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |         |         |        |        |     
|Net (decrease) increase in short-term debt                                            |                                                                                   |                                       | (29,113                                             | )            |          |          | (71,759  | )           |          |          | 94,026   |         |         |        | (272   | )   
|Proceeds from long-term debt                                                          |                                                                                   |                                       | 754,425                                             |              |          |          | 636,957  |             |          |          | 509,517  |         |         |        | 7,050  |     
|Repayments of long-term debt                                                          |                                                                                   |                                       | (541,544                                            | )            |          |          | (564,529 | )           |          |          | (571,968 | )       |         |        | (5,061 | )   
|Purchases of treasury stock  net                                                     |                                                                                   |                                       | (764                                                | )            |          |          | (264     | )           |          |          | (1,086   | )       |         |        | (7     | )   
|Payments of cash dividends                                                            |                                                                                   |                                       | (14,240                                             | )            |          |          | (12,653  | )           |          |          | (12,665  | )       |         |        | (133   | )   
|Proceeds from issuance of stock by a subsidiary                                       |                                                                                   |                                       | 2,557                                               |              |          |          |         |             |          |          |         |         |         |        | 24     |     
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        
|                                                                                      |                                                                                   |                                       | Net cash provided by (used in) financing activities |              |          | 171,321  |          |             |          | (12,248  | )        |         |         | 17,824 |        |      |        | 1,601  |  
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        
|Effect of Exchange Rate Changes on Cash and Cash
    Equivalents                      |                                                                                   |                                       | 6,131                                               |              |          |          | (10,191  | )           |          |          | (4,499   | )       |         |        | 57     |     
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        
|Net Increase (Decrease) in Cash and Cash Equivalents                                  |                                                                                   |                                       | 153,511                                             |              |          |          | (56,514  | )           |          |          | 61,230   |         |         |        | 1,435  |     
|Cash and Cash Equivalents at Beginning of Year                                        |                                                                                   |                                       | 638,299                                             |              |          |          | 694,813  |             |          |          | 633,583  |         |         |        | 5,965  |     
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        
|Cash and Cash Equivalents at End of Year                                              |                                                                                   | ¥                                     | 791,810                                             |              |          | ¥        | 638,299  |             |          | ¥        | 694,813  |         |         | $      | 7,400  |     
|                                                                                      |                                                                                   |                                       |                                                     |              |          |          |          |             |          |          |          |        



F-9



---



##### Table of Contents



Notes to Consolidated Financial Statements


Mitsui & Co., Ltd. and subsidiaries




|   |                     
|-- | --------------------
|1. | NATURE OF OPERATIONS

sogo shosha










|   |                                                                                 
|-- | --------------------------------------------------------------------------------
|2. | BASIS OF FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT
    ACCOUNTING POLICIES



|   |                              
|-- | -----------------------------
|I. | BASIS OF FINANCIAL STATEMENTS







F-10



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries








|    |                                           
|--- | ------------------------------------------
|II. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation








Foreign currency translation




F-11



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




Cash equivalents




Allowance for doubtful receivables






Inventories




Derivative instruments and hedging activities










F-12



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




















F-13



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries






Debt and marketable equity securities














Non-marketable equity securities






Investments in associated companies




F-14



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries






Leasing






Property and equipment










Impairment of long-lived assets




Business combinations




F-15



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




Goodwill and other intangible assets












Oil and gas producing activities






F-16



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


Mining operations






Asset retirement obligations




Pension and severance indemnities plans




Guarantees




Revenue recognition




Sales of products




F-17



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries








Sales of services




Other sales




Research and development expenses




Advertising expenses




Issuance of stock by subsidiaries and associated
companies




F-18



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


Income taxes




Net income per share






|     |                 
|---- | ----------------
|III. | RECLASSIFICATION





|    |                         
|--- | ------------------------
|IV. | NEW ACCOUNTING STANDARDS

The meaning of other-than-temporary impairment and its
application to certain investments








Investments in limited liability companies
(LLCs)








Classification of mineral rights




F-19



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries








Inventory costs








Exchanges of nonmonetary assets








Share-based payment






F-20



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




Accounting for stripping costs incurred during production
in the mining industry








Conditional asset retirement obligations










|   |                                                                                 
|-- | --------------------------------------------------------------------------------
|V. | USE OF ESTIMATES IN THE PREPARATION OF THE CONSOLIDATED
    FINANCIAL STATEMENTS





|   |                      
|-- | ---------------------
|3. | BUSINESS COMBINATIONS

For the year ended March 31, 2005




Cornerstone Nutritional Labs, LLC




F-21



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries












|                       |                           |                 |        |        |  
|---------------------- | ------------------------- | --------------- | ------ | ------ | -
|                       |                           | Millions of Yen |       
|                       |                           |                 |       
|Current assets         |                           | ¥               | 2,174  |       
|Property and equipment |                           |                 | 209    |       
|Intangible assets      |                           |                 | 7,885  |       
|                       |                           |                 |       
|                       | Total assets acquired     |                 |        | 10,268 |  
|                       |                           |                 |       
|Current liabilities    |                           |                 | (1,414 | )     
|                       |                           |                 |       
|                       | Total liabilities assumed |                 |        | (1,414 | )
|                       |                           |                 |       
|                       | Net assets acquired       |                 | ¥      | 8,854  |  
|                       |                           |                 |       



NextCom K.K.




F-22



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries














|                             |                           |                 |        |         |  
|---------------------------- | ------------------------- | --------------- | ------ | ------- | -
|                             |                           | Millions of Yen |       
|                             |                           |                 |       
|Current assets               |                           | ¥               | 16,995 |        
|Property and equipment       |                           |                 | 908    |        
|Intangible assets            |                           |                 | 3,198  |        
|Investments and other assets |                           |                 | 1,488  |        
|                             |                           |                 |       
|                             | Total assets acquired     |                 |        | 22,589  |  
|                             |                           |                 |       
|Current liabilities          |                           |                 | (6,270 | )      
|Long-term liabilities        |                           |                 | (1,356 | )      
|Minority interest            |                           |                 | (5,981 | )      
|                             |                           |                 |       
|                             | Total liabilities assumed |                 |        | (13,607 | )
|                             |                           |                 |       
|                             | Net assets acquired       |                 | ¥      | 8,982   |  
|                             |                           |                 |       



F-23



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


For the year ended March 31, 2004
















|                             |                           |                 |         |         |  
|---------------------------- | ------------------------- | --------------- | ------- | ------- | -
|                             |                           | Millions of Yen |        
|                             |                           |                 |        
|Current assets               |                           | ¥               | 30,736  |        
|Property and equipment       |                           |                 | 8,162   |        
|Intangible assets            |                           |                 | 35,541  |        
|Investments and other assets |                           |                 | 3,263   |        
|                             |                           |                 |        
|                             | Total assets acquired     |                 |         | 77,702  |  
|                             |                           |                 |        
|Current liabilities          |                           |                 | (54,414 | )      
|Long-term liabilities        |                           |                 | (11,151 | )      
|Minority interest            |                           |                 | (5,737  | )      
|                             |                           |                 |        
|                             | Total liabilities assumed |                 |         | (71,302 | )
|                             |                           |                 |        
|                             | Net assets acquired       |                 | ¥       | 6,400   |  
|                             |                           |                 |        

F-24



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




For the year ended March 31, 2003
















|                       |                           |                 |        |        |  
|---------------------- | ------------------------- | --------------- | ------ | ------ | -
|                       |                           | Millions of Yen |       
|                       |                           |                 |       
|Current assets         |                           | ¥               | 3,104  |       
|Property and equipment |                           |                 | 8,528  |       
|Intangible assets      |                           |                 | 9,051  |       
|                       |                           |                 |       
|                       | Total assets acquired     |                 |        | 20,683 |  
|                       |                           |                 |       
|Current liabilities    |                           |                 | (2,514 | )     
|Minority interest      |                           |                 | (5,822 | )     
|                       |                           |                 |       
|                       | Total liabilities assumed |                 |        | (8,336 | )
|                       |                           |                 |       
|                       | Net assets acquired       |                 | ¥      | 12,347 |  
|                       |                           |                 |       



F-25



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|   |                        
|-- | -----------------------
|4. | DISCONTINUED OPERATIONS







|                                                      |  |                 |       |   |              |   |        |       |  |   |        |  
|----------------------------------------------------- |  | --------------- | ----- | - | ------------ | - | ------ | ----- |  | - | ------ | -
|                                                      |  | Millions of Yen |      
|                                                      |  |                 |      
|                                                      |  | Shirasagi       |       |   | Other        |   |        |      
|                                                      |  | Golf Club       |       |   | subsidiaries |   |        | Total | 
|                                                      |  |                 |       |   |              |   |        |       | 
|Year ended March 31, 2005:                            |  |                 |       |   |              |   |        |       |  |   |        |  
|Revenues                                              |  |                 |      |   |              |   |       |       |  |   |       |  
|                                                      |  |                 |       |   |              |   |        |       | 
|Loss from discontinued operations before income taxes |  |                 |      |   |              |   |       |       |  |   |       |  
|Gain on disposal                                      |  | ¥               | 1,161 |   |              | ¥ | 47     |       |  | ¥ | 1,208  |  
|Income tax expense                                    |  |                 | (477  | ) |              |   | (19    | )     |  |   | (496   | )
|                                                      |  |                 |       |   |              |   |        |       | 
|Income from discontinued operations  net             |  | ¥               | 684   |   |              | ¥ | 28     |       |  | ¥ | 712    |  
|                                                      |  |                 |       |   |              |   |        |       | 
|Year ended March 31, 2004:                            |  |                 |       |   |              |   |        |       |  |   |        |  
|Revenues                                              |  | ¥               | 365   |   |              | ¥ | 3,979  |       |  | ¥ | 4,344  |  
|                                                      |  |                 |       |   |              |   |        |       | 
|Loss from discontinued operations before income taxes |  | ¥               | (100  | ) |              | ¥ | (1,818 | )     |  | ¥ | (1,918 | )
|Income tax benefit                                    |  |                 | 39    |   |              |   | 2,210  |       |  |   | 2,249  |  
|                                                      |  |                 |       |   |              |   |        |       | 
|(Loss) income from discontinued operations  net      |  | ¥               | (61   | ) |              | ¥ | 392    |       |  | ¥ | 331    |  
|                                                      |  |                 |       |   |              |   |        |       | 
|Year ended March 31, 2003:                            |  |                 |       |   |              |   |        |       |  |   |        |  
|Revenues                                              |  | ¥               | 426   |   |              | ¥ | 8,021  |       |  | ¥ | 8,447  |  
|                                                      |  |                 |       |   |              |   |        |       | 
|Loss from discontinued operations before income taxes |  | ¥               | (495  | ) |              | ¥ | (26    | )     |  | ¥ | (521   | )
|Income tax benefit (expense)                          |  |                 | 86    |   |              |   | (45    | )     |  |   | 41     |  
|                                                      |  |                 |       |   |              |   |        |       | 
|Loss from discontinued operations  net               |  | ¥               | (409  | ) |              | ¥ | (71    | )     |  | ¥ | (480   | )
|                                                      |  |                 |       |   |              |   |        |       | 



Shirasagi Golf Club




F-26



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


Other subsidiaries








|                                                      |  |                 |        |   |              |   |        |       |  |   |        |  
|----------------------------------------------------- |  | --------------- | ------ | - | ------------ | - | ------ | ----- |  | - | ------ | -
|                                                      |  | Millions of Yen |       
|                                                      |  |                 |       
|                                                      |  | Takeoka         |        |   | Other        |   |        |      
|                                                      |  | Golf Club       |        |   | subsidiaries |   |        | Total | 
|                                                      |  |                 |        |   |              |   |        |       | 
|Year ended March 31, 2004:                            |  |                 |        |   |              |   |        |       |  |   |        |  
|Revenues                                              |  | ¥               | 423    |   |              | ¥ | 2,393  |       |  | ¥ | 2,816  |  
|                                                      |  |                 |        |   |              |   |        |       | 
|Loss from discontinued operations before income taxes |  | ¥               | (5,919 | ) |              | ¥ | (2,139 | )     |  | ¥ | (8,058 | )
|Loss on disposal  net                                |  |                 | (49    | ) |              |   | (1,958 | )     |  |   | (2,007 | )
|Income tax benefit                                    |  |                 | 2,449  |   |              |   | 3,585  |       |  |   | 6,034  |  
|                                                      |  |                 |        |   |              |   |        |       | 
|Loss from discontinued operations  net               |  | ¥               | (3,519 | ) |              | ¥ | (512   | )     |  | ¥ | (4,031 | )
|                                                      |  |                 |        |   |              |   |        |       | 
|Year ended March 31, 2003:                            |  |                 |        |   |              |   |        |       |  |   |        |  
|Revenues                                              |  | ¥               | 432    |   |              | ¥ | 3,989  |       |  | ¥ | 4,421  |  
|                                                      |  |                 |        |   |              |   |        |       | 
|Loss from discontinued operations before income taxes |  | ¥               | (282   | ) |              | ¥ | (3,621 | )     |  | ¥ | (3,903 | )
|Income tax benefit                                    |  |                 | 339    |   |              |   | 583    |       |  |   | 922    |  
|                                                      |  |                 |        |   |              |   |        |       | 
|Income (loss) from discontinued operations  net      |  | ¥               | 57     |   |              | ¥ | (3,038 | )     |  | ¥ | (2,981 | )
|                                                      |  |                 |        |   |              |   |        |       | 



Takeoka Golf Club




Other subsidiaries






F-27



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries






|                                                      |  |                 |         |   |              |   |        |       |  |   |         |  
|----------------------------------------------------- |  | --------------- | ------- | - | ------------ | - | ------ | ----- |  | - | ------- | -
|                                                      |  | Millions of Yen |        
|                                                      |  |                 |        
|                                                      |  | Petrochemicals  |         |   |             
|                                                      |  | subsidiaries in |         |   | Other        |   |        |      
|                                                      |  | North America   |         |   | subsidiaries |   |        | Total | 
|                                                      |  |                 |         |   |              |   |        |       | 
|Year ended March 31, 2003:                            |  |                 |         |   |              |   |        |       |  |   |         |  
|Revenues                                              |  |                 |        |   |              | ¥ | 3,740  |       |  | ¥ | 3,740   |  
|                                                      |  |                 |         |   |              |   |        |       | 
|Loss from discontinued operations before income taxes |  | ¥               | (12,776 | ) |              | ¥ | (1,912 | )     |  | ¥ | (14,688 | )
|(Loss) gain on disposal  net                         |  |                 | (1,724  | ) |              |   | 3,425  |       |  |   | 1,701   |  
|Income tax benefit                                    |  |                 | 8,171   |   |              |   | 2,340  |       |  |   | 10,511  |  
|                                                      |  |                 |         |   |              |   |        |       | 
|(Loss) income from discontinued operations  net      |  | ¥               | (6,329  | ) |              | ¥ | 3,853  |       |  | ¥ | (2,476  | )
|                                                      |  |                 |         |   |              |   |        |       | 



Petrochemicals subsidiaries in North America (Transpacific
Glycols, Inc. and Pacific Ammonia Inc.)






Other subsidiaries








F-28



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|   |                                            
|-- | -------------------------------------------
|5. | MARKETABLE SECURITIES AND OTHER INVESTMENTS

Debt and marketable equity securities




|                                                                                   |                                                                |                 |       |                                   |            |  |       |         |  |  |        |         |  |     |   |        |   |  |   |         | 
|---------------------------------------------------------------------------------- | -------------------------------------------------------------- | --------------- | ----- | --------------------------------- | ---------- |  | ----- | ------- |  |  | ------ | ------- |  | --- | - | ------ | - |  | - | ------- | 
|                                                                                   |                                                                | Millions of Yen |      
|                                                                                   |                                                                |                 |      
|                                                                                   |                                                                |                 |       | Unrealized holding gains (losses) |           
|                                                                                   |                                                                |                 |       |                                   |           
|                                                                                   |                                                                | Cost            |       |                                   | Fair value |  |       | Gains   |  |  | Losses |         |  | Net |  
|                                                                                   |                                                                |                 |       |                                   |            |  |       |         |  |  |        |         |  |     |  
|March 31, 2005:                                                                    |                                                                |                 |       |                                   |            |  |       |         |  |  |        |         |  |     |   |        |   |  |   |        
|Available-for-sale:                                                                |                                                                |                 |       |                                   |            |  |       |         |  |  |        |         |  |     |   |        |   |  |   |        
|                                                                                   | Marketable equity securities                                   |                 | ¥     | 191,007                           |            |  | ¥     | 333,097 |  |  | ¥      | 143,261 |  |     | ¥ | (1,171 | ) |  | ¥ | 142,090 | 
|                                                                                   | Foreign debentures, commercial paper and other debt securities |                 |       | 306,922                           |            |  |       | 306,944 |  |  |        | 24      |  |     |   | (2     | ) |  |   | 22      | 
|Held-to-maturity debt securities, consisting principally of
    foreign debentures |                                                                |                 | 1,591 |                                   |            |  | 1,591 |         |  |  | 0      |         |  |     |  |        |   |  | 0 |        
|March 31, 2004:                                                                    |                                                                |                 |       |                                   |            |  |       |         |  |  |        |         |  |     |   |        |   |  |   |        
|Available-for-sale:                                                                |                                                                |                 |       |                                   |            |  |       |         |  |  |        |         |  |     |   |        |   |  |   |        
|                                                                                   | Marketable equity securities                                   |                 | ¥     | 178,609                           |            |  | ¥     | 297,018 |  |  | ¥      | 119,438 |  |     | ¥ | (1,029 | ) |  | ¥ | 118,409 | 
|                                                                                   | Foreign debentures, commercial paper and other debt securities |                 |       | 206,429                           |            |  |       | 206,551 |  |  |        | 159     |  |     |   | (37    | ) |  |   | 122     | 
|Held-to-maturity debt securities, consisting principally of
    foreign debentures |                                                                |                 | 2,106 |                                   |            |  | 2,106 |         |  |  | 0      |         |  |     |  |        |   |  | 0 |        



F-29



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                                                                                   |                                                                |                     |   |            |                   |  |   |            |            |   |                |   |   |  |   |   |   | 
|---------------------------------------------------------------------------------- | -------------------------------------------------------------- | ------------------- | - | ---------- | ----------------- |  | - | ---------- | ---------- | - | -------------- | - | - |  | - | - | - | 
|                                                                                   |                                                                | Millions of Yen     |  
|                                                                                   |                                                                |                     |  
|                                                                                   |                                                                | Less than 12 months |   |            | 12 months or more | 
|                                                                                   |                                                                |                     |   |            |                   | 
|                                                                                   |                                                                |                     |   | Unrealized |                   |  |   |            | Unrealized |  
|                                                                                   |                                                                | Fair value          |   |            | holding losses    |  |   | Fair value |            |   | holding losses |  
|                                                                                   |                                                                |                     |   |            |                   |  |   |            |            |   |                |  
|March 31, 2005:                                                                    |                                                                |                     |   |            |                   |  |   |            |            |   |                |   |   |  |   |  
|Available-for-sale:                                                                |                                                                |                     |   |            |                   |  |   |            |            |   |                |   |   |  |   |  
|                                                                                   | Marketable equity securities                                   |                     | ¥ | 16,402     |                   |  | ¥ | (1,171     | )          |   |                |  |   |  |   |  |  
|                                                                                   | Foreign debentures, commercial paper and other debt securities |                     |   | 4          |                   |  |   | (2         | )          |   |                |  |   |  |   |  |  
|Held-to-maturity debt securities, consisting principally of
    foreign debentures |                                                                |                     |  |            |                   |  |  |            |            |   |               |   |   |  |  |  
|                                                                                   |                                                                |                     |   |            |                   |  |   |            |            |   |                |  
|                                                                                   |                                                                | Total               |   | ¥          | 16,406            |  |   | ¥          | (1,173     | ) |                |   |  |  |   |   |  | 
|                                                                                   |                                                                |                     |   |            |                   |  |   |            |            |   |                |  
|March 31, 2004:                                                                    |                                                                |                     |   |            |                   |  |   |            |            |   |                |   |   |  |   |  
|Available-for-sale:                                                                |                                                                |                     |   |            |                   |  |   |            |            |   |                |   |   |  |   |  
|                                                                                   | Marketable equity securities                                   |                     | ¥ | 8,234      |                   |  | ¥ | (1,029     | )          |   |                |  |   |  |   |  |  
|                                                                                   | Foreign debentures, commercial paper and other debt securities |                     |   | 9,084      |                   |  |   | (37        | )          |   |                |  |   |  |   |  |  
|Held-to-maturity debt securities, consisting principally of
    foreign debentures |                                                                |                     |  |            |                   |  |  |            |            |   |               |   |   |  |  |  
|                                                                                   |                                                                |                     |   |            |                   |  |   |            |            |   |                |  
|                                                                                   |                                                                | Total               |   | ¥          | 17,318            |  |   | ¥          | (1,066     | ) |                |   |  |  |   |   |  | 
|                                                                                   |                                                                |                     |   |            |                   |  |   |            |            |   |                |  







|                   |  |                 |    |   |      |   |     |      |  |   |      |  
|------------------ |  | --------------- | -- | - | ---- | - | --- | ---- |  | - | ---- | -
|                   |  | Millions of Yen |   
|                   |  |                 |   
|                   |  | 2005            |    |   | 2004 |   |     | 2003 | 
|                   |  |                 |    |   |      |   |     |      | 
|Net trading losses |  | ¥               | (7 | ) |      | ¥ | (32 | )    |  | ¥ | (136 | )

F-30



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                      |                    |                 |        |       |      |   |        |        |  |   |        |       | 
|--------------------- | ------------------ | --------------- | ------ | ----- | ---- | - | ------ | ------ |  | - | ------ | ----- | 
|                      |                    | Millions of Yen |       
|                      |                    |                 |       
|                      |                    | 2005            |        |       | 2004 |   |        | 2003   | 
|                      |                    |                 |        |       |      |   |        |        | 
|Proceeds from sales   |                    | ¥               | 21,864 |       |      | ¥ | 51,250 |        |  | ¥ | 66,106 |      
|                      |                    |                 |        |       |      |   |        |        | 
|Gross realized gains  |                    | ¥               | 10,018 |       |      | ¥ | 18,741 |        |  | ¥ | 9,661  |      
|Gross realized losses |                    |                 | (52    | )     |      |   | (239   | )      |  |   | (4,628 | )    
|                      |                    |                 |        |       |      |   |        |        | 
|                      | Net realized gains |                 | ¥      | 9,966 |      |   | ¥      | 18,502 |  |   | ¥      | 5,033 | 
|                      |                    |                 |        |       |      |   |        |        | 









|                        |                                |                    |   |         |                  |  |   |           |         |  |            |       |       |  |   |       |       | 
|----------------------- | ------------------------------ | ------------------ | - | ------- | ---------------- |  | - | --------- | ------- |  | ---------- | ----- | ----- |  | - | ----- | ----- | 
|                        |                                | Millions of Yen    |  
|                        |                                |                    |  
|                        |                                | Available-for-sale |   |         | Held-to-maturity | 
|                        |                                |                    |   |         |                  | 
|                        |                                | Amortized          |   |         | Aggregate        |  |   | Amortized |         |  | Aggregate  |      
|                        |                                | cost               |   |         | fair value       |  |   | cost      |         |  | fair value |      
|                        |                                |                    |   |         |                  |  |   |           |         |  |            |      
|Contractual maturities: |                                |                    |   |         |                  |  |   |           |         |  |            |       |       |  |   |      
|                        | Within 1 year                  |                    | ¥ | 234,870 |                  |  | ¥ | 234,870   |         |  | ¥          | 1,348 |       |  | ¥ | 1,348 |      
|                        | After 1 year through 5 years   |                    |   | 67,981  |                  |  |   | 67,999    |         |  |            | 233   |       |  |   | 233   |      
|                        | After 5 years through 10 years |                    |   | 4,069   |                  |  |   | 4,073     |         |  |            | 10    |       |  |   | 10    |      
|                        | After 10 years                 |                    |   | 2       |                  |  |   | 2         |         |  |            |      |       |  |   |      |      
|                        |                                |                    |   |         |                  |  |   |           |         |  |            |      
|                        |                                | Total              |   | ¥       | 306,922          |  |   | ¥         | 306,944 |  |            | ¥     | 1,591 |  |   | ¥     | 1,591 | 
|                        |                                |                    |   |         |                  |  |   |           |         |  |            |      



