Both companies shall share information concerning trends in the growing global automotive market, and contribute to their mutual business expansion and stable management.

When entering new markets and establishing new operating bases, Nagase and Kasai Kogyo shall cooperate broadly on information sharing. In principle, Nagase shall provide market information and purchasing information; Kasai Kogyo shall provide technological and manufacturing information. Both companies shall jointly implement a feasibility study as required.

Nagase shall provide information from its overseas network in order to facilitate global optimal purchasing (quality and cost) by Kasai Kogyo, and both partners shall jointly engage in optimal purchasing as required.

Nagase has been the largest shareholder of Kasai Kogyo since the fiscal year ending March 2002, but it shall acquire an additional 2,034,000 shares of Kasai Kogyo. As a result, the number of shares Nagase possesses in Kasai Kogyo shall rise from 4,270,961 to 6,304,961, while the ratio of voting rights held by Nagase shall rise from 11.75% to 17.34%*.

*The total number of Shareholders' voting rights was 36,345 as of March 31, 2005.

Business name:

Nagase & Co., Ltd.

Kasai Kogyo Co., Ltd.

Main business:

Export, import and domestic sale of chemicals, synthetic resins, electronic materials, etc.

Manufacture and sale of automotive interior parts, etc.

Establishment:

December 9, 1920

October 26, 1946

Head Office:

1-1-17 Shinmachi, Nishi-ku, Osaka

3316 Miyayama, Samukawa-machi, Koza-gun, Kanagawa

Representative:

Hiroshi Nagase, President

Zenzo Fujita, President

Capital:

9,699,000,000 yen

5,821,000,000 yen

Number of Employees:

862

1,020