http://www.state.ny.us

FOR RELEASE: IMMEDIATE
5/20/2003

GOVERNOR: MUSHROOM COMPANY GROWS 250 NEW JOBS
IN SULLIVAN COUNTY

Top Rare Mushroom Cultivator To Invest $72 Million In Sullivan Empire Zone

Governor George E. Pataki today announced that Yukiguni Maitake Manufacturing Corporation of America (YMMCA), a subsidiary of Yukiguni Maitake Company, Ltd. of Niigata, Japan, will establish a plant in the Town of Mamakating, Sullivan County and create 250 new jobs. The company will invest $72 million in building a 923,000 square foot facility in the Sullivan County Empire Zone, making the company eligible for benefits potentially as high as $20 million over the next ten years.

"Yukiguni Maitake Manufacturing Corporation of America will provide an important addition to the economic stability and growth of Sullivan County, said Governor Pataki. "Over the past 8 years, we have seen a remarkable turnaround in New York’s business community. New York State’s new policies continue to provide a company with the key incentives needed to choose New York State over any other State or Country.

"YMMCA is a unique addition to the business community of New York State and I applaud this company’s efforts in making the right move for their product and our Empire State."

Yukiguni Maitake Company, Ltd. currently owns a headquarters building and five production facilities in Japan. They have investigated the United States market for over three years and found a great demand for their products. Consequently, they will build, in several phases, a 923,000-square foot building in the Town of Mamakating.

When completed, the facility will employ 250 people and produce 33-tons of Maitake mushrooms a day. The company expects to begin the application process for State Environmental Quality Review Act (SEQR) approval and a building permit in April, 2003. The facility will employ several classifications of employees, including individuals who will deal with cultivation, packaging, processing, laboratory testing, manufacturing of various kinds of derivative product including their US patented Maitake extract, sales, shipment and management of Maitakes.

Kazunori Kameyama, President of Yukiguni Maitake Manufacturing Corp. said, "As we finalize this part of the project, we'd like to thank ESD and the Sullivan County Partnership for Economic Development for their dedication and support of our company and this project. Without their assistance, we could never have reached this stage. We are excited that we could deliver a new, unique product to the United States. Our new site in Sullivan County should be perfect for our future operation with great access to areas within the North-East USA and beyond. With beautiful, rich natural resources, a highly trained and educated workforce and solid financial support programs provided by the State and the County, I am confident this new plant will be a huge success."

YMMCA is a wholly owned subsidiary of Yukiguni Maitake Company, Ltd. a public company of Niigata, Japan which sells about $200,000,000 worth of "Maitake" mushrooms per year in their home country. The parent company is one of the few commercial growers of this difficult-to-raise mushroom and is the world’s leader in Maitake mushroom growing and its derivative products manufacturing. A secret process for growing the mushrooms was developed about 20 years ago by Mr. Yoshinobu Ohdaira, the founder and President of the parent company and that process formed the basis for the company and their US patented extraction process is believed to have huge potential in the neutraceutical industry worldwide.

Leni Binder, Chairwoman, Sullivan County Legislature, said, "We are absolutely pleased that our Sullivan County Partnership was able to bring this opportunity to us. We are appreciative of the Sullivan County Empire Zone and the great benefits it has brought and will continue to bring to Sullivan County and New York State."

Don Trotta, Sullivan County Legislator, said, "This is great news for the Town of Mamakating and Sullivan County. Yukiguni Manufacturing Company be eligible for many incentives offered through the Sullivan County Empire Zone. With the company investing into our town and county this will help by creating new jobs and help with our tax base."

Charles A. Gargano, Chairman of Empire State Development (ESD), said, "Governor Pataki’s economic policies have made New York the preferred location for to do business. Since 1995, we have gained a steady increase in new and expanded corporate facilities. Upstate New York has a great workforce and continues to make great contributions to New York’s economic rebirth. We are confident that Yukiguni Maitake Manufacturing Corporation of America will assist and provide key, well paying jobs to this area and help New York State become more prosperous in the near future."