Investments other than debt and marketable equity
securities




F-31



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries








|   |                                                    
|-- | ---------------------------------------------------
|6. | INVESTMENTS IN AND ADVANCES TO ASSOCIATED COMPANIES









F-32



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                             |       |                 |         |         |      |   |         |         | 
|---------------------------- | ----- | --------------- | ------- | ------- | ---- | - | ------- | ------- | 
|                             |       | Millions of Yen |        
|                             |       |                 |        
|                             |       | 2005            |         |         | 2004 |  
|                             |       |                 |         |         |      |  
|Investments in capital stock |       | ¥               | 880,609 |         |      | ¥ | 611,397 |        
|Advances                     |       |                 | 92,610  |         |      |   | 115,124 |        
|                             |       |                 |         |         |      |  
|                             | Total |                 | ¥       | 973,219 |      |   | ¥       | 726,521 | 
|                             |       |                 |         |         |      |  







|                                                                    |                                            |                 |           |           |      |   |           |           | 
|------------------------------------------------------------------- | ------------------------------------------ | --------------- | --------- | --------- | ---- | - | --------- | --------- | 
|                                                                    |                                            | Millions of Yen |          
|                                                                    |                                            |                 |          
|                                                                    |                                            | 2005            |           |           | 2004 |  
|                                                                    |                                            |                 |           |           |      |  
|Current assets                                                      |                                            | ¥               | 3,702,750 |           |      | ¥ | 2,770,593 |          
|Property and equipment  net of accumulated
    depreciation*       |                                            |                 | 4,195,274 |           |      |   | 3,036,282 |          
|Other assets*                                                       |                                            |                 | 1,473,911 |           |      |   | 1,087,349 |          
|                                                                    |                                            |                 |           |           |      |  
|                                                                    | Total assets                               |                 | ¥         | 9,371,935 |      |   | ¥         | 6,894,224 | 
|                                                                    |                                            |                 |           |           |      |  
|Current liabilities                                                 |                                            | ¥               | 2,974,848 |           |      | ¥ | 2,362,786 |          
|Long-term liabilities                                               |                                            |                 | 2,835,459 |           |      |   | 2,261,190 |          
|Minority interests                                                  |                                            |                 | 599,892   |           |      |   | 376,730   |          
|Shareholders equity                                                |                                            |                 | 2,961,736 |           |      |   | 1,893,518 |          
|                                                                    |                                            |                 |           |           |      |  
|                                                                    | Total liabilities and shareholders equity |                 | ¥         | 9,371,935 |      |   | ¥         | 6,894,224 | 
|                                                                    |                                            |                 |           |           |      |  
|The companies equity in the net assets of associated
    companies |                                            | ¥               | 780,069   |           |      | ¥ | 527,255   |          
|                                                                    |                                            |                 |           |           |      |  






|  |                                                                                                                                                                                                                                                                                 
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Mineral rights are classified as Property and
    equipment  net of accumulated depreciation at
    March 31, 2005, which were formerly included in Other
    assets. The figures at March 31, 2004 have been
    reclassified to conform to the current year presentation.

|                                                                  |  |                 |           |  |      |   |           |      |  |   |           | 
|----------------------------------------------------------------- |  | --------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                                                  |  | Millions of Yen |          
|                                                                  |  |                 |          
|                                                                  |  | 2005            |           |  | 2004 |   |           | 2003 | 
|                                                                  |  |                 |           |  |      |   |           |      | 
|Revenues                                                          |  | ¥               | 6,295,587 |  |      | ¥ | 4,212,195 |      |  | ¥ | 3,460,933 | 
|Gross profit                                                      |  |                 | 1,582,586 |  |      |   | 986,659   |      |  |   | 730,929   | 
|Income before cumulative effect of change in accounting principle |  |                 | 357,019   |  |      |   | 195,059   |      |  |   | 92,593    | 
|Net income                                                        |  |                 | 357,019   |  |      |   | 190,857   |      |  |   | 92,593    | 

F-33



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|          |  |                 |         |  |      |   |         |      |  |   |         | 
|--------- |  | --------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|          |  | Millions of Yen |        
|          |  |                 |        
|          |  | 2005            |         |  | 2004 |   |         | 2003 | 
|          |  |                 |         |  |      |   |         |      | 
|Revenues  |  | ¥               | 121,283 |  |      | ¥ | 107,816 |      |  | ¥ | 91,372  | 
|Purchases |  |                 | 192,405 |  |      |   | 161,221 |      |  |   | 143,107 | 







|   |                                   
|-- | ----------------------------------
|7. | ALLOWANCE FOR DOUBTFUL RECEIVABLES



|                                   |  |                 |        |   |             |   |         |       |  |   |         |  
|---------------------------------- |  | --------------- | ------ | - | ----------- | - | ------- | ----- |  | - | ------- | -
|                                   |  | Millions of Yen |       
|                                   |  |                 |       
|                                   |  | Current         |        |   | Non-current |   |         | Total | 
|                                   |  |                 |        |   |             |   |         |       | 
|Year ended March 31, 2005:         |  |                 |        |   |             |   |         |       |  |   |         |  
|Balance at beginning of year       |  | ¥               | 22,498 |   |             | ¥ | 110,098 |       |  | ¥ | 132,596 |  
|Credits charged off                |  |                 | (3,604 | ) |             |   | (19,241 | )     |  |   | (22,845 | )
|Provision for doubtful receivables |  |                 | 6,307  |   |             |   | 2,556   |       |  |   | 8,863   |  
|Charged to other accounts*         |  |                 | (2,682 | ) |             |   | 6,653   |       |  |   | 3,971   |  
|                                   |  |                 |        |   |             |   |         |       | 
|Balance at end of year             |  | ¥               | 22,519 |   |             | ¥ | 100,066 |       |  | ¥ | 122,585 |  
|                                   |  |                 |        |   |             |   |         |       | 
|Year ended March 31, 2004:         |  |                 |        |   |             |   |         |       |  |   |         |  
|Balance at beginning of year       |  | ¥               | 21,236 |   |             | ¥ | 139,793 |       |  | ¥ | 161,029 |  
|Credits charged off                |  |                 | (3,230 | ) |             |   | (33,584 | )     |  |   | (36,814 | )
|Provision for doubtful receivables |  |                 | 6,503  |   |             |   | 3,380   |       |  |   | 9,883   |  
|Charged to other accounts*         |  |                 | (2,011 | ) |             |   | 509     |       |  |   | (1,502  | )
|                                   |  |                 |        |   |             |   |         |       | 
|Balance at end of year             |  | ¥               | 22,498 |   |             | ¥ | 110,098 |       |  | ¥ | 132,596 |  
|                                   |  |                 |        |   |             |   |         |       | 
|Year ended March 31, 2003:         |  |                 |        |   |             |   |         |       |  |   |         |  
|Balance at beginning of year       |  | ¥               | 20,625 |   |             | ¥ | 139,478 |       |  | ¥ | 160,103 |  
|Credits charged off                |  |                 | (3,974 | ) |             |   | (10,163 | )     |  |   | (14,137 | )
|Provision for doubtful receivables |  |                 | 6,063  |   |             |   | 7,602   |       |  |   | 13,665  |  
|Charged to other accounts*         |  |                 | (1,478 | ) |             |   | 2,876   |       |  |   | 1,398   |  
|                                   |  |                 |        |   |             |   |         |       | 
|Balance at end of year             |  | ¥               | 21,236 |   |             | ¥ | 139,793 |       |  | ¥ | 161,029 |  
|                                   |  |                 |        |   |             |   |         |       | 






|  |                                                                                                             
|- | ------------------------------------------------------------------------------------------------------------
|* | Principally reclassification to discontinued operations and
    effect of changes in foreign exchange rates.

F-34



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                                                             |       |                 |         |           |              |   |        |          |           |   |              |         |  |   |         |         | 
|------------------------------------------------------------ | ----- | --------------- | ------- | --------- | ------------ | - | ------ | -------- | --------- | - | ------------ | ------- |  | - | ------- | ------- | 
|                                                             |       | Millions of Yen |        
|                                                             |       |                 |        
|                                                             |       | 2005            |         |           | 2004         |  
|                                                             |       |                 |         |           |              |  
|                                                             |       |                 |         | Allowance |              |   |        |          | Allowance |  
|                                                             |       | Impaired        |         |           | for doubtful |   |        | Impaired |           |   | for doubtful |        
|                                                             |       | loans           |         |           | receivables  |   |        | loans    |           |   | receivables  |        
|                                                             |       |                 |         |           |              |   |        |          |           |   |              |        
|Impaired loans with an allowance for doubtful receivables    |       | ¥               | 129,805 |           |              | ¥ | 93,665 |          |           | ¥ | 158,884      |         |  | ¥ | 106,242 |        
|Impaired loans without an allowance for doubtful receivables |       |                 | 5,919   |           |              |   |       |          |           |   | 6,249        |         |  |   |        |        
|                                                             |       |                 |         |           |              |   |        |          |           |   |              |        
|                                                             | Total |                 | ¥       | 135,724   |              |   | ¥      | 93,665   |           |   | ¥            | 165,133 |  |   | ¥       | 106,242 | 
|                                                             |       |                 |         |           |              |   |        |          |           |   |              |        



|                                             |  |                 |         |  |      |   |         |      |  |   |         | 
|-------------------------------------------- |  | --------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                                             |  | Millions of Yen |        
|                                             |  |                 |        
|                                             |  | 2005            |         |  | 2004 |   |         | 2003 | 
|                                             |  |                 |         |  |      |   |         |      | 
|Average investment in impaired loans         |  | ¥               | 150,429 |  |      | ¥ | 180,081 |      |  | ¥ | 181,687 | 
|Interest income recognized on impaired loans |  |                 | 1,304   |  |      |   | 1,701   |      |  |   | 1,800   | 





|   |       
|-- | ------
|8. | LEASES

Lessor








F-35



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                                                       |                                           |                 |         |        |      |   |         |        | 
|------------------------------------------------------ | ----------------------------------------- | --------------- | ------- | ------ | ---- | - | ------- | ------ | 
|                                                       |                                           | Millions of Yen |        
|                                                       |                                           |                 |        
|                                                       |                                           | 2005            |         |        | 2004 |  
|                                                       |                                           |                 |         |        |      |  
|Total minimum lease payments to be received            |                                           | ¥               | 86,060  |        |      | ¥ | 73,065  |       
|Estimated unguaranteed residual value of leased assets |                                           |                 | 15,926  |        |      |   | 13,632  |       
|Less unearned income                                   |                                           |                 | (33,690 | )      |      |   | (30,317 | )     
|                                                       |                                           |                 |         |        |      |  
|Investment in direct financing leases                  |                                           |                 | 68,296  |        |      |   | 56,380  |       
|Less allowance for doubtful receivables                |                                           |                 | (890    | )      |      |   | (855    | )     
|                                                       |                                           |                 |         |        |      |  
|                                                       | Net investment in direct financing leases |                 | ¥       | 67,406 |      |   | ¥       | 55,525 | 
|                                                       |                                           |                 |         |        |      |  



|                      |       |                 |        |        | 
|--------------------- | ----- | --------------- | ------ | ------ | 
|                      |       | Millions of Yen |       
|                      |       |                 |       
|Year ending March 31: |       |                 |        |       
|2006                  |       | ¥               | 8,901  |       
|2007                  |       |                 | 7,633  |       
|2008                  |       |                 | 9,257  |       
|2009                  |       |                 | 7,333  |       
|2010                  |       |                 | 7,379  |       
|Thereafter            |       |                 | 45,557 |       
|                      |       |                 |       
|                      | Total |                 | ¥      | 86,060 | 
|                      |       |                 |       



|                                                                                                                |                                    |                 |        |     |      |   |        |       | 
|--------------------------------------------------------------------------------------------------------------- | ---------------------------------- | --------------- | ------ | --- | ---- | - | ------ | ----- | 
|                                                                                                                |                                    | Millions of Yen |       
|                                                                                                                |                                    |                 |       
|                                                                                                                |                                    | 2005            |        |     | 2004 |  
|                                                                                                                |                                    |                 |        |     |      |  
|Total minimum lease payments to be received (net of principal
    and interest on third-party nonrecourse debt) |                                    | ¥               | 4,634  |     |      | ¥ | 4,605  |      
|Estimated unguaranteed residual value of leased assets                                                          |                                    |                 | 6,288  |     |      |   | 8,344  |      
|Less unearned income                                                                                            |                                    |                 | (2,721 | )   |      |   | (3,115 | )    
|                                                                                                                |                                    |                 |        |     |      |  
|Investment in leveraged leases                                                                                  |                                    |                 | 8,201  |     |      |   | 9,834  |      
|Less allowance for doubtful receivables                                                                         |                                    |                 | (292   | )   |      |   |       |      
|Less deferred tax liabilities arising from leveraged leases                                                     |                                    |                 | (7,252 | )   |      |   | (6,627 | )    
|                                                                                                                |                                    |                 |        |     |      |  
|                                                                                                                | Net investment in leveraged leases |                 | ¥      | 657 |      |   | ¥      | 3,207 | 
|                                                                                                                |                                    |                 |        |     |      |  

F-36



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                        |       |                 |         |             |              |   |         |         |   |   |             |         |  |              |         |         |     |   |         |         |   |   |         |         | 
|----------------------- | ----- | --------------- | ------- | ----------- | ------------ | - | ------- | ------- | - | - | ----------- | ------- |  | ------------ | ------- | ------- | --- | - | ------- | ------- | - | - | ------- | ------- | 
|                        |       | Millions of Yen |        
|                        |       |                 |        
|                        |       | 2005            |         |             | 2004         |  
|                        |       |                 |         |             |              |  
|                        |       |                 |         | Accumulated |              |   |         |         |   |   | Accumulated |         |  |             
|                        |       | Cost            |         |             | depreciation |   |         | Net     |   |   | Cost        |         |  | depreciation |         |         | Net |  
|                        |       |                 |         |             |              |   |         |         |   |   |             |         |  |              |         |         |     |  
|Real estate             |       | ¥               | 164,468 |             |              | ¥ | (59,863 | )       |   | ¥ | 104,605     |         |  | ¥            | 195,430 |         |     | ¥ | (63,559 | )       |   | ¥ | 131,871 |        
|Aircraft                |       |                 | 31,737  |             |              |   | (5,391  | )       |   |   | 26,346      |         |  |              | 45,588  |         |     |   | (9,351  | )       |   |   | 36,237  |        
|Ocean transport vessels |       |                 | 29,685  |             |              |   | (5,575  | )       |   |   | 24,110      |         |  |              | 44,222  |         |     |   | (4,552  | )       |   |   | 39,670  |        
|Rolling stock           |       |                 | 21,238  |             |              |   | (1,470  | )       |   |   | 19,768      |         |  |              | 15,113  |         |     |   | (1,429  | )       |   |   | 13,684  |        
|Equipment and others    |       |                 | 19,895  |             |              |   | (11,549 | )       |   |   | 8,346       |         |  |              | 21,114  |         |     |   | (12,265 | )       |   |   | 8,849   |        
|                        |       |                 |         |             |              |   |         |         |   |   |             |         |  |              |         |         |     |  
|                        | Total |                 | ¥       | 267,023     |              |   | ¥       | (83,848 | ) |   | ¥           | 183,175 |  |              | ¥       | 321,467 |     |   | ¥       | (91,156 | ) |   | ¥       | 230,311 | 
|                        |       |                 |         |             |              |   |         |         |   |   |             |         |  |              |         |         |     |  



|                      |       |                 |        |        | 
|--------------------- | ----- | --------------- | ------ | ------ | 
|                      |       | Millions of Yen |       
|                      |       |                 |       
|Year ending March 31: |       |                 |        |       
|2006                  |       | ¥               | 10,029 |       
|2007                  |       |                 | 8,054  |       
|2008                  |       |                 | 7,073  |       
|2009                  |       |                 | 5,082  |       
|2010                  |       |                 | 3,202  |       
|Thereafter            |       |                 | 15,938 |       
|                      |       |                 |       
|                      | Total |                 | ¥      | 49,378 | 
|                      |       |                 |       

Lessee






|          |       |                 |        |             |              |   |         |         |   |   |             |        |  |              |        |        |     |   |         |         |   |   |        |        | 
|--------- | ----- | --------------- | ------ | ----------- | ------------ | - | ------- | ------- | - | - | ----------- | ------ |  | ------------ | ------ | ------ | --- | - | ------- | ------- | - | - | ------ | ------ | 
|          |       | Millions of Yen |       
|          |       |                 |       
|          |       | 2005            |        |             | 2004         |  
|          |       |                 |        |             |              |  
|          |       |                 |        | Accumulated |              |   |         |         |   |   | Accumulated |        |  |             
|          |       | Cost            |        |             | depreciation |   |         | Net     |   |   | Cost        |        |  | depreciation |        |        | Net |  
|          |       |                 |        |             |              |   |         |         |   |   |             |        |  |              |        |        |     |  
|Equipment |       | ¥               | 28,024 |             |              | ¥ | (13,651 | )       |   | ¥ | 14,373      |        |  | ¥            | 28,975 |        |     | ¥ | (14,097 | )       |   | ¥ | 14,878 |       
|Others    |       |                 | 6,846  |             |              |   | (1,958  | )       |   |   | 4,888       |        |  |              | 4,404  |        |     |   | (1,869  | )       |   |   | 2,535  |       
|          |       |                 |        |             |              |   |         |         |   |   |             |        |  |              |        |        |     |  
|          | Total |                 | ¥      | 34,870      |              |   | ¥       | (15,609 | ) |   | ¥           | 19,261 |  |              | ¥      | 33,379 |     |   | ¥       | (15,966 | ) |   | ¥      | 17,413 | 
|          |       |                 |        |             |              |   |         |         |   |   |             |        |  |              |        |        |     |  

F-37



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                                            |  |                 |        |  
|------------------------------------------- |  | --------------- | ------ | -
|                                            |  | Millions of Yen |       
|                                            |  |                 |       
|Year ending March 31:                       |  |                 |        |  
|2006                                        |  | ¥               | 5,624  |  
|2007                                        |  |                 | 5,094  |  
|2008                                        |  |                 | 3,367  |  
|2009                                        |  |                 | 1,404  |  
|2010                                        |  |                 | 829    |  
|Thereafter                                  |  |                 | 6,546  |  
|                                            |  |                 |       
|Total minimum lease payments                |  |                 | 22,864 |  
|                                            |  |                 |       
|Less amount representing interest           |  |                 | (1,536 | )
|                                            |  |                 |       
|Present value of net minimum lease payments |  |                 | 21,328 |  
|Less current capital lease obligations      |  |                 | 5,363  |  
|                                            |  |                 |       
|Long-term capital lease obligations         |  | ¥               | 15,965 |  
|                                            |  |                 |       







|                      |       |                 |        |         | 
|--------------------- | ----- | --------------- | ------ | ------- | 
|                      |       | Millions of Yen |       
|                      |       |                 |       
|Year ending March 31: |       |                 |        |        
|2006                  |       | ¥               | 22,159 |        
|2007                  |       |                 | 16,631 |        
|2008                  |       |                 | 12,925 |        
|2009                  |       |                 | 10,233 |        
|2010                  |       |                 | 8,676  |        
|Thereafter            |       |                 | 34,806 |        
|                      |       |                 |       
|                      | Total |                 | ¥      | 105,430 | 
|                      |       |                 |       



F-38



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|   |                                                           
|-- | ----------------------------------------------------------
|9. | PLEDGED ASSETS AND FINANCIAL ASSETS ACCEPTED AS COLLATERAL

Pledged assets




|                                            |       |                 |        |         |      |   |        |         | 
|------------------------------------------- | ----- | --------------- | ------ | ------- | ---- | - | ------ | ------- | 
|                                            |       | Millions of Yen |       
|                                            |       |                 |       
|                                            |       | 2005            |        |         | 2004 |  
|                                            |       |                 |        |         |      |  
|Trade receivables (current and non-current) |       | ¥               | 66,968 |         |      | ¥ | 47,354 |        
|Inventories                                 |       |                 | 26,625 |         |      |   | 17,073 |        
|Investments                                 |       |                 | 27,232 |         |      |   | 24,665 |        
|Property leased to others (net book value)  |       |                 | 28,856 |         |      |   | 23,691 |        
|Property and equipment (net book value)     |       |                 | 31,525 |         |      |   | 46,857 |        
|Other                                       |       |                 | 14,442 |         |      |   | 969    |        
|                                            |       |                 |        |         |      |  
|                                            | Total |                 | ¥      | 195,648 |      |   | ¥      | 160,609 | 
|                                            |       |                 |        |         |      |  



|                              |       |                 |         |         |      |   |         |         | 
|----------------------------- | ----- | --------------- | ------- | ------- | ---- | - | ------- | ------- | 
|                              |       | Millions of Yen |        
|                              |       |                 |        
|                              |       | 2005            |         |         | 2004 |  
|                              |       |                 |         |         |      |  
|Short-term debt               |       | ¥               | 27,887  |         |      | ¥ | 22,866  |        
|Long-term debt                |       |                 | 123,345 |         |      |   | 113,384 |        
|Guarantees of contracts, etc. |       |                 | 44,416  |         |      |   | 24,359  |        
|                              |       |                 |         |         |      |  
|                              | Total |                 | ¥       | 195,648 |      |   | ¥       | 160,609 | 
|                              |       |                 |         |         |      |  





Financial assets accepted as collateral




|                             |  |                 |       |  |      |   |        | 
|---------------------------- |  | --------------- | ----- |  | ---- | - | ------ | 
|                             |  | Millions of Yen |      
|                             |  |                 |      
|                             |  | 2005            |       |  | 2004 |  
|                             |  |                 |       |  |      |  
|Bank deposits                |  | ¥               | 2,081 |  |      | ¥ | 1,971  | 
|Promissory notes             |  |                 | 5,465 |  |      |   | 10,796 | 
|Trade receivables  accounts |  |                 | 231   |  |      |   | 54     | 
|Stocks and bonds             |  |                 | 7,787 |  |      |   | 12,695 | 



F-39



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries






|    |                                     
|--- | ------------------------------------
|10. | IMPAIRMENT LOSS OF LONG-LIVED ASSETS









|                                     |  |                 |        |  |      |   |        |      |  |   |        | 
|------------------------------------ |  | --------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                     |  | Millions of Yen |       
|                                     |  |                 |       
|                                     |  | 2005            |        |  | 2004 |   |        | 2003 | 
|                                     |  |                 |        |  |      |   |        |      | 
|Metal Products & Minerals            |  | ¥               | 8,217  |  |      | ¥ | 628    |      |  | ¥ | 1,029  | 
|Machinery, Electronics & Information |  |                 | 353    |  |      |   | 5,842  |      |  |   | 10,344 | 
|Chemical                             |  |                 | 1,698  |  |      |   | 581    |      |  |   |       | 
|Energy                               |  |                 | 2,580  |  |      |   | 1,340  |      |  |   | 9,219  | 
|Consumer Products & Services         |  |                 | 1,694  |  |      |   | 413    |      |  |   | 2,187  | 
|Logistics & Financial Markets        |  |                 | 57     |  |      |   | 213    |      |  |   |       | 
|Americas                             |  |                 | 954    |  |      |   | 181    |      |  |   |       | 
|Other Overseas Areas                 |  |                 |       |  |      |   | 115    |      |  |   | 348    | 
|All Other                            |  |                 | 5,601  |  |      |   | 3,992  |      |  |   | 511    | 
|Adjustments and Eliminations*        |  |                 | 296    |  |      |   | 8,039  |      |  |   |       | 
|                                     |  |                 |        |  |      |   |        |      | 
|Consolidated Total                   |  | ¥               | 21,450 |  |      | ¥ | 21,344 |      |  | ¥ | 23,638 | 
|                                     |  |                 |        |  |      |   |        |      | 






|  |                                                                                                                                    
|- | -----------------------------------------------------------------------------------------------------------------------------------
|* | Adjustments and Eliminations represents impairment
    losses related to assets not allocated to specific operating
    segments.

