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May 20, 2003
Kawasaki Kisen Kaisha, Ltd.

Opening Business Base in Houston for Natural Gas Transport Services

Kawasaki Kisen Kaisha, Ltd. (hereunder referred to as "K" LINE) takes pleasure in announcing that within its "K" Line America organization, a new Energy Division will be opened effective July 1, 2003 in Houston, Texas as a business base to strengthen its participation in the transport of Natural Gas involving North America.

"K" LINE is actively promoting closer involvement in regional business activities through establishment of local bases worldwide in many shipping services, and in the field of energy transportation, "K" LINE opened a business base in London on May 31, 2002.

Our new business base in Houston is expected not only to enhance services for existing customers and develop business activities in North America, where Natural Gas consumption is the largest in the world and where increase of LNG import is prospected in the future, but also to be better positioned to respond to customer needs in LNG trade in the Atlantic basin, liaising with our new London base established last year.

Besides LNG business, "K" LINE has been collaborating with the Houston-based engineering company, EnerSea Transport LLC, for developing the new Compressed Natural Gas Marine Transport System, VOTRANS. Our new Houston base is also expected to liaise with maritime team members for the success of this project.


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