The Kansai Electric Power Co., Inc. (Kansai EP), and Eco Power Co., Ltd., announced today that they reached a business alliance agreement concerning wind power generation systems. The alliance aims at driving further development of wind power generation through cross-sharing of broad managerial resources relating to it held by the two concerns. In conjunction with this alliance, Kansai EP will take a 20.6% stake in Eco Power.

The Renewables Portfolio Standard (RPS), which came into force in April 2003 amid rising concern over global environmental problems, calls for increased use of so called new energies such as photovoltaic power generation and wind power generation. The RPS requires electricity retailers to use power generated from new energy sources for a certain percentage of the power they sell.

Over the years, Kansai EP has actively encouraged the use of new energies through its own initiatives including its purchase of excess electricity supplies produced by photovoltaic and wind power generation, among others, as well as through cooperation extended to the Kansai Green Power Fund. In line with the demands of the times, Kansai EP has redoubled its efforts to encourage further penetration and development of new energies.

Eco Power, a consolidated subsidiary of Ebara Corporation, is committed to the realization of a sustainable society. It is one of the largest domestic wind power generators and boasts facilities with an annual generating capacity of 103.5 MW (projected for the end of March 2004). As a leading company in the rapidly expanding wind power generation market, Eco Power has instituted a variety of programs and initiatives to aggressively drive the market.

The alliance involving capital participation will allow cross-sharing of the technologies relating to power generation, transformation, and transmission held by Kansai EP on one hand and massive wind power development potential and business expertise on large-scale wind power farms held by Eco Power and Ebara on the other. The alliance will enable Kansai EP to meet its energy resource requirement stipulated in the RPS, in addition to its further involvement in wind power generation. The deal will also help Eco Power better position itself for more aggressive penetration into the domestic and Asian markets with its wind power generation systems, while Ebara plans to leverage the alliance to expand its wind power business to boost its new energy business, which has been an area of aggressive focus.

Kansai EP, Eco Power, and Ebara will continue to promote wind power generation and contribute to the conservation of the global environment through mutual cooperation that takes full advantage of their individual strengths.

Company Profiles

Kansai Electric Power Co., Inc.

	Address:	3-3-22 Nakanoshima, Kita-ku, Osaka
	CEO:	Yohsaku Fuji
	Establishment:	May, 1951
	Capital:	489.3 billion
	Business:	Electricity supplying (Generation, transmission, transformation and distribution of electric power)

Eco Power Co., Ltd.

	Address:	2-12-32 Konan, Minato-ku, Tokyo
	CEO:	Toshio Katano
	Establishment:	: July, 1997
	Capital:	1,740.015 million
	Business:	power generation mainly through wind power
	Facilities and equipment:	20 wind-power plants, 106 windmills, 103.5 MW (March 2004 forecast)

Main locations: 22 windmills in Mutsuogawara, Aomori - 33 MW 18 windmills in Iwaya, Aomori - 27 MW 12 windmills in Hasaki, Ibaraki - 15 MW (scheduled to start in March, 2004)

Ebara Corporation

	Address:	11-1 Haneda Asahi-cho, Ohta-ku, Tokyo
	CEO:	Masatoshi Yoda
	Establishment:	May, 1920
	Capital:	33.7 billion
	Business:	pump and environment related general engineering

Outline of Kansai Electric Power Equity Participation in Eco Power

Type of stock issue: Third party allocation
Total amount of issue: 500,000,150
Ratio of equity stake: 20.6%
Payment date: March 29, 2004 (planned)

Overview of the RPS Law (Promulgated June 7, 2002; enforced April 1, 2003)