(1) By integrating the operations, the three companies, which are currently operating all segments of the LPG business from import, wholesaling to retailing, aim to increase their efficiency and competitiveness, to provide more finely-tuned services and to improve the quality of operations through a comprehensive security system, in order to stably and safely supply LPG, a clean energy, to customers.

(2) Although the LPG industry in Japan is still in a difficult situation due to competition with other energy sources, the three companies have decided that integrating their LPG operations could enhance their wholesale functions and optimize their sales structures (reduce distribution cost, reinforce security measures and so on). This would be achieved through the appropriate reallocation of management resources, taking advantage of their consistent sales system from import, wholesaling to retailing, and their scale, thus enabling them to play a leading role in the industry.

(1) Type of integration
   The three companies will examine various types of integration of all domestic LPG operations, from import, wholesaling to retailing, and the organizational structures of the group of three companies, including integration of import terminals, secondary bases and filling stations, and streamlining of their distribution systems.

(2) Structure to examine the integration
   The group of three companies will establish a joint team to examine the integration of their LPG operations and to discuss in detail the management vision, business strategy and type of integration, thus facilitating the integration.

(3) Future schedule
   The three companies plan to conclude a basic agreement in mid 2007 after deciding all details of the integration, including the locations of headquarters and branch offices, shareholder composition and representatives, as well as the new corporate name and amount of capital.