Sale of Investment Securities

December 14, 1999

This document is an English translation of a statement written initially in Japanese.
The Japanese original should be considered the primary version.

ITOCHU Corporation has sold 2,500,000 shares of the shares it holds of its subsidiary ITOCHU TECHNO-SCIENCE Corporation on the day of its listing on the first section of the Tokyo Stock Exchange.

1. Transaction Details

(1) Shares sold	2,500,000 shares of common stock of ITOCHU TECHNO-SCIENCE Corporation (following the sale, ITOCHU Corporation holds 12,410,000 shares, representing 60.5% of all shares outstanding)
(2) Book value of shares sold	¥100 million
(3) Total proceeds	¥52.25 billion
(4) Capital gain	¥52.15 billion
(5) Method of payment	Cash

2. Sales Method

Shares were sold on the stock exchange through an underwriting syndicate of securities companies.

3. Date of Sale

Shares were sold on Tuesday, December 14, 1999, the date on which the shares of ITOCHU TECHNO-SCIENCE Corporation were listed on the Tokyo Stock Exchange.

4. Reason for Delivery

The sale of the 2.5 million shares to the public was timed to coincide with the commencement of trading of ITOCHU TECHNO-SCIENCE Corporation shares on the Tokyo Stock Exchange.

5. Projected Results for ITOCHU Corporation in Fiscal Year 2000

(1) Non-consolidated
Gains from this sale will be used to offset extraordinary losses planned for Fiscal Year 2000 in accordance with the restructuring program announced by ITOCHU Corporation on October 13, 1999. Consequently, there are no revisions to the projections released on November 18, 1999.
(2) Consolidated
The initial public offering that ITOCHU TECHNO-SCIENCE Corporation conducted when its shares were listed increased the company's equity. This will be recorded as an additional profit at ITOCHU Corporation upon consolidation. Consequently, the projected consolidated net loss of ITOCHU Corporation for Fiscal Year 2000, ending March 31, 2000, as released on November 18, 1999, has been revised as follows.