News Releases in 2006

May 10, 2006

Nippon Yusen Kabushiki Kaisha (NYK; President: Koji Miyahara) and Yamato Holdings Co., Ltd. (Yamato HD; Chairman and CEO: Keiji Aritomi) have signed an agreement today to enter into a strategic alliance, including both business and capital partnerships between NYK and Yamato HD. Details of this agreement are as follows.

1. Purpose of the Alliance

With the globalization of logistics business for both corporate and individual customers, as well as changing competitive landscapes in sea, earth and air logistics business, NYK and Yamato HD has agreed to effectively combine domestic and overseas management resources owned and operated by each company as well as group companies, in order to provide more comprehensive and flexible strategic solutions to customers and to meet their increasing global and diversified logistics requirements.

2. Details of Strategic Alliance

[ 1 ]	Business NYK and Yamato HD will form business partnership in all the areas of sea, earth and air, through identification of the complementary strength and business areas, to benefit growth of both NYK and Yamato Group. Through this business partnership, initially, following three areas will be the target for business growth and developments. Integrated global logistics service for Japanese exports and imports B to B logistics service targeting Chinese market Management and leasing service of transport equipment using IC tags JV will be established as an operating platform for this business partnership with 2 billion yen of capital, invested by NYK and Yamato HD. JV will target sales of 17 billion yen and recurring profit of 1.5 billion in FY2009. Relevant parties will also start joint discussion regarding further collaboration of NYK Group's and Yamato Group's airfreight forwarding business, with the aim of expanding operation and customer base, and increasing its competitiveness.
[ 2 ]	Capital To strengthen the business partnership described above, NYK and Yamato HD have agreed to the following capital partnership, totaling investment of 10 billion yen each. (1) NYK Acquisition of shares of Yamato HD 6 billion yen Capital injection into a newly established JV 1 billion yen Acquisition of shares of Yamato Logistics Co., Ltd. 3 billion yen (2) Yamato HD Acquisition of shares of NYK 6 billion yen Capital injection into a newly established JV 1 billion yen Acquisition of shares of Yusen Air & Sea Services Co., Ltd. 2 billion yen Acquisition of shares of Nippon Cargo Airlines Co., Ltd. 1 billion yen

3. Next Steps

To expand the scope of this strategic alliance, NYK and Yamato HD have established a "Steering Committee" to examine possibilities of further expansion of business partnership to be built on each group's assets and know-how. The Steering Committee will study ways to maximize the potential of the announced business partnership, as well as consider further expansion of this business partnership in new areas.

Through this announced strategic alliance and the potential expansion of these partnerships, and by utilizing their overseas and domestic network, NYK Group and Yamato group will be able to achieve a leading position in the area of global logistics business and provide more comprehensive solutions to customers.