Chairman Okuda's Press Conference

March 13, 2006

Following is the gist of remarks made by Hiroshi Okuda, Chairman, Keidanren at a scheduled press conference following monthly Chairman and Vice Chairmen's meeting on 13 March 2006. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

(Nominating new Chairman and Vice Chairmen of the Board of Councillors)

Following are the nominees for new Chairman and Vice Chairmen of the Board of Councillors. Nominations will be endorsed on May 24 annual general assembly.

Chairman
Mr. NISHIMURO Taizo,Adviser to the Board, Toshiba Corporation
ConcurrentlyVice Chairman of the Board of Councillors, Keidanren
Chairman, Committee on Social Security, Keidanren
Vice Chairmen
Mr. SHIBATA Masaharu,Chairman, NGK Insulators, Ltd.
ConcurrentlyVice Chairman, Keidanren
Chairman, Committee on Management and Labor Policy, Keidanren
Mr. OHASHI Mitsuo,Representative Director and Chairman of the Board of Directors, Showa Denko K. K.
ConcurrentlyCo-Chairman, Committee on Asia & Oceania, Keidanren
Mr. SASAKI Mikio,Chairman of the Board, Mitsubishi Corporation
ConcurrentlyChairman, Committee on Latin America, Keidanren
Mr. SUZUKI Shoichiro,President and CEO, Oji Paper Co., Ltd.
ConcurrentlyCo-Chairman, Committee on Labor-Management Relations, Keidanren
Mr. NAKAMURA Kunio,President, Matsushita Electric Industrial Co., Ltd.
ConcurrentlyCo-Chairman, Committee on China, Keidanren
Mr. UTSUDA Shoei,President & CEO, Mitsui & Co., Ltd.
ConcurrentlyChairman, Japan-Brazil Economic Committee, Keidanren
Note: Current Chairman of the Board of Councillors Mr. Morishita and Vice Chairmen Messrs. Sakurai, Watari, and Egashira will retire from the post. Messrs. Watari and Egashira will assume the post of Vice Chairmen of Keidanren.

(Nominating new secretariat executives)

Mr. TACHIBANA Hiroshi will assume the post of Senior Managing Director.
Mr. KUBOTA Masakazu will assume the post of Managing Director.

(On spring labor negotiations)

Newspaper reports make me feel that salary raise could be expected, but fundamental strategy should be to increase bonuses if performance improves. Each company must make decision of its own according to its performance. Hand-in-hand approach is outdated.

(On Livedoor)

Keidanren decided to accept Livedoor's indefinite voluntary refraining from membership activities. It will keep its eyes on the company even after the listing at Tokyo Stock Exchange would be abolished.

(On debate of accepting foreign workers)

It appears to be necessary to employ foreign workers as Japan's population will decline rapidly even after fully utilizing high-age workers, female workers, and Internet and communications technology. The nation should also discuss now on the level of appropriate population for the country of Japan.


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