No.9160   2005. 6. 15

Suntory Acquires Land for Natural Water Business in Kohfu Town, Hino-gun, Tottori Prefecture and Prepares for Factory
- Third Suntory Tennensui Water Source after Minami Alps, Aso -

Suntory Limited (Head Office: Osaka Prefecture / President: Nobutada Saji) has agreed to acquire land in Kohfu Town (Mayor: Toshiro Takeuchi), Tottori Prefecture (Governor: Yoshihiro Katayama) for its natural water business, and on June 15, 2005 affixed its seal to an agreement to open a factory there.

Suntory has tested for and researched high-quality water resources throughout Japan since the start of its water business in 1970 and currently proudly sells Suntory Tennensui (natural water) from two high-quality sources, in Minami Alps and Mt. Aso. Continuing its procurement of good water sources, Suntory has made a new contract to acquire land with water good enough for the Suntory Tennensui brand, this time signing with Kohfu Town, a municipality rich in high-quality water and the natural environment at the southern foot of Mt. Daisen. With this new water source, Suntory aims to provide a stable supply of products for the growing mineral water market. In addition, Suntory will partner with Tottori Prefecture and Kohfu Town to protect the environment that cultivates the rich natural life and water resources of the Okudaisen area.

Suntory will continue to support initiatives to protect the natural environment around its water sources, delivering "pure, safe, and good" natural water to customers.

•About Kohfu Town
Kohfu Town, Hino-gun, Tottori Prefecture is located south of Daisen-Oki National Park, part of the Okudaisen region so rich in natural beauty at the southern foot of towering Mt. Daisen in western Tottori. As the town name's original meaning indicates ("the center where rivers meet"), many rivers, including the Hino, Matano, Funatani and Koebigawa, flow through the area to create a water-rich environment.

•Mt. Daisen water
The natural water from the source recently acquired comes from rain and snow that has fallen on Mt. Daisen and spent a long time filtering through the ground. Suntory's tests confirm that this is a refreshing, high-quality water that is easy to drink.

•Suntory's environmental protection initiatives
Suntory believes it important to protect the natural environment that fosters the water sources on which our water business's continued operation depends. We already practice forest cultivation at our Minami Alps and Aso water sources, and with the addition of the new source at Mt. Daisen, we will continue to follow the same basic idea and work with the prefecture and town to protect the environment.

•Suntory's water business
Since the introduction of bottled Suntory Mineral Water for commercial use in 1970, Suntory's water business has continued to grow. Minami Alps no Tennensui, introduced in 1991, won the top spot in the Japanese market in 1997. Subsequently our natural water products adopted a single name, Suntory Tennensui, in 2003 and started selling as Suntory Tennensui-Minami Alps and Suntory Tennensui- Aso. In the same year Suntory 100% Shinsousui (deep sea water) joined the lineup together with imported brands of French mineral water Vittel and Contrex.

▼Location: Kasarabara Daichi, KohfuTown, Hino-gun, TottoriPrefecture

▼Acquired area: Approximately 290,000m2

▼Business area: Production, storage and distribution of Suntory Tennensui

▼Scheduled start of construction: Late 2006

▼Scheduled start of operations: Spring 2008

▼Annual production capacity: 15 million cases

▼Investment: Approximately 9 billion yen (inc. land)