Conclusion of Long-term Contracts with Baosteel

November 8, 2006

"K" Line concludes Long-term Contracts with Baosteel to Transport

Brazilian and Australian Iron Ore to China

Kawasaki Kisen Kaisha, Ltd. ("K" Line) has concluded long-term contracts with Baoshan Iron & Steel Co., Ltd. (Baosteel: Shanghai, China) for the transport of iron ore by the large-sized bulk carriers.

On October 31, 2006, the signing ceremony was held at the Baosteel headquarters at Shanghai, with top officials from both companies, including Chairman of Baosteel Xu Lejiang, and President Ai Baojun, and "K" Line President & CEO Hiroyuki Maekawa and Vice President & Assistant CEO Eiichi Suzuki.

1.	Period: Approximately three (3) years from fourth-quarter of FY2006 Trade: Transport of iron ore from Brazil to China Transport Volume: Approximately 0.5 million tons per year

2.	Period: 10 years from the second half of 2008 Trade: Consecutive voyage transport of iron ore from Western Australia to China Transport Volume: Approximately 2.4 million tons per year

"K" Line has participated in the transportation of iron ore to Baosteel since 1994, accumulating experiences of iron ore transportation for more than 10 years. However, these Contracts are the first long-term contracts between "K" Line and Baosteel. "K" Line will launch a newly built carrier of 185,000 DWT to the transportation of iron ore concerning the 2006 Contract, and a newly built carrier of 200,000 DWT to the transportation of iron ore for the 2008 Contract.

In "K" LINE Vision 2008⁺, a new interim management plan, "K" Line ranks the involvement in the fast-growing Chinese market as one the most important management issues. The conclusion of the contracts is a part of such management strategy, and "K" Line will continue active involvement in the coal and iron ore transportation business in the Chinese market.

For further information, please contact:

Kawasaki Kisen Kaisha, Ltd.

Jiro Asakura	Executive Officer, General Manager of Coal & Iron Ore Carrier Group Tel: +81-3-3595-5390 Fax: +81-3-3595-5369
Osamu Saegusa	Manager of Coal & Iron Ore Team No.2 Tel: +81-3-3595-5406 Fax: +81-3-3595-5369

(from left: Hiroyuki Maekawa, "K" Line President & CEO and Ai Baojun, Baosteel President,
center: Xu Lejiang, Baosteel Group Corporation President & Baosteel Chairman)

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