Mitsui & Co., Ltd., Japan, has reached basic agreements with Siemens Transportation Systems (TS), Germany, on September 21, 2006 on the acquisition of the locomotive leasing company, Siemens Dispolok GmbH. Located in Munich and having 29 employees, Siemens Dispolok GmbH is a 100 percent subsidiary of Siemens TS. Currently, Dispolok leases approximately 100 locomotives in Germany, Austria and Italy and further central and eastern European countries. The transaction is subject to customary regulatory approvals and expected to take place until November 2006 (closing). Both parties agreed not to disclose the purchase price of the Siemens Dispolok GmbH. In addition, Mitsui & Co., Ltd. ordered 50 electric locomotives from Siemens TS, this order is worth about 160 million euros and the locomotives will be delivered during the coming 3 years.

Jörn F. Sens, Member of the Board of Siemens Transportation Systems, commented: “We are happy to have found a sustainable perspective for Dispolok. Mitsui and Dispolok complement one another perfectly, both in the business model and in geographical reach. By integrating the Dispolok business, Mitsui will be able to enhance its position in the European market considerably.”

Masanari Nagai, General Manager of Mitsui & Co., Ltd.’s Transportation Project Division said: “We are very excited to have Dispolok in our group. Mitsui’s fleet is now approximately 150 locomotives for 30 customers in 9 countries. Dispolok’s excellent track record, especially in its full service undertaking, fits our strategy. Through a wider geographical coverage and range of products and reinforced services, we will maximize benefits for our customers” 

The order for Siemens to deliver 50 electric locomotives calls for multi-system locomotives. Those 4-axle units are based on the Eurosprinter platform developed by Siemens. The 6400-kW locomotives, manufactured at Siemens' plant in Munich, are to be used in the rail freight sector.

Mitsui first entered the advanced U.S. leasing market in 1996 and has built up its operation and management expertise in the leasing and maintenance of freight cars for over a decade. Leveraging this experience Mitsui has expanded its locomotive leasing business mainly in western European countries, such as Germany, the Netherlands, Belgium and France, with 50 locomotives held through its subsidiary Mitsui Rail Capital Europe B.V. (MRCE), which was established in October 2004. Following the acquisition, Mitsui will lease 150 locomotives through MRCE and Dispolok, establishing an operating base which covers the whole European continent. Furthermore, based on the experience and know-how acquired through its leasing business, Mitsui, together with partners, is also aiming to diversify its activities into logistics and freight transportation services using railways in this region.

About Mitsui:
Mitsui & Co., Ltd. is a leading general trading company headquartered in Japan. It has 13 business units which cover a wide variety of fields, and over 40,000 employees in 170 offices (18 in Japan, 152 abroad).  Mitsui’s main businesses include sales, manufacturing, export/import, and international trade and services in the following fields: metal products & minerals, machinery, chemicals, energy, consumer products & services, financial markets and logistics & transportation.  Mitsui is also engaged in diversifying development of natural resources, making commercial investments, developing technologies in new business fields and much more.  Further details can be found at http://www.mitsui.co.jp/en/index.html.

The Transportation Projects Div. of Mitsui & Co., Ltd. has been acting as a contractor and a service provider for various railway projects and international railway products trading all over the world.  It is also active in rolling stock leasing business and has extensive operations in the U.S., Europe and Brazil.  With its advanced information, financial & logistics expertise backed by Mitsui’s global network, the Transportation Project Div. is committed to ensuring the successful completion of railway projects and offering suitable railway products to all of our customers.