F-40



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries








|    |                             
|--- | ----------------------------
|11. | ASSET RETIREMENT OBLIGATIONS







|                                         |  |                 |        |   |      |   |        |  
|---------------------------------------- |  | --------------- | ------ | - | ---- | - | ------ | -
|                                         |  | Millions of Yen |       
|                                         |  |                 |       
|                                         |  | 2005            |        |   | 2004 |  
|                                         |  |                 |        |   |      |  
|Balance at beginning of year             |  | ¥               | 7,328  |   |      | ¥ | 6,423  |  
|Liabilities incurred                     |  |                 | 6,557  |   |      |   | 3,124  |  
|Liabilities settled                      |  |                 | (3,135 | ) |      |   | (2,805 | )
|Accretion expense                        |  |                 | 409    |   |      |   | 168    |  
|Foreign currency translation adjustments |  |                 | 355    |   |      |   | 418    |  
|                                         |  |                 |        |   |      |  
|Balance at end of year                   |  | ¥               | 11,514 |   |      | ¥ | 7,328  |  
|                                         |  |                 |        |   |      |  






|      |                                                                                                                                        
|----- | ---------------------------------------------------------------------------------------------------------------------------------------
|Note: | The balance at the beginning of the year ended March 31,
    2004 includes the cumulative effect of change in accounting
    principle.

F-41



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|           |  |                 |        |  |      |   |        | 
|---------- |  | --------------- | ------ |  | ---- | - | ------ | 
|           |  | Millions of Yen |       
|           |  |                 |       
|           |  | 2004            |        |  | 2003 |  
|           |  |                 |        |  |      |  
|Net income |  | ¥               | 70,672 |  |      | ¥ | 31,003 | 

|                             |  |      |       |  |      |   |       | 
|---------------------------- |  | ---- | ----- |  | ---- | - | ----- | 
|                             |  | Yen  |      
|                             |  |      |      
|                             |  | 2004 |       |  | 2003 |  
|                             |  |      |       |  |      |  
|Basic net income per share   |  | ¥    | 44.69 |  |      | ¥ | 19.59 | 
|Diluted net income per share |  |      | 42.25 |  |      |   | 18.61 | 








|    |                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Pro forma net income for the year ended March 31, 2004
    represents reported net income excluding cumulative effect of
    change in accounting principle (after income tax effect) of
    ¥2,285 million (loss) (¥1.44 per basic share
    and ¥1.36 per diluted share).
|   
|(2) | Basic and diluted net income per share presented in the
    Statements of Consolidated Income were ¥19.68 and
    ¥18.69, respectively, for the year ended March 31,
    2003.                                                                                             



|    |                                     
|--- | ------------------------------------
|12. | GOODWILL AND OTHER INTANGIBLE ASSETS



|                        |       |                 |        |         |              |   |        |                |  |   |              |         |  |   |        |        | 
|----------------------- | ----- | --------------- | ------ | ------- | ------------ | - | ------ | -------------- |  | - | ------------ | ------- |  | - | ------ | ------ | 
|                        |       | Millions of Yen |       
|                        |       |                 |       
|                        |       | 2005            |        |         | 2004         |  
|                        |       |                 |        |         |              |  
|                        |       | Gross carrying  |        |         | Accumulated  |   |        | Gross carrying |  |   | Accumulated  |        
|                        |       | amount          |        |         | amortization |   |        | amount         |  |   | amortization |        
|                        |       |                 |        |         |              |   |        |                |  |   |              |        
|Software                |       | ¥               | 44,221 |         |              | ¥ | 18,406 |                |  | ¥ | 35,779       |         |  | ¥ | 15,151 |       
|Unpatented technologies |       |                 | 15,695 |         |              |   | 2,742  |                |  |   | 15,658       |         |  |   | 1,174  |       
|Trademarks              |       |                 | 9,839  |         |              |   | 6,498  |                |  |   | 11,461       |         |  |   | 6,750  |       
|Patents                 |       |                 | 9,099  |         |              |   | 8,583  |                |  |   | 9,073        |         |  |   | 8,539  |       
|Customer relationships  |       |                 | 6,564  |         |              |   | 1,099  |                |  |   | 2,139        |         |  |   | 866    |       
|Other                   |       |                 | 28,531 |         |              |   | 16,151 |                |  |   | 26,095       |         |  |   | 14,399 |       
|                        |       |                 |        |         |              |   |        |                |  |   |              |        
|                        | Total |                 | ¥      | 113,949 |              |   | ¥      | 53,479         |  |   | ¥            | 100,205 |  |   | ¥      | 46,879 | 
|                        |       |                 |        |         |              |   |        |                |  |   |              |        



|                      |  |                 |        | 
|--------------------- |  | --------------- | ------ | 
|                      |  | Millions of Yen |       
|                      |  |                 |       
|Year ending March 31: |  |                 |        | 
|2006                  |  | ¥               | 15,949 | 
|2007                  |  |                 | 13,114 | 
|2008                  |  |                 | 9,670  | 
|2009                  |  |                 | 7,283  | 
|2010                  |  |                 | 5,015  | 

F-42



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|            |       |                 |       |        |      |   |       |        | 
|----------- | ----- | --------------- | ----- | ------ | ---- | - | ----- | ------ | 
|            |       | Millions of Yen |      
|            |       |                 |      
|            |       | 2005            |       |        | 2004 |  
|            |       |                 |       |        |      |  
|Land rights |       | ¥               | 7,242 |        |      | ¥ | 7,212 |       
|Trademarks  |       |                 | 2,386 |        |      |   | 2,383 |       
|Other       |       |                 | 2,382 |        |      |   | 2,657 |       
|            |       |                 |       |        |      |  
|            | Total |                 | ¥     | 12,010 |      |   | ¥     | 12,252 | 
|            |       |                 |       |        |      |  













F-43



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                                         |  |                 |       |   |               |   |        |          |  |            |          |   |  |          |              |   |       |   |       |   |  |   |        |  
|---------------------------------------- |  | --------------- | ----- | - | ------------- | - | ------ | -------- |  | ---------- | -------- | - |  | -------- | ------------ | - | ----- | - | ----- | - |  | - | ------ | -
|                                         |  | Millions of Yen |      
|                                         |  |                 |      
|                                         |  | Metal           |       |   | Machinery,    |   |        |          |  | Consumer   |          |   | 
|                                         |  | Products &      |       |   | Electronics & |   |        |          |  | Products & |          |   |  |          | Consolidated |  
|                                         |  | Minerals        |       |   | Information   |   |        | Chemical |  |            | Services |   |  | Americas |              |   | Total |  
|                                         |  |                 |       |   |               |   |        |          |  |            |          |   |  |          |              |   |       |  
|Balance at April 1, 2003                 |  | ¥               | 2,912 |   |               | ¥ | 2,586  |          |  | ¥          | 829      |   |  | ¥        | 1,017        |   |       | ¥ | 433   |   |  | ¥ | 7,777  |  
|Acquisition                              |  |                 |      |   |               |   | 822    |          |  |            | 616      |   |  |          | 16,547       |   |       |   |      |   |  |   | 17,985 |  
|Foreign currency translation adjustments |  |                 | (352  | ) |               |   | (125   | )        |  |            | (100     | ) |  |          | (55          | ) |       |   | (11   | ) |  |   | (643   | )
|                                         |  |                 |       |   |               |   |        |          |  |            |          |   |  |          |              |   |       |  
|Balance at March 31, 2004                |  |                 | 2,560 |   |               |   | 3,283  |          |  |            | 1,345    |   |  |          | 17,509       |   |       |   | 422   |   |  |   | 25,119 |  
|Acquisition                              |  |                 | 705   |   |               |   | 3,147  |          |  |            | 262      |   |  |          |             |   |       |   | 3,597 |   |  |   | 7,711  |  
|Impairment losses                        |  |                 |      |   |               |   | (1,114 | )        |  |            |         |   |  |          |             |   |       |   |      |   |  |   | (1,114 | )
|Foreign currency translation adjustments |  |                 | 42    |   |               |   | (169   | )        |  |            | 7        |   |  |          | (5           | ) |       |   | 106   |   |  |   | (19    | )
|                                         |  |                 |       |   |               |   |        |          |  |            |          |   |  |          |              |   |       |  
|Balance at March 31, 2005                |  | ¥               | 3,307 |   |               | ¥ | 5,147  |          |  | ¥          | 1,614    |   |  | ¥        | 17,504       |   |       | ¥ | 4,125 |   |  | ¥ | 31,697 |  
|                                         |  |                 |       |   |               |   |        |          |  |            |          |   |  |          |              |   |       |  





F-44



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|    |                              
|--- | -----------------------------
|13. | SHORT-TERM AND LONG-TERM DEBT

Short-term debt




|                                       |       |                 |          |                 |      |  |     |   |                 |  |          |          |  |  |     |   | 
|-------------------------------------- | ----- | --------------- | -------- | --------------- | ---- |  | --- | - | --------------- |  | -------- | -------- |  |  | --- | - | 
|                                       |       | Millions of Yen |         
|                                       |       |                 |         
|                                       |       | 2005            |          |                 | 2004 | 
|                                       |       |                 |          |                 |      | 
|                                       |       |                 |          | Interest rate*1 |      |  |     |   | Interest rate*1 | 
|                                       |       |                 |          |                 |      |  |     |   |                 | 
|Short-term bank loans and others       |       |                 | ¥410,880 |                 |      |  | 2.3 | % |                 |  | ¥401,493 |          |  |  | 1.8 | %
|Commercial paper                       |       |                 | 94,643   |                 |      |  | 1.0 |   |                 |  | 120,976  |          |  |  | 0.5 |  
|Notes under medium-term note programme |       |                 | 109,210  |                 |      |  | 0.1 |   |                 |  | 120,796  |          |  |  | 0.1 |  
|                                       |       |                 |          |                 |      |  |     |   |                 |  |          |         
|                                       | Total |                 |          | 614,733         |      |  |     |   |                 |  |          | 643,265  |  |  |     |   | 
|SFAS No. 133 fair value adjustment*2   |       |                 | 620      |                 |      |  |     |   |                 |  | 3,481    |          |  |  |     |  
|                                       |       |                 |          |                 |      |  |     |   |                 |  |          |         
|                                       | Total |                 |          | ¥615,353        |      |  |     |   |                 |  |          | ¥646,746 |  |  |     |   | 
|                                       |       |                 |          |                 |      |  |     |   |                 |  |          |         






|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*1 | The interest rates represent weighted average rates in effect at
    March 31, 2005 and 2004, regardless of borrowing
    currencies, though the range of the interest rates varies by
    borrowing currency.                                                                                                                                                                                                                                                                                                                                                                                 
|  
|*2 | In accordance with the requirements of SFAS No. 133,
    the portion of the companies fixed-rate debt obligations
    that is designated and effective as a fair value hedge is
    reflected in the Consolidated Balance Sheets as an amount equal
    to the sum of the debts carrying value plus a
    SFAS No. 133 fair value adjustment representing
    changes recorded in the fair value of the hedged debt
    obligations attributable to movements in the designated
    benchmark interest rates and applicable foreign currency
    exchange rates during the term of the hedge.



F-45



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


Long-term debt




|                                         |                                                                                                             |                                                                                                                     |           |        |           |           |           |           |           |           |           |           | 
|---------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | --------- | ------ | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | 
|                                         |                                                                                                             | Millions of Yen                                                                                                     |          
|                                         |                                                                                                             |                                                                                                                     |          
|                                         |                                                                                                             | 2005                                                                                                                |           |        | 2004      |          
|                                         |                                                                                                             |                                                                                                                     |           |        |           |          
|Long-term debt with collateral (Note 9): |                                                                                                             |                                                                                                                     |           |        |           |           |           |          
|                                         | Banks and insurance companies, maturing serially through
    2015  principally 0.7% to 10%                 |                                                                                                                     | ¥         | 38,554 |           |           | ¥         | 56,112    |          
|                                         | Government-owned banks and government agencies, maturing
    serially through 2056  principally 0.7% to 7% |                                                                                                                     |           | 65,504 |           |           |           | 60,187    |          
|                                         | Other, maturing serially through 2018  principally 2%                                                      |                                                                                                                     |           | 5,286  |           |           |           | 5,885     |          
|                                         |                                                                                                             |                                                                                                                     |           |        |           |          
|                                         |                                                                                                             | Total                                                                                                               |           |        | 109,344   |           |           |           | 122,184   |          
|                                         |                                                                                                             |                                                                                                                     |           |        |           |          
|Long-term debt without collateral:       |                                                                                                             |                                                                                                                     |           |        |           |           |           |          
|                                         | Banks and others (principally insurance companies):                                                         |                                                                                                                     |           |        |           |           |           |           |          
|                                         |                                                                                                             | Principally 0.03% to 6%, maturing serially through 2018                                                             |           |        | 1,518,613 |           |           |           | 1,461,479 |          
|                                         |                                                                                                             | Principally 0.8% to 13%, maturing serially through 2017 (payable
    in foreign currencies)                         |           |        | 477,776   |           |           |           | 387,352   |          
|                                         | Bonds and notes:                                                                                            |                                                                                                                     |           |        |           |           |           |           |          
|                                         |                                                                                                             | Japanese yen convertible bonds (fixed rate 1.05%, due 2009)                                                         |           |        | 92,775    |           |           |           | 92,786    |          
|                                         |                                                                                                             | Japanese yen bonds with early redemption clause (fixed rate 0.7%
    to 1.4%, due 2013  2016)                      |           |        | 71,000    |           |           |           | 71,000    |          
|                                         |                                                                                                             | Japanese yen bonds (fixed rate 0.5% to 3.6%, due
    2005  2019)                                                   |           |        | 250,270   |           |           |           | 240,500   |          
|                                         |                                                                                                             | Japanese yen bonds (fixed and floating rate: floating rate 1.9%
    to 2.6%, due 2013  2017)                       |           |        | 70,500    |           |           |           | 38,500    |          
|                                         |                                                                                                             | Japanese yen bonds (fixed and floating rate: fixed rate 2.4% to
    3.3%, due 2014  2024)                          |           |        | 31,000    |           |           |           | 33,000    |          
|                                         |                                                                                                             | Japanese yen bonds (floating rate 2.1% to 2.7%, due
    2010  2016)                                                |           |        | 87,000    |           |           |           | 72,000    |          
|                                         |                                                                                                             | Reverse dual currency yen/ U.S. dollar bonds (fixed rate 3.0% to
    3.25%, due 2007  2012)                        |           |        | 30,000    |           |           |           | 30,000    |          
|                                         |                                                                                                             | Notes under global medium-term note programme (fixed rate 0.2%
    to 4.7%, due 2004  2014)                        |           |        | 18,381    |           |           |           | 25,205    |          
|                                         |                                                                                                             | Notes under euro medium-term note programme (fixed and floating
    rate: fixed rate 0.1% to 7.9%, due 2004  2024) |           |        | 168,391   |           |           |           | 118,380   |          
|                                         |                                                                                                             | Capital lease obligations (principally 0.7% to 5.5%, maturing
    serially through 2030)                            |           |        | 21,328    |           |           |           | 19,177    |          
|                                         | Accounts payables, derivative liabilities and others due through
    2019:                                  |                                                                                                                     |           |        |           |           |           |           |          
|                                         |                                                                                                             | Interest bearing                                                                                                    |           |        | 43,081    |           |           |           | 31,203    |          
|                                         |                                                                                                             | Non-interest bearing                                                                                                |           |        | 149,893   |           |           |           | 116,441   |          
|                                         |                                                                                                             |                                                                                                                     |           |        |           |          
|                                         |                                                                                                             |                                                                                                                     | Total     |        |           | 3,030,008 |           |           |           | 2,737,023 |          
|                                         |                                                                                                             |                                                                                                                     |           |        |           |          
|                                         |                                                                                                             |                                                                                                                     |           | Total  |           |           | 3,139,352 |           |           |           | 2,859,207 |          
|SFAS No. 133 fair value adjustment*      |                                                                                                             |                                                                                                                     | 57,521    |        |           |           | 39,689    |          
|                                         |                                                                                                             |                                                                                                                     |           |        |           |          
|                                         |                                                                                                             |                                                                                                                     |           |        | Total     |           |           | 3,196,873 |           |           |           | 2,898,896 | 
|Less current maturities                  |                                                                                                             |                                                                                                                     | 291,950   |        |           |           | 357,675   |          
|                                         |                                                                                                             |                                                                                                                     |           |        |           |          
|Long-term debt, less current maturities  |                                                                                                             | ¥                                                                                                                   | 2,904,923 |        |           | ¥         | 2,541,221 |          
|                                         |                                                                                                             |                                                                                                                     |           |        |           |          

F-46



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries







|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | In accordance with the requirements of SFAS No. 133,
    the portion of the companies fixed-rate debt obligations
    that is designated and effective as a fair value hedge is
    reflected in the Consolidated Balance Sheets as an amount equal
    to the sum of the debts carrying value plus a
    SFAS No. 133 fair value adjustment representing
    changes recorded in the fair value of the hedged debt
    obligations attributable to movements in the designated
    benchmark interest rates and applicable foreign currency
    exchange rates during the term of the hedge.











F-47



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                      |       |                 |           |           | 
|--------------------- | ----- | --------------- | --------- | --------- | 
|                      |       | Millions of Yen |          
|                      |       |                 |          
|Year ending March 31: |       |                 |           |          
|2006                  |       | ¥               | 259,927   |          
|2007                  |       |                 | 368,668   |          
|2008                  |       |                 | 343,589   |          
|2009                  |       |                 | 218,862   |          
|2010                  |       |                 | 447,045   |          
|Thereafter            |       |                 | 1,501,261 |          
|                      |       |                 |          
|                      | Total |                 | ¥         | 3,139,352 | 
|                      |       |                 |          



|    |                                        
|--- | ---------------------------------------
|14. | PENSION COSTS AND SEVERANCE INDEMNITIES











F-48



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries






Obligations and funded status




|                                                                  |                                                                 |                                          |        |         |         |  |        |         |         | 
|----------------------------------------------------------------- | --------------------------------------------------------------- | ---------------------------------------- | ------ | ------- | ------- |  | ------ | ------- | ------- | 
|                                                                  |                                                                 | Millions of Yen                          |       
|                                                                  |                                                                 |                                          |       
|                                                                  |                                                                 | 2005                                     |        |         | 2004    | 
|                                                                  |                                                                 |                                          |        |         |         | 
|Change in benefit obligation:                                     |                                                                 |                                          |        |         |         |  |        |        
|                                                                  | Benefit obligation at beginning of year                         |                                          | ¥      | 255,806 |         |  | ¥      | 286,075 |        
|                                                                  | Service cost                                                    |                                          |        | 10,798  |         |  |        | 11,920  |        
|                                                                  | Interest cost                                                   |                                          |        | 5,616   |         |  |        | 5,487   |        
|                                                                  | Plan participants contributions                                |                                          |        | 365     |         |  |        | 385     |        
|                                                                  | Plan amendments                                                 |                                          |        | (342    | )       |  |        | 1,155   |        
|                                                                  | Actuarial loss                                                  |                                          |        | 1,552   |         |  |        | 4,610   |        
|                                                                  | Benefits paid from plan assets                                  |                                          |        | (10,799 | )       |  |        | (13,794 | )      
|                                                                  | Direct benefit payments                                         |                                          |        | (3,120  | )       |  |        | (5,739  | )      
|                                                                  | Curtailments                                                    |                                          |        |        |         |  |        | (64     | )      
|                                                                  | Settlements                                                     |                                          |        |        |         |  |        | (38,057 | )      
|                                                                  | Acquisitions and divestitures                                   |                                          |        | 774     |         |  |        | 4,763   |        
|                                                                  | Foreign currency translation adjustments                        |                                          |        | 547     |         |  |        | (935    | )      
|                                                                  |                                                                 |                                          |        |         |         | 
|                                                                  |                                                                 | Benefit obligation at end of year        |        |         | 261,197 |  |        |         | 255,806 | 
|                                                                  |                                                                 |                                          |        |         |         | 
|Change in plan assets:                                            |                                                                 |                                          |        |         |         |  |        |        
|                                                                  | Fair value of plan assets at beginning of year                  |                                          |        | 262,786 |         |  |        | 228,418 |        
|                                                                  | Actual return on plan assets                                    |                                          |        | 11,218  |         |  |        | 65,183  |        
|                                                                  | Employer contribution                                           |                                          |        | 27,734  |         |  |        | 140     |        
|                                                                  | Plan participants contributions                                |                                          |        | 365     |         |  |        | 385     |        
|                                                                  | Benefits paid from plan assets                                  |                                          |        | (10,799 | )       |  |        | (13,794 | )      
|                                                                  | Settlements                                                     |                                          |        |        |         |  |        | (18,650 | )      
|                                                                  | Acquisitions and divestitures                                   |                                          |        | 95      |         |  |        | 1,657   |        
|                                                                  | Foreign currency translation adjustments                        |                                          |        | 246     |         |  |        | (553    | )      
|                                                                  |                                                                 |                                          |        |         |         | 
|                                                                  |                                                                 | Fair value of plan assets at end of year |        |         | 291,645 |  |        |         | 262,786 | 
|                                                                  |                                                                 |                                          |        |         |         | 
|Funded status at end of year                                      |                                                                 |                                          | 30,448 |         |         |  | 6,980  |        
|Unrecognized prior service cost                                   |                                                                 |                                          | (6,413 | )       |         |  | (6,483 | )      
|Unrecognized net actuarial loss                                   |                                                                 |                                          | 53,855 |         |         |  | 59,499 |        
|                                                                  |                                                                 |                                          |        |         |         | 
|                                                                  |                                                                 | Net amount recognized                    |        | ¥       | 77,890  |  |        | ¥       | 59,996  | 
|                                                                  |                                                                 |                                          |        |         |         | 
|Amounts recognized in the Consolidated Balance Sheets consist of: |                                                                 |                                          |        |         |         |  |        |        
|                                                                  | Intangible assets                                               |                                          | ¥      | 80      |         |  | ¥      | 112     |        
|                                                                  | Other assets (prepaid pension costs)                            |                                          |        | 107,958 |         |  |        | 102,872 |        
|                                                                  | Accrued pension costs and liability for severance indemnities   |                                          |        | (39,467 | )       |  |        | (52,296 | )      
|                                                                  | Accumulated other comprehensive loss (before income tax effect) |                                          |        | 9,319   |         |  |        | 9,308   |        
|                                                                  |                                                                 |                                          |        |         |         | 
|                                                                  |                                                                 | Net amount recognized                    |        | ¥       | 77,890  |  |        | ¥       | 59,996  | 
|                                                                  |                                                                 |                                          |        |         |         | 

F-49



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries










Components of net periodic pension costs




|                                                               |                            |                 |        |        |      |   |        |        |  |   |        |        | 
|-------------------------------------------------------------- | -------------------------- | --------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                                                               |                            | Millions of Yen |       
|                                                               |                            |                 |       
|                                                               |                            | 2005            |        |        | 2004 |   |        | 2003   | 
|                                                               |                            |                 |        |        |      |   |        |        | 
|Service cost  benefits earned during the period               |                            | ¥               | 10,798 |        |      | ¥ | 11,920 |        |  | ¥ | 11,582 |       
|Interest cost on projected benefit obligation                  |                            |                 | 5,616  |        |      |   | 5,487  |        |  |   | 7,234  |       
|Expected return on plan assets                                 |                            |                 | (6,723 | )      |      |   | (6,013 | )      |  |   | (5,815 | )     
|Amortization of unrecognized prior service cost                |                            |                 | (410   | )      |      |   | (137   | )      |  |   | (171   | )     
|Amortization of unrecognized net actuarial loss                |                            |                 | 2,998  |        |      |   | 21,806 |        |  |   | 8,809  |       
|Curtailment gain                                               |                            |                 |       |        |      |   | (64    | )      |  |   |       |       
|Settlement loss                                                |                            |                 |       |        |      |   | 10,504 |        |  |   |       |       
|Gain on derecognition of previously accrued salary progression |                            |                 |       |        |      |   | (2,183 | )      |  |   |       |       
|                                                               |                            |                 |        |        |      |   |        |        | 
|                                                               | Net periodic pension costs |                 | ¥      | 12,279 |      |   | ¥      | 41,320 |  |   | ¥      | 21,639 | 
|                                                               |                            |                 |        |        |      |   |        |        | 

