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• Cautionary Statement

Basic Policy regarding Earnings Appropriation and Dividend

The Company places particular emphasis on shareholder return. Its basic policy is to maintain stable dividend payments by taking financial structural enhancement, future business development, business results and balanced fund positions into due consideration.

* In FY2006, we paid a dividend for the second half year at ¥7 per share consisting of an ordinary dividend of ¥5 and a bonus dividend of ¥2 to commemorate the 20th anniversary of the merger into the Cosmo Oil Group.