Sale of Investment Securities

December 21, 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 and its subsidiaries have sold some of its shares in ITOCHU TECHNO-SCIENCE Corporation.

1. Transaction Details

(1) Type

Common stock of ITOCHU TECHNO-SCIENCE Corporation

(2) Description of shares sold

(¥ Billion)
Sold by	No. of Shares	Book Value	Proceeds	Capital Gain
ITOCHU Corp.	100,400	-	5.58	5.58
Nine ITOCHU subsidiaries	670,000	0.42	37.25	36.82

Note: Figures for shares sold by the nine subsidiaries are shown irrespective of ITOCHU's ownership of these subsidiaries.

(3) Method of payment

Cash

2. Sales Method

Shares were sold on the market.

3. Date of Delivery

Monday, December 20, 1999

4. Projected Results for ITOCHU Corporation

(1) Non-consolidated

Despite the gain from this sale, ITOCHU Corporation is making no revision to its non-consolidated results due to plans to continue the restructuring of affiliated companies together with the uncertain outlook on the appreciation of the yen and the situation in Asia.

(2) Consolidated

ITOCHU Corporation estimates the after-tax gain from the sale of these shares, based on its ownership of ITOCHU TECHNO-SCIENCE Corporation, to be approximately ¥15 billion. This gain will have a positive effect on consolidated net income, however, the extent of this effect has not been established. This is due to its partial inclusion in the estimated net income at individual subsidiaries and the prospect of appropriating to new investments and possibly to improve the financial position such as in complying to new accounting standards. Therefore, any revision to the current projection will be made if necessary when an estimate becomes available.

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