| Kyushu Electric Power Company Incorporated has decided to issue its 390 th domestic straight bonds. This offering is arranged for retail investors. 
 
 
 
                        
                            | 1.Issue amount | 10 billion yen |  
                            | 2.Coupon | 1.10% |  
                            | 3.Issue price | 100 % |  
                            | 4.Yield to investors | 1.10% |  
                            | 5.Denomination | 100 thousand yen |  
                            | 6.Offering period | From December 1, 2006 to December 22, 2006 |  
                            | 7.Issue date | December 25, 2006 |  
                            | 8.Maturity date | December 15, 2009 (3-year bullet bond) |  
                            | 9.Use of proceeds | General capital expenditure and debt repayment |  
                            | 10. Lead manager | Nikko Citigroup Limited |  
                            | 11.Rating | R&I (Rating & Investment Information, Inc.) Rating: AA+ JCR (Japan Credit Rating Agency, Ltd.) Rating: AAA
 Moody's Investors Service Inc. Rating: A1
 |  This announcement is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product.
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