February 20, 2003

SHI's entire shipbuilding and repair businesses will be transferred to this new company

Objectives for establishing the new company:
Plans to boost engineering capabilities at the new company and develop ships' designs that will differentiate the company from the competition will also assist in strengthening its position in the industry

Profile of the new company
(1) Name:
엠 카지노vy Industries Marine & Engineering Co

(2) Description of business:
demolition and repairing of ships and offshore structures

(3) Establishment (scheduled):
April 1, 2003

4) Location:
Head office: Kita-Shinagawa 5-9-11
Shipyard: Yokosuka Shipyard

(5) President
신지 니시무라

(6) Capital
2,000,000,000 yen

(7) Turnover
000 yen (forecast for fiscal 2003)

(8) Financial closing
March end

(9) Number of employees
Approx. 380

(10) Shareholder
엠 카지노vy Industries, Ltd.