Nippon Yusen Kabushiki Kaisha (NYK Line) is committed to strengthening environmental management globally throughout the company. Accomplishments include:

• Achieving ISO 14001 certification for environmental management systems at 76 NYK global sites.

• Becoming the first Japanese shipping company to be included in the World Economic Forum’s Global 100 Most Sustainable Corporations in the World list.

• Being selected for the Dow Jones Sustainability Index for the fifth year in a row.

• Investing $22 million in shoreside electric power technology, allowing 38 container vessels to virtually eliminate emissions by turning off auxiliary engines while at berth.

• Reducing ship emissions by testing or utilizing fuel pretreatment and additives, water emulsified fuel, electronically controlled engines, slide valves and developing and testing exhaust gas filters.

• Voluntarily burning low sulfur fuel oil in auxiliary engines at berth in southern California ports since March 2005, prior to state regulations.

• Reducing CO2 emissions per ton of cargo transported by 40 percent from FY 1990 through FY 2005.

• Joining the executive committee of the CO2 Diet Declaration, a three-year-old voluntary initiative to save energy and reduce CO2 emissions.

NYK became a founding member of the Coalition for Responsible Transportation (CRT) along with other retail and trucking industry partners. CRT is a grass roots effort by the private sector to introduce clean truck technology into the harbor drayage trucking industry at the Ports of Los Angeles and Long Beach. More information about CRT and how to participate in this vital initiative is available at www.responsibletrans.org, via email at info@responsibletrans.org or by calling 916-880-3008.

At the Port of Los Angeles, Yusen Terminals, Inc. (YTI), a wholly-owned NYK subsidiary, is also working to reduce emissions, including:

• Transitioning in 2004 to Ultra Low Sulfur Diesel Fuel for all terminal diesel equipment.

• Deploying two LNG yard tractors and making them available for comprehensive environmental and performance testing.

• Increasing the number of in and out gates to minimize truck idling.

• Testing electric pickup trucks.

• Retrofitting buildings with energy efficient technologies.

The Los Angeles City Council recently recognized YTI for their environmental leadership. At a ceremony in City Council Chambers, the company was presented a City of Los Angeles Resolution signed by Mayor Antonio Villaraigosa and all members of the City Council.

The Resolution commended YTI for their re-certification by the International Standards Organization for facilities/organizations that have implemented and maintained environmental management systems aimed at continued environmental improvement. YTI is the first container terminal at the Port of Los Angeles to have achieved this certification. Read the full press release.

NYK efforts to improve and protect water quality include:

• Developing and implementing a Bilge Treatment System that was adopted as an international guideline by the International Maritime Organization (IMO) in 2006.

• Participating with environmental research leaders in studies on marine water treatment systems and hull fouling.

• Conducting internal research and development of devices and management systems to eliminate harmful marine organisms from ballast water.

• Reducing the risk of water contamination from cargo spills and paint chemicals through the development, patenting and use of anticorrosive steel plates for cargo tank bottoms.

In partnership with Earthwatch Institute’s Japanese office, the NYK Nature Fellowship project sends NYK Group staff and students studying in Japan to overseas marine environmental research sites. Research projects have included:

• Studying marine mammals of Monterey Bay, California.

• Snorkeling for science in the Bahamian Reef Survey.

• Collecting data at sea to assist scientists in protecting dolphins in the Alboran Sea, Spain.

• Helping researchers track the habits of whales in Laguna San Ignacio, Mexico.

More information can be found in the Social Contribution Activities section of NYK’s website or the Corporate Social Responsibility Report 2006 available at www.nykline.com.