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East Japan Railway to Sell Vodafone Shares
The East Japan Railway Company Board of Directors voted today to sell its shares of Vodafone K.K.

East Japan Railway Company
Mutsutake Otsuka, President and CEO

July 13, 2004

1. Reason for the Sale

JR East received an offer from Vodafone Holdings PLC to purchase JR East's shares of Vodafone K.K., and upon reviewing the conditions of sale, the Board of Directors voted to accept the offer.

2. Details of the shares to be sold

Share designation Vodafone K.K. common stock
Number of shares owned 13,714.74 (2.56% of all shares issued and outstanding)
Number of shares to be sold 13,714.74
Number of shares owned after sale 0
Acquisition cost 1.364 billion yen
Sale price 32.519 billion yen
Gain on sale 31.154 billion yen
Sale method Negotiated transaction

3. Details of the Sale Purchaser

Trade name Vodafone International Holdings B.V.
Headquarters Rivium Quadrant 173-177, 15th floor
2909 LC Capelle aan den IJssel,
Netherlands
Representatives Erik de Rijk, Director
Michiel Heere, Director
Capital 15,764,000 euros
Main business activities Holding company
Relationship with East Japan Railway None

4. Other details

The sale is scheduled to take place in late July.

Note: Vodafone Holdings K.K. shares owned by consolidated subsidiaries of East Japan Railway will also be sold to Vodafone International Holdings B.V.

Details of shares of Vodafone Holdings K.K. to be sold by consolidated subsidiaries

Number of shares to be sold 27,874
Acquisition cost 494 million yen
Sale price 8.362 billion yen
Gain on sale 7.868 billion yen

5. Forecasts of financial results for the half and the full business year

The above-referenced sale will result in extraordinary gain. There will be no revision to the forecasts of financial results for the half and the current fiscal year (April 1, 2004 to March 31, 2005) announced on May 12, 2004, however, because of an anticipated extraordinary loss resulting from the application of asset-impairment accounting.

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