Settlement with the U.S. Department of Justice regarding Indonesia Tarahan project

(Mar. 20. 2014) -- Marubeni Corporation hereby announces that, as of March 19, 2014 (EDT), it has reached a resolution with the U.S. Department of Justice ("DOJ") of criminal charges relating to the Indonesia Tarahan Project as described below.

PT Perusahaan Listrik Negara ("PLN"), the Indonesian state electricity company, developed a project to expand the coal-fired power plant located at Tarahan, near Lampung, on the island of Sumatra by adding a steam generator and auxiliaries (the "Project"). Marubeni was a member of the consortium that was awarded the contract for the Project in 2004. The Project was completed in 2007.

The DOJ has been conducting an investigation into the consortium members and other parties on suspicion of violations of the U.S. Foreign Corrupt Practices Act ("FCPA") with respect to agents who were allegedly retained by the consortium to make improper payments to Indonesian government officials. As a result of this investigation, Marubeni has agreed to plead guilty to violating and conspiring to violate the FCPA and to pay a fine of US$ 88 million (approximately 9.1 billion Japanese Yen) in order to resolve these criminal charges.

This follows the successful completion by Marubeni of its obligations under a January 2012 Deferred Prosecution Agreement entered with the DOJ relating to the liquid natural gas project in Nigeria. That Agreement required Marubeni to retain a corporate compliance consultant for two years to review and enhance its anticorruption compliance program to ensure that it satisfies standards specified by the DOJ, and to report to the DOJ regarding the results of this review. This was completed in January 2014, and at the request of the DOJ the related proceeding was dismissed on February 26, 2014.

The Tarahan conduct pre-dates the execution of Marubeni's 2012 Deferred Prosecution Agreement with the DOJ. Marubeni has undertaken extensive efforts to enhance its anti-corruption compliance program, and believes that its current program is robust and effective. Although the agreement reached with DOJ today does not require Marubeni to further engage a compliance consultant, Marubeni is taking this matter seriously and commits to continue to thoroughly implement and enhance its anti-corruption compliance program.

The effects on the consolidated business forecasts as announced on February 7, 2014 will not be material. (ends)