CORPORATE ANNOUNCEMENT

April 17, 2002

MOL Sets Goals for 2002 Environment Management System (MOL EMS21)

MOL today announced its goals for 2002 MOL Environment Management System (MOL EMS 21).

MOL issues the environmental report every year. The company introduced the MOL EMS21 environment management system following the publication of the MOL Group environmental policy statement in 2000 to renew its determination for more aggressive environmental programs.

Now, in a move to unite the company's accelerated environmental protection activities, MOL has reviewed its progress on 2001 goals of MOL EMS 21, and set new goals for 2002. MOL EMS 21 was designed as a practical system matching the company's operations, based on methods for continuing improvement set out in ISO14001 international standards.

Review of FY2001:

MOL introduced its exclusive environment management system MOL EMS21, targeting its ocean shipping business and covering about 500 MOL-operated vessels including chartered ships, as well as related office work in the company's headquarters. During the past year, the company has executed various measures to achieve its environment goals. Following are some of the major initiatives. The company will continue to work on areas that need improvement.

Results:

• MOL switched from tributyl tin (TBT) antifouling paint, which includes organic tin, to tin-free (TF) coatings on over 20 vessels. This is more than twice the initial goal of 10 vessels.
• The company switched 32% of its refrigerated containers from R-12 (CFC) refrigerant to R-134a (HFC), which has an ozone depletion potential (ODP) of zero. The initial goal was 30%.
• MOL executed a program to encourage the sorting of trash in the office to reduce burnable paper waste by 18%.
• MOL continued to make social contributions by volunteering its ships to participate in ocean research and observation of CO2 volumes in the air.

Areas That Need Improvement:

• Through February, the company's CO2 emission volumes per unit load from vessels increased by 1%, compared to the goal of a 1% reduction.
• Electricity consumption in the headquarters increased by about 3%, compared to the initial goal of a 1% reduction.

Goals for FY2002:

The company has set new goals for FY2002 based on its progress during the previous year. Following are some of the goals and the efforts MOL will make to achieve them.

• Antifouling paints: In advance of regulations, MOL will sandblast and recoat 25 vessels scheduled to be drydocked in 2002 with TF antifouling paint, replacing TFT coatings.
• Ballast water: The company will continue R&D on new technologies to prevent pollution from ballast water, and promptly share the results related to international rules with concerned parties.
• CO2 emissions from vessels: MOL will work to reduce CO2 emission volume per unit load by 2% over the next two years.
• NOx emissions from vessels: The company will work to reduce Nox emissions per unit load by 2% over the next two years.
• SOx emissions from vessels: The company will work to reduce SOx emissions per unit load as much as possible..
• Fluorocarbons: MOL will replace R-12 (CFC) refrigerants with R-134a (HFC) refrigerants in 35% of its refrigerated containers. The company will maximize the use of R-404a as a refrigerant in on-board refrigeration units and air conditioners of newly built vessels.
• Data collection methods: MOL will develop a ton-mile system which will be used instead of accumulated deadweight tonnage to calculate unit load.
• Paper-saving efforts: MOL will work to reduce paper use at the headquarters by 5% over the next three years.
• Energy conservation in the office: The company will work to reduce electricity consumption at its headquarters by 3% over the next three years.
• Office waste reduction: MOL will continue efforts to reduce the total volume of trash generated at its headquarters, and improve the recycling ratio of office paper.
• Green purchasing in the office The company will work to increase purchases of "green" stationery products to an average of 80% during FY2002, and encourage increased use of recycled paper products.
• Social contributions: MOL will continue to cooperate in oceanic research (XBT measurement, observation of aerosol density in the air, and observation of CO2 in the air and sea water). The company will continue to encourage employee participation in environment-related volunteer activities.
• Environmental education: MOL will improve its in-house environmental education program with seminars for staff and other informational activities.
• Promoting environmental activities to MOL Group companies: MOL will promote its environmental programs among Group companies in fields such as trucking, terminal operation, domestic shipping, and ferry operation.

For further information, please contact Mr. Akitoshi Miyoshi, Mitsui O.S.K. Lines, Ltd., Environment and technical Group, Tel: 03-3587-7063 Fax: 03-3587-7798, E-mail: redmo@mail.mol.co.jp