Ever since our establishment in 1973 Leopalace21 has cast aside conventional business ideas as a forerunner in the housing industry. We have continuously strived to create new value creation via development and introduction of innovative products and services. We launched our new start in December 2006 through the formulation and disclosure of the “Medium-term Management Plan: United Spirit” ending the period in March 2011, the final year of implementation, in response to the transition of our organization to a new organization in the form of a “Three Division Setup” (June 2006) for the purpose of aggressively maximizing the corporate vitality in our management efforts based on our compliance program. The “Medium-term Management Plan: United Spirit” provides a vision of the future “Image of Our Company” in ten and twenty years, clarifies what needs to be done and is formulated as a management plan for the coming five years.

Central themes that need to be pursued over the five-year period are set down as our “Corporate Vision,” a premise for the aforementioned efforts, to be indicated to all our employees as a basic policy for the management of the Company. Two primary points are outlined in the vision: the first being the efforts to build a “Total Support Enterprise” through the further promotion of business operations and the second being the establishment of a “Corporate Brand” deserving of trust and appreciation. We will proceed with the formulation of our plans for the second phase of the plan based on this “Corporate Vision,” with our achievement targets (consolidated accounts) set for the fiscal year ending March 2011, which will be the final fiscal year for the plan, with “\1 trillion in net sales,” “\100 billion in recurring profit,” “equity ratio of 50%,” “15% ROE” and “dividend payout ratio of 30%.” The first phase of the plan (the three year period starting from the fiscal year ending March 2007 to March 2009) is considered to be our “Management Base Establishing Period,” during which we will be promoting the fulfillment of a profit base for the core business and a growth base for setting up the strategic three businesses. Furthermore, the second phase (from the fiscal year ending March 2010 to March 2011) is considered to be our “Synergic Expansion Period,” during which we intend to transition into a phase where individual business operations can maximize their synergic effects.

The fiscal year ended March 2007, the first year of our Medium-term Management Plan, was launched in a smooth favorable manner, with our core business attaining almost \600 billion. The strategic three businesses started according to plan. We are certain that our challenge with considerations for the future will surely satisfy the expectations of our customers. We ask you, the stakeholders, to continue granting us your support and patronage. We will further pursue the creation of new value with the aim of building a corporate brand deserving of trust and appreciation through the promotion of our Medium-term Management Plan, drafted in consideration for the future.