Assumptions




|                                               |  |      |     |   |      |  |     |  
|---------------------------------------------- |  | ---- | --- | - | ---- |  | --- | -
|                                               |  | 2005 |     |   | 2004 | 
|                                               |  |      |     |   |      | 
|Discount rate                                  |  |      | 2.4 | % |      |  | 2.4 | %
|Rate of increase in future compensation levels |  |      | 0.4 |   |      |  | 0.5 |  



|                                                 |  |      |     |   |      |  |     |      |  |  |     |  
|------------------------------------------------ |  | ---- | --- | - | ---- |  | --- | ---- |  |  | --- | -
|                                                 |  | 2005 |     |   | 2004 |  |     | 2003 | 
|                                                 |  |      |     |   |      |  |     |      | 
|Discount rate                                    |  |      | 2.4 | % |      |  | 2.5 | %    |  |  | 3.2 | %
|Expected long-term rate of return on plan assets |  |      | 2.5 |   |      |  | 2.6 |      |  |  | 2.6 |  
|Rate of increase in future compensation levels   |  |      | 0.5 |   |      |  | 1.0 |      |  |  | 1.0 |  

F-50



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries








Plan assets




|                                        |       |      |    |     |      |  |    |     |  
|--------------------------------------- | ----- | ---- | -- | --- | ---- |  | -- | --- | -
|Asset category                          |       | 2005 |    |     | 2004 | 
|                                        |       |      |    |     |      | 
|Equity securities                       |       |      | 54 | %   |      |  | 58 | %  
|Debt securities                         |       |      | 27 |     |      |  | 26 |    
|Life insurance company general accounts |       |      | 4  |     |      |  | 4  |    
|Cash and deposits                       |       |      | 11 |     |      |  | 6  |    
|Other                                   |       |      | 4  |     |      |  | 6  |    
|                                        |       |      |    |     |      | 
|                                        | Total |      |    | 100 | %    |  |    | 100 | %
|                                        |       |      |    |     |      | 









F-51



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries






Cash flows


Contributions




Estimated Future Benefit Payments




|                      |  |                 |        | 
|--------------------- |  | --------------- | ------ | 
|                      |  | Millions of Yen |       
|                      |  |                 |       
|Year ending March 31: |  |                 |        | 
|2006                  |  | ¥               | 13,925 | 
|2007                  |  |                 | 14,066 | 
|2008                  |  |                 | 14,160 | 
|2009                  |  |                 | 14,884 | 
|2010                  |  |                 | 15,110 | 
|2011-2015             |  |                 | 78,040 | 



15.     SHAREHOLDERS EQUITY


Common stock and capital surplus








F-52



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries






Retained earnings appropriated for legal reserve




Retained earnings unappropriated








Purchase by the Company of shares




F-53



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries






Accumulated other comprehensive income (loss)




|                                                                          |                                                                                            |                 |          |         |      |   |          |         |   |   |          |         |  
|------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------ | --------------- | -------- | ------- | ---- | - | -------- | ------- | - | - | -------- | ------- | -
|                                                                          |                                                                                            | Millions of Yen |         
|                                                                          |                                                                                            |                 |         
|                                                                          |                                                                                            | 2005            |          |         | 2004 |   |          | 2003    |  
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|Unrealized Holding Gains and Losses on Available-for-Sale
    Securities: |                                                                                            |                 |          |         |      |   |          |         |   |   |          |        
|Balance at beginning of year                                              |                                                                                            | ¥               | 69,729   |         |      | ¥ | 3,405    |         |   | ¥ | 44,246   |        
|                                                                          | Pre-tax amount of unrealized holding gains and losses on
    available-for-sale securities |                 |          | 63,409  |      |   |          | 125,856 |   |   |          | (85,488 | )
|                                                                          | Deferred income taxes                                                                      |                 |          | (26,530 | )    |   |          | (49,395 | ) |   |          | 34,673  |  
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|                                                                          | Adjustments for year (after income tax effect)                                             |                 |          | 36,879  |      |   |          | 76,461  |   |   |          | (50,815 | )
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|                                                                          | Pre-tax amount of reclassification adjustments                                             |                 |          | (12,409 | )    |   |          | (17,240 | ) |   |          | 10,540  |  
|                                                                          | Deferred income taxes                                                                      |                 |          | 5,980   |      |   |          | 7,103   |   |   |          | (566    | )
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|                                                                          | Adjustments for year (after income tax effect)                                             |                 |          | (6,429  | )    |   |          | (10,137 | ) |   |          | 9,974   |  
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|Balance at end of year                                                    |                                                                                            | ¥               | 100,179  |         |      | ¥ | 69,729   |         |   | ¥ | 3,405    |        
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|Foreign Currency Translation Adjustments:                                 |                                                                                            |                 |          |         |      |   |          |         |   |   |          |        
|Balance at beginning of year                                              |                                                                                            | ¥               | (161,454 | )       |      | ¥ | (141,053 | )       |   | ¥ | (118,669 | )      
|                                                                          | Pre-tax amount of translation adjustments                                                  |                 |          | 20,935  |      |   |          | (27,098 | ) |   |          | (26,957 | )
|                                                                          | Deferred income taxes                                                                      |                 |          | (3,613  | )    |   |          | 4,538   |   |   |          | 1,032   |  
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|                                                                          | Adjustments for year (after income tax effect)                                             |                 |          | 17,322  |      |   |          | (22,560 | ) |   |          | (25,925 | )
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|                                                                          | Pre-tax amount of reclassification adjustments                                             |                 |          | 1,426   |      |   |          | 2,969   |   |   |          | 4,721   |  
|                                                                          | Deferred income taxes                                                                      |                 |          | (81     | )    |   |          | (810    | ) |   |          | (1,180  | )
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|                                                                          | Adjustments for year (after income tax effect)                                             |                 |          | 1,345   |      |   |          | 2,159   |   |   |          | 3,541   |  
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  
|Balance at end of year                                                    |                                                                                            | ¥               | (142,787 | )       |      | ¥ | (161,454 | )       |   | ¥ | (141,053 | )      
|                                                                          |                                                                                            |                 |          |         |      |   |          |         |  

F-54



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


|                                                           |                                                                          |                 |          |         |      |   |          |         |   |   |          |          |  
|---------------------------------------------------------- | ------------------------------------------------------------------------ | --------------- | -------- | ------- | ---- | - | -------- | ------- | - | - | -------- | -------- | -
|                                                           |                                                                          | Millions of Yen |         
|                                                           |                                                                          |                 |         
|                                                           |                                                                          | 2005            |          |         | 2004 |   |          | 2003    |  
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|Minimum Pension Liability Adjustment:                      |                                                                          |                 |          |         |      |   |          |         |   |   |          |         
|Balance at beginning of year                               |                                                                          | ¥               | (5,743   | )       |      | ¥ | (6,731   | )       |   | ¥ | (373     | )       
|                                                           | Pre-tax amount                                                           |                 |          | (11     | )    |   |          | 4,355   |   |   |          | (10,584  | )
|                                                           | Deferred income taxes                                                    |                 |          | 63      |      |   |          | (3,367  | ) |   |          | 4,226    |  
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|                                                           | Adjustments for year (after income tax effect)                           |                 |          | 52      |      |   |          | 988     |   |   |          | (6,358   | )
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|Balance at end of year                                     |                                                                          | ¥               | (5,691   | )       |      | ¥ | (5,743   | )       |   | ¥ | (6,731   | )       
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|Net Unrealized Gains and Losses on Derivatives:            |                                                                          |                 |          |         |      |   |          |         |   |   |          |         
|Balance at beginning of year                               |                                                                          | ¥               | (3,996   | )       |      | ¥ | (2,759   | )       |   | ¥ | (2,122   | )       
|                                                           | Pre-tax amount of net unrealized gains and losses on derivatives         |                 |          | 2,143   |      |   |          | (6,467  | ) |   |          | (3,782   | )
|                                                           | Deferred income taxes                                                    |                 |          | (1,094  | )    |   |          | 3,101   |   |   |          | 1,621    |  
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|                                                           | Adjustments for year (after income tax effect)                           |                 |          | 1,049   |      |   |          | (3,366  | ) |   |          | (2,161   | )
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|                                                           | Pre-tax amount of reclassification adjustments                           |                 |          | 2,881   |      |   |          | 3,542   |   |   |          | 2,762    |  
|                                                           | Deferred income taxes                                                    |                 |          | (1,186  | )    |   |          | (1,413  | ) |   |          | (1,238   | )
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|                                                           | Adjustments for year (after income tax effect)                           |                 |          | 1,695   |      |   |          | 2,129   |   |   |          | 1,524    |  
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|Balance at end of year                                     |                                                                          | ¥               | (1,252   | )       |      | ¥ | (3,996   | )       |   | ¥ | (2,759   | )       
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|Accumulated Other Comprehensive Income (Loss) 
    Total: |                                                                          |                 |          |         |      |   |          |         |   |   |          |         
|Balance at beginning of year                               |                                                                          | ¥               | (101,464 | )       |      | ¥ | (147,138 | )       |   | ¥ | (76,918  | )       
|                                                           | Pre-tax amount                                                           |                 |          | 78,374  |      |   |          | 85,917  |   |   |          | (108,788 | )
|                                                           | Deferred income taxes                                                    |                 |          | (26,461 | )    |   |          | (40,243 | ) |   |          | 38,568   |  
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|                                                           | Other comprehensive income (loss) for year (after income
    tax effect) |                 |          | 51,913  |      |   |          | 45,674  |   |   |          | (70,220  | )
|                                                           |                                                                          |                 |          |         |      |   |          |         |  
|Balance at end of year                                     |                                                                          | ¥               | (49,551  | )       |      | ¥ | (101,464 | )       |   | ¥ | (147,138 | )       
|                                                           |                                                                          |                 |          |         |      |   |          |         |  

F-55



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##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


16.     NET INCOME PER SHARE




|                                                                                    |  |             |         |  |               |  |           |           |  |             |             |  |              |               |        |   |           |             |           |             |              |   |               |   |  |           |        |   |  |  |           |  |  |   |       |  
|----------------------------------------------------------------------------------- |  | ----------- | ------- |  | ------------- |  | --------- | --------- |  | ----------- | ----------- |  | ------------ | ------------- | ------ | - | --------- | ----------- | --------- | ----------- | ------------ | - | ------------- | - |  | --------- | ------ | - |  |  | --------- |  |  | - | ----- | -
|                                                                                    |  | 2005        |         |  | 2004          |  |           | 2003      | 
|                                                                                    |  |             |         |  |               |  |           |           | 
|                                                                                    |  | Net income  |         |  | Shares        |  |           | Per share |  |             | Net income  |  |              | Shares        |        |   | Per share |             |           | Net income  |              |   | Shares        |   |  | Per share |       
|                                                                                    |  | (numerator) |         |  | (denominator) |  |           | amount    |  |             | (numerator) |  |              | (denominator) |        |   | amount    |             |           | (numerator) |              |   | (denominator) |   |  | amount    |       
|                                                                                    |  |             |         |  |               |  |           |           |  |             |             |  |              |               |        |   |           |             |           |             |              |   |               |   |  |           |       
|                                                                                    |  | Millions of |         |  |               |  | Yen       |           |  | Millions of |             |  |              |               | Yen    |   |           | Millions of |           |             |              |   | Yen           |  
|                                                                                    |  | Yen         |         |  | In Thousands  |  |           |           |  | Yen         |             |  | In Thousands |               |        |   |           | Yen         |           |             | In Thousands |   |               |  
|Basic Net Income per Share:                                                         |  |             |         |  |               |  |           |           |  |             |             |  |              |               |        |   |           |             |           |             |              |   |               |   |  |           |        |   |  |  |           |  |  |   |       |  
|Income from continuing operations                                                   |  | ¥           | 120,424 |  |               |  | 1,582,473 |           |  | ¥           | 76.10       |  |              | ¥             | 74,372 |   |           |             | 1,581,195 |             |              | ¥ | 47.04         |   |  | ¥         | 37,075 |   |  |  | 1,582,278 |  |  | ¥ | 23.43 |  
|Income (loss) from discontinued operations  net
    (after income tax effect)      |  |             | 712     |  |               |  | 1,582,473 |           |  |             | 0.45        |  |              |               | (3,700 | ) |           |             | 1,581,195 |             |              |   | (2.35         | ) |  |           | (5,937 | ) |  |  | 1,582,278 |  |  |   | (3.75 | )
|Cumulative effect of change in accounting principle (after
    income tax effect)   |  |             |        |  |               |  |          |           |  |             |            |  |              |               | (2,285 | ) |           |             | 1,581,195 |             |              |   | (1.44         | ) |  |           |       |   |  |  |          |  |  |   |      |  
|Net income available to common shareholders                                         |  |             | 121,136 |  |               |  | 1,582,473 |           |  |             | 76.55       |  |              |               | 68,387 |   |           |             | 1,581,195 |             |              |   | 43.25         |   |  |           | 31,138 |   |  |  | 1,582,278 |  |  |   | 19.68 |  
|                                                                                    |  |             |         |  |               |  |           |           |  |             |             |  |              |               |        |   |           |             |           |             |              |   |               |   |  |           |       
|Effect of Dilutive Securities:                                                      |  |             |         |  |               |  |           |           |  |             |             |  |              |               |        |   |           |             |           |             |              |   |               |   |  |           |        |   |  |  |           |  |  |   |       |  
|1.5% Convertible Bonds due 2003                                                     |  |             |        |  |               |  |          |           |  |             |             |  |              |               |       |   |           |             |          |             |              |   |               |   |  |           | 189    |   |  |  | 19,266    |  |  |   |       |  
|1.05% Convertible Bonds due 2009                                                    |  |             | 591     |  |               |  | 105,311   |           |  |             |             |  |              |               | 581    |   |           |             | 105,319   |             |              |   |               |   |  |           | 581    |   |  |  | 105,319   |  |  |   |       |  
|                                                                                    |  |             |         |  |               |  |           |           |  |             |             |  |              |               |        |   |           |             |           |             |              |   |               |   |  |           |       
|Diluted Net Income per Share:                                                       |  |             |         |  |               |  |           |           |  |             |             |  |              |               |        |   |           |             |           |             |              |   |               |   |  |           |        |   |  |  |           |  |  |   |       |  
|Income from continuing operations                                                   |  |             | 121,015 |  |               |  | 1,687,784 |           |  |             | 71.70       |  |              |               | 74,953 |   |           |             | 1,686,514 |             |              |   | 44.44         |   |  |           | 37,845 |   |  |  | 1,706,863 |  |  |   | 22.17 |  
|Income (loss) from discontinued operations  net
    (after income tax effect)      |  |             | 712     |  |               |  | 1,687,784 |           |  |             | 0.42        |  |              |               | (3,700 | ) |           |             | 1,686,514 |             |              |   | (2.19         | ) |  |           | (5,937 | ) |  |  | 1,706,863 |  |  |   | (3.48 | )
|Cumulative effect of change in accounting principle (after
    income tax effect)   |  |             |        |  |               |  |          |           |  |             |            |  |              |               | (2,285 | ) |           |             | 1,686,514 |             |              |   | (1.36         | ) |  |           |       |   |  |  |          |  |  |   |      |  
|Net income available to common shareholders after effect of
    dilutive securities |  | ¥           | 121,727 |  |               |  | 1,687,784 |           |  | ¥           | 72.12       |  |              | ¥             | 68,968 |   |           |             | 1,686,514 |             |              | ¥ | 40.89         |   |  | ¥         | 31,908 |   |  |  | 1,706,863 |  |  | ¥ | 18.69 |  
|                                                                                    |  |             |         |  |               |  |           |           |  |             |             |  |              |               |        |   |           |             |           |             |              |   |               |   |  |           |       

17.     SEGMENT INFORMATION






F-56



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries
























F-57



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##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries










| |                              
| | -----------------------------
| | OPERATING SEGMENT INFORMATION

|                                           |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |   |           |           |           |   |         |        |         | 
|------------------------------------------ | ------------------ | --------------- | --------- | --------- | ------------- | - | --------- | --------- | --------- | ---------- | ------- | --------- | ----------- | -------- | ------- | --------- | --------- | - | --------- | --------- | --------- | - | ------- | ------ | ------- | 
|                                           |                    | Millions of Yen |          
|                                           |                    |                 |          
|                                           |                    | Metal           |           |           | Machinery,    |   |           |           |           | Consumer   |         |           | Logistics & |         
|                                           |                    | Products &      |           |           | Electronics & |   |           |           |           | Products & |         |           | Financial   |         
|                                           |                    | Minerals        |           |           | Information   |   |           | Chemical  |           |            | Energy  |           |             | Services |         |           | Markets   |  
|                                           |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Year ended March 31, 2005:                 |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |   |           |          
|Total trading transactions:                |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |   |           |           |           |   |         |       
|                                           | External customers |                 | ¥         | 2,640,261 |               |   | ¥         | 2,720,517 |           |            | ¥       | 1,901,950 |             |          | ¥       | 1,402,521 |           |   | ¥         | 2,633,114 |           |   | ¥       | 94,354 |        
|                                           | Intersegment       |                 |           | 239,357   |               |   |           | 116,033   |           |            |         | 408,446   |             |          |         | 82,231    |           |   |           | 83,152    |           |   |         | 11,172 |        
|                                           |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|                                           |                    | Total           |           | ¥         | 2,879,618     |   |           | ¥         | 2,836,550 |            |         | ¥         | 2,310,396   |          |         | ¥         | 1,484,752 |   |           | ¥         | 2,716,266 |   |         | ¥      | 105,526 | 
|                                           |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Gross profit                               |                    | ¥               | 121,449   |           |               | ¥ | 137,310   |           |           | ¥          | 87,112  |           |             | ¥        | 72,604  |           |           | ¥ | 152,627   |           |           | ¥ | 46,662  |       
|                                           |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Operating income (loss)                    |                    | ¥               | 68,138    |           |               | ¥ | 31,381    |           |           | ¥          | 24,559  |           |             | ¥        | 35,453  |           |           | ¥ | 32,019    |           |           | ¥ | 18,480  |       
|                                           |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Equity in earnings of associated companies |                    | ¥               | 22,444    |           |               | ¥ | 8,228     |           |           | ¥          | 2,450   |           |             | ¥        | 24,480  |           |           | ¥ | 3,688     |           |           | ¥ | 2,439   |       
|                                           |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Net income (loss)                          |                    | ¥               | 46,991    |           |               | ¥ | 26,437    |           |           | ¥          | (6,852  | )         |             | ¥        | 42,759  |           |           | ¥ | 16,882    |           |           | ¥ | 11,835  |       
|                                           |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Total assets at March 31, 2005             |                    | ¥               | 1,227,494 |           |               | ¥ | 1,306,359 |           |           | ¥          | 779,930 |           |             | ¥        | 894,175 |           |           | ¥ | 1,109,464 |           |           | ¥ | 405,355 |       
|                                           |                    |                 |           |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  

|                                           |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |        |   |            |            |            |   |           |            |            | 
|------------------------------------------ | ------------------ | --------------- | ------- | -------------- | --------- | - | ------- | ------- | --------------- | - | ------- | ------------ | --------- | --------- | --------- | ---------- | ------------ | - | --------- | ------ | ------ | - | ---------- | ---------- | ---------- | - | --------- | ---------- | ---------- | 
|                                           |                    | Millions of Yen |        
|                                           |                    |                 |        
|                                           |                    |                 |         | Other Overseas |           |   |         |         | Adjustments and |   |         | Consolidated |          
|                                           |                    | Americas        |         |                | Europe    |   |         | Areas   |                 |   | Total   |              |           | All Other |           |            | Eliminations |   |           | Total  |       
|                                           |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Year ended March 31, 2005:                 |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |        |   |            |            |            |   |           |           
|Total trading transactions:                |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |        |   |            |            |            |   |           |           
|                                           | External customers |                 | ¥       | 1,026,282      |           |   | ¥       | 403,448 |                 |   | ¥       | 769,262      |           |           | ¥         | 13,591,709 |              |   | ¥         | 25,014 |        |   | ¥          | (1,676     | )          |   | ¥         | 13,615,047 |           
|                                           | Intersegment       |                 |         | 494,017        |           |   |         | 368,812 |                 |   |         | 1,362,376    |           |           |           | 3,165,596  |              |   |           | 10,674 |        |   |            | (3,176,270 | )          |   |           |           |           
|                                           |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|                                           |                    | Total           |         | ¥              | 1,520,299 |   |         | ¥       | 772,260         |   |         | ¥            | 2,131,638 |           |           | ¥          | 16,757,305   |   |           | ¥      | 35,688 |   |            | ¥          | (3,177,946 | ) |           | ¥          | 13,615,047 | 
|                                           |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Gross profit                               |                    | ¥               | 49,911  |                |           | ¥ | 20,657  |         |                 | ¥ | 25,810  |              |           | ¥         | 714,142   |            |              | ¥ | 12,349    |        |        | ¥ | (688       | )          |            | ¥ | 725,803   |           
|                                           |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Operating income (loss)                    |                    | ¥               | 14,737  |                |           | ¥ | 2,412   |         |                 | ¥ | 8,191   |              |           | ¥         | 235,370   |            |              | ¥ | (466      | )      |        | ¥ | (36,913    | )          |            | ¥ | 197,991   |           
|                                           |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Equity in earnings of associated companies |                    | ¥               | 1,608   |                |           | ¥ | 134     |         |                 | ¥ | 479     |              |           | ¥         | 65,950    |            |              | ¥ | 417       |        |        | ¥ | (474       | )          |            | ¥ | 65,893    |           
|                                           |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Net income (loss)                          |                    | ¥               | 12,343  |                |           | ¥ | 2,930   |         |                 | ¥ | 13,765  |              |           | ¥         | 167,090   |            |              | ¥ | 4,411     |        |        | ¥ | (50,365    | )          |            | ¥ | 121,136   |           
|                                           |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Total assets at March 31, 2005             |                    | ¥               | 445,221 |                |           | ¥ | 345,917 |         |                 | ¥ | 270,237 |              |           | ¥         | 6,784,152 |            |              | ¥ | 2,312,547 |        |        | ¥ | (1,503,312 | )          |            | ¥ | 7,593,387 |           
|                                           |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       

