Tomen Corporation announced today that it has signed a joint venture agreement to establish a marketing and distribution company of surfing brand water sports apparel in Japan with O'Neill Inc., California, U.S.A., the worldwide manufacturer of wetsuits, snowboarding apparel and surf wear.

O'Neill Far East Corp., the new joint venture, will be capitalized at 150 million yen, 55 percent owned by Tomen and the remainder by O'Neill Inc. The joint venture starts its operation in September 2001 and offers a range of O'Neill brand surf-related apparel and accessories. Mr. Shuji Shoji from Tomen Corporation will direct the company as president.

Tomen became the master licensee in 1996 for the O'Neill brand in Japan. The products have been widely supported among water sport fans. The current retail sales volume is approximately 8 billion yen in Japan. The new joint venture will strengthen its global brand position by direct approach with the Japanese market, communicate more directly with dealers, focus brand direction and have a greater influence on Japanese product and distribution.

Tomen is actively developing its licensing business in Japan for leading North American brands. In 2000, Tomen displayed products of two other licensing brands, Woolrich and Unionbay, the well-known American outdoor casual wear brands at the International Fashion Fair (IFF) in Tokyo. Tomen continues to develop and expand its brand-license business.