Toyota Tsusho's automotive services have been warmly supported by African nations for many years. We also want to contribute to the development of African nations through our wider range of businesses.

Now we are studying and listing up possible projects in various fields and will start a concrete examination of them. The captioned oil pipeline construction project which is described on the article of some media would be a kind of our future contributions. However, it would be necessary to discuss with related parties to start a concrete examination, and any detailed points have yet to be determined

  Toyota Tsusho established the new company, CJ Toyota Tsusho Philippines Inc. (hereinafter referred to as "CJTPI"), in the Province of Davao del Sur of the Philippines in September of 2009. The ground breaking ceremony for the new manufacturing plant is to take place on February 26, 2010.

  Xylose is a low calorie functional sweetener found in nature. This substance is used as a raw material for xylitol, which primarily consists of sugar alcohol. The establishment of the new joint venture company will enable Toyota Tsusho to promote the cultivation of overseas markets in the food industry by utilizing their global network, taking advantage of the technical capabilities, along with the research and development abilities of CJ, as well as through the establishment of the strategic partnership culminating from an amalgamation of the brand powers and sales networks of both companies.

  In order to expand the business, Binggrae Co., Ltd. (hereinafter referred to as "Binggrae"), another Korean company and a principal dairy product manufacturer in Korea, as well as Anflo Management & Investement Corp., (hereinafter referred to as "Anflocor"), a principal conglomerate located in Davao City of the Philippines, were also invited to join the business venture as partners.

  The market for "xylitol", which uses xylose as an ingredient, is currently 60,000 tons globally, with Europe utilizing 30,000 tons and Asia utilizing 27,000 tons. Growth in the Asian region is expected in the future, with chewing gum and oral care product markets increasing. The development for new applications of xylitol is also being explored, which will only increase the demand for xylose, the raw material.

  The new company has been established with a total investment amount of about JPY4.2 billion and it is expected to produce about 15,000 tons of xylose each year. Operations are expected to start within this year. Efforts will be made in the future to draw on the trading functions nurtured over the years and to utilize such competitively advantageous functions as "technologies and manufacturing", as well as the "branding" and "sales" capabilities of strong partners, to establish as the operating body of the business venture a global value chain for the stable procurement of food.

  Toyota Tsusho had been considering entering into the e-commerce business, for use as a new sales channel to establish a comprehensive value chain spanning the entire length of consumer industry materials, from upstream to downstream.

  M-UP's objective, to expand its e-commerce business, coincided with that of Toyota Tsusho, which resulted in the acquisition of outstanding shares from the existing shareholders.

  M-UP was founded in 2004, and is engaged primarily in content distribution and e-commerce. For content distribution, M-UP is currently handling the fan sites of famous artists, such as GLAY, EXILE, and Shun Oguri, as well as official sites for the distribution of ring tones and decorated mail content. In terms of e-commerce, M-UP operates apparel retail sites, such as ROYALROC and DRESSCAMP, that target niche markets.

  Toyota Tsusho and M-UP will be promoting collaborative business activity in the field of e-commerce in the future. Specifically, the capacity of M-UP to draw in prospective customers and to operate sites will be effectively used to propose that Toyota Tsusho affiliates and clients enter into e-commerce. Furthermore, commercial materials that were not available to M-UP in the past will be made available by Toyota Tsusho in the future.

[Summary of M-UP]

Trade name:	M-UP
Representative officer:	Koichiro Bito
Establishment date:	December 2004
Location:	2-12-19, Shibuya, Shibuya-ku, Tokyo
Capital:	JPY143 million
Controlling shares:	Koichiro Bito, 21.9%;
	Toyota Tsusho Corporation, 18.0%;
	JAFCO Co., Ltd., 17.9%; etc.

Company name:	Premier Grain Sdn Bhd
Capital:	RM20 million (approximately JPY500 million)
Capital structure:	Malayan Flour Mills Bhd - 51%
	Toyota Tsusho Corporation (Japan) - 25%
	Toyota Tsusho Corporation (Singapore) Pte., Ltd. - 24%
Main business lines:	Import and sale of raw materials for animal feed
Establishment date:	April 2010 (planned)

Company name:	Malayan Flour Mills Bhd, established 1961
Location:	Kuala Lumpur, Malaysia
Representative officer:	Teh Wee Chye, President
Business operations:	Flour milling (ranked second in Malaysia and first in Vietnam);
	animal feed mixture (ranked third in Malaysia);
	stock farming and meat processing.

It should be noted that there will be no change in their percent equity interests (TEPCO: 60%; Toyota Tsusho: 40%) in Eurus Energy due to the capital increase and the existing shareholders will acquire new shares according to their respective percent equity interests.

