KLL News Release

Kazutoshi Hamada
President

Greetings of the fresh start of "K" LINE LOGISTICS, LTD.

KLAS("K" Line Air Service) Japan has taken a fresh step forward as a new company as from 1st July 2006. KLAS has merged a "K" Line group company in Japan called "K" Logistics Corp. as of 1st July and taking this opportunity KLAS has officially changed its name to "K" LINE LOGISTICS, LTD.

We are in a process of making a challenge toward enlargement of business scale, which is named 'Greater KLL' plan. One of the key factors for success of the Greater KLL is the reinforcement of its ocean cargo handling capabilities. "K" Logistics has been engaged in domestic marine logistics services, harbor transportation service and international sea cargo forwarding. About 100 sea cargo specialists have joined us and would contribute in strengthening our service menu in respect to ocean cargo handling.

We decided to change the company name taking the chance of this merger in order to make a fresh start under the new name and show publicly and internally our firm commitment to grow firm and big enough to play a core role in "K" Line group logistics business. You will see the newly set company logotypes which are the same type of letters on “K” Line's red marine containers. It means that we are expected to contribute in enhancing brand image of "K" Line and thus at the same time share the responsibilities as one of the "K" Line group companies more seriously than in the past.

"K" LINE LOGISTICS also offers Travel agents in Japan, Hong Kong and Thailand through its subsidiaries.

Your support and assistance to “K” LINE LOGISTICS having newly started will be highly appreciated.