F-58



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |   |           |           |           |   |         |        |         | 
|---------------------------------------- | ------------------ | --------------- | ------- | --------- | ------------- | - | --------- | --------- | --------- | ---------- | ------- | --------- | ----------- | -------- | ------- | --------- | --------- | - | --------- | --------- | --------- | - | ------- | ------ | ------- | 
|                                         |                    | Millions of Yen |        
|                                         |                    |                 |        
|                                         |                    | Metal           |         |           | Machinery,    |   |           |           |           | Consumer   |         |           | Logistics & |         
|                                         |                    | Products &      |         |           | Electronics & |   |           |           |           | Products & |         |           | Financial   |         
|                                         |                    | Minerals        |         |           | Information   |   |           | Chemical  |           |            | Energy  |           |             | Services |         |           | Markets   |  
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Year ended March 31, 2004 (As restated): |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |   |           |           |           |   |         |       
|Total trading transactions:              |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |   |           |           |           |   |         |       
|                                         | External customers |                 | ¥       | 2,206,439 |               |   | ¥         | 2,640,632 |           |            | ¥       | 1,548,680 |             |          | ¥       | 1,401,288 |           |   | ¥         | 2,577,867 |           |   | ¥       | 81,486 |        
|                                         | Intersegment       |                 |         | 260,323   |               |   |           | 133,884   |           |            |         | 415,753   |             |          |         | 100,189   |           |   |           | 135,319   |           |   |         | 25,989 |        
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|                                         |                    | Total           |         | ¥         | 2,466,762     |   |           | ¥         | 2,774,516 |            |         | ¥         | 1,964,433   |          |         | ¥         | 1,501,477 |   |           | ¥         | 2,713,186 |   |         | ¥      | 107,475 | 
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Gross profit                             |                    | ¥               | 77,027  |           |               | ¥ | 128,736   |           |           | ¥          | 91,094  |           |             | ¥        | 54,616  |           |           | ¥ | 135,865   |           |           | ¥ | 32,293  |       
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Operating income (loss)                  |                    | ¥               | 28,715  |           |               | ¥ | 29,400    |           |           | ¥          | 31,352  |           |             | ¥        | 21,708  |           |           | ¥ | 23,321    |           |           | ¥ | 10,370  |       
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Net income                               |                    | ¥               | 24,208  |           |               | ¥ | 5,860     |           |           | ¥          | 11,389  |           |             | ¥        | 24,449  |           |           | ¥ | 18,909    |           |           | ¥ | 4,786   |       
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Total assets at March 31, 2004           |                    | ¥               | 994,364 |           |               | ¥ | 1,223,610 |           |           | ¥          | 624,799 |           |             | ¥        | 610,374 |           |           | ¥ | 1,079,914 |           |           | ¥ | 358,263 |       
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  

|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |        |   |            |            |            |   |           |            |            | 
|---------------------------------------- | ------------------ | --------------- | ------- | -------------- | --------- | - | ------- | ------- | --------------- | - | ------- | ------------ | --------- | --------- | --------- | ---------- | ------------ | - | --------- | ------ | ------ | - | ---------- | ---------- | ---------- | - | --------- | ---------- | ---------- | 
|                                         |                    | Millions of Yen |        
|                                         |                    |                 |        
|                                         |                    |                 |         | Other Overseas |           |   |         |         | Adjustments and |   |         | Consolidated |          
|                                         |                    | Americas        |         |                | Europe    |   |         | Areas   |                 |   | Total   |              |           | All Other |           |            | Eliminations |   |           | Total  |       
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Year ended March 31, 2004 (As restated): |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |        |   |            |            |            |   |           |           
|Total trading transactions:              |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |        |   |            |            |            |   |           |           
|                                         | External customers |                 | ¥       | 843,532        |           |   | ¥       | 342,286 |                 |   | ¥       | 624,435      |           |           | ¥         | 12,266,645 |              |   | ¥         | 26,954 |        |   | ¥          | (9,488     | )          |   | ¥         | 12,284,111 |           
|                                         | Intersegment       |                 |         | 448,399        |           |   |         | 335,262 |                 |   |         | 1,009,695    |           |           |           | 2,864,813  |              |   |           | 8,700  |        |   |            | (2,873,513 | )          |   |           |           |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|                                         |                    | Total           |         | ¥              | 1,291,931 |   |         | ¥       | 677,548         |   |         | ¥            | 1,634,130 |           |           | ¥          | 15,131,458   |   |           | ¥      | 35,654 |   |            | ¥          | (2,883,001 | ) |           | ¥          | 12,284,111 | 
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Gross profit                             |                    | ¥               | 40,711  |                |           | ¥ | 19,965  |         |                 | ¥ | 24,060  |              |           | ¥         | 604,367   |            |              | ¥ | 10,461    |        |        | ¥ | (885       | )          |            | ¥ | 613,943   |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Operating income (loss)                  |                    | ¥               | 8,531   |                |           | ¥ | 3,030   |         |                 | ¥ | 6,562   |              |           | ¥         | 162,989   |            |              | ¥ | (1,902    | )      |        | ¥ | (34,240    | )          |            | ¥ | 126,847   |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Net income                               |                    | ¥               | 161     |                |           | ¥ | 693     |         |                 | ¥ | 10,425  |              |           | ¥         | 100,880   |            |              | ¥ | 1,923     |        |        | ¥ | (34,416    | )          |            | ¥ | 68,387    |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Total assets at March 31, 2004           |                    | ¥               | 399,599 |                |           | ¥ | 247,574 |         |                 | ¥ | 215,185 |              |           | ¥         | 5,753,682 |            |              | ¥ | 2,152,005 |        |        | ¥ | (1,189,659 | )          |            | ¥ | 6,716,028 |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       

|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |   |         |           |           |   |         |        |         | 
|---------------------------------------- | ------------------ | --------------- | ------- | --------- | ------------- | - | --------- | --------- | --------- | ---------- | ------- | --------- | ----------- | -------- | ------- | --------- | --------- | - | ------- | --------- | --------- | - | ------- | ------ | ------- | 
|                                         |                    | Millions of Yen |        
|                                         |                    |                 |        
|                                         |                    | Metal           |         |           | Machinery,    |   |           |           |           | Consumer   |         |           | Logistics & |         
|                                         |                    | Products &      |         |           | Electronics & |   |           |           |           | Products & |         |           | Financial   |         
|                                         |                    | Minerals        |         |           | Information   |   |           | Chemical  |           |            | Energy  |           |             | Services |         |           | Markets   |  
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Year ended March 31, 2003 (As restated): |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |   |         |           |           |   |         |       
|Total trading transactions:              |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |   |         |           |           |   |         |       
|                                         | External customers |                 | ¥       | 1,997,884 |               |   | ¥         | 2,490,125 |           |            | ¥       | 1,365,247 |             |          | ¥       | 1,240,435 |           |   | ¥       | 2,555,328 |           |   | ¥       | 93,636 |        
|                                         | Intersegment       |                 |         | 254,925   |               |   |           | 161,982   |           |            |         | 322,658   |             |          |         | 40,886    |           |   |         | 128,123   |           |   |         | 13,861 |        
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|                                         |                    | Total           |         | ¥         | 2,252,809     |   |           | ¥         | 2,652,107 |            |         | ¥         | 1,687,905   |          |         | ¥         | 1,281,321 |   |         | ¥         | 2,683,451 |   |         | ¥      | 107,497 | 
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Gross profit                             |                    | ¥               | 71,505  |           |               | ¥ | 121,095   |           |           | ¥          | 69,266  |           |             | ¥        | 53,824  |           |           | ¥ | 122,632 |           |           | ¥ | 33,158  |       
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Operating income (loss)                  |                    | ¥               | 24,698  |           |               | ¥ | 14,098    |           |           | ¥          | 18,278  |           |             | ¥        | 25,738  |           |           | ¥ | 21,206  |           |           | ¥ | 10,929  |       
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Net income (loss)                        |                    | ¥               | 16,133  |           |               | ¥ | (9,206    | )         |           | ¥          | (3,563  | )         |             | ¥        | 22,980  |           |           | ¥ | 9,587   |           |           | ¥ | 4,646   |       
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  
|Total assets at March 31, 2003           |                    | ¥               | 866,698 |           |               | ¥ | 1,266,442 |           |           | ¥          | 572,935 |           |             | ¥        | 620,412 |           |           | ¥ | 998,500 |           |           | ¥ | 273,063 |       
|                                         |                    |                 |         |           |               |   |           |           |           |            |         |           |             |          |         |           |           |  

F-59



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |        |   |          |            |            |   |           |            |            | 
|---------------------------------------- | ------------------ | --------------- | ------- | -------------- | --------- | - | ------- | ------- | --------------- | - | ------- | ------------ | --------- | --------- | --------- | ---------- | ------------ | - | --------- | ------ | ------ | - | -------- | ---------- | ---------- | - | --------- | ---------- | ---------- | 
|                                         |                    | Millions of Yen |        
|                                         |                    |                 |        
|                                         |                    |                 |         | Other Overseas |           |   |         |         | Adjustments and |   |         | Consolidated |          
|                                         |                    | Americas        |         |                | Europe    |   |         | Areas   |                 |   | Total   |              |           | All Other |           |            | Eliminations |   |           | Total  |       
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Year ended March 31, 2003 (As restated): |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |        |   |          |            |            |   |           |           
|Total trading transactions:              |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |        |   |          |            |            |   |           |           
|                                         | External customers |                 | ¥       | 786,707        |           |   | ¥       | 355,061 |                 |   | ¥       | 577,425      |           |           | ¥         | 11,461,848 |              |   | ¥         | 29,295 |        |   | ¥        | (16,960    | )          |   | ¥         | 11,474,183 |           
|                                         | Intersegment       |                 |         | 485,566        |           |   |         | 224,247 |                 |   |         | 729,116      |           |           |           | 2,361,364  |              |   |           | 7,023  |        |   |          | (2,368,387 | )          |   |           |           |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|                                         |                    | Total           |         | ¥              | 1,272,273 |   |         | ¥       | 579,308         |   |         | ¥            | 1,306,541 |           |           | ¥          | 13,823,212   |   |           | ¥      | 36,318 |   |          | ¥          | (2,385,347 | ) |           | ¥          | 11,474,183 | 
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Gross profit                             |                    | ¥               | 44,584  |                |           | ¥ | 22,470  |         |                 | ¥ | 23,503  |              |           | ¥         | 562,037   |            |              | ¥ | 10,554    |        |        | ¥ | (3,021   | )          |            | ¥ | 569,570   |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Operating income (loss)                  |                    | ¥               | 9,485   |                |           | ¥ | 4,163   |         |                 | ¥ | 7,571   |              |           | ¥         | 136,166   |            |              | ¥ | (1,828    | )      |        | ¥ | (32,406  | )          |            | ¥ | 101,932   |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Net income (loss)                        |                    | ¥               | 3,291   |                |           | ¥ | 2,845   |         |                 | ¥ | 8,627   |              |           | ¥         | 55,340    |            |              | ¥ | 6,921     |        |        | ¥ | (31,123  | )          |            | ¥ | 31,138    |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       
|Total assets at March 31, 2003           |                    | ¥               | 412,659 |                |           | ¥ | 218,304 |         |                 | ¥ | 201,032 |              |           | ¥         | 5,430,045 |            |              | ¥ | 2,085,802 |        |        | ¥ | (975,327 | )          |            | ¥ | 6,540,520 |           
|                                         |                    |                 |         |                |           |   |         |         |                 |   |         |              |           |           |           |            |              |   |           |        |       








|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The figures of Consolidated Total for the years
    ended March 31, 2004 and 2003 have been reclassified to
    conform to the change in current year presentation for
    discontinued operations in accordance with
    SFAS No. 144. The reclassification to income (loss)
    from discontinued operation  net (after income tax
    effect) are included in Adjustments and Eliminations.                                                                                                    
|   
|(2) | All Other includes business activities which
    primarily provide services, such as development and sales of
    systems, financing services, and operations services to external
    customers and/or to the companies and associated companies.
    Total assets of All Other at March 31, 2005,
    2004 and 2003 consisted primarily of cash and cash equivalents
    and time deposits related to financing activities, and assets of
    certain subsidiaries related to the above services.
|   
|(3) | Net loss of Adjustments and Eliminations includes
    income and expense items that are not allocated to specific
    reportable operating segments, such as certain expenses of the
    corporate departments, and eliminations of intersegment
    transactions.                                                                                                                                                                                                                                   



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Net loss of Adjustments and Eliminations for the
    year ended March 31, 2005 includes
    (a) ¥21,722 million in general and administrative
    expenses of the corporate departments excluding pension costs,
    (b) a charge of ¥15,292 million for the valuation
    allowance for deferred tax assets as a result of change in a
    policy to sell certain investments, and (c) a gain of
    ¥2,432 million for pension related items (all amounts
    are after income tax effects).
|
| | Net loss of Adjustments and Eliminations for the
    year ended March 31, 2004 includes
    (a) ¥14,001 million in general and administrative
    expenses of the corporate departments excluding pension costs,
    (b) a charge of ¥13,247 million for pension
    related items, and (c) ¥4,743 million in
    impairment losses of long-lived assets (all amounts are after
    income tax effects).                                                                                      
|
| | Net loss of Adjustments and Eliminations for the
    year ended March 31, 2003 includes (a) a charge of
    ¥7,485 million for an early retirement support
    program, (b) ¥5,814 million in losses on
    write-down of marketable securities, and
    (c) ¥3,142 million in losses on sale of
    marketable securities (all amounts are after income tax effects).                                                                                                                        



|    |                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Transfers between operating segments are made at cost plus a
    markup.                                                                                                                                                                                                                                  
|   
|(5) | Operating income (loss) reflects the companies
    (a) gross profit, (b) selling, general and administrative
    expenses, (c) provision for doubtful receivables, and
    (d) government grant for transfer of substitutional portion
    of EPF, as presented in the Statements of Consolidated Income.

F-60



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




| |                    
| | -------------------
| | PRODUCT INFORMATION

|                                         |  |                 |         |              |             |   |         |           |  |               |             |  |  |           |         |  |        |         |         |       |              |   |           |  |  |             |         |  |          |   |        |       |  |   |        |  |  |   |         |  |  |   |           | 
|---------------------------------------- |  | --------------- | ------- | ------------ | ----------- | - | ------- | --------- |  | ------------- | ----------- |  |  | --------- | ------- |  | ------ | ------- | ------- | ----- | ------------ | - | --------- |  |  | ----------- | ------- |  | -------- | - | ------ | ----- |  | - | ------ |  |  | - | ------- |  |  | - | --------- | 
|                                         |  | Millions of Yen |        
|                                         |  |                 |        
|                                         |  |                 |         | Property and |             |   |        
|                                         |  | Iron and        |         |              | Non-Ferrous |   |         |           |  | Electronics & |             |  |  |           | General |  |        | Service |         |       | Consolidated |  
|                                         |  | Steel           |         |              | Metals      |   |         | Machinery |  |               | Information |  |  | Chemicals |         |  | Energy |         |         | Foods |              |   | Textiles  |  |  | Merchandise |         |  | Business |   |        | Total | 
|                                         |  |                 |         |              |             |   |         |           |  |               |             |  |  |           |         |  |        |         |         |       |              |   |           |  |  |             |         |  |          |   |        |       | 
|Year ended March 31, 2005:               |  |                 |         |              |             |   |         |           |  |               |             |  |  |           |         |  |        |         |         |       |              |   |           |  |  |             |         |  |          |   |        |       |  |   |        |  |  |   |         |  |  |   |           | 
|Revenues                                 |  | ¥               | 407,103 |              |             | ¥ | 161,380 |           |  | ¥             | 269,241     |  |  | ¥         | 144,780 |  |        | ¥       | 729,103 |       |              | ¥ | 1,048,362 |  |  | ¥           | 473,573 |  |          | ¥ | 43,019 |       |  | ¥ | 96,136 |  |  | ¥ | 153,036 |  |  | ¥ | 3,525,733 | 
|                                         |  |                 |         |              |             |   |         |           |  |               |             |  |  |           |         |  |        |         |         |       |              |   |           |  |  |             |         |  |          |   |        |       | 
|Year ended March 31, 2004 (As restated): |  |                 |         |              |             |   |         |           |  |               |             |  |  |           |         |  |        |         |         |       |              |   |           |  |  |             |         |  |          |   |        |       |  |   |        |  |  |   |         |  |  |   |           | 
|Revenues                                 |  | ¥               | 312,853 |              |             | ¥ | 157,248 |           |  | ¥             | 305,025     |  |  | ¥         | 119,843 |  |        | ¥       | 520,115 |       |              | ¥ | 954,556   |  |  | ¥           | 389,496 |  |          | ¥ | 32,793 |       |  | ¥ | 84,812 |  |  | ¥ | 106,195 |  |  | ¥ | 2,982,936 | 
|                                         |  |                 |         |              |             |   |         |           |  |               |             |  |  |           |         |  |        |         |         |       |              |   |           |  |  |             |         |  |          |   |        |       | 
|Year ended March 31, 2003 (As restated): |  |                 |         |              |             |   |         |           |  |               |             |  |  |           |         |  |        |         |         |       |              |   |           |  |  |             |         |  |          |   |        |       |  |   |        |  |  |   |         |  |  |   |           | 
|Revenues                                 |  | ¥               | 281,761 |              |             | ¥ | 152,145 |           |  | ¥             | 304,780     |  |  | ¥         | 108,110 |  |        | ¥       | 463,375 |       |              | ¥ | 830,997   |  |  | ¥           | 393,228 |  |          | ¥ | 37,871 |       |  | ¥ | 88,752 |  |  | ¥ | 123,552 |  |  | ¥ | 2,784,571 | 
|                                         |  |                 |         |              |             |   |         |           |  |               |             |  |  |           |         |  |        |         |         |       |              |   |           |  |  |             |         |  |          |   |        |       | 










| |                            
| | ---------------------------
| | GEOGRAPHIC AREA INFORMATION

|                                                 |  |                 |           |        |        |   |           |         |  |   |         |              |  |           |         |  |       |   |           |  |  |   |            | 
|------------------------------------------------ |  | --------------- | --------- | ------ | ------ | - | --------- | ------- |  | - | ------- | ------------ |  | --------- | ------- |  | ----- | - | --------- |  |  | - | ---------- | 
|                                                 |  | Millions of Yen |          
|                                                 |  |                 |          
|                                                 |  |                 |           | United |        |   | United    |         |  |   |         | Consolidated | 
|                                                 |  | Japan           |           |        | States |   |           | Kingdom |  |   | China   |              |  | All Other |         |  | Total |  
|                                                 |  |                 |           |        |        |   |           |         |  |   |         |              |  |           |         |  |       |  
|Year ended March 31, 2005:                       |  |                 |           |        |        |   |           |         |  |   |         |              |  |           |         |  |       |   |           |  |  |   |            | 
|Total trading transactions to external customers |  | ¥               | 7,736,548 |        |        | ¥ | 1,096,321 |         |  | ¥ | 200,399 |              |  | ¥         | 608,100 |  |       | ¥ | 3,973,679 |  |  | ¥ | 13,615,047 | 
|                                                 |  |                 |           |        |        |   |           |         |  |   |         |              |  |           |         |  |       |  
|Year ended March 31, 2004 (As restated):         |  |                 |           |        |        |   |           |         |  |   |         |              |  |           |         |  |       |   |           |  |  |   |            | 
|Total trading transactions to external customers |  | ¥               | 7,189,292 |        |        | ¥ | 831,566   |         |  | ¥ | 159,698 |              |  | ¥         | 421,247 |  |       | ¥ | 3,682,308 |  |  | ¥ | 12,284,111 | 
|                                                 |  |                 |           |        |        |   |           |         |  |   |         |              |  |           |         |  |       |  
|Year ended March 31, 2003 (As restated):         |  |                 |           |        |        |   |           |         |  |   |         |              |  |           |         |  |       |   |           |  |  |   |            | 
|Total trading transactions to external customers |  | ¥               | 7,102,671 |        |        | ¥ | 808,293   |         |  | ¥ | 154,142 |              |  | ¥         | 350,884 |  |       | ¥ | 3,058,193 |  |  | ¥ | 11,474,183 | 
|                                                 |  |                 |           |        |        |   |           |         |  |   |         |              |  |           |         |  |       |  








|    |                                                                                                                                                                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Total trading transactions are attributed to countries based on
    the location of customers.                                                                                                                                                                                                                                                                        
|   
|(2) | The Company provides total trading transactions instead of
    revenues, as certain costs related to revenues presented net in
    accordance with EITF No. 99-19 are not attributed to
    countries based on the location of customers.                                                                                                                             
|   
|(3) | In accordance with SFAS No. 144, total trading
    transactions to external customers from discontinued operations
    are eliminated from each geographic area amount and
    Consolidated Total. The figures for the years ended
    March 31, 2004 and 2003 have been reclassified to conform
    to the current year presentation.                              
|   
|(4) | Total trading transactions to the customers located in China,
    which were previously included in All Other, were
    separately presented in consideration of the importance of the
    amount for the year ended March 31, 2005. The figures for
    the years ended March 31, 2004 and 2003 have been restated
    to conform to the current year presentation.

F-61



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


|                   |  |                 |         |        |        |   |         |           |              |   |           |  |  |       |         |  |  |   |         | 
|------------------ |  | --------------- | ------- | ------ | ------ | - | ------- | --------- | ------------ | - | --------- |  |  | ----- | ------- |  |  | - | ------- | 
|                   |  | Millions of Yen |        
|                   |  |                 |        
|                   |  |                 |         | United |        |   |         |           | Consolidated |  
|                   |  | Japan           |         |        | States |   |         | Australia |              |   | All Other |  |  | Total |        
|                   |  |                 |         |        |        |   |         |           |              |   |           |  |  |       |        
|At March 31, 2005: |  |                 |         |        |        |   |         |           |              |   |           |  |  |       |         |  |  |   |         | 
|Long-lived assets  |  | ¥               | 431,236 |        |        | ¥ | 99,636  |           |              | ¥ | 177,273   |  |  | ¥     | 137,718 |  |  | ¥ | 845,863 | 
|                   |  |                 |         |        |        |   |         |           |              |   |           |  |  |       |        
|At March 31, 2004: |  |                 |         |        |        |   |         |           |              |   |           |  |  |       |         |  |  |   |         | 
|Long-lived assets  |  | ¥               | 469,074 |        |        | ¥ | 128,100 |           |              | ¥ | 95,405    |  |  | ¥     | 136,871 |  |  | ¥ | 829,450 | 
|                   |  |                 |         |        |        |   |         |           |              |   |           |  |  |       |        
|At March 31, 2003: |  |                 |         |        |        |   |         |           |              |   |           |  |  |       |         |  |  |   |         | 
|Long-lived assets  |  | ¥               | 497,112 |        |        | ¥ | 113,433 |           |              | ¥ | 70,433    |  |  | ¥     | 154,311 |  |  | ¥ | 835,289 | 
|                   |  |                 |         |        |        |   |         |           |              |   |           |  |  |       |        












|    |                                          
|--- | -----------------------------------------
|18. | SUPPLEMENTAL INCOME STATEMENT INFORMATION



|                                        |  |                 |        |  |      |   |        |      |  |   |        | 
|--------------------------------------- |  | --------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                        |  | Millions of Yen |       
|                                        |  |                 |       
|                                        |  | 2005            |        |  | 2004 |   |        | 2003 | 
|                                        |  |                 |        |  |      |   |        |      | 
|Depreciation of property and equipment* |  | ¥               | 52,921 |  |      | ¥ | 54,502 |      |  | ¥ | 50,652 | 
|Research and development expenses       |  |                 | 5,647  |  |      |   | 6,019  |      |  |   | 3,415  | 
|Advertising expenses                    |  |                 | 9,012  |  |      |   | 7,915  |      |  |   | 6,898  | 
|Foreign exchange gains  net            |  |                 | 4,583  |  |      |   | 2,887  |      |  |   | 3,154  | 






|  |                                                                                                                                                                                                                                                                                              
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | In accordance with the change in classification of mineral
    rights in the Consolidated Balance Sheets, the figures of
    Depreciation of property and equipment for the years
    ended March 31, 2004 and 2003 have been reclassified to
    conform to the current year presentation.



|    |                                                           
|--- | ----------------------------------------------------------
|19. | ISSUANCE OF STOCK BY SUBSIDIARIES AND ASSOCIATED COMPANIES







