Acceptance of Allocation of New Shares of the Daiei, Inc.

Mar. 7. 2005
Marubeni Corporation、Advantage Partners, Inc

Marubeni Corporation ("Marubeni") and Advantage Partners, Inc. ("AP") are pleased to announce that the two companies will accept a part of the private placement of new shares by the Daiei, Inc. ("Daiei"). The decision to accept part of the private placement follows a detailed and careful examination of the business revitalization plan of Daiei, which resulted in the judgment that the effectiveness of the plan and the potential for revitalization are extremely high and that the corporate value of the company will certainly increase through its revitalization.
It is planned that the amount of acceptance will be 43.4 billion yen for AP (in reality, the fund which AP is involved in and institutional investors) and 18.6 billion yen for Marubeni and that payment will be made in May 2005.

AP will contribute to the revitalization of Daiei by calling on its expertise as a pioneer in private equity investment in Japan, since AP established the first buy-out fund in Japan in 1997.
The investment of AP is characterized by its approach of emphasizing management improvement and support for the companies in which it invests, employing its considerable experience in management consulting. AP believes that it will able to improve the enterprise value of Daiei by promoting and supporting projects led by the company's senior management and employees and putting into practice a range of improvement measures.

Marubeni considers the support to the revitalization of Daiei as part of its food distribution strategy to "further strengthen the downstream food distribution business, which Marubeni considers as the strategic focus of investment, to further consolidate the value chain ranging from the upstream, where Marubeni has strength, to the downstream."
Marubeni will contribute to the revitalization of Daiei not simply through cooperation with the company in the supply and joint development of products meeting customer needs, but also by building alliances with major partners in diverse fields, including the invitation of quality tenants and the reconstruction of an effective distribution system and information system, using its strength as a general trading company. Marubeni firmly believes that these efforts will increase the enterprise value of Daiei and deliver a strong investment result.

Both AP and Marubeni take the responsibility of being selected as the business sponsor of Daiei seriously and will embark on the revitalization project with a solid commitment to succeed in resurrecting the company. The companies plan to demonstrate their capabilities and know-how to the fullest extent and reinvigorate Daiei to bolster the likelihood that the business revitalization plan will prove a success.

Top of Page