Re Alienation of Fixed Assets

It was resolved to alienate the under-mentioned fixed assets at the extraordinary meeting of the Board of Directors taking place on October 22, 1999. The details are as follows:

1.Fixed assets to be alienated
     (1) registered address: 16-1,Yashio 2-chome, Shinagawa-ku, Tokyo
     (2) dimensions of land : 6,041.82 square meters in total

2.Book value: Yen 294 Million

3.Transfer Price : Yen 1,848 Million

4.Profit from transfer: Yen 1,524 Million

5.Schedule for transfer: The middle of January, 2000

6.Transferee: Shinko Kairiku Transportation Co., Ltd.
                        26-1, Kaigan 3-chome, Minato-ku, Tokyo
                        President Takeo Kohno

7.Reason for transfer:
The above fixed assets are located at the hinterland of the "K"LINE Tokyo Container Terminal, which have been used as part of facilities for terminal operations.
Scores of changes in logistics have caused the assets to be become idle.
In accordance with the Company's management plan, New "K"LINE Spirit for 21, we are planning to pay back debts with proceeds from a sale of the above assets so that our interest-bearing liabilities may be diminished. This determination will lead to strengthening the Company's financial structure.

8.Prospect for achievement of fiscal 1999
(covering April 1, 1999 through March 31, 2000):
We are now proceeding to summarize the prospects for achievement of fiscal 1999 which will be disclosed on November 5, 1999. The net income in prospect, however, seems little or no change on a yearly basis.