Starting to do business for two containership services on its own by our subsidiary in Singapore

"K" Line Pte Ltd (hereinafter called KLPL) in Singapore, a 100% invested subsidiary of Kawasaki Kisen Kaisha, Ltd. (hereinafter called "K" LINE) specializing in marine transportation, will start to do business on its own for two containership services, one is the service between Singapore and West Australia, the other is the service between Singapore and East & South Australia effective January 1, 2002.

Those two services are currently operated by KLPL (as to Singapore/West Australia) and by "K" Line (Australia) Pty. Ltd. based in Sydney (as to Singapore/East & South Australia) respectively on behalf of "K" LINE under operation management agreement.

We are going towards making management more efficient by making both services entirely transferred to KLPL and by making the base operation of both services unified. Also, since Singapore is not only characterized as an important port but also as the starting point for both services, we are preparing our system which will enable us to respond to the market changes more quickly.

In pursuit of globalization of management, a top-priority assignment of the 5-year Management plan, New "K" LINE Spirit for 21（New K-21, April 1998 through March 2003), KLPL was established to perform the marine transportation business in Singapore. KLPL started its business from this August 1st and is currently handling operation business for some Containership Service, Car Carrier Service, Tramp Service and Tanker Service under operation management agreements. By taking over the entire business of two Container Services, KLPL will start to do marine transportation business on its own which was envisioned by the foundation of KLPL.