The Tokyo Electric Power Company, Inc. (TEPCO) has signed an agreement
today with Godo Shigen Sangyo Co., Ltd to acquire 10 million shares of
Kanto Natural Gas Development Co. Ltd. held by Godo Shigen Sangyo.

TEPCO acquired 3.05 million shares (5.0%) of Kanto Natural Gas 
Development from Mitsui & Co., Ltd. in May 2002. This additional 
acquisition will give TEPCO a holding of 13.05 million shares (21.39%)
of Kanto Natural Gas Development, making TEPCO the primary shareholder.
Kanto Natural Gas Development will become an affiliated company of TEPCO
with this stock acquisition.

The additional acquisition of shares was the result of a request by 
Kanto Natural Gas Development, which is aiming to develop future 
business, to further strengthen ties with TEPCO in retrospect of the two
companies' capital relationship up to now. Kanto Natural Gas Development
is engaged in development, extraction, and distribution of natural gas 
in the Chiba prefecture. It also markets brine(1) extracted with natural
gas, and manufactures and distributes iodine(2). TEPCO has many areas in
common with Kanto Natural Gas Development, which has strengths in 
providing a stable supply of environmentally friendly natural gas in 
terms of both quantity and price. Both are in the energy industry, and 
both work for the public benefit. Thus, management determined that the 
companies could work in cooperation to develop business. As discussions 
proceeded, it was agreed that TEPCO should acquire further shares. As 
for Godo Shigen Sangyo, it was Kanto Natural Gas Development that 
brought up the subject to that company and gained its cooperation.

TEPCO is actively working on new business to bring about further growth 
and development as well as to overcome competition in the electric power
market. The company is especially active in the gas business, as it has 
immense experience in handling that resource as the world's largest LNG 
user for electricity production. Gas business would also allow the 
company to broaden its "menu" of energy choices that it provides to 
customers. TEPCO established its Gas Business Company in March 2002 as 
an internal company directly controlled by the president. That company 
is now operating in full-scale retail and wholesale of natural gas as a 
fuel for electrical generation. Additionally, Otaki Gas Co., Ltd., a 
subsidiary of Kanto Natural Gas Development, has been conducting 
wholesale of natural gas to that company's bulk-purchasing customers 
from TEPCO's LNG terminals since 2001. 

This strengthening of TEPCO's capital relationship with Kanto Natural 
Gas Development will further strengthen the cooperative relationship the
company has with Otaki Gas and the Kanto Natural Gas Development group 
as a whole. Through that relationship, TEPCO is aiming to further expand
bulk natural gas sales in the Chiba prefecture coastal area. And the 
company plans to go forward with studies on utilizing boil-off gas(3) as
a new gas resource for the Kanto Natural Gas Development group in the 
future.

1. brine
         Water that accompanies natural gas extraction
         Brine is of almost the same composition as sea water, but 
         contains a high concentration of iodine.

2. iodine
         A halogen included in brine
         Iodine is a raw material used in x-ray contrast media and 
         gargles etc.

3. boil-off gas
         A gas that is generated when part of the LNG in tanks at LNG 
         terminals vaporizes

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