Kyushu Electric Power Company has discussed a contract extension on liquefied natural gas (LNG) sales with six sellers of LNG in Western Australia and concluded the Heads of Agreement (HOA) on February 22nd, 2007.

This HOA applies to sales from April 2009 as the current contract to purchase approximately 1,050 thousand tons of LNG per year from the Western Australia LNG project will expire at the end of March 2009.

The contract volume mentioned in this HOA is approximately 700 thousands tons per year and the expanded contract in effect since this fiscal year accounts for approximately 500 thousand tons (average) per year. We will therefore purchase approximately 1,200 thousand tons of LNG per year from Western Australia in total.

We believe this contract extension to purchase from Western Australia LNG project will contribute to our stable procurement of LNG considering its proven performance of stable supply of LNG to us in the past.

The outline of the HOA concluded today is as follows.