March 10, 2005

Business Alienation between Hitachi Zosen Tomioka Machinery Co., Ltd. and Kobayashi Engineering Works, Ltd.

Hitachi Zosen Tomioka Machinery Co., Ltd. has completely alienated its business to Kobayashi Engineering
Works, Ltd., which had been resolved in its extraordinary general meeting of stockholders held on March 10, 2005.
Therefore, from now on, Kobayashi Engineering Works, Ltd. will take over the after-sales service of paper
machine supplied by Hitachi Zosen Tomioka Machinery Co., Ltd., including design, manufacturing, installation
and maintenance.