ITOCHU's Activities U.S. Gulf of Mexico iShallow Waterj CIECO Energy (US) Limited (gThe Subsidiaryh), a wholly-owned subsidiary of ITOCHU Corporation incorporated in the State of Delaware, acquired exploration leasehold interests in Texas State Waters in the Gulf of Mexico in January 2007. The Subsidiary, together with other partners, including IPR USA Corp as operator of the leases, has commenced exploration activity targeted for deep gas pools. Later in the year, the Subsidiary successfully concluded a contract with Range Resources Corporation, an independent U.S. oil and gas resource development firm, to acquire all of the shares of its two subsidiary companies. This acquisition closed on March 30, 2007 with an effective date of January 1, 2007. With this transaction, the Subsidiary now owns, through the acquired companies, lease interests in 15 producing fields in the offshore Gulf of Mexico region within U.S. territory, the largest of which is West Delta Block 30 (net working interest of 49%, Operator: Exxon Mobil Production Company). The current net production volume from these fields is approximately 2,300 barrels of oil equivalent per day. We are striving to increase this volume with further development of undeveloped prospects identified within the acquired fields. ITOCHU expects further growth in the Gulf of Mexico region, with these new producing field leases as the basis for an expansion of our exploration and development activities in the U.S. . Also, in cooperation with a U.S. gas marketing company, which ITOCHU acquired last year, ITOCHU intends to make inroads into the gas value-chain within the U.S. natural gas market.