This is to announce that, through our wholly managed and operated J-STAR Number One Investment Limited Partnership, we have established Burn Group K.K. (“BG”) and its wholly owned subsidiary BR K.K. (“BR”). In addition, in May 2011, BR acquired all issued shares of Burn Repair Inc. (Headquarters: Shinjuku-ku, Tokyo, Representative: Akio Hayashi, http://www.burn-repair.co.jp).

Burn Repair was founded in 1995 with the goal of providing home repair services. Today, it is one of the largest in the domestic repair industry; consisting of 25 locations across the country and approximately 500 workers. In addition to delivering high-quality repair services to corporate clients such as homebuilders and manufacturers of construction materials, Burn Repair utilizes its wide network to provide post-sale services for homes such as inspections and adjustments. Through subsidiaries HouseBox Inc. and KSM, Inc., Burn Repair also develops and sells repair materials and provides interior finish work; contributing to the group-wide culture of maintenance.

Now, Burn Repair and other Group companies must reinforce their position as the top player in the industry by refining repair techniques, continually expanding its network nationwide, and building on Group management infrastructure. Through our share acquisition, we will actively work to support this expansion of Burn Repair’s business.

In evaluating this investment, we employed Corporate Directions, Inc. for business due diligence, A.G.S. Consulting Company, Ltd. for financial and tax-related due diligence and The Tokyo-Marunouchi Law Offices for legal due diligence. Fundraising for the share acquisition is accomplished through financing by Resona Bank.

Acquisition of shares of Burn Repair Inc.