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JT and Nissin Food to jointly purchase Katokichi

November 20, 2007

Japan Tobacco Inc and Nissin Food Products jointly plan to purchase Katokichi. JT will buy Katokichi`s shares through takeover bid and then sell 49% of the shares to Nissin Foods.

With less consumption of tobacco in Japan, Japan Tobacco hopes to consolidate its food business as its second profit-making source, while Nissin Foods wants to focus more value-added food products as a new business pillar.

The deal will be completed by the end of the month.

Katokichi and its seafood subsidiary Katokichi Suisan engaged in illegal round-tripping scheme to inflate earnings and reported the results of the investigation to the Tokyo Stock Exchange in April. The company`s business performance has been lackluster since the revelation of the circular trading.

The three companies said in their respective statements that no decisions have been finalized on the reported buyout.

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