Daito Trust Construction -News Release-

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August 04, 2006

Whole building lease system
Daito expanded target buildings and modified a part of the system

Daito Trust Construction (president: Moritaka Asada) announced introduction of "whole building lease system" on July 3, 2006. We decided to apply the system to construction contracts signed before July 2, 2006 and modified a part of the system.

1. Expansion of target buildings

<Current>
We applies the system to construction contracts signed after July 3, 2006
↓
<Modification>
We applies the system to construction contracts signed before July 2, 2006.
(Buildings scheduled to be completed after October 1)
* Only if customer requests the system.

2. Features and details of modification

1) Feature of the whole building lease system
The main feature of our new system is that it reduces fluctuations of income and expenditures for rental apartment businesses compare to other companies.

(1) 30 years lease period and 10 years fixed lease fee provides owner(s)
with a long-term stable income.

(2) Burden of costs

Daito Building Management (100% owned subsidiary) takes on payment costs for cleaning, repairing and replacement in order to reduce owner's burden. Costs include below.

i. Small repairs (cosmetic repairs) costs when residents leave
ii. Structural repairs such as roof or outer wall repair costs

   2) Details of modification

      We changed the period which Daito Building Management bears costs for structural
      repairs, 2-1)-(2)-ii.

      <Current>            20 years after building completion
                                            ↓
      <Modification>       30 years after building completion
      * Daito Building Management bears cosmetic repair costs (i) for 30 years after
         building completion.

3. Impact on the financial results for the year ending march 2007

   1) Interim financial forecast for the year ending March 2007
      → These is no changes to our interim financial forecast .

   2) Forecast for the year ending March 2007
      → We are confirming the requests from customers who singed after July 2, 2006           (Buildings scheduled to be completed after October 1).
          We will announce revised financial forecast as soon as we estimate.

4. Buildings under the management of Daito Kyosaikai and
   scheduled to be completed after March, 2008

   1) Kyosaikai will continue providing its current services until March 2008 by applying
       for government approval as a "special certified insurance company" in accordance
       with amended insurance business law.

   2) Kyosaikai will explain about transition plan to members in order to transfer their
       plans in January 2008.

  3) Transition in March 2008 doesn't effect on financial forecasts for the year ending
      March 2007.

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