New Top Management—Chairman Yoshikiyo Fujii and President Hiroshi Kobayashi

Nippon Meat Packers (Nippon Ham) Group decided to change its top management at the meeting of the Board of Directors on March 5, 2007. As a result, on April 1, 2007 Yoshikiyo Fujii retired as president and was appointed as company chairman, while Hiroshi Kobayashi retired as Director, Managing Executive Officer and General Manager of the Processed Foods Business Division and was appointed as company president.

Regarding My Appointment as Chairman

On April 1, 2007, I retired as company president of Nippon Meat Packers (Nippon Ham) Group and was appointed as company chairman.

During the four-year period that I was president, the Nippon Ham Group has been working within a challenging economic environment to enforce strict compliance and quality assurance, to implement environmental measures, conduct social contribution and food education activities, and implement management reforms that include the acquisition of external certification such as HACCP and ISO.

Compliance and corporate governance are everlasting management priorities. Going forward, I am committed to continuing these measures and to assuming a strong leadership in compliance management supporting President Kobayashi in my role as chairman.

I look forward to the guidance and support of all our shareholders as the entire Nippon Ham Group works to achieve its targets.

Representative Director & Chairman

Regarding My Appointment as President

On April 1, 2007, I was appointed as company president of Nippon Meat Packers (Nippon Ham) Group and I am delighted to have this opportunity through this Business Report to communicate with all our shareholders.

Under the leadership of Chairman Yoshikiyo Fujii, the Nippon Ham Group has been addressing various issues to increase the trust placed in us by society at large, such as reforming the corporate culture and enforcing management with strict compliance. Looking ahead, the Nippon Ham Group will make every effort to achieve further growth based on the compliance and corporate governance we have cultivated up to now. To do this, we will strengthen our financial structure, cultivate new business domains and increase overseas sales, with the aim of transforming ourselves into a corporate group that will succeed amidst global competition.

Currently, the meat industry continues to face challenging circumstances such as falling sales prices due to intense competition as well as rising prices of raw materials and restrictions on imports of U.S.-produced beef. In response to this business environment, the Nippon Ham Group is taking measures to create a sound and strong corporate foundation for the future. To this end it is rebuilding its profit structure and has spent the last two years conducting a wide-ranging review of the organization.

We are also giving priority to carrying out CSR activities that are unique to the Nippon Ham Group, including in the areas of communication with customers, management that gives importance to quality while continuing to develop products and technologies that are attractive and compelling, environmental activities and food education, countermeasures to food allergies and the enhancement of traceability for meat.

I recognize that my greatest mission is to fulfill my responsibilities to our shareholders, customers, employees and all other stakeholders by formulating a robust growth strategy to increase corporate value.

I look forward to the understanding and support of all our shareholders in striving to achieve this mission.

Representative Director & President