  In collaboration with Japan Oil, Gas, Minerals and Energy Corporation ("JOGMEC"), TTC has investigated the potential of rare metal resources including lithium all over the world in order to secure a stable supply of lithium, since the demand for lithium will greatly increase in line with the widespread use of hybrid electric cars in the future.

  As a result of the investigation, TTC concluded that Salar de Olaroz, located in the Puna area in northwestern Argentina, is a very promising asset because of the high lithium and low magnesium content in the brine, and the locations' excellent infrastructure, with paved roads and access to a gas pipeline. TTC decided to start the feasibility study jointly with Orocobre Ltd., which has a mining interest in Salar de Olaroz.

  It is scheduled to establish a Joint Venture based on the result of the feasibility study and to start production in 2012. This Joint Venture is aiming to produce 15,000tons of lithium carbonate and 36,000tons of potassium chloride in 2014.

  TTC is planning to cover the total lithium supply chain and this project is the first step in the upstream process as a resource development.

Background Regarding Commercial and Capital Agreement

First Baking is a manufacturer and distributor of various breads, Japanese confectionaries, Western confectionaries, and cookies, among other bakery-related products. Under the corporate slogan of  "A Wholehearted Focus on Great Taste", First Baking has worked to bring high-quality and safe products onto the Japanese market.

Toyota Tsusho has been working to establish a balanced profit structure with the goal to achieve a 50:50 revenue ratio between auto and non-auto related business activities by 2015. Within the non-auto-related business areas, Toyota Tsusho has specifically highlighted the food industry as a key growth sector and has worked to expand this area in recent years.

Up to now, both companies have been developing a cooperative relationship with one another through the buying and selling of major raw materials.

Reasons for Strengthening Commercial and Capital Agreement

Strengthening the commercial and capital agreement between the two companies will lead to Toyota Tsusho providing know-how to First Baking in the areas of production management and logistics improvements. In addition, it will ensure the stable supply of raw materials to First Baking on a go-forward basis. At the same time, First Baking will provide support to Toyota Tsusho in the areas of bread-making technologies, and by doing so will contribute towards the expansion of Toyota Tsusho's overseas operations.

Further, the two companies are to work in cooperation with each other to ensure a bright future for both companies. Specifically, they will discuss methods to strengthen cost competitiveness through the efficient use of management resources, deepen personnel ties, and ultimately increase corporate value.

Future Outlook

The future will see Toyota Tsusho and First Baking work to apply their various levels of know-how and strengthen its cooperative relationship. For example, Toyota Tsusho will bring its know-how in areas such as global network management, production management and logistics improvements, among other areas to the relationship, while First Baking will bring its know-how in areas such as planning, manufacturing, and retail and wholesale sales of various food products. The ultimate vision of this enhanced relationship is to further develop the food business areas of both companies.

Background of New Business Undertaking

In addition to its core business of auto-industry related activities, Toyota Tsusho has set forth a strategy to expand its non-auto-industry related activities, specifically in the field of consumer goods. The goal is of this move is to establish a more balanced profit structure by achieving a 50:50 revenue ratio between auto and non-auto related business activities by 2015. With this new focus on the consumer goods industry, Toyota Tsusho is specifically looking at establishing a comprehensive value-chain that encompasses all upstream and downstream functions in the textile goods sector. This will involve aggressive investments into the retail/brand businesses, with the overall goal to expand this area of business.

Details of New Business Undertaking

This agreement will result in the establishment of a partnership with IPGI with the objective to develop the Japanese market for "Miss Sixty" and "Energie"; two well-known jean fashion brands from Italy. Further, this will mark a significant expansion of Toyota Tsusho's involvement in the textile goods sector.

Future Developments

The addition of IPGI's extensive experience in retail operations to Toyota Tsusho's global network and wealth of know-how in areas such as logistics is expected to result in the creation of a new business function for both companies. By doing so, Toyota Tsusho is aiming to expand its apparel brand business in this ever-changing operating environment.

Toyota Tsusho looks forward to your continued support and guidance as it endeavors into this and other new areas of business.

The block is one of the major supply sources for the Queensland Curtis LNG project being implemented by BG Group in Gladstone, Queensland for coal bed methane, a raw material in the production of liquefied natural gas (LNG). The project is expected to begin production of LNG in 2014. TTC will cooperate with the BG Group in development of the ATP651 block to meet production schedule requirements.

The current acquisition is in addition to TTC's earlier participation in exploration permits for offshore Western Australia.  It is TTC's intention to actively expand its involvement in upstream gas projects in Australia, an important source of abundant natural gas, aimed at eventually establishing an upstream-to-downstream gas supply chain.

Participants' share:

Before TTC's acquisition  After TTC's acquisition
QGC Ltd  68% QGC Ltd                 68%
BG International Ltd 17% BG International Ltd  17%
AJ Lucas Group Ltd 15% TTC                 15%

*Both QGC Ltd and BG International Ltd are wholly owned subsidiaries of BG Group