June 13, 2005

Conclusion of Merger Agreement between Nichiita Package Industries Co., Ltd. and Tokan Packaging System Co., Ltd.

Nippon Daishowa Paperboard Co., Ltd.
Nichiita Package Industries Co., Ltd.

We are pleased to announce that a merger agreement has been concluded today between Tokan Packaging System Co., Ltd., a subsidiary of Tokan Kogyo Co., Ltd., and Nichiita Package Industries Co., Ltd., a subsidiary of Nippon Daishowa Paperboard Co., Ltd. The merger follows the basic agreement concluded in November 2004.

Outline

1.Summary of the merger
 
(1)Method of merger:the two companies have merged on an equal basis. However, for the sake of processing, Tokan Packaging System Co., Ltd. shall be the surviving company and Nichiita Package Industries Co., Ltd. shall be dissolved.
(2)Trade name:Nippon Tokan Pakkeji Kabushiki Kaisha
The English name shall be NIPPON TOKAN PACKAGE CO., LTD.
(3)Address of the head office:1-3-1 Uchisaiwai-cho, Chiyoda-ku Tokyo
(4)Capital:700,000,000 yen
(5)

Ratios of stocks in possession after merger

:55% by Tokan Kogyo Co., Ltd.
45% by Nippon Daishowa Paperboard Co., Ltd.
(6)Directors:
Representative Director
 Toshiyuki Togashi(currently President and Representative Director of Tokan Packaging System Co., Ltd.)
Directors
 Masaaki Ohde(currently Managing Director of Tokan Packaging System Co., Ltd.)
 Tadaaki Mizushina(currently Senior Managing Director of Nichiita Package Industries Co., Ltd.)
 Yoshihiro Takeda(currently General Manager of Related Industries Department, Corporate Planning Division, Nippon Daishowa Paperboard Co., Ltd.; concurrently appointed an auditor of Nichiita Package Industries Co., Ltd.)
 Hideo Izawa(currently Director and General Manager of Folding Carton Sales Division, Tokan Packaging System Co., Ltd.)
 Shinichi Okuda(currently President and Representative Director of Tokan Kogyo Co., Ltd.; concurrently appointed Chairman and Director of Tokan Packaging System Co., Ltd.)
 Tetsuji Horikawa(currently President and Representative of Nippon Diashowa Paperboard, Co., Ltd.)
Auditors
 Soichi Matsuo(currently Auditor of Tokan Kogyo Co., Ltd.; concurrently appointed an Auditor of Tokan Packaging System Co., Ltd.)
 Tadashi Miyamoto(currently Auditor of Nichiita Package Industries Co., Ltd.)
 Hiroyuki Kobayashi(currently Auditor of Tokan Kogyo Co., Ltd.; concurrently appointed an Auditor of Tokan Packaging System Co., Ltd.)

2.Profile of the merging companies
 
(1)Sales:64 billion yen (simple total of the sales by the two companies)
(2)Number of employees:1,400
(3)Production:Nichiita Package Industries Co., Ltd.
 
 
MillsLocationSheet Production in 2004
(million ㎡)
Fukushima MillIwaki-shi, Fukushima21
Takahata OfficeTakahata-machi, Higashiokitama-gun, Yamagata*1
Ibaragi MillSowa-cho, Sarushima-gun, Ibaragi53
Chiba MillMatsudo-shi, Chiba46
Saitama MillSoka-shi, Saitama82
Shizuoka MillFuji-shi, Shizuoka35
Aichi MillAnjo-shi, Aichi35
Gifu MillMizuho-shi, Gifu26
Shiga MillKusatsu-shi, Shiga74
Kyoto MillKumiyama-cho, Kuse-gun, Kyoto25
Total 397

   Tokan Packaging System Co., Ltd.
   
 
MillsLocationSheet Production in 2004
(million ㎡)
Sendai MillTaiwa-cho, Kurokawa-gun, Miyagi62
Tochigi Sub-millKizuregawa-cho, Sakura-shi, Tochigi*1
Ibaragi MillGoka-machi, sarushima-gun, Ibaragi86
Yokohama MillYokohama-shi, Kanagawa40
Atsugi MillAyase-shi, Kanagawa25
Shizuoka MillDaito-cho, Kakegawa-shi, Shizuoka*2
Osaka MillSettsu-shi, Osaka57
Fukuoka MillShingu-cho, Kasuya-gun, Fukuoka46
Total 316
 
Total for the two companies713
Notes:*1: a can manufacturing mill
*2: a dedicated mill for multi-packages

3.Future schedules
 
(1)General Shareholders Meeting:June 22 (for both companies)
(Approval of the Merger Agreement)
(2)Date of merger:October 1