Mar 22, 2004President & COO: Yutaka KOBAYASHI
(Code No. 4967 The First Section of TSE/OSE)
| Kobashou, a Kobayashi Group Company, Announces Partnership with Mitsubishi Corporation and Ryoshoku |
| Kobashou Co., Ltd., Kobayashi Pharmaceutical Group Company, Mitsubishi Corporation, and Ryoshoku Ltd. are pleased to announce that they have entered into a strategic marketing and distribution partnership. Mitsubishi Corp, the nation's largest trading house, and Ryoshoku, the largest food wholesaler, will contribute new product, management and logistical support to the new partnership, which will market and wholesale to Kobashou's national network of client drugstores, supermarkets and other retailers. Kobashou is the nations second largest OTC drug wholesaler. Specifically, Mitsubishi Corporation will send a representative to Kobashou's senior management team, to contribute Mitsubishi's corporate management and product development expertise. Next, Kobashou will deploy Ryoshoku's advanced wholesale systems. Finally, the partners will engage in marketing activities and wholesale new merchandise to Kobashou's customer pharmacy and drug stores network, while providing Kobashou with a broad scope of information on drugs and other health products. The three companies are committed to producing strong results from the partnership, and to consolidating their relationship in the future. Kobashou hopes to reinforce its marketing capabilities and to expand its wholesale capability through the partnership, and to achieve a comprehensive product lineup. Kobashou aspires to develop business nationwide, and rapidly achieve annual sales of 30 billion yen, with pre-eminent marketing capabilities, and a leading diversity and quality of product. Mitsubishi Corporation will have an opportunity to expand its operational model for distributing durable goods to pharmaceuticals and daily sundries, to improve in its efficiency of distributing durable goods, and to create new product segments in the process. In addition, Mitsubishi Corporation will build new relationships with pharmaceutical and health supplement manufacturers, and further expand its business base to include fine chemicals and other raw materials. Ryoshoku hopes to gain experience in the pharmaceutical field along with information on pharmaceuticals and health related products. Further, Ryoshoku hopes to adapt to deregulation in the pharmaceutical retail segment, and to capture trends in consumers' orientation toward health. About Kobashou Co., Ltd In April 2001, Kobayashi Pharmaceutical spun off an important business segment, and its wholesale division was reestablished as Kobashou Co., Ltd., with Kobasho Co., Ltd. and Kensho Co., Ltd., as subsidiary groups. Originally covering the Kanto, Kinki and Chugoku regions, Kobashou supplies OTC drugs, daily sundries and nutritional supplements food products to drugstores and other retailers. Sales are expanding to encompass all of Japan, and the company is now the second largest OTC drug wholesaler in Japan. Sales in 2003 were 131.7 billion yen, up 7.4%, and operating income was 256 million yen. About Mitsubishi Corporation Mitsubishi Corporation (TSE: 8058/US: MSBHY/UK: MBC) is one of the world's most diverse enterprises, and Japan's largest sogo shosha, or trading company, with annual sales of more than 13 trillion yen The company has decades of experience doing business around the world, experience that has made it more than just a leader in international trade. The company's extensive network and wide-ranging activities give it a decisive edge in gathering the timely, accurate market information vital to success. The company's seven business groups - New Business Initiative, IT & Electronics Business, Fuels, Metals, Machinery, Chemicals and Living Essentials - work closely with clients to develop new business opportunities. Project coordination, sourcing of raw materials, capital investments and development of sales channels are just a few of the ways Mitsubishi Corporation creates value for business partners, customers and shareholders. Mitsubishi Corporation recorded sales For further information, please visit the Mitsubishi Corporation home page at: www.mitsubishi.co.jp . About Ryoshoku, Ltd. Ryoshoku, Ltd. (TSE: 7451) is Japan's largest wholesaler of processed foods. Originally Mitsubishi Corp.'s marketing firm for canned marine foods, Ryoshoku launched the wholesaling of liquors in 1992 and has grown into a general food wholesaler. With annual sales of 1.08 trillion yen, the company is renown for its excellent distribution system with subdivided delivery systems nationwide. For further information, please visit the company's website at: www.ryoshoku.co.jp. |