IINO KAIUN KAISHA

IR News ( IR )

Notice of Disposal of Treasury Stock

Oct. 23, 2003

Dear Sirs,

Company name:	Iino Kaiun Kaisha, Ltd.
Head office:	2-1-1 Uchisaiwai-cho, Chiyoda-ku, Tokyo
Security code number: 9119
Shares listed on:	First Section of the Tokyo,Osaka and Nagoya Stock Exchanges; Fukuoka and Sapporo Stock Exchanges
Contact:	Yoshihiko Nakagami, Head of General Affairs and Planning Group Telephone: 81-3-3506-3029

Notice of Disposal of Treasury Stock

In a meeting held on October 23, 2003, the board of directors of Iino Kaiun Kaisha, Ltd. has passed a resolution approving the disposal of treasury stock held by the Company in accordance with the following details:

Notice

1.Reason for the disposal (use of funds)
Disposal of treasury stock is made to facilitate the enhancement of relationships with our customers. Proceeds from the sale of treasury stock will be used as working capital.

2.Details of the treasury stock sold

(1)Type of shares: Shares of common stock of Iino Kaiun Kaisha, Ltd.

(2)Total number of shares sold: 2,250,000 shares

(3)Price: 298 yen per share *

* Average of the closing prices of the Company's common stock on the Tokyo Stock Exchange between September 22, 2003 and October 22, 2003. Fractions less than1 yen shall be rounded down to the nearest yen.

(4)Counterparty: Sold to Mitsui & Co. Ltd.

3.Schedule of disposal

(1)Time schedule

October 24, 2003 (Friday): Public announcement of resolution of the Board of Directors concerning the disposal of treasury stock

November 8, 2003 (Saturday): Payment date

(2)Number of treasury stock held by the Company after the disposal: 2,250,000 shares *

* Excludes shares purchased from existing shareholders based on their
request regarding odd-lot shares held by them.

4.Information regarding the counterparty

Company name		Mitsui & Co., Ltd.
Head Office		1-2-1 Ohtemachi, Chiyoda-ku, Tokyo
Representative		Shoei Utsuda, President and CEO
Paid-in capital		192,487 million yen(as of March 31, 2003) *(1)
Total number of issued and outstanding shares		1,583,674 thousand shares (as of March 31, 2003) *(1)
Principal shareholders and percentage of their voting rights (as of March 31, 2003) *(1)		The Master Trust Bank of Japan, Ltd. 8.17%
		Japan Trustee Services Bank, Ltd. 7.58%
		The Chuo Mitsui Trust and Banking Co., Ltd. 3.93%
		Mitsui Mutual Life Insurance, Co. 3.67%
		Sumitomo Mitsui Banking Corporation 3.66%
Lines of business		Domestic sales, export/import, and third country trade of diversified products, including metals, machinery, information, chemicals, energy and consumer goods as well as offering of various services.
Summary of operating results and financial conditions *(1)		FY ended March 2002 (consolidated) (million yen)	FY ended March 2003 (consolidated) (million yen)
	Net sales	12,634,686	13,236,683
	Operating income	79,345	97,706
	Net profit	55,371	31,138
	Total assets	6,668,366	6,540,520
	Total shareholders' equity	914,970	862,147
Relationship with the Company	Investment	Number of shares of the counterparty held by the Company	None (as of October 22, 2003)
		Number of shares of the Company held by the counterparty	195 million shares (as of October 22, 2003)
	Business relationship		The Company has existing commercial relationship with the counterparty.

(1)Fractions less than the minimum unit shown above are rounded off.

(2)The amounts stated in the table are taken from the financial statements that are based on US GAAP.

(3)Net sales and operating income are based on Japanese accounting practice