May 29, 2014

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Representative:
Contact:
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Tamagawa Holdings Co., Ltd.
Toru Masuzawa, President(JASDAQ Code 6838)
Akihiro Ushiroda,
Administration Department+81-3-6435-6933

Notice concerning Partial Payment and Partial Cancellationof Stock Warrants Issued for Private Placement

In connection with the series-5 stock warrants issued for private placement (the "Private Placement") pursuant
to resolution of the board of directors' meeting convened on May 8, 2014, as announced in the press release"Tamagawa Holdings Co., Ltd. Announces Conclusion of Business and Capital Alliance Agreement andIssuance of Stock Warrants for Private Placement" (the "Press Release"), Tamagawa Holdings gives noticethat on the payment due date (the date of this notice), payment by the two prospective subscribers waseffected by Mr. Yukihiro Akimoto but was not effected by Mr. Hikonobu Ise, resulting in the partial
cancellation of the stock warrants.
Tamagawa Holdings will enter into consultations for further review with the parties concerned regarding thebusiness and capital alliance under the Business and Capital Alliance Agreement (the "Agreement")
announced in the Press Release and the acquisition of shares in ISE Power (to be treated as an equity methodaffiliate) announced on May 8, 2014 in the press release headed "Notice concerning the Acquisition of ISE
Power as an Equity-Method Affiliate." Steps to be taken will be announced upon finalization.
Tamagawa Holdings extend their sincere apologies for any inconvenience caused to shareholders and market
participants in connection with this private placement.

1. Partial payment and partial cancellation of the stock options for private placement(1) Outline of the private placement(1) Payment due date and allotment date May 29, 2014 (Thursday)(2) Total number of warrants
14,439 warrants (underlying shares per warrant: 1,000 shares)(3) Issue price¥7,918 per warrant (¥114,328,002 in total)(4) Number of dilutive shares issued
14,439,000 shares(5) Amount of cash raised¥4,648,174,002 (net cash: ¥4,622,174,002)
Breakdown
Cash raised from warrant issuance:¥114,328,002
Cash raised from warrant exercise:¥4,533,846,000(6) Exercise price¥314 per share(7) Offering or allotment method
Private placement(Prospective subscribers)(Prospective subscribers) Hikonobu Ise
12,377 warrants
Yukihiro Akimoto
2,062 warrants

(2) Partial payment and partial cancellation of the stock options for private placement
With respect to 2,062 stock warrants (14.28% out of a total number of 14,439 stock options) allotted to Mr.
Yukihiro Akimoto ("Mr. Akimoto") among the prospective subscribers stated in Item (1) above, receipt ofpayment of the amount of ¥16,326,916 was confirmed with the payment handling financial institution.
With regard to Mr. Hikonobu Ise ("Mr. Ise"), as stated in Item 6 (4) of the Press Release, Tamagawa
Holdings had previously obtained transcripts, etc., of deposit account bank passbooks of Mr. Ise, on thebasis of which the ability to pay was found to be present and payment to be expected. However, withrespect to the 12,377 stock warrants allotted to Mr. Ise, payment by the payment due date on May 29,2014, could not be confirmed with the payment handling financial institution.

2. Steps to be taken
As described in Item 1. (2) above, payment for the stock warrants was made by Mr. Akimoto but not by
Mr. Ise. In light of these circumstances, Tamagawa Holdings will enter into consultations with the parties
concerned to review the background to the cancellation of the stock warrants to be allotted to Mr. Ise andto review the Agreement and the acquisition of shares in ISE Power (to be treated as an equity method
affiliate). Steps to be taken will be announced upon finalization.