News Releases in 2006

July 14, 2006

Nippon Yusen Kaisha (NYK Line) recently entered into a long-term contract with Baoshan Iron & Steel Co. Ltd.*, China's largest steelmaker, for the transport of iron ore from Western Australia over a period of 12.5 years.

A signing ceremony, held at the NYK Head Office on July 6, was attended by Vice President Dai Zhi Hao of Baoshan Iron & Steel, and Representative Director and Senior Managing Corporate Officer Hiromitsu Kuramoto and Managing Corporate Officer Hidenori Hono of NYK.

The contract calls for transporting 1.7 million tons of iron ore per year from Western Australia to China for two and a half years from July 2006 to the end of 2008, and 2.3 million tons per year for 10 years from 2009. For this transport, NYK plans to deploy a bulk carrier currently in operation until the end of 2008 and a 230,000-ton bulk carrier, to be newly built, from 2009.

In 2003, NYK became the first Japanese shipping firm to conclude a long-term contract with Baoshan Iron & Steel for the transport of iron ore from Western Australia. Then in 2005, NYK entered into a long-term contract with the same Chinese steelmaker for the transport of iron ore from Brazil.

The latest contract has brought to three the number of NYK's transport contracts with Baoshan Iron & Steel, enabling NYK to boast one of the biggest share among shipping companies, which have concluded transport contracts with the Chinese steelmaker.

<Outline of the Contract>

Period	12.5 years
Starting date	July 2006
Contracted ship	one 230,000-ton bulk carrier (for 10 years from 200‚X)

Left: Representative Director and Senior Managing Corporate Officer Hiromitsu Kuramoto Right: Vice President Dai Zhi Hao of Baoshan Iron & Steel

*Baoshan Iron & Steel Co., Ltd.
China's leading steelmaker. The Baoshan Iron & Steel Group boasts the annual output of 22.72 million tons of crude steel (as of 2005).