F-62



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|    |                    
|--- | -------------------
|20. | OTHER EXPENSE  NET



|                                      |       |                 |       |       |      |   |        |        |  |   |       |        | 
|------------------------------------- | ----- | --------------- | ----- | ----- | ---- | - | ------ | ------ |  | - | ----- | ------ | 
|                                      |       | Millions of Yen |      
|                                      |       |                 |      
|                                      |       | 2005            |       |       | 2004 |   |        | 2003   | 
|                                      |       |                 |       |       |      |   |        |        | 
|Exploration expenses                  |       | ¥               | 2,458 |       |      | ¥ | 1,367  |        |  | ¥ | 932   |       
|Restructuring-related charges         |       |                 | 1,950 |       |      |   | 6,284  |        |  |   | 1,131 |       
|Impairment loss of goodwill           |       |                 | 1,114 |       |      |   |       |        |  |   |      |       
|Litigation charges                    |       |                 | 430   |       |      |   | 16,173 |        |  |   | 4,050 |       
|Foreign exchange losses (gains)  net |       |                 | 5     |       |      |   | (7     | )      |  |   | 2,365 |       
|Other                                 |       |                 | 1,874 |       |      |   | 4,895  |        |  |   | 2,523 |       
|                                      |       |                 |       |       |      |   |        |        | 
|                                      | Total |                 | ¥     | 7,831 |      |   | ¥      | 28,712 |  |   | ¥     | 11,001 | 
|                                      |       |                 |       |       |      |   |        |        | 










|    |             
|--- | ------------
|21. | INCOME TAXES







|                                                                                                                                                       |                                                                                    |                                                                |      |      |      |   |      |      |      |   |      |      |      |  
|------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------- | -------------------------------------------------------------- | ---- | ---- | ---- | - | ---- | ---- | ---- | - | ---- | ---- | ---- | -
|                                                                                                                                                       |                                                                                    | %                                                              |     
|                                                                                                                                                       |                                                                                    |                                                                |     
|                                                                                                                                                       |                                                                                    | 2005                                                           |      |      | 2004 |   |      | 2003 |     
|                                                                                                                                                       |                                                                                    |                                                                |      |      |      |   |      |      |     
|Normal statutory tax rate in Japan applied to income from
    continuing operations before income taxes, minority interests
    and equity in earnings |                                                                                    |                                                                | 41.0 | %    |      |   | 42.0 | %    |      |   | 42.0 | %   
|Increases (decreases) in tax rate resulting from:                                                                                                      |                                                                                    |                                                                |      |      |      |   |      |      |      |   |      |     
|                                                                                                                                                       | Expenses not deductible for tax purposes and income not
    taxable  net          |                                                                |      | 2.4  |      |   |      | 4.3  |      |   |      | 4.3  |     
|                                                                                                                                                       | Application of lower tax rates to certain taxable income                           |                                                                |      | (5.4 | )    |   |      | (5.7 | )    |   |      | (9.9 | )   
|                                                                                                                                                       | Effect of taxation on dividends from subsidiaries and corporate
    joint ventures |                                                                |      | 8.4  |      |   |      | 2.7  |      |   |      | 10.4 |     
|                                                                                                                                                       | Changes in valuation allowance  net                                               |                                                                |      | 11.3 |      |   |      | 7.7  |      |   |      | 11.6 |     
|                                                                                                                                                       | Other  net                                                                        |                                                                |      | 1.3  |      |   |      | 2.0  |      |   |      | 1.3  |     
|                                                                                                                                                       |                                                                                    |                                                                |      |      |      |   |      |      |     
|                                                                                                                                                       |                                                                                    | Effective income tax rate on income from continuing operations |      |      | 59.0 | % |      |      | 53.0 | % |      |      | 59.7 | %
|                                                                                                                                                       |                                                                                    |                                                                |      |      |      |   |      |      |     

F-63



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                                                    |       |                 |         |         |      |   |        |        |  |   |         |         |  
|--------------------------------------------------- | ----- | --------------- | ------- | ------- | ---- | - | ------ | ------ |  | - | ------- | ------- | -
|                                                    |       | Millions of Yen |        
|                                                    |       |                 |        
|                                                    |       | 2005            |         |         | 2004 |   |        | 2003   | 
|                                                    |       |                 |         |         |      |   |        |        | 
|Income taxes on income from continuing operations   |       | ¥               | 103,555 |         |      | ¥ | 47,041 |        |  | ¥ | 38,798  |        
|Income (loss) from discontinued operations  net    |       |                 | 496     |         |      |   | (8,283 | )      |  |   | (11,474 | )      
|Equity in earnings of associated companies          |       |                 | 18,342  |         |      |   | 9,096  |        |  |   | 26      |        
|Cumulative effect of change in accounting principle |       |                 |        |         |      |   | (161   | )      |  |   |        |        
|Other comprehensive income (loss)                   |       |                 | 26,461  |         |      |   | 40,243 |        |  |   | (38,568 | )      
|                                                    |       |                 |         |         |      |   |        |        | 
|                                                    | Total |                 | ¥       | 148,854 |      |   | ¥      | 87,936 |  |   | ¥       | (11,218 | )
|                                                    |       |                 |         |         |      |   |        |        | 



|                                                                                       |                                       |                 |        |         |      |   |        |         |  
|-------------------------------------------------------------------------------------- | ------------------------------------- | --------------- | ------ | ------- | ---- | - | ------ | ------- | -
|                                                                                       |                                       | Millions of Yen |       
|                                                                                       |                                       |                 |       
|                                                                                       |                                       | 2005            |        |         | 2004 |  
|                                                                                       |                                       |                 |        |         |      |  
|Deferred Tax Assets:                                                                   |                                       |                 |        |         |      |   |        |        
|Accrued pension costs and liability for severance indemnities                          |                                       | ¥               | 15,293 |         |      | ¥ | 25,083 |        
|Allowance for doubtful receivables                                                     |                                       |                 | 13,977 |         |      |   | 21,994 |        
|Estimated losses                                                                       |                                       |                 | 46,060 |         |      |   | 21,944 |        
|Impairment loss of long-lived assets                                                   |                                       |                 | 25,763 |         |      |   | 16,746 |        
|Loss carryforwards of subsidiaries and associated companies                            |                                       |                 | 70,584 |         |      |   | 76,528 |        
|Unrealized intercompany profit                                                         |                                       |                 | 17,428 |         |      |   | 21,107 |        
|Foreign currency translation                                                           |                                       |                 | 13,138 |         |      |   | 15,110 |        
|Other                                                                                  |                                       |                 | 12,291 |         |      |   | 19,709 |        
|                                                                                       |                                       |                 |        |         |      |  
|                                                                                       | Total deferred tax assets             |                 |        | 214,534 |      |   |        | 218,221 |  
|                                                                                       | Valuation allowance                   |                 |        | (44,915 | )    |   |        | (31,245 | )
|                                                                                       |                                       |                 |        |         |      |  
|                                                                                       | Deferred tax assets  net             |                 |        | 169,619 |      |   |        | 186,976 |  
|                                                                                       |                                       |                 |        |         |      |  
|Deferred Tax Liabilities:                                                              |                                       |                 |        |         |      |   |        |        
|Property                                                                               |                                       |                 | 96,824 |         |      |   | 74,428 |        
|Investment securities                                                                  |                                       |                 | 72,506 |         |      |   | 56,256 |        
|Undistributed earnings of associated companies other than
    corporate joint ventures |                                       |                 | 61,165 |         |      |   | 42,566 |        
|Other                                                                                  |                                       |                 | 8,441  |         |      |   | 2,089  |        
|                                                                                       |                                       |                 |        |         |      |  
|                                                                                       | Deferred tax liabilities              |                 |        | 238,936 |      |   |        | 175,339 |  
|                                                                                       |                                       |                 |        |         |      |  
|                                                                                       | Net deferred tax (liabilities) assets |                 | ¥      | (69,317 | )    |   | ¥      | 11,637  |  
|                                                                                       |                                       |                 |        |         |      |  

F-64



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                                                   |                                       |                 |          |         |      |   |         |        | 
|-------------------------------------------------- | ------------------------------------- | --------------- | -------- | ------- | ---- | - | ------- | ------ | 
|                                                   |                                       | Millions of Yen |         
|                                                   |                                       |                 |         
|                                                   |                                       | 2005            |          |         | 2004 |  
|                                                   |                                       |                 |          |         |      |  
|Current Assets  Deferred tax assets 
    current |                                       | ¥               | 46,410   |         |      | ¥ | 31,473  |       
|Deferred Tax Assets  Non-current                  |                                       |                 | 29,641   |         |      |   | 32,406  |       
|Current Liabilities  Other current liabilities    |                                       |                 | (1,802   | )       |      |   | (4,855  | )     
|Deferred Tax Liabilities  Non-current             |                                       |                 | (143,566 | )       |      |   | (47,387 | )     
|                                                   |                                       |                 |          |         |      |  
|                                                   | Net deferred tax (liabilities) assets |                 | ¥        | (69,317 | )    |   | ¥       | 11,637 | 
|                                                   |                                       |                 |          |         |      |  









|                     |       |                 |        |         | 
|-------------------- | ----- | --------------- | ------ | ------- | 
|                     |       | Millions of Yen |       
|                     |       |                 |       
|Within 5 years       |       | ¥               | 21,306 |        
|After 5 to 10 years  |       |                 | 26,951 |        
|After 10 to 15 years |       |                 | 1,521  |        
|After 15 years       |       |                 | 59,097 |        
|                     |       |                 |       
|                     | Total |                 | ¥      | 108,875 | 
|                     |       |                 |       

F-65



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                          |  |                  |        |  |              |   |         |       |  |   |         | 
|------------------------- |  | ---------------- | ------ |  | ------------ | - | ------- | ----- |  | - | ------- | 
|                          |  | Millions of Yen  |       
|                          |  |                  |       
|                          |  | The Company      |        |  |             
|                          |  | and its domestic |        |  | Foreign      |   |         |      
|                          |  | subsidiaries     |        |  | subsidiaries |   |         | Total | 
|                          |  |                  |        |  |              |   |         |       | 
|Year ended March 31, 2005 |  | ¥                | 54,938 |  |              | ¥ | 120,706 |       |  | ¥ | 175,644 | 
|                          |  |                  |        |  |              |   |         |       | 
|Year ended March 31, 2004 |  | ¥                | 38,403 |  |              | ¥ | 50,402  |       |  | ¥ | 88,805  | 
|                          |  |                  |        |  |              |   |         |       | 
|Year ended March 31, 2003 |  | ¥                | 10,815 |  |              | ¥ | 54,175  |       |  | ¥ | 64,990  | 
|                          |  |                  |        |  |              |   |         |       | 



|                           |          |                  |   |        |              |  |   |        |        |  |   |        |         | 
|-------------------------- | -------- | ---------------- | - | ------ | ------------ |  | - | ------ | ------ |  | - | ------ | ------- | 
|                           |          | Millions of Yen  |  
|                           |          |                  |  
|                           |          | The Company      |   |        |             
|                           |          | and its domestic |   |        | Foreign      |  |   |       
|                           |          | subsidiaries     |   |        | subsidiaries |  |   | Total  |       
|                           |          |                  |   |        |              |  |   |        |       
|Year ended March 31, 2005: |          |                  |   |        |              |  |   |        |        |  |   |       
|                           | Current  |                  | ¥ | 32,885 |              |  | ¥ | 32,213 |        |  | ¥ | 65,098 |        
|                           | Deferred |                  |   | 29,659 |              |  |   | 8,798  |        |  |   | 38,457 |        
|                           |          |                  |   |        |              |  |   |        |       
|                           |          | Total            |   | ¥      | 62,544       |  |   | ¥      | 41,011 |  |   | ¥      | 103,555 | 
|                           |          |                  |   |        |              |  |   |        |       
|Year ended March 31, 2004: |          |                  |   |        |              |  |   |        |        |  |   |       
|                           | Current  |                  | ¥ | 27,166 |              |  | ¥ | 17,850 |        |  | ¥ | 45,016 |        
|                           | Deferred |                  |   | 1,884  |              |  |   | 141    |        |  |   | 2,025  |        
|                           |          |                  |   |        |              |  |   |        |       
|                           |          | Total            |   | ¥      | 29,050       |  |   | ¥      | 17,991 |  |   | ¥      | 47,041  | 
|                           |          |                  |   |        |              |  |   |        |       
|Year ended March 31, 2003: |          |                  |   |        |              |  |   |        |        |  |   |       
|                           | Current  |                  | ¥ | 20,617 |              |  | ¥ | 18,570 |        |  | ¥ | 39,187 |        
|                           | Deferred |                  |   | (6,447 | )            |  |   | 6,058  |        |  |   | (389   | )      
|                           |          |                  |   |        |              |  |   |        |       
|                           |          | Total            |   | ¥      | 14,170       |  |   | ¥      | 24,628 |  |   | ¥      | 38,798  | 
|                           |          |                  |   |        |              |  |   |        |       

F-66



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|    |                                                       
|--- | ------------------------------------------------------
|22. | COMPENSATION AND OTHER CHARGES RELATED TO DPF INCIDENT











|    |                                       
|--- | --------------------------------------
|23. | COMMITMENTS AND CONTINGENT LIABILITIES



|   |                                                       
|-- | ------------------------------------------------------
|I. | LONG-TERM PURCHASE CONTRACTS AND FINANCING COMMITMENTS





F-67



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|    |           
|--- | ----------
|II. | GUARANTEES



|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |        |         |   |        |       |       |  |      |      |  | 
|------------------- | ------------------------ | --------------------------------------------------------------------- | ----- | ------- | ------------ | ------ | ----- | ----------- | ------ | -------- | ----------- | --------- | --------- | ---------------- | - | -------- | ----------- | ------ | - | ---------- | ------ | ------- | - | ------ | ----- | ----- |  | ---- | ---- |  | 
|                    |                          | Millions of Yen                                                       |      
|                    |                          |                                                                       |      
|                    |                          |                                                                       |       | Maximum |              |        |      
|                    |                          | Expire                                                                |       |         |              |        | Total |             |        | Recourse |             |           | potential |                  |   | Carrying |             |        |  
|                    |                          | within                                                                |       |         | Expire after |        |       | amount      |        |          | provisions/ |           |           | amount of future |   |          | amount of   |        |   | Expire no  |       
|                    |                          | 1 year                                                                |       |         | 1 year       |        |       | outstanding |        |          | collateral  |           |           | payments         |   |          | liabilities |        |   | later than |       
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |       
|March 31, 2005:     |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |        |         |   |        |       |       |  |     
|Type of guarantees: |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |        |         |   |        |       |       |  |     
|                    | Financial guarantees:    |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |        |         |   |        |       |       |  |      |     
|                    |                          | Guarantees for third parties                                          |       | ¥       | 12,251       |        |       | ¥           | 72,503 |          |             | ¥         | 84,754    |                  |   | ¥        | 22,572      |        |   | ¥          | 88,549 |         |   | ¥      | 1,360 |       |  |      | 2021 | 
|                    |                          | Guarantees for associated companies                                   |       |         | 21,918       |        |       |             | 35,650 |          |             |           | 57,568    |                  |   |          | 8,857       |        |   |            | 63,712 |         |   |        | 2,108 |       |  |      | 2022 | 
|                    |                          | Guarantees to financial institutions for employees housing
    loans |       |         |             |        |       |             | 15,170 |          |             |           | 15,170    |                  |   |          |            |        |   |            | 41,388 |         |   |        |      |       |  |      | 2029 | 
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |       
|                    |                          |                                                                       | Total |         | ¥            | 34,169 |       |             | ¥      | 123,323  |             |           | ¥         | 157,492          |   |          | ¥           | 31,429 |   |            | ¥      | 193,649 |   |        | ¥     | 3,468 |  |      |      |  | 
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |       
|                    | Performance guarantees   |                                                                       | ¥     | 14,564  |              |        | ¥     | 18,595      |        |          | ¥           | 33,159    |           |                  | ¥ | 5,779    |             |        | ¥ | 33,159     |        |         | ¥ | 331    |       |       |  | 2013 |     
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |       
|                    | Market value guarantees: |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |        |         |   |        |       |       |  |      |     
|                    |                          | Obligation to repurchase bills of exchange                            |       | ¥       | 52,420       |        |       | ¥           | 1,302  |          |             | ¥         | 53,722    |                  |   | ¥        | 41,700      |        |   | ¥          | 53,722 |         |   |        |      |       |  |      | 2007 | 
|                    |                          | Minimum purchase price guarantees                                     |       |         |             |        |       |             | 3,222  |          |             |           | 3,222     |                  |   |          |            |        |   |            | 3,222  |         |   |        |      |       |  |      | 2013 | 
|                    |                          | Residual value guarantees of leased assets                            |       |         |             |        |       |             | 16,362 |          |             |           | 16,362    |                  |   |          |            |        |   |            | 16,362 |         |   |        |      |       |  |      | 2008 | 
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |       
|                    |                          |                                                                       | Total |         | ¥            | 52,420 |       |             | ¥      | 20,886   |             |           | ¥         | 73,306           |   |          | ¥           | 41,700 |   |            | ¥      | 73,306  |   |        |       |      |  |      |      |  | 
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |       
|                    | Derivative instruments   |                                                                       | ¥     | 805,527 |              |        | ¥     | 398,632     |        |          | ¥           | 1,204,159 |           |                  |   |         |             |        | ¥ | 1,204,159  |        |         | ¥ | 65,869 |       |       |  |      |     
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |           |           |                  |   |          |             |        |   |            |       

F-68



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |         |         |   |        |       |       |  |      |      |  | 
|------------------- | ------------------------ | --------------------------------------------------------------------- | ----- | ------- | ------------ | ------ | ----- | ----------- | ------ | -------- | ----------- | ------- | --------- | ---------------- | - | -------- | ----------- | ------ | - | ---------- | ------- | ------- | - | ------ | ----- | ----- |  | ---- | ---- |  | 
|                    |                          | Millions of Yen                                                       |      
|                    |                          |                                                                       |      
|                    |                          |                                                                       |       | Maximum |              |        |      
|                    |                          | Expire                                                                |       |         |              |        | Total |             |        | Recourse |             |         | potential |                  |   | Carrying |             |        |  
|                    |                          | within                                                                |       |         | Expire after |        |       | amount      |        |          | provisions/ |         |           | amount of future |   |          | amount of   |        |   | Expire no  |        
|                    |                          | 1 year                                                                |       |         | 1 year       |        |       | outstanding |        |          | collateral  |         |           | payments         |   |          | liabilities |        |   | later than |        
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |        
|March 31, 2004:     |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |         |         |   |        |       |       |  |     
|Type of guarantees: |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |         |         |   |        |       |       |  |     
|                    | Financial guarantees:    |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |         |         |   |        |       |       |  |      |     
|                    |                          | Guarantees for third parties                                          |       | ¥       | 26,745       |        |       | ¥           | 93,071 |          |             | ¥       | 119,816   |                  |   | ¥        | 31,178      |        |   | ¥          | 143,654 |         |   | ¥      | 884   |       |  |      | 2021 | 
|                    |                          | Guarantees for associated companies                                   |       |         | 17,947       |        |       |             | 44,343 |          |             |         | 62,290    |                  |   |          | 9,975       |        |   |            | 72,586  |         |   |        | 5,275 |       |  |      | 2022 | 
|                    |                          | Guarantees to financial institutions for employees housing
    loans |       |         |             |        |       |             | 18,524 |          |             |         | 18,524    |                  |   |          |            |        |   |            | 41,388  |         |   |        |      |       |  |      | 2029 | 
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |        
|                    |                          |                                                                       | Total |         | ¥            | 44,692 |       |             | ¥      | 155,938  |             |         | ¥         | 200,630          |   |          | ¥           | 41,153 |   |            | ¥       | 257,628 |   |        | ¥     | 6,159 |  |      |      |  | 
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |        
|                    | Performance guarantees   |                                                                       | ¥     | 10,688  |              |        | ¥     | 26,094      |        |          | ¥           | 36,782  |           |                  | ¥ | 5,766    |             |        | ¥ | 36,787     |         |         | ¥ | 408    |       |       |  | 2013 |     
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |        
|                    | Market value guarantees: |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |         |         |   |        |       |       |  |      |     
|                    |                          | Obligation to repurchase bills of exchange                            |       | ¥       | 41,655       |        |       | ¥           | 296    |          |             | ¥       | 41,951    |                  |   | ¥        | 36,361      |        |   | ¥          | 41,951  |         |   |        |      |       |  |      | 2006 | 
|                    |                          | Minimum purchase price guarantees                                     |       |         |             |        |       |             | 3,171  |          |             |         | 3,171     |                  |   |          |            |        |   |            | 3,171   |         |   |        |      |       |  |      | 2013 | 
|                    |                          | Residual value guarantees of leased assets                            |       |         |             |        |       |             | 16,516 |          |             |         | 16,516    |                  |   |          |            |        |   |            | 16,516  |         |   |        |      |       |  |      | 2008 | 
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |        
|                    |                          |                                                                       | Total |         | ¥            | 41,655 |       |             | ¥      | 19,983   |             |         | ¥         | 61,638           |   |          | ¥           | 36,361 |   |            | ¥       | 61,638  |   |        |       |      |  |      |      |  | 
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |        
|                    | Derivative instruments   |                                                                       | ¥     | 271,761 |              |        | ¥     | 37,353      |        |          | ¥           | 309,114 |           |                  |   |         |             |        | ¥ | 309,114    |         |         | ¥ | 18,210 |       |       |  |      |     
|                    |                          |                                                                       |       |         |              |        |       |             |        |          |             |         |           |                  |   |          |             |        |   |            |        

(1) Financial guarantees






Guarantees for third parties




Guarantees for associated companies




Guarantees to financial institutions for employees
housing loans




F-69



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                  |                                     |                 |   |        |         | 
|----------------- | ----------------------------------- | --------------- | - | ------ | ------- | 
|                  |                                     | Millions of Yen |  
|                  |                                     |                 |  
|March 31, 2005:   |                                     |                 |   |       
|Guaranteed party: |                                     |                 |   |       
|                  | POWEREDCOM                          |                 | ¥ | 14,276 |        
|                  | Nippon Asahan Aluminium             |                 |   | 10,116 |        
|                  | Usinas Siderurgicas de Minas Gerais |                 |   | 7,786  |        
|                  | Petro21 Intertrade Company          |                 |   | 4,861  |        
|                  | Project Finance BLRE                |                 |   | 4,619  |        
|                  | Siam Cement                         |                 |   | 3,432  |        
|                  | Modec Venture 11                    |                 |   | 3,207  |        
|                  | Qatar LNG Investment                |                 |   | 3,193  |        
|                  | Bontang Train G Project Finance     |                 |   | 2,706  |        
|                  | Leeward Navigation                  |                 |   | 2,592  |        
|                  | Others                              |                 |   | 69,275 |        
|                  |                                     |                 |  
|                  |                                     | Total           |   | ¥      | 126,063 | 
|                  |                                     |                 |  
|March 31, 2004:   |                                     |                 |   |       
|Guaranteed party: |                                     |                 |   |       
|                  | POWEREDCOM                          |                 | ¥ | 19,640 |        
|                  | Hutchison 3G UK                     |                 |   | 10,302 |        
|                  | Usinas Siderurgicas de Minas Gerais |                 |   | 9,195  |        
|                  | Sanha Fpso                          |                 |   | 6,256  |        
|                  | Qatar LNG Investment                |                 |   | 6,062  |        
|                  | Project Finance BLRE                |                 |   | 5,372  |        
|                  | Telefonos De Mexico                 |                 |   | 5,342  |        
|                  | Siam Cement                         |                 |   | 4,129  |        
|                  | Nippon Asahan Aluminium             |                 |   | 3,862  |        
|                  | Vinyl Chloride (Malaysia)           |                 |   | 3,805  |        
|                  | Others                              |                 |   | 85,512 |        
|                  |                                     |                 |  
|                  |                                     | Total           |   | ¥      | 159,477 | 
|                  |                                     |                 |  

(2) Performance guarantees




F-70



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


(3) Market value guarantees


Obligation to repurchase bills of exchange




Minimum purchase price guarantees




Residual value guarantees of leased assets




(4) Derivative instruments








(5) Indemnification contracts


Indemnification issued through corporate reorganization




F-71



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


Joint obligation under membership agreement in commodity
exchanges




(6) Product warranties






|                                                      |  |                 |       |   |      |   |       |      |  |   |       |  
|----------------------------------------------------- |  | --------------- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | -
|                                                      |  | Millions of Yen |      
|                                                      |  |                 |      
|                                                      |  | 2005            |       |   | 2004 |   |       | 2003 | 
|                                                      |  |                 |       |   |      |   |       |      | 
|Balance at beginning of year                          |  | ¥               | 1,754 |   |      | ¥ | 2,130 |      |  | ¥ | 2,356 |  
|Payments made in cash or in kind                      |  |                 | (562  | ) |      |   | (486  | )    |  |   | (419  | )
|Accrual for warranties issued during the year         |  |                 | 2,075 |   |      |   | 828   |      |  |   | 956   |  
|Changes in accrual related to pre-existing warranties |  |                 | (736  | ) |      |   | (718  | )    |  |   | (763  | )
|                                                      |  |                 |       |   |      |   |       |      | 
|Balance at end of year                                |  | ¥               | 2,531 |   |      | ¥ | 1,754 |      |  | ¥ | 2,130 |  
|                                                      |  |                 |       |   |      |   |       |      | 

