Tomen Announces ¥10 Billion Capital Increase by Third Party Allotment To Toyota Motor Corp. and Toyota Tsusho Corp.

2003-05-30

Tomen Corporation (8003) announced today a resolution by the board of directors to increase its capital by 10 billion yen by issuing new shares through a thirdparty allotment in September 2003.

Tomen will allocate new shares each worth about 5 billion yen to Toyota Motor Corporation (7203) and Toyota Tsusho Corporation (8015), Tomen's largest shareholder (11.5%). After the completion of the capital increase in September 2003, Toyota Motor will possess 10.6% of Tomen shares and Toyota Tsusho will raise its equity to a 19.7% stake in Tomen. As the result, Tomen will become an affiliated company of Toyota Tsusho, under the equity-method. Toyota Group, including Toyota Motor and Toyota Tsusho,will hold about 35% of the equity in Tomen.

Tomen made this resolution as part of the full implementation of the "Tomen Group Medium-Term Management Plan," announced on December 27, 2002. The Medium-Term Management Plan, which began March 2003 (and ends March 2006), represents an interim phase during which Tomen will prepare for its integration with Toyota Tsusho in the coming year. Under the plan, Tomen will strengthen its business structure and its cost competitiveness by combining Toyota Group's managementstyle with Tomen's business expertise.

The board resolution took place on May30, 2003 and is outlined as follows:

Outline of its capital increase

(1)	Number of new shares to be issued: 172,412,000 ordinary shares
(2)	Issue price: 58 yen per share
(3)	Total issue amount: 9,999,896,000 yen
(4)	Amount to be included within capital: 29 yen per share
(5)	Total amount to be included within capital: 4,999,948,000 yen
(6)	Companies to allocate new shares: Toyota Tsusho Corporation: 86,206,000 shares Toyota Motor Corporation: 86,206,000 shares
(7)	Change in number of ordinary share issued: Number of ordinary shares issued before the capital increase: 637,649,645 shares Number of ordinary shares added: 172,412,000 shares Number of ordinary shares after the capital increase: 810,061,645 shares

Mr. Morihiko Tashiro, president of Tomen said, "These new share issues represent an additional step forward toward implementing our Medium-Term Management Plan and I appreciate the continued support of our partners."

Information on Tomen's Medium-Term Management Plan can be reviewed on our Investor Relations website. [Link]

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