15th,Feb 2010

Anyone who cares to read this page does me a great honour. Let me introduce myself, my name is Taiji Hoshiyama and I have just succeeded my great predecessor Yasuhiro Koide as the Chairman and CEO of Sun City. I would like to take this opportunity to air my thoughts and what I plan to do as the CEO and Chairman.

The sector climate as you can imagine is still very rough. Let me clarify once again that we will direct the management resources to our residential operation which has been our core and forte since 1992 when Sun City was founded.

I myself started off as a mere sales representative and vividly remember my days in that capacity. Customers made me and customers made Sun City. I shall not forget those happy faces talking about their home ownerships about to come true. Those happy faces before and after moving into their new homes are the source my motivation and I always find them very gratifying indeed.

We all know this old saying in English “manners and money make a gentleman”. In Japan, the equivalent is “clothes, food, home then comes manners”. Some ancient Chinese literatures point out that the Japanese equivalent originally did not include “home” but the phrase is now largely assumed to include it to express the three essentials for life in general.

This saying is a good reminder that we are responsible for one of the essential components for people’s lives. For most people, it is also fair to say that buying a house is the biggest spending they will ever undertake. Naturally, every home buyer is expected to very serious about their decisions and pick on tiny details. We have to constantly face head-on those customers who are about to make big decisions. These big decisions made Sun City and, let us not forget, they have resulted awesome responsibilities as the provider of more than 12,000 homes since Sun City sold off its first project.

We cover many different regions in Japan each with its own customs. We always paid careful attention to the need and expectation of every town and cities by putting ourselves in our potential customers’ shoes. Throughout our 18-year corporate history, we aimed to, and succeeded to, provide lasting housings which touch top-notch quality but still affordable. We will continue with this line of policy with diligence in coming years regardless of sector climate.

Meeting responsibilities require solid corporate foundation and this means we have to work hard to raise our corporate value. The area of imminent importance to be addressed is the state of our balance sheet. Focus and concentration should symbolise the way forward. I have issued new directives to significantly down-size our management structure which is fit for the new initiatives. In so doing, we have cut costs and this new management has the agility required to address any risk element that may arise in future.

In order to prosper as a people’s organisation, a good level of confidence has to be established with our customer base, business partners and contractors, shareholders and our staff. I would like to make it clear in this message that I shall not be bound by our own precedence or internal politics and I shall pay attention to voices and opinions from all quarters to achieve both prosperity and transparency.

Our financial performance is expected to be affect by harsh sector climate going forward. I like a captain of a new ship about to sail into a strong head wind in her maiden voyage. But I am confident that I have taken necessary measures to prepare the ship for a rough voyage therefore in mid to long term, they will have the desired effect of raising our corporate value.

To anyone who cares to read my message, our customers, our contractors and our shareholders, I thank you earnestly for taking your time and I earnestly beg for your patience and support.

Taiji Hoshiyama, CEO and the Chairman of the Board