It is with pleasure that we announce that JGC has entered into a technical cooperation agreement with ANDRA, France's national radioactive waste management agency, for the geological disposal of radioactive wastes.

1. Contractual Party :
Agence Nationale pour la Gestion des D hets Radioactifs
(abbreviated as "ANDRA")

2. Outline of Agreement:
The agreement provides for the two parties to mutually participate in technical services, joint research, engineer training, and research in an underground laboratory in France, among other activities. Areas covered by the agreement range from site survey/selection to design/construction/operation of disposal facilities and safety assessment, for the geological disposal of high-level radioactive wastes, TRU wastes, and intermediate-level radioactive wastes.

ANDRA is the owner of world-leading technology for the development of the geological disposal of highly radioactive wastes. By combining this technology with JGC's engineering capabilities in the area of waste treatment disposal, it is the intention of the two parties to be optimally positioned to provide quality services in response to the enhanced development efforts in France and Japan for the geological disposal of radioactive wastes.

3. Background:
As France's high-level radioactive waste disposal service operator, ANDRA has long been active in the areas of research and site selection in France. In December of last year, ANDRA was granted permission by the French government to construct research laboratories in two locations, one in granite and the other in clay. Of the two, a decision has already been made to locate the construction of the clay-based research laboratory in the northeastern part of France. Following completion of the required procedures, construction of the research laboratories is scheduled to commence before the end of the year 2000.

In response to selected geological disposal projects as they arise in the future, JGC and ANDRA will develop joint planning and execution efforts in which the two parties' technical capabilities can be maximally demonstrated.