III.     LITIGATION


Methionine litigation










F-72



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




Choline chloride litigation










Other matters




F-73



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


24.     VARIABLE INTEREST
ENTITIES




















|    |                            
|--- | ---------------------------
|25. | EXIT OR DISPOSAL ACTIVITIES





F-74



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries
















F-75



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries










|    |                                              
|--- | ---------------------------------------------
|26. | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES





Foreign currency exchange rate risk hedging
activities




Interest rate risk hedging activities




F-76



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


Commodity price risk hedging activities




Risk management policy




Fair value hedges








Cash flow hedges








F-77



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries








Hedges of the net investment in a foreign operation




Derivative instruments for trading purposes and risk
management policy






|    |                      
|--- | ---------------------
|27. | FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS






Current financial assets other than marketable securities
and current financial liabilities




F-78



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


Marketable securities and other investments




Non-current receivables and advances to associated
companies




Long-term debt




Financial guarantees and financing commitments






Currency and interest rate swap agreements




Foreign exchange forward contracts




F-79



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries




|                                                                                                           |  |                 |            |   |            |   |            |        |  |   |            |   |  |   |            |  
|---------------------------------------------------------------------------------------------------------- |  | --------------- | ---------- | - | ---------- | - | ---------- | ------ |  | - | ---------- | - |  | - | ---------- | -
|                                                                                                           |  | Millions of Yen |           
|                                                                                                           |  |                 |           
|                                                                                                           |  | 2005            |            |   | 2004       |  
|                                                                                                           |  |                 |            |   |            |  
|                                                                                                           |  | Carrying        |            |   |            |   | Carrying   |        |  |  
|                                                                                                           |  | amount          |            |   | Fair value |   |            | amount |  |   | Fair value |  
|                                                                                                           |  |                 |            |   |            |   |            |        |  |   |            |  
|Financial Assets (other than Derivative Financial Instruments):                                            |  |                 |            |   |            |   |            |        |  |   |            |   |  |   |            |  
|Current financial assets other than marketable securities                                                  |  | ¥               | 3,510,747  |   |            | ¥ | 3,510,747  |        |  | ¥ | 3,108,795  |   |  | ¥ | 3,108,795  |  
|Non-current receivables and advances to associated companies
    (less allowance for doubtful receivables) |  |                 | 625,017    |   |            |   | 626,252    |        |  |   | 477,991    |   |  |   | 485,434    |  
|Financial Liabilities (other than Derivative Financial
    Instruments):                                   |  |                 |            |   |            |   |            |        |  |   |            |   |  |   |            |  
|Current financial liabilities                                                                              |  |                 | (2,730,348 | ) |            |   | (2,730,348 | )      |  |   | (2,381,894 | ) |  |   | (2,381,894 | )
|Long-term debt (including current maturities)                                                              |  |                 | (3,140,057 | ) |            |   | (3,146,342 | )      |  |   | (2,826,102 | ) |  |   | (2,877,995 | )
|Derivative Financial Instruments (Assets):                                                                 |  |                 |            |   |            |   |            |        |  |   |            |   |  |   |            |  
|Interest rate swap agreements                                                                              |  |                 | 54,398     |   |            |   | 54,398     |        |  |   | 28,378     |   |  |   | 28,378     |  
|Currency swap agreements                                                                                   |  |                 | 10,375     |   |            |   | 10,375     |        |  |   | 24,714     |   |  |   | 24,714     |  
|Foreign exchange forward contracts                                                                         |  |                 | 19,941     |   |            |   | 19,941     |        |  |   | 20,540     |   |  |   | 20,540     |  
|Derivative Financial Instruments (Liabilities):                                                            |  |                 |            |   |            |   |            |        |  |   |            |   |  |   |            |  
|Interest rate swap agreements                                                                              |  |                 | (7,043     | ) |            |   | (7,043     | )      |  |   | (3,825     | ) |  |   | (3,825     | )
|Currency swap agreements                                                                                   |  |                 | (5,113     | ) |            |   | (5,113     | )      |  |   | (8,227     | ) |  |   | (8,227     | )
|Foreign exchange forward contracts                                                                         |  |                 | (14,084    | ) |            |   | (14,084    | )      |  |   | (8,878     | ) |  |   | (8,878     | )

CONCENTRATION OF CREDIT RISK




F-80



---



##### Table of Contents



Notes to Consolidated Financial
Statements  (Continued)


Mitsui & Co., Ltd. and subsidiaries


28.     SUPPLEMENTAL CASH FLOW
INFORMATION




|                                                                                        |                                                                                                         |                                      |   |        |       |  |   |        |   |  |        |        |       | 
|--------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | ------------------------------------ | - | ------ | ----- |  | - | ------ | - |  | ------ | ------ | ----- | 
|                                                                                        |                                                                                                         | Millions of Yen                      |  
|                                                                                        |                                                                                                         |                                      |  
|                                                                                        |                                                                                                         | 2005                                 |   |        | 2004  |  |   | 2003   |  
|                                                                                        |                                                                                                         |                                      |   |        |       |  |   |        |  
|Cash paid during the year for:                                                          |                                                                                                         |                                      |   |        |       |  |   |        |   |  |        |       
|                                                                                        | Interest                                                                                                |                                      | ¥ | 45,226 |       |  | ¥ | 58,235 |   |  | ¥      | 55,211 |      
|                                                                                        | Income taxes (Note 21)                                                                                  |                                      |   | 56,927 |       |  |   | 35,676 |   |  |        | 31,002 |      
|Non-cash investing and financing activities:                                            |                                                                                                         |                                      |   |        |       |  |   |        |   |  |        |       
|                                                                                        | Exchange of shares in connection with a business combination of
    investees (EITF No. 91-5) (Note 5): |                                      |   |        |       |  |   |        |   |  |        |        |      
|                                                                                        |                                                                                                         | Fair market value of shares received |   |        | 4,810 |  |   |        |  |  |        |        | 7,110 | 
|                                                                                        |                                                                                                         | Cost of shares surrendered           |   |        | 2,029 |  |   |        |  |  |        |        | 2,635 | 
|Acquisitions of subsidiaries (Note 3):                                                  |                                                                                                         |                                      |   |        |       |  |   |        |   |  |        |       
|                                                                                        | Fair value of assets acquired                                                                           |                                      |   | 32,857 |       |  |   | 77,702 |   |  |        | 20,683 |      
|                                                                                        | Fair value of liabilities assumed                                                                       |                                      |   | 15,021 |       |  |   | 71,302 |   |  |        | 8,336  |      
|                                                                                        | Acquisition costs of subsidiaries                                                                       |                                      |   | 17,836 |       |  |   | 6,400  |   |  |        | 12,347 |      
|                                                                                        | Non-cash acquisition cost                                                                               |                                      |   | 8,982  |       |  |   |       |   |  |        |       |      
|                                                                                        | Cash acquired                                                                                           |                                      |   | 3,621  |       |  |   | 10,259 |   |  |        | 1,139  |      
|                                                                                        | Acquisitions of subsidiaries, net of cash acquired                                                      |                                      |   | 5,233  |       |  |   | (3,859 | ) |  |        | 11,208 |      
|Consolidation of VIEs related to the implementation of
    FIN No. 46R (Note 24):       |                                                                                                         |                                      |   |        |       |  |   |        |   |  |        |       
|                                                                                        | Total assets recorded                                                                                   |                                      |   |       |       |  |   | 20,439 |   |  |        |       |      
|                                                                                        | Total liabilities recorded                                                                              |                                      |   |       |       |  |   | 20,439 |   |  |        |       |      
|Contribution of securities to an employee retirement benefit
    trust (Notes 5 and 14) |                                                                                                         |                                      |  |        |       |  |  |        |   |  | 27,343 |       

29.     SUBSEQUENT EVENT




F-81



---



##### Table of Contents



SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES
(UNAUDITED)






|         |                                                                                 
|-------- | --------------------------------------------------------------------------------
|TABLE 1. | COSTS INCURRED FOR PROPERTY ACQUISITION, EXPLORATION AND
    DEVELOPMENT*1,*2,*3

|                                   |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |        |  |  |   |         | 
|---------------------------------- |  | ---------------------- | ------ | ---------- | ----------- | - | ------ | ------- |  | - | ------ |  |  | --------- | ------ |  |  | - | ------- | 
|                                   |  | Millions of Yen        |       
|                                   |  |                        |       
|                                   |  |                        |        | Associated |             |   |       
|                                   |  | Consolidated Companies |        |            | Companies   |   |        |        
|                                   |  |                        |        |            |             |   |        |        
|                                   |  | Oceania                |        |            | Middle East |   |        | Oceania |  |   | Others |  |  | Worldwide |       
|                                   |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Year Ended March 31, 2005:         |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |        |  |  |   |         | 
|Acquisition of Proved Properties   |  | ¥                      | 20,944 |            |             |   |       |         |  |   |       |  |  | ¥         | 323    |  |  | ¥ | 21,267  | 
|Acquisition of Unproved Properties |  |                        | 26,403 |            |             |   |       |         |  |   |       |  |  |           |       |  |  |   | 26,403  | 
|Exploration                        |  |                        | 2,365  |            |             | ¥ | 93     |         |  | ¥ | 30     |  |  |           | 535    |  |  |   | 3,023   | 
|Development                        |  |                        | 15,909 |            |             |   | 6,466  |         |  |   | 5,432  |  |  |           | 91,464 |  |  |   | 119,271 | 
|                                   |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Total Costs Incurred               |  | ¥                      | 65,621 |            |             | ¥ | 6,559  |         |  | ¥ | 5,462  |  |  | ¥         | 92,322 |  |  | ¥ | 169,964 | 
|                                   |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Year Ended March 31, 2004:         |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |        |  |  |   |         | 
|Acquisition of Proved Properties   |  |                        |       |            |             |   |       |         |  |   |       |  |  | ¥         | 1,015  |  |  | ¥ | 1,015   | 
|Acquisition of Unproved Properties |  | ¥                      | 1,553  |            |             |   |       |         |  |   |       |  |  |           |       |  |  |   | 1,553   | 
|Exploration                        |  |                        | 1,102  |            |             | ¥ | 467    |         |  | ¥ | 599    |  |  |           | 209    |  |  |   | 2,377   | 
|Development                        |  |                        | 2,443  |            |             |   | 7,816  |         |  |   | 9,973  |  |  |           | 51,187 |  |  |   | 71,419  | 
|                                   |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Total Costs Incurred               |  | ¥                      | 5,098  |            |             | ¥ | 8,283  |         |  | ¥ | 10,572 |  |  | ¥         | 52,411 |  |  | ¥ | 76,364  | 
|                                   |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Year Ended March 31, 2003:         |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |        |  |  |   |         | 
|Acquisition of Proved Properties   |  | ¥                      | 1,444  |            |             | ¥ | 15,986 |         |  |   |       |  |  | ¥         | 44     |  |  | ¥ | 17,474  | 
|Acquisition of Unproved Properties |  |                        |       |            |             |   |       |         |  |   |       |  |  |           | 441    |  |  |   | 441     | 
|Exploration                        |  |                        | 637    |            |             |   | 586    |         |  | ¥ | 136    |  |  |           | 1,360  |  |  |   | 2,719   | 
|Development                        |  |                        | 998    |            |             |   | 4,809  |         |  |   | 5,636  |  |  |           | 16,957 |  |  |   | 28,400  | 
|                                   |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Total Costs Incurred               |  | ¥                      | 3,079  |            |             | ¥ | 21,381 |         |  | ¥ | 5,772  |  |  | ¥         | 18,802 |  |  | ¥ | 49,034  | 
|                                   |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       






|   |                                                                                                                                                                                                                                   
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*1 | Includes costs incurred whether capitalized or expensed.                                                                                                                                                                          
|  
|*2 | Excludes the cumulative-effect adjustment of
    ¥5,821 million for the initial application of
    SFAS No. 143, Accounting for Asset Retirement
    Obligations, from the costs incurred for the year ended
    March 31, 2004.
|  
|*3 | Includes capitalized asset retirement costs incurred in
    accordance with SFAS No. 143 for the years ended
    March 31, 2005 and 2004.                                                                                         

F-82



---



##### Table of Contents





|         |                                                                  
|-------- | -----------------------------------------------------------------
|TABLE 2. | CAPITALIZED COSTS RELATED TO OIL AND GAS PRODUCING
    ACTIVITIES

|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |         |  |  |   |         | 
|------------------------------------------------------------------------------ |  | ---------------------- | ------ |  | -------------------- | - | ------ | ------- |  | - | ------- |  |  | --------- | ------- |  |  | - | ------- | 
|                                                                               |  | Millions of Yen        |       
|                                                                               |  |                        |       
|                                                                               |  | Consolidated Companies |        |  | Associated Companies |   |        |        
|                                                                               |  |                        |        |  |                      |   |        |        
|                                                                               |  | Oceania                |        |  | Middle East          |   |        | Oceania |  |   | Others  |  |  | Worldwide |        
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        
|Year Ended March 31, 2005:                                                     |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |         |  |  |   |         | 
|Proved Properties*                                                             |  | ¥                      | 60,775 |  |                      | ¥ | 26,191 |         |  | ¥ | 126,618 |  |  | ¥         | 277,034 |  |  | ¥ | 490,618 | 
|Unproved Properties                                                            |  |                        | 26,346 |  |                      |   |       |         |  |   |        |  |  |           | 4,818   |  |  |   | 31,164  | 
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        
|Gross Capitalized Properties                                                   |  |                        | 87,121 |  |                      |   | 26,191 |         |  |   | 126,618 |  |  |           | 281,852 |  |  |   | 521,782 | 
|Accumulated Depreciation, Depletion, Amortization and Valuation
    Allowances |  |                        | 14,261 |  |                      |   | 5,710  |         |  |   | 69,435  |  |  |           | 85,830  |  |  |   | 175,236 | 
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        
|Net Capitalized Costs                                                          |  | ¥                      | 72,860 |  |                      | ¥ | 20,481 |         |  | ¥ | 57,183  |  |  | ¥         | 196,022 |  |  | ¥ | 346,546 | 
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        
|Year Ended March 31, 2004:                                                     |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |         |  |  |   |         | 
|Proved Properties*                                                             |  | ¥                      | 21,989 |  |                      | ¥ | 23,674 |         |  | ¥ | 118,332 |  |  | ¥         | 185,443 |  |  | ¥ | 349,438 | 
|Unproved Properties                                                            |  |                        | 1,977  |  |                      |   |       |         |  |   |        |  |  |           | 4,928   |  |  |   | 6,905   | 
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        
|Gross Capitalized Properties                                                   |  |                        | 23,966 |  |                      |   | 23,674 |         |  |   | 118,332 |  |  |           | 190,371 |  |  |   | 356,343 | 
|Accumulated Depreciation, Depletion, Amortization and Valuation
    Allowances |  |                        | 14,191 |  |                      |   | 3,193  |         |  |   | 63,119  |  |  |           | 77,686  |  |  |   | 158,189 | 
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        
|Net Capitalized Costs                                                          |  | ¥                      | 9,775  |  |                      | ¥ | 20,481 |         |  | ¥ | 55,213  |  |  | ¥         | 112,685 |  |  | ¥ | 198,154 | 
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        
|Year Ended March 31, 2003:                                                     |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |         |  |  |   |         | 
|Proved Properties                                                              |  | ¥                      | 16,652 |  |                      | ¥ | 21,194 |         |  | ¥ | 81,810  |  |  | ¥         | 95,413  |  |  | ¥ | 215,069 | 
|Unproved Properties                                                            |  |                        |       |  |                      |   |       |         |  |   | 365     |  |  |           | 33,059  |  |  |   | 33,424  | 
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        
|Gross Capitalized Properties                                                   |  |                        | 16,652 |  |                      |   | 21,194 |         |  |   | 82,175  |  |  |           | 128,472 |  |  |   | 248,493 | 
|Accumulated Depreciation, Depletion, Amortization and Valuation
    Allowances |  |                        | 11,596 |  |                      |   | 3,157  |         |  |   | 43,554  |  |  |           | 58,549  |  |  |   | 116,856 | 
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        
|Net Capitalized Costs                                                          |  | ¥                      | 5,056  |  |                      | ¥ | 18,037 |         |  | ¥ | 38,621  |  |  | ¥         | 69,923  |  |  | ¥ | 131,637 | 
|                                                                               |  |                        |        |  |                      |   |        |         |  |   |         |  |  |           |        






|  |                                                                                 
|- | --------------------------------------------------------------------------------
|* | Includes capitalized asset retirement costs in accordance with
    SFAS No. 143.

F-83



---



##### Table of Contents





|         |                                                                
|-------- | ---------------------------------------------------------------
|TABLE 3. | RESULTS OF OPERATIONS FOR OIL AND GAS PRODUCING
    ACTIVITIES*



|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |        |  |  |   |        | 
|----------------------------------------------------------------------------- |  | ---------------------- | ------ | ---------- | ----------- | - | ------ | ------- |  | - | ------ |  |  | --------- | ------ |  |  | - | ------ | 
|                                                                              |  | Millions of Yen        |       
|                                                                              |  |                        |       
|                                                                              |  |                        |        | Associated |             |   |       
|                                                                              |  | Consolidated Companies |        |            | Companies   |   |        |        
|                                                                              |  |                        |        |            |             |   |        |        
|                                                                              |  | Oceania                |        |            | Middle East |   |        | Oceania |  |   | Others |  |  | Worldwide |       
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Year Ended March 31, 2005:                                                    |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |        |  |  |   |        | 
|Sales to Unaffiliated Enterprises                                             |  |                        |       |            |             | ¥ | 2,686  |         |  | ¥ | 29,805 |  |  | ¥         | 30,631 |  |  | ¥ | 63,122 | 
|Transfers to Affiliated Enterprises                                           |  | ¥                      | 4,028  |            |             |   | 14,330 |         |  |   | 7,791  |  |  |           |       |  |  |   | 26,149 | 
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Total Revenues                                                                |  |                        | 4,028  |            |             |   | 17,016 |         |  |   | 37,596 |  |  |           | 30,631 |  |  |   | 89,271 | 
|Production Cost                                                               |  |                        | 2,369  |            |             |   | 2,393  |         |  |   | 11,123 |  |  |           | 6,687  |  |  |   | 22,572 | 
|Exploration Expenses                                                          |  |                        | 2,365  |            |             |   | 93     |         |  |   | 126    |  |  |           | 535    |  |  |   | 3,119  | 
|Depreciation, Depletion, Amortization, Accretion and Valuation
    Allowances |  |                        | 436    |            |             |   | 3,252  |         |  |   | 3,669  |  |  |           | 5,562  |  |  |   | 12,919 | 
|Income Tax Expense                                                            |  |                        | 5      |            |             |   | 5,240  |         |  |   | 6,247  |  |  |           | 9,045  |  |  |   | 20,537 | 
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Results of Operations for Oil and Gas Producing Activities                    |  | ¥                      | (1,147 | )          |             | ¥ | 6,038  |         |  | ¥ | 16,431 |  |  | ¥         | 8,802  |  |  | ¥ | 30,124 | 
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Year Ended March 31, 2004:                                                    |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |        |  |  |   |        | 
|Sales to Unaffiliated Enterprises                                             |  |                        |       |            |             | ¥ | 1,385  |         |  | ¥ | 30,254 |  |  | ¥         | 21,564 |  |  | ¥ | 53,203 | 
|Transfers to Affiliated Enterprises                                           |  | ¥                      | 4,240  |            |             |   | 11,086 |         |  |   | 6,603  |  |  |           |       |  |  |   | 21,929 | 
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Total Revenues                                                                |  |                        | 4,240  |            |             |   | 12,471 |         |  |   | 36,857 |  |  |           | 21,564 |  |  |   | 75,132 | 
|Production Cost                                                               |  |                        | 2,345  |            |             |   | 2,320  |         |  |   | 13,426 |  |  |           | 5,997  |  |  |   | 24,088 | 
|Exploration Expenses                                                          |  |                        | 900    |            |             |   | 467    |         |  |   | 242    |  |  |           | 209    |  |  |   | 1,818  | 
|Depreciation, Depletion, Amortization, Accretion and Valuation
    Allowances |  |                        | 597    |            |             |   | 2,365  |         |  |   | 5,230  |  |  |           | 6,281  |  |  |   | 14,473 | 
|Income Tax Expense                                                            |  |                        | 342    |            |             |   | 4,331  |         |  |   | 5,203  |  |  |           | 5,573  |  |  |   | 15,449 | 
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Results of Operations for Oil and Gas Producing Activities                    |  | ¥                      | 56     |            |             | ¥ | 2,988  |         |  | ¥ | 12,756 |  |  | ¥         | 3,504  |  |  | ¥ | 19,304 | 
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Year Ended March 31, 2003:                                                    |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |        |  |  |   |        | 
|Sales to Unaffiliated Enterprises                                             |  | ¥                      | 43     |            |             | ¥ | 8,790  |         |  | ¥ | 28,789 |  |  | ¥         | 19,856 |  |  | ¥ | 57,478 | 
|Transfers to Affiliated Enterprises                                           |  |                        | 4,916  |            |             |   | 3,123  |         |  |   | 7,351  |  |  |           |       |  |  |   | 15,390 | 
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Total Revenues                                                                |  |                        | 4,959  |            |             |   | 11,913 |         |  |   | 36,140 |  |  |           | 19,856 |  |  |   | 72,868 | 
|Production Cost                                                               |  |                        | 2,156  |            |             |   | 2,460  |         |  |   | 13,402 |  |  |           | 5,867  |  |  |   | 23,885 | 
|Exploration Expenses                                                          |  |                        | 637    |            |             |   | 295    |         |  |   | 489    |  |  |           | 1,360  |  |  |   | 2,781  | 
|Depreciation, Depletion, Amortization and Valuation Allowances                |  |                        | 530    |            |             |   | 2,272  |         |  |   | 4,984  |  |  |           | 4,503  |  |  |   | 12,289 | 
|Income Tax Expense                                                            |  |                        | 521    |            |             |   | 3,168  |         |  |   | 7,320  |  |  |           | 4,239  |  |  |   | 15,248 | 
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       
|Results of Operations for Oil and Gas Producing Activities                    |  | ¥                      | 1,115  |            |             | ¥ | 3,718  |         |  | ¥ | 9,945  |  |  | ¥         | 3,887  |  |  | ¥ | 18,665 | 
|                                                                              |  |                        |        |            |             |   |        |         |  |   |        |  |  |           |       






|  |                                                                                                                                                                                      
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Excludes the cumulative-effect adjustment of
    ¥2,214 million for the initial application of
    SFAS No. 143 from the results of operations for the
    year ended March 31, 2004.

