KOBE STEEL, MITSUI AND TOYOTA TSUSHO TO ESTABLISH ALUMINUM FORGING JOINT VENTURE AND PLANT IN BOWLING GREEN, KENTUCKY

Frankfort, KY – June 2, 2003 – Kobe Steel, Ltd., Mitsui & Co., Ltd. and Toyota Tsusho Corporation announced plans today to construct a plant in Bowling Green, Kentucky, to manufacture aluminum forgings used in automobile suspension systems. The three companies also established a joint venture in late May called Kobe Aluminum Automotive Products LLC to operate the business.

"Once again, the work ethic of the Kentucky worker proved to be a major factor in the decision to locate in Kentucky," stated Governor Paul E. Patton. "With our quality workforce and our central location, Kentucky has become the location of choice for many of the best companies in the world. The community of Bowling Green and the Cabinet for Economic Development have worked hand in hand on this project, including visits with Kobe executives on recent trips to Japan."

Through the joint venture, the three companies will be better able to meet the growing market for automotive aluminum forgings in North America. Kobe Steel has a 60% share in the new venture, Mitsui 25%, and Toyota Tsusho 15%. The company is capitalized at $14 million.

The joint venture will have a production facility and an office building totaling 108,000 square feet on 32.6 acres of land. The plant will have continuous casting equipment, 6,300-ton mechanical forging presses, and heat treatment equipment. Kobe Aluminum Automotive Products is expected to employ 78 people. Total investments are anticipated to reach $32.7 million.

Construction of the facilities is scheduled to begin in August and production is anticipated to start in June 2005. Annual sales are forecast to reach $25 million in 2006, the second year of operation.

Kobe Steel, which has a 90% share of the Japanese market for aluminum forgings for automotive suspensions, will be responsible for the manufacturing, quality assurance and business aspects of the joint venture. Utilizing their extensive experience and network, trading firms Mitsui and Toyota Tsusho will play an important role in marketing to the Big Three and Japanese transplants.

Fitted with more safety devices and options, cars have been growing heavier. At the same time, they need to be lighter to help meet environmental regulations. Automakers are using increasing amounts of lighter parts, one of which are aluminum forgings for suspension systems. Situating the new manufacturing facility in the United States is anticipated to stimulate new orders in the growing North American market.

Japanese automakers use domestically produced aluminum forged parts in suspensions, but have been increasing their global procurement of parts. In world cars, they are increasing their local sourcing of parts both in Japan and the United States. Following this shift, Kobe Steel, Mitsui and Toyota Tsusho concluded that a manufacturing base in North America would be essential to meet the growing demand for aluminum forged parts used by Japanese automotive transplants.

About Kobe Steel

Kobe Steel is one of Japan's leading steelmakers and producers of aluminum and copper products. Other businesses include welding consumables, infrastructure and plant engineering, machinery, and real estate. The company has head offices in Kobe and Tokyo, Japan.

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2002 totaled more than $3.2 billion with the creation of nearly 13,000 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at www.thinkkentucky.com.