June 22, 2016

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

Tamagawa Holdings Announces Acquisition of Equity inEtrion Energy 5 Godo Kaisha (To Be Treated as Equity Method Affiliate)
As previously announced by Tamagawa Holdings in press releases dated March 30, 2015, entitled"Tamagawa Holdings Announces Memorandum of Understanding concerning Strategic Cooperative
Agreement with Etrion Japan KK" ("Memorandum Release") and dated June 11, 2015, entitled"Announcement of Progression of Strategic Cooperation with Etrion Japan KK" ("Progression Release"),Tamagawa Holdings has been in discussions with Etrion Japan KK ("Etrion Japan") about establishing a joint
venture for solar energy power generation operations in Misawa city, Aomori prefecture. The board ofdirectors' meeting of Tamagawa Holdings convened today has now resolved to acquire equity in Etrion
Energy 5 Godo Kaisha ("Etrion5GK"), with details as stated below. Tamagawa Holdings will acquire anequity interest of 30% in the entity, which will be accounted for in accordance with the equity method.

1. Reason for the acquisition of an equity interest
As announced in the Memorandum Release and Progression Release, Tamagawa Holdings has been indiscussions with Etrion Japan about establishing a joint venture with Etrion Japan for solar energy
power generation operations in Misawa city, Aomori prefecture ("Operations").
Tamagawa Holdings has now resolved to acquire from Etrion Japan equity in Etrion5GK, an entity
established by Etrion Japan, and in this way to run the Operations as a joint venture with Etrion Japan.
With a view to initiating electric power sales at an early stage, Tamagawa Holdings has decided toinitiate the facility construction work.

2. Outline of the prospective equity method affiliate(1) Name(2) Location(3) Position and name ofrepresentative(4) Business lines

Etrion Energy 5 Godo Kaisha
Ark Hills Sengokuyama Mori Tower, 28th Floor
1-9-10, Roppongi, Minato-ku, Tokyo(located inside the Baker & McKenzie office)Representative member:
Etrion Japan KK
Non-representative executive manager: Christian Lacueva Canut(i) Electric power generation, transmission, and supply operations(ii) Acquisition, development, construction, maintenance, andmanagement of all types of facilities, equipment, and systems related
to electric power generation, transmission, and supply(iii) Construction business operations(iv) All operations incidental or related to the items stated above.
1,000,000 yen
October 2015
Etrion Japan KK 100%

(5) Capital(6) Date established(7) Equity interest
percentage(8) Relationