News Releases in 2006

June 16, 2006

Nippon Yusen Kaisha (NYK), in cooperation with IBM Japan Ltd., has developed and introduced a new accounting system to replace its previous system, which had been used for the previous seven years. The new system has been given the name SAKURA. SAKURA uses the Enterprise Resource Planning (ERP) package1^* supplied by SAP AG2^* of Germany.

NYK's previous accounting system included proprietary management systems, all developed and operated independently, for the settlement of chartered ship fees, fuel inventory, and fixed assets. The integration of these systems into SAKURA reduces time and cost, resources that used to be required for the development, upgrading, and maintenance of individual systems. Additionally, SAKURA can process a higher volume of information and has stronger security.

The previous system also required multiple servers; the new system integrates all servers into one. As a result, the highly efficient operations of the new server are now achieved in parallel.

This significant upgrade of the accounting system is part of the company's strategy for the enhancement of its corporate fundamentals, a management strategy specified in the NYK Group medium-term management plan, "New Horizon 2007." In March 2005, NYK announced the plan, in which the following management strategies are detailed: 1) expansion of maritime business; 2) evolution towards a logistics integrator; and 3) enhancement of corporate fundamentals.

^*1. ERP package
ERP stands for Enterprise Resource Planning. The package software consolidates multiple operations into one system for uniform management.

^*2. SAP AG
SAP AG is the leading software maker in the ERP market and a solutions vender that supplies diverse services centered on the company's own software. Established in 1972 in Walldorf, Germany, SAP AG has grown into a global corporate group consisting of subsidiaries and affiliates in over 50 countries and employing more than 21,000 people worldwide.