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Press Release

June 1, 2005

JFE Systems, Inc.
(President and CEO: Makoto Iwahashi)
Marunouchi 1-1-2, Chiyoda-ku, Tokyo

(Code number) 4832
(Contact) Kazuyoshi Miyairi, Administration Manager
(Contact number) 03-3283-7100 (Main Switchboard)


JFE Systems Announces the Launch of Quality Information Management System "Mercrius Smart1" Targeted at Small and Medium Sized Food Manufacturers

JFE Systems, Inc. (President and CEO: Makoto Iwahashi, Head office: Chiyoda-ku, Tokyo - hereinafter referred to as 'our Company') has officially announced the release of quality information management system "Mercrius Smart1 v.1.0" targeted at small and medium sized food manufacturers. Our Company will start marketing Mercrius Smart1 from June 2005.

Mercrius is a proven quality information management system that has been chosen by many major food manufacturers of such products as confectionary, frozen foods, and seasonings.
This system enables a centralized management of information including ingredient specifications, product summaries supplied to retailers, recipe information and manufacturing process information. Companies with this system are able to automatically load ingredient specifications, create product summaries, or make quick searches for products containing specific ingredients (such as allergens, GMOs and additives). In addition, the system can automatically create a list of all items and it also features an in-house workflow function to be used in the development of new products.

Quality information management to realize food safety is the most important issue today for a food manufacturer, regardless of its size. As a result, we have had a strong demand from many of our customers for a reasonably priced quality information management system that can be adapted by small and medium sized manufacturers.

"Mercrius Smart1", which contains all the standard functions of Mercrius, is available at an affordable cost for small and medium sized food manufacturers. Furthermore, based on our expertise in the food industry that has been accumulated through previous implementations of the system, we have been successful in cutting down on the system development cost, to half of what it was previously. This now makes it possible to introduce the system to small and medium sized companies.

*Mercrius is a trademark of JFE Systems, Inc.

Outlook:
In FY2005, we are expecting to introduce the system to about 20 customers, including those who have already made inquiries.

[For more information:]
JFE Systems, Inc.
Sales Headquarters, Process Production Sales Department (Food and Distribution)
Contact: Tsuiki / Wakui
Email: Mercrius@jfe-systems.com

JFE Systems, Inc. (Listed in the second section of the Tokyo Stock Market/Code number:4832)
URL: http://www.jfe-systems.com/
JFE Systems, Inc. (changed its corporate name from Kawatetsu Information Systems Ltd. on December 1, 2004) was established in 1983 as the independent company to represent the IT section of Kawasaki Steel Co., Ltd. (present JFE Steel Corporation). In March 2001, our Company was the first user system integrator whose basis of business is in the manufacturing field, to be listed in the second section of the Tokyo Stock Exchange. Our Company, with its time-tested system operation and development technology, and expertise in the steel-making industry, provides a range of original products including "Mercrius", and provides the best solutions, independent of all manufacturers, for customers of various business sectors and categories to suit their individual needs.


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