JGC Settles with U.S. DOJ Over Nigeria LNG Project

As reported in its Consolidated Financial Statements for the Fiscal Year 2009 dated May 14, 2010 and its “Notice on Loss and Revision of Earnings Forecasts for Fiscal Year Ending March 2011” dated January 31, 2011, JGC CORPORATION has been engaged in the discussions with the U.S. Department of Justice (DOJ) about a possible resolution of the investigation into JGC in respect of the alleged breach of the U.S. Foreign Corrupt Practices Act by the members of the TSKJ consortium in connection with the award of the Nigeria LNG Project. JGC hereby announces that, as of April 6. 2011, JGC entered into the Deferred Prosecution Agreement  with DOJ for the resolution of the investigation relating to JGC.

Under the Agreement, JGC agreed to pay US$218.8 million (approximately 18.2 Billion Japanese Yen) to DOJ, and in return for JGC’s compliance with the terms and conditions of the Agreement, DOJ agreed to defer the prosecution of JGC.

JGC has already made a provision of 17.8 Billion Japanese Yen as the Extraordinary Loss for the settlement with DOJ in its 3rd Quarter Fiscal Year ending March 2011.

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Source: JGC, April 7, 2011;