Lotte to Buy Belgian Chocolate Maker Guylian

Tokyo, June 24 (Jiji Press)--The Lotte group, a Japanese
confectionery giant, has agreed with Belgium's Chocolaterie Guylian NV to acquire the premium chocolate maker.

Under the agreement, Tokyo-based Lotte Co. and South Korean group
firm Lotte Confectionery Co. are expected to buy all outstanding shares in
the Belgian company from its founding family for about 110 million euros by
the end of this year. They are to fix their ownership ratios later.

The Lotte group intends to increase its lineup of high-priced
products by using Guylian's brand power and production technology, informed
sources said.

Lotte also intends to consider joint procurement with Guylian of
such materials as cocoa beans and palm oil to cope with their soaring
prices.

While Guylian will continue under the current management, the Lotte
group plans to dispatch officials to its board, the sources said.

Lotte aims to increase Guylian's sales to around 20 billion yen
over the next three to four years from some 13 billion yen now by boosting
business in Asian countries through its sales networks.