Kawasaki Kisen Kaisha, Ltd.
Code No. 9107
Registered Head Office: 8, Kaigan-dori, Chuo-ku, Kobe 650-0024(Shinko Bldg.)
Head Office: 2-9, Nishi-shinbashi 1-chome, Minato-ku,
Tokyo 105-8421(Hibiya Central Bldg.)

1. Outline of the Dissolved Subsidiary
(1) Name of the Company: "K" LINE Enterprise Co., Ltd.

(2) Address: 43-21, 2-chome, Takanawa, Minato-ku, Tokyo 108-0074

(3) Capital : Yen 50,000,000

2. Reasons for Dissolution

"K"LINE has been endeavoring to aim at efficient management of its whole group, placing on target importance given to consolidated management, improvement of financial structure and revitalization of organization under New K-21, a new management plan started in April, 1998.
Since the Company was founded in 1971 as a "K"LINE fully- capitalized subsidiary, it has provided a variety of services to the “K”LINE Group in the fields of insurance agency and sales of merchandise, etc., and also handled an expansive array of business from owning & leasing of business machines to possession of securities, etc.
The unfavorable influence from the recent depression in stock prices here, however, caused the Company a latent appraisal loss in the securities in which it had invested.
On the other hand, it was recognized that part of its business was duplicated in view that some other subsidiaries of "K"LINE supplied the same or similar type of services,therefore it became highly advisable to rearrange the functions of the group companies.

In such process, it was decided to carry out dissolution of the subsidiary company, settlement of its accounts & disposal of its latent appraisal loss.
This decision is expected to improve financial condition of the parent company and at the same time to make possible more efficient management and administration of the whole group through rearrangement and unification of duplicated business. One part of the Company’s business is going to be handed to the appropriate group companies.