F-84



---



##### Table of Contents





|         |                                    
|-------- | -----------------------------------
|TABLE 4. | PROVED RESERVE QUANTITY INFORMATION





| |                                           
| | ------------------------------------------
| | Proved Developed and Undeveloped Reserves:

|                             |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           |  |       |      |   |  |       |     |   |  |       |      |  
|---------------------------- | ----------------------------------------------------------- | ----------------------------------------------- | -- | -- | ---------------------- |  | -- | ------- | - | ------------ | ------ | -- | ---------- | --------- | --- | --- | ------- |  | --- | ----------- | - |  | ------- | -- |  | ------ | -- | -- | --------- |  | ----- | ---- | - |  | ----- | --- | - |  | ----- | ---- | -
|                             |                                                             | Millions of Barrels                             |    |    | Billions of Cubic Feet | 
|                             |                                                             |                                                 |    |    |                        | 
|                             |                                                             | Crude Oil, Condensate and Natural Gas Liquids*1 |    |    | Natural Gas*1*3        | 
|                             |                                                             |                                                 |    |    |                        | 
|                             |                                                             | Consolidated                                    |    |    | Associated             |  |    |         |   | Consolidated |        |    | Associated |           |     |    
|                             |                                                             | Companies                                       |    |    | Companies              |  |    |         |   | Companies    |        |    | Companies  |           |     |    
|                             |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |    
|                             |                                                             | Oceania                                         |    |    | Middle East            |  |    | Oceania |   |              | Others |    |            | Worldwide |     |     | Oceania |  |     | Middle East |   |  | Oceania |    |  | Others |    |    | Worldwide | 
|                             |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           | 
|Reserves at April 1, 2002    |                                                             |                                                 | 11 |    |                        |  | 9  |         |   |              | 39     |    |            |           | 59  |     |         |  | 118 |             |   |  |        |    |  |        |   |    |           |  | 1,155 |      |   |  | 219   |     |   |  | 1,374 |     
|Changes Attributable to:     |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           |  |       |      |   |  |       |     |   |  |       |     
|                             | Revision of Previous Estimates (includes improved recovery) |                                                 |    |   |                        |  |    |        |   |              |        | 7  |            |           |     | 16  |         |  |     | 23          |   |  |         |   |  |        |    |   |           |  |       | 59   |   |  |       | (3  | ) |  |       | 56   |  
|                             | Extensions and Discoveries                                  |                                                 |    |   |                        |  |    |        |   |              |        |   |            |           |     |    |         |  |     |            |   |  |         |   |  |        |    |   |           |  |       |     |   |  |       |    |   |  |       |     |  
|                             | Purchases                                                   |                                                 |    | 3  |                        |  |    | 22      |   |              |        |   |            |           |     |    |         |  |     | 25          |   |  |         | 27 |  |        |    |   |           |  |       |     |   |  |       | 29  |   |  |       | 56   |  
|                             | Sales                                                       |                                                 |    |   |                        |  |    |        |   |              |        |   |            |           |     |    |         |  |     |            |   |  |         |   |  |        |    |   |           |  |       |     |   |  |       |    |   |  |       |     |  
|                             | Production                                                  |                                                 |    | (2 | )                      |  |    | (3      | ) |              |        | (6 | )          |           |     | (4  | )       |  |     | (15         | ) |  |         |   |  |        |    |   |           |  |       | (41  | ) |  |       | (24 | ) |  |       | (65  | )
|                             |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           | 
|Reserves at March 31, 2003   |                                                             |                                                 | 12 |    |                        |  | 28 |         |   |              | 40     |    |            |           | 71  |     |         |  | 151 |             |   |  | 27      |    |  |        |   |    |           |  | 1,173 |      |   |  | 221   |     |   |  | 1,421 |     
|Changes Attributable to:     |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           |  |       |      |   |  |       |     |   |  |       |     
|                             | Revision of Previous Estimates (includes improved recovery) |                                                 |    |   |                        |  |    | (3      | ) |              |        | 5  |            |           |     | 7   |         |  |     | 9           |   |  |         |   |  |        |    |   |           |  |       | (282 | ) |  |       | 2   |   |  |       | (280 | )
|                             | Extensions and Discoveries                                  |                                                 |    |   |                        |  |    |        |   |              |        |   |            |           |     | 52  |         |  |     | 52          |   |  |         |   |  |        |    | 84 |           |  |       |     |   |  |       | 729 |   |  |       | 813  |  
|                             | Purchases                                                   |                                                 |    |   |                        |  |    |        |   |              |        |   |            |           |     | 2   |         |  |     | 2           |   |  |         |   |  |        |    |   |           |  |       |     |   |  |       | 42  |   |  |       | 42   |  
|                             | Sales                                                       |                                                 |    |   |                        |  |    |        |   |              |        |   |            |           |     |    |         |  |     |            |   |  |         |   |  |        |    |   |           |  |       |     |   |  |       |    |   |  |       |     |  
|                             | Production                                                  |                                                 |    | (2 | )                      |  |    | (2      | ) |              |        | (6 | )          |           |     | (5  | )       |  |     | (15         | ) |  |         |   |  |        |    |   |           |  |       | (45  | ) |  |       | (29 | ) |  |       | (74  | )
|                             |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           | 
|Reserves at March 31, 2004   |                                                             |                                                 | 10 |    |                        |  | 23 |         |   |              | 39     |    |            |           | 127 |     |         |  | 199 |             |   |  | 27      |    |  |        | 84 |    |           |  | 846   |      |   |  | 965   |     |   |  | 1,922 |     
|Changes Attributable to:     |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           |  |       |      |   |  |       |     |   |  |       |     
|                             | Revision of Previous Estimates (includes improved recovery) |                                                 |    |   |                        |  |    | 3       |   |              |        | (6 | )          |           |     | (32 | )       |  |     | (35         | ) |  |         |   |  |        |    |   |           |  |       | (26  | ) |  |       | 4   |   |  |       | (22  | )
|                             | Extensions and Discoveries                                  |                                                 |    | 2  |                        |  |    | 1       |   |              |        |   |            |           |     |    |         |  |     | 3           |   |  |         | 42 |  |        |    |   |           |  |       |     |   |  |       | 437 |   |  |       | 479  |  
|                             | Purchases                                                   |                                                 |    | 39 |                        |  |    |        |   |              |        |   |            |           |     | 2   |         |  |     | 41          |   |  |         |   |  |        |    |   |           |  |       |     |   |  |       | 21  |   |  |       | 21   |  
|                             | Sales                                                       |                                                 |    |   |                        |  |    |        |   |              |        |   |            |           |     |    |         |  |     |            |   |  |         |   |  |        |    |   |           |  |       |     |   |  |       |    |   |  |       |     |  
|                             | Production                                                  |                                                 |    | (1 | )                      |  |    | (3      | ) |              |        | (5 | )          |           |     | (5  | )       |  |     | (14         | ) |  |         |   |  |        |    | (9 | )         |  |       | (49  | ) |  |       | (34 | ) |  |       | (92  | )
|                             |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           | 
|Reserves at March 31, 2005   |                                                             |                                                 | 50 |    |                        |  | 24 |         |   |              | 28     |    |            |           | 92  |     |         |  | 194 |             |   |  | 69      |    |  |        | 75 |    |           |  | 771   |      |   |  | 1,393 |     |   |  | 2,308 |     
|Proved Developed Reserves*2: |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           |  |       |      |   |  |       |     |   |  |       |     
|Reserves at April 1, 2002    |                                                             |                                                 | 11 |    |                        |  | 9  |         |   |              | 17     |    |            |           | 18  |     |         |  | 55  |             |   |  |        |    |  |        |   |    |           |  | 370   |      |   |  | 66    |     |   |  | 436   |     
|Reserves at March 31, 2003   |                                                             |                                                 | 9  |    |                        |  | 28 |         |   |              | 17     |    |            |           | 18  |     |         |  | 72  |             |   |  |        |    |  |        |   |    |           |  | 364   |      |   |  | 58    |     |   |  | 422   |     
|Reserves at March 31, 2004   |                                                             |                                                 | 7  |    |                        |  | 23 |         |   |              | 14     |    |            |           | 19  |     |         |  | 63  |             |   |  |        |    |  |        | 84 |    |           |  | 330   |      |   |  | 69    |     |   |  | 483   |     
|                             |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           | 
|Reserves at March 31, 2005   |                                                             |                                                 | 6  |    |                        |  | 24 |         |   |              | 14     |    |            |           | 18  |     |         |  | 62  |             |   |  |        |    |  |        | 75 |    |           |  | 356   |      |   |  | 82    |     |   |  | 513   |     
|                             |                                                             |                                                 |    |    |                        |  |    |         |   |              |        |    |            |           |     |     |         |  |     |             |   |  |         |    |  |        |    |    |           | 






|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*1 | 1 barrel of crude oil = 5,800 cubic feet of natural gas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|*2 | The proportion of Proved Developed Reserves to Proved Developed
    and Undeveloped Reserves is about 25% as of March 31, 2005
    and relatively low. The expected costs to develop these
    undeveloped reserves are estimated to be
    ¥313,911 million in total as of March 31, 2005,
    which is included in Future Development Cost in
    Table 5. The major undeveloped reserves are attributable to an
    associated company in Russia and an associated company in
    Australia. It is expected to commence the production of crude
    oil in 2006 and LNG in 2007, for the associated company in
    Russia. In relation to the associated company in Australia, the
    production of crude oil and LNG has already commenced at the
    existing facilities. The drilling of additional development
    wells will be performed over the project life according to the
    drilling program of the project.
|  
|*3 | The proved gas reserves are restricted to those volumes that are
    related to firm sales commitments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

F-85



---



##### Table of Contents





|         |                                                                                                    
|-------- | ---------------------------------------------------------------------------------------------------
|TABLE 5. | STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS
    RELATED TO PROVED OIL AND GAS RESERVES





|   |                                                             
|-- | ------------------------------------------------------------
|1) | Standardized Measure of Discounted Future Net Cash
    Flows

|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |           |   |  |   |           |  
|-------------------------------------------------------- |  | ---------------------- | ------- | - | -------------------- | - | ------- | ------- |  | - | -------- | - |  | --------- | --------- | - |  | - | --------- | -
|                                                         |  | Millions of Yen        |        
|                                                         |  |                        |        
|                                                         |  | Consolidated Companies |         |   | Associated Companies |   |         |        
|                                                         |  |                        |         |   |                      |   |         |        
|                                                         |  | Oceania                |         |   | Middle East          |   |         | Oceania |  |   | Others   |   |  | Worldwide |          
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |          
|At March 31, 2005:                                       |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |           |   |  |   |           |  
|Future Cash Inflows from Production                      |  | ¥                      | 206,903 |   |                      | ¥ | 180,308 |         |  | ¥ | 392,005  |   |  | ¥         | 1,021,275 |   |  | ¥ | 1,800,491 |  
|Future Production Cost                                   |  |                        | (39,241 | ) |                      |   | (20,760 | )       |  |   | (161,141 | ) |  |           | (240,064  | ) |  |   | (461,206  | )
|Future Development Cost                                  |  |                        | (42,915 | ) |                      |   | (9,467  | )       |  |   | (98,020  | ) |  |           | (267,650  | ) |  |   | (418,052  | )
|Future Income Taxes                                      |  |                        | (37,675 | ) |                      |   | (80,860 | )       |  |   | (62,292  | ) |  |           | (141,239  | ) |  |   | (322,066  | )
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |          
|Undiscounted Future Net Cash Flows                       |  |                        | 87,072  |   |                      |   | 69,221  |         |  |   | 70,552   |   |  |           | 372,322   |   |  |   | 599,167   |  
|10% Annual Discount for Timing of Estimated Cash Flows   |  |                        | (35,103 | ) |                      |   | (27,902 | )       |  |   | (28,197  | ) |  |           | (275,684  | ) |  |   | (366,886  | )
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |          
|Standardized Measure of Discounted Future Net Cash Flows |  | ¥                      | 51,969  |   |                      | ¥ | 41,319  |         |  | ¥ | 42,355   |   |  | ¥         | 96,638    |   |  | ¥ | 232,281   |  
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |          
|At March 31, 2004:                                       |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |           |   |  |   |           |  
|Future Cash Inflows from Production                      |  | ¥                      | 36,333  |   |                      | ¥ | 138,382 |         |  | ¥ | 382,405  |   |  | ¥         | 656,697   |   |  | ¥ | 1,213,817 |  
|Future Production Cost                                   |  |                        | (20,177 | ) |                      |   | (20,641 | )       |  |   | (226,059 | ) |  |           | (145,972  | ) |  |   | (412,849  | )
|Future Development Cost                                  |  |                        | (5,140  | ) |                      |   | (9,067  | )       |  |   | (4,850   | ) |  |           | (228,608  | ) |  |   | (247,665  | )
|Future Income Taxes                                      |  |                        | (2,085  | ) |                      |   | (58,820 | )       |  |   | (51,950  | ) |  |           | (98,338   | ) |  |   | (211,193  | )
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |          
|Undiscounted Future Net Cash Flows                       |  |                        | 8,931   |   |                      |   | 49,854  |         |  |   | 99,546   |   |  |           | 183,779   |   |  |   | 342,110   |  
|10% Annual Discount for Timing of Estimated Cash Flows   |  |                        | (1,539  | ) |                      |   | (21,446 | )       |  |   | (39,289  | ) |  |           | (211,595  | ) |  |   | (273,869  | )
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |          
|Standardized Measure of Discounted Future Net Cash Flows |  | ¥                      | 7,392   |   |                      | ¥ | 28,408  |         |  | ¥ | 60,257   |   |  | ¥         | (27,816   | ) |  | ¥ | 68,241    |  
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |          

F-86



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##### Table of Contents



|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |         |   |  |   |           |  
|-------------------------------------------------------- |  | ---------------------- | ------- | - | -------------------- | - | ------- | ------- |  | - | -------- | - |  | --------- | ------- | - |  | - | --------- | -
|                                                         |  | Millions of Yen        |        
|                                                         |  |                        |        
|                                                         |  | Consolidated Companies |         |   | Associated Companies |   |         |        
|                                                         |  |                        |         |   |                      |   |         |        
|                                                         |  | Oceania                |         |   | Middle East          |   |         | Oceania |  |   | Others   |   |  | Worldwide |        
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |        
|At March 31, 2003:                                       |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |         |   |  |   |           |  
|Future Cash Inflows from Production                      |  | ¥                      | 51,459  |   |                      | ¥ | 124,006 |         |  | ¥ | 795,677  |   |  | ¥         | 307,554 |   |  | ¥ | 1,278,696 |  
|Future Production Cost                                   |  |                        | (21,526 | ) |                      |   | (21,462 | )       |  |   | (348,748 | ) |  |           | (76,675 | ) |  |   | (468,411  | )
|Future Development Cost                                  |  |                        | (6,246  | ) |                      |   | (10,206 | )       |  |   | (15,476  | ) |  |           | (41,685 | ) |  |   | (73,613   | )
|Future Income Taxes                                      |  |                        | (7,773  | ) |                      |   | (50,141 | )       |  |   | (119,352 | ) |  |           | (60,375 | ) |  |   | (237,641  | )
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |        
|Undiscounted Future Net Cash Flows                       |  |                        | 15,914  |   |                      |   | 42,197  |         |  |   | 312,101  |   |  |           | 128,819 |   |  |   | 499,031   |  
|10% Annual Discount for Timing of Estimated Cash Flows   |  |                        | (5,774  | ) |                      |   | (18,320 | )       |  |   | (191,033 | ) |  |           | (67,421 | ) |  |   | (282,548  | )
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |        
|Standardized Measure of Discounted Future Net Cash Flows |  | ¥                      | 10,140  |   |                      | ¥ | 23,877  |         |  | ¥ | 121,068  |   |  | ¥         | 61,398  |   |  | ¥ | 216,483   |  
|                                                         |  |                        |         |   |                      |   |         |         |  |   |          |   |  |           |        



|   |                                
|-- | -------------------------------
|2) | Details of Changes for the Year

|                                                       |                                       |                        |         |         |                      |   |         |           |   |   |        |         |   |      |         |         |      |   |          |         |   |   |         |         |   |      |         |         |   |   |          |         |   |   |         |         |  
|------------------------------------------------------ | ------------------------------------- | ---------------------- | ------- | ------- | -------------------- | - | ------- | --------- | - | - | ------ | ------- | - | ---- | ------- | ------- | ---- | - | -------- | ------- | - | - | ------- | ------- | - | ---- | ------- | ------- | - | - | -------- | ------- | - | - | ------- | ------- | -
|                                                       |                                       | Millions of Yen        |        
|                                                       |                                       |                        |        
|                                                       |                                       | Consolidated Companies |         |         | Associated Companies |   |         | Worldwide |  
|                                                       |                                       |                        |         |         |                      |   |         |           |  
|                                                       |                                       | 2005                   |         |         | 2004                 |   |         | 2003      |   |   | 2005   |         |   | 2004 |         |         | 2003 |   |          | 2005    |   |   | 2004    |         |   | 2003 |        
|                                                       |                                       |                        |         |         |                      |   |         |           |   |   |        |         |   |      |         |         |      |   |          |         |   |   |         |         |   |      |        
|Present Value at April 1                               |                                       | ¥                      | 35,800  |         |                      | ¥ | 34,017  |           |   | ¥ | 8,951  |         |   | ¥    | 32,441  |         |      | ¥ | 182,466  |         |   | ¥ | 125,565 |         |   | ¥    | 68,241  |         |   | ¥ | 216,483  |         |   | ¥ | 134,516 |        
|                                                       |                                       |                        |         |         |                      |   |         |           |   |   |        |         |   |      |         |         |      |   |          |         |   |   |         |         |   |      |        
|Sales/ Transfers of Oil and                            |                                       |                        |         |         |                      |   |         |           |   |   |        |         |   |      |         |         |      |   |          |         |   |   |         |         |   |      |         |         |   |   |          |         |   |   |         |        
|                                                       | Gas Produced, Net of Production Costs |                        |         | (16,282 | )                    |   |         | (12,046   | ) |   |        | (12,256 | ) |      |         | (50,417 | )    |   |          | (38,998 | ) |   |         | (36,727 | ) |      |         | (66,699 | ) |   |          | (51,044 | ) |   |         | (48,983 | )
|Development Costs Incurred                             |                                       |                        | 22,375  |         |                      |   | 10,259  |           |   |   | 5,807  |         |   |      | 96,896  |         |      |   | 61,160   |         |   |   | 22,593  |         |   |      | 119,271 |         |   |   | 71,419   |         |   |   | 28,400  |        
|Purchases of Reserves in Place                         |                                       |                        | 23,150  |         |                      |   |        |           |   |   | 24,635 |         |   |      | 1,578   |         |      |   | 1,894    |         |   |   |        |         |   |      | 24,728  |         |   |   | 1,894    |         |   |   | 24,635  |        
|Extensions and Discoveries                             |                                       |                        | 11,117  |         |                      |   | 16,746  |           |   |   |       |         |   |      | 124,122 |         |      |   | 119,609  |         |   |   |        |         |   |      | 135,239 |         |   |   | 136,355  |         |   |   |        |        
|Net Changes in Prices, Development and Production Cost |                                       |                        | 23,033  |         |                      |   | (2,475  | )         |   |   | 7,156  |         |   |      | (37,454 | )       |      |   | (253,034 | )       |   |   | (4,650  | )       |   |      | (14,421 | )       |   |   | (255,509 | )       |   |   | 2,506   |        
|Revisions of Previous Quantity*1                       |                                       |                        |        |         |                      |   | (2,837  | )         |   |   |       |         |   |      | (33,933 | )       |      |   | (37,158  | )       |   |   | 64,001  |         |   |      | (33,933 | )       |   |   | (39,995  | )       |   |   | 64,001  |        
|Accretion of Discount                                  |                                       |                        | 3,580   |         |                      |   | 3,402   |           |   |   | 895    |         |   |      | 3,244   |         |      |   | 18,247   |         |   |   | 12,557  |         |   |      | 6,824   |         |   |   | 21,649   |         |   |   | 13,452  |        
|Net Changes in Income Taxes                            |                                       |                        | (11,387 | )       |                      |   | (137    | )         |   |   | (1,127 | )       |   |      | 1,839   |         |      |   | 29,126   |         |   |   | (6,076  | )       |   |      | (9,548  | )       |   |   | 28,989   |         |   |   | (7,203  | )      
|Others*2                                               |                                       |                        | 1,902   |         |                      |   | (11,129 | )         |   |   | (44    | )       |   |      | 677     |         |      |   | (50,871  | )       |   |   | 5,203   |         |   |      | 2,579   |         |   |   | (62,000  | )       |   |   | 5,159   |        
|                                                       |                                       |                        |         |         |                      |   |         |           |   |   |        |         |   |      |         |         |      |   |          |         |   |   |         |         |   |      |        
|Net Changes for the Year                               |                                       |                        | 57,488  |         |                      |   | 1,783   |           |   |   | 25,066 |         |   |      | 106,552 |         |      |   | (150,025 | )       |   |   | 56,901  |         |   |      | 164,040 |         |   |   | (148,242 | )       |   |   | 81,967  |        
|                                                       |                                       |                        |         |         |                      |   |         |           |   |   |        |         |   |      |         |         |      |   |          |         |   |   |         |         |   |      |        
|Present Value at March 31                              |                                       | ¥                      | 93,288  |         |                      | ¥ | 35,800  |           |   | ¥ | 34,017 |         |   | ¥    | 138,993 |         |      | ¥ | 32,441   |         |   | ¥ | 182,466 |         |   | ¥    | 232,281 |         |   | ¥ | 68,241   |         |   | ¥ | 216,483 |        
|                                                       |                                       |                        |         |         |                      |   |         |           |   |   |        |         |   |      |         |         |      |   |          |         |   |   |         |         |   |      |        






|   |                                                                          
|-- | -------------------------------------------------------------------------
|*1 | Includes amounts resulting from changes in the timing of
    production. 
|  
|*2 | Main portion of Others is foreign currency
    translation adjustments.

F-87



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##### Table of Contents



SIGNATURE




|                         |  |    |  |                                                                                  
|------------------------ |  | -- |  | ---------------------------------------------------------------------------------
|                         |  |    |  | MITSUI & CO., LTD.                                                               
|                         |  |    |  |                                                                                  
|                         |  |    |  | (Registrant)                                                                     
|Date: September 26, 2005 |  | by |  |                                                                                  
|                         |  |    |  | /s/ Kazuya Imai                                                                  
|                         |  |    |  |                                                                                  
|                         |  |    |  | Kazuya Imai
    Senior Executive Managing Officer and
    Chief Financial Officer



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##### Table of Contents



INDEX OF EXHIBITS


|        |    |          |  |                                                                                                                                                 
|------- | -- | -------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |         
|Number  |    | Document
|        |    |         
|        | 1  | .1       |  | The Articles of Incorporation of Mitsui & Co., Ltd., as
    of June 24, 2005 (English-language translation).                                    
|        | 1  | .2*      |  | The Share Handling Regulation of Mitsui & Co., Ltd., as
    amended on June 24, 2004 (English-language translation).                            
|        | 1  | .3*      |  | The Rules of the Board of Directors of Mitsui & Co.,
    Ltd., as amended on April 1, 2004 (English-language
    translation).                  
|        | 1  | .4       |  | The Rules of the Board of Corporate Auditors of
    Mitsui & Co., Ltd., as amended on September 8,
    2004 (English-language translation).     
|        | 2  | .1**     |  | Deposit Agreement, dated October 1, 1982 among
    Mitsui & Co., Ltd., Citibank, N.A., and holders of ADRs
    and European Depositary Receipts.
|        | 8  | .1       |  | List of Subsidiaries of Mitsui & Co., Ltd.                                                                                                      
|        | 11 | .1       |  | Code of Ethics for Senior Financial Officers and Professionals.                                                                                 
|        | 11 | .2       |  | Business Conduct Guidelines for Employees and Officers of
    Mitsui & Co., Ltd.                                                                
|        | 12 | .1       |  | Certification of the principal executive officer of
    Mitsui & Co., Ltd. required by Rule 13a-14(a).                                          
|        | 12 | .2       |  | Certification of the principal financial officer of
    Mitsui & Co., Ltd. required by Rule 13a-14(a).                                          
|        | 13 | .1       |  | Certification required by Rule 13a-14(b) and
    Section 1350 of Chapter 63 of Title 18 of the
    United States Code.                          






| |   |                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------
| | * | Incorporated by reference to the corresponding exhibit to our
    annual report on Form 20-F 
     (File No. 0-9929) filed on September 30, 2004.



|   |                                                                                                                                                  
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------
|** | Incorporated by reference to the corresponding exhibit to our
    annual report on Form 20-F 
     (File No. 0-9929) filed on September 27, 2002.