ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has executed a letter of intent for the establishment of a joint venture to engage in the medical and health-related businesses with CITIC Medical & Health Group Co., Ltd. (headquartered in China; Pu Jian, Chairman; hereinafter “CITIC Medical”).

CITIC Medical was founded as a wholly owned subsidiary of CITIC Group Corporation (headquartered in China; Chang Zhenming, Chairman; hereinafter “CITIC”) and is actively involved in investment in and the management of the health-related industry including medical services/medicines, medical devices, administration of hospital facilities, health care, services for the elderly and rehabilitation.

ITOCHU and CITIC Medical will jointly conduct a feasibility study for the establishment of a joint venture to invest in the administration/management of hospitals and the medical and health-related businesses. In addition, the companies have also agreed to consider the rationalization of management through the consolidation of the businesses around hospitals and the introduction of advanced medical technologies from Japan through the joint venture, by effectively using the resources of both companies.

In China, the aging of society and the increase in the number of patients suffering from lifestyle-related diseases along with improved income levels, among other factors, have led to increased demand in the medical/health-related area. Under the strategic capital and business tie-ups with the CITIC Group, ITOCHU intends to diligently examine the joint commercialization of the medical and health-related businesses in China, which is expected to grow significantly.