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Last Year’s Production Volume of Canned Seafood Declined 4% to 113,000 Tons

June 23, 2008

The Japan Canners Association released last year’s production volume on
June 19, 2008. The total amount of canned goods production, excluding
beverages, was 276,691 tons (content only), 2.5% lower than the previous year.
Bottled products totaled 72,534 tons with a loss of 4.1%. On the contrary, pouchpacked
food amounted to 309,369 tons with an increase of 2.3%. Low-priced
curry items became hot commodities with production amounts hitting record
numbers in this division. Pet food products faced stagnation with total volume of
11,265 tons, 5.3% lower than last year.

The production volume of canned seafood dropped by 3.7% to113,367
tons. Canned bonito grew by 11.2% to total 12,070 tons; canned tuna on the
other hand made a drastic decrease of 16.4%, amounting to 35,600 tons. Decline
in the total amount of canned tuna and bonito as leading products impacted the
overall total production volume; the total volume of canned tuna and bonito was
47,670 tons with an 11% drop.

As for other canned seafood, crab increased by 5.7% to 2,560 tons and
salmon remained about the same as the last year with 3,790 tons. Mackerel went
up by 13.5% to total 27,840 tons; sardine substantially dropped by 13.1% to
8,090 tons. Saury slightly declined.

Translated by Kiyo Hayasaka on June 22, 2008

Dairei Announces Total Sales of 26.3 Billion Yen:“Boneless Fish” Sales Growth of 13%

June 23, 2008

Measures to integrate products and strengthen domestic productivity

Osamu Saito, President of Dairei, announced the account settlement for
the business year ending in March (the 37th term) on June 20, 2008. The
popularity of the company’s flagship product “Boneless Fish” was a main reason
for total sales of 26.332 billion, remaining relatively unchanged from the previous
year, with just a sight decrease of 0.1%. Soaring costs of raw materials and fuel
caused an 8.5% decrease in operating profit, amounting to 698 million yen, and a
10.2% decline in ordinary profit, totaling 672 million yen.

After filing taxes, the company secured a profit of 319 million yen. Clearing
cumulative loss, the company finally reached resumption of its dividends.

Dairei’s signature product “Boneless Fish” enjoyed total sales of 7.9 billion
yen with growth of 12.8%, higher than the originally planned amount of 7.7 billion
yen with an increase of 10%. However, decline in sales of other items caused a
slump in total sales; fried seafood products decreased 4%; prepared food
products declined 2%; surimi products dropped 4%; and frozen vegetable
products were down 6%.

Considering accomplishment of financial turnaround and its resumption of
dividends, “this should be the normal state; based on the accomplishments of the
previous year we are determined to better our business performances,” said
Pres. Saito.

The company has planned its total sales of 27.3 billion yen with an
increase of 1 billion yen, up 3.8% for this business term (the 38th term). As for its
signature product “Boneless Fish,” the company is aiming to reach total sales of
8.5 billion yen with an increase of 600 million yen, 7.6% higher than the previous
year. Taking higher prices of raw materials and fuel into consideration, the
company is hoping to secure the same amount of a total profit as the year before.

With the aim of constitutional improvement, the company will reduce the
number of items from 1,800 to 1,200. Successful establishment of the traceability
information system for “Boneless Fish” will be extended to frozen agricultural

Goals of this term are the strengthening of subsidiary Dairei Foods;
enhancement of the backbone of the information system for the next term;
reinforcement of internal controls; the handling of elimination of price schedules;
the strengthening of inventory management systems of headquarter; the
strengthening of relations with partner plants; revision of product standards; and
the increase of new accounts.

Translated by Kiyo Hayasaka on June 22, 2008

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