September 16, 2005		Cosmo Oil Co., Ltd.		Public Relations Office

News Concerning the Determination of Number of Issuing Shares Through Third-Party Allocation

Cosmo Oil, Co. Ltd, (Head Office: Shibaura, Minato-ku, Tokyo; President: Yaichi Kimura) informs readers that the allottee of the issuance of new shares through third-party allocation has informed the Company of the subscription of the entirety of the new shares to be issued. The number of issuing shares and others are described below. This issuance was resolved, along with the issuance through public offering (general offering), over allotment secondary offering (green shoe option), and the issuance of the 4th unsecured convertible bond type warrant bond, at the meeting of the Cosmo's board of directors held on August 30.

(1) Number of issuing shares:	3,000,000 shares (Number of issuing shares scheduled: 3,000,000 shares)
(2) Total issue price:	¥1,571,040,000 (¥523.68 per share)
(3) Total amount of capitalization:	¥786,000,000 (¥262 per share)
(4) Subscription date:	September 27, 2005
(5) Payment date:	September 27, 2005

<For Reference>

1. As for the details of the issuance of new shares through third-party allocation, please refer to our press releases, News Concerning the Issuance and Offering of New Shares and the 4th Unsecured Convertible Bond Type Warrant Bond dated August 30, 2005, and News Concerning the Decided Offering Price for Issuance and Offering of New Shares and Terms of Issue of 4th Unsecured Convertible Bond Type Warrant Bond dated September 6, 2005.

2. Change of number of outstanding shares issued due to this capital increase

The number of outstanding shares issued as of the date of publication:	668,705,087 shares
The number of increase in shares due to this capital increase:	3,000,000 shares
The number of outstanding shares issued after the capital increase:	671,705,087 shares

3. Financing purpose

The proceeds from this third party allocation of new shares, public offering and issuance of the 4th unsecured CB type warrant bond of approximately ¥38,757.2 million will be invested in various projects. Investments will include the following: 1) ¥19,694 million will be spent in capital investment in refineries, 2) ¥4,063.2 million is going to be allocated to investment and loans to subsidiaries (for their equipment funds concerning construction of production facilities and development of oil exploration by CM Aroma Co., Ltd. and Qatar Petroleum Development Co., Ltd. (Japan)), and 3) ¥15,000 million will be invested in self-service style-service station facilities (totaling to ¥15,000 million), as a part of a strategic investment in the New Consolidated Medium-Term Management Plan for the period from FY2005 to FY2007.