On behalf of Misawa Homes, I would like to extend my condolences and heartfelt sympathies to everyone affected by the Great East Japan Earthquake.

The housing market in the fiscal year, ended March 31, 2011, continued to be challenging. New housing starts increased slightly from the previous year, thanks to the government’s stimulus measures, which included record-high tax incentives for housing loans and a housing eco-point system. However, the rebound stalled at 819,000 units.

Against this backdrop, the Misawa Homes Group continued to focus on improving its operating results. Net sales came to ¥341,388 million, ordinary income rose to ¥7,876 million and net income increased to ¥3,133 million.

In response to a government request, we have mobilized the group’s resources to build temporary homes in disaster-hit areas. We will continue to assist those who have been victimized by the earthquake and tsunami, in hopes of early recovery.

We plan to release our new medium-term management plan, which will take effect in fiscal 2012, when we announce our results for the first half of fiscal 2012. By this time, we should be able to accurately assess the impact of the March disaster on our operations.

In light of the challenging operating environment and our current level of retained earnings, we have decided to forgo a dividend in fiscal 2011. Your understanding is very much appreciated.

Thank you for your continued support of the Misawa Homes Group.

June 2011