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Progress of Tomen Group Medium-term Management Plan

2003-03-31

Tomen Group Medium-term Management Plan Progresses;
Tomen Completes Major Steps - Sales of Real Estate Subsidiaries,
Debt Forgiveness and Issuing of Preferred Stock;
METI's Approval for the Plan Completed

Tomen Corporation today announced progress in the "Tomen Group Medium-Term Management Plan," announced in December 2002.

Under the plan, which began this month (and ends March 2006), Tomen will strengthen its business structure and establish a solid management foundation, in order to remain competitive in the global market. The goal of management integration with Toyota Tsusho Corporation will be achieved in the coming years.

The progress made in March 2003 is as follows.

1. Sales of real estate subsidiaries
On March 27, 2003, Tomen sold TM Properties Co., Ltd., Tomen's wholly owned real estate subsidiary, to HD Real Estate Co., Ltd. At the same time, Tomen sold real estate of seven subsidiaries at market value to TM Properties.

The seven subsidiaries include Tomen Land Development Co., Ltd., Katsuta Golf Club Co., Ltd., TM Resort Co., Ltd., Karuizawa Development Co., Ltd., Tomen Real Estate Development Co., Ltd., Tomen Urban Development Co., Ltd. and Tokarosu Kosan Co., Ltd.

With these transactions, Tomen completed disposing of real estate as required under new business policies.

2. Debt forgiveness 110 billion yen
Under the "Tomen Group Medium-term Management Plan", Tomen received financial support of 110 billion yen in debt forgiveness from UFJ Bank Limited. UFJ Bank executed the necessary procedure for the debt forgiveness on March 31, 2003.

3. Preferred stock 72 billion yen
Tomen issued preferred stock totaling 72 billion yen to major financial institutions by a third-party allotment in March 2003 in order to reinforce Tomen's shareholders' equity. Tomen received the payment on March 28, 2003.The financial institutions include: UFJ Bank Limited, Sumitomo Mitsui Banking Corporation, the Bank of Tokyo-Mitsubishi, Ltd., the Chuo Mitsui Trust and Banking Co., Ltd, the Norinchukin Bank, Resona Bank and Mizuho Corporate Bank.

4. METI's approval for business restructuring plan for Special Measures for Industrial Revitalization On March 27, 2003, Tomen received approval from the Ministry of Economy, Trade and Industry (METI) for Tomen's business restructuring plan, filed in compliance with the Law on Special Measures for Industrial Revitalization. The positive decision by METI will speed up Tomen's business structure reform.

METI's approval validates Tomen's Medium-term Management Plan, providing additional support for the three-year restructuring plan. Because of METI's approval, Tomen also benefits from a reduction in registration license tax related to the plan.

Information on Tomen's Medium-term Management Plan can be reviewed on our Investor Relations website:

* Press Release
* Tomen Group Medium-term Management Plan
* Revised Consolidated Financial Statements

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