Order received for largest LNG receiving terminal in the US

January 5, 2005

Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI) and (*)Aker
Kvaerner Inc. (AK Inc.), a major engineering company in the US, have jointly
received an order for construction of an LNG receiving terminal amounting to
500 million US dollars. Construction work will be executed under the EPC (engineering
procurement construction) contract basis.

This terminal will be constructed in the suburbs of Hackberry, Louisiana, and
consist of three 160,000kl LNG storage tanks. The capacity is equivalent to
supply of 1.5 billion cubic feet a day for domestic demand (annual capacity
for LNG receiving: seven to ten million tons). Commercial operation of the terminal
will begin in 2008. This terminal is the first such facility built in the US
for more than 20 years since several LNG receiving terminals were built in the
early 1980s.

Demand for LNG has increased recently in the US, which has stimulated the construction
of new LNG receiving terminals. IHI concluded a cooperative business agreement
with AK Inc. for marketing and construction of LNG receiving terminals and storage
tanks in North America in June 2004. Therefore, this order is the first joint
achievement after the business agreement.

IHI has much experience in the LNG-related business in Japan and overseas, particularly
LNG receiving terminals built in India, Mexico, and Taiwan after 2000, which
prove its capacity in this area. The company will continue to develop the prospective
market worldwide, based on its expertise.

*Aker Kvaerner Inc.: a general contractor
established in the US as an affiliate company of Aker Kvaerner ASA headquartered
in Norway. Plays a central role in the petroleum and chemical engineering business
for the AK group. The group has excellent achievements in engineering work for
offshore development facilities, petrochemical plants, electric power generation
facilities, marine civil engineering, and mining facilities, particularly for
facilities used in offshore LNG exploitation.