Happy New Year, everyone! I would like to offer a few words of greeting for the New Year.

First of all, I would like to wish you all a glorious and prosperous year 2003.

We, the management of Kyokuyo Shipyard Corporation, promise to our shareholders and employees that we will not turn our eyes away from the coming era of severe competition and that we will manage our business boldly and steadily in order for the company to survive and achieve sound business results.

We will continue to provide technologically superior ships to meet the increasingly diverse needs from our customers, under the slogan of "We will make possible what other shipyards cannot."

In order to achieve this goal, we try to improve our design capability to an even higher level and complete a financially sound management structure so that we can minimize the influence of external factors such as market and exchange rate fluctuations.

Last year, we succeeded in winning a direct order for two multi-purpose cargo boats from a European shipping company, despite fierce and long competition from other European and Asian shipyards. We believe that this was the result of a comprehensive evaluation of our technical capabilities, price competitiveness and enthusiasm for building ships for European shipowner.

This year, we will focus on orders from domestic shipping companies, in consideration of our financial balance. At the same time however, we will continue to study inquiries from overseas shipping companies from Asia and Europe too, so that we can maximize the merits of our strength - design capability and flexibility that we have cultivated.

On the other hand, we are determined to reform our internal personnel structure, which we have been reviewing over the last year. We will implement these reforms as they are essential to maintain our cost competitiveness.

The year 2003 is a critical time for the Japanese economy. We, Kyokuyo Shipyard Corporation, have positioned this year as a new start for us to create a bright future with you.

We look forward to your continued patronage.

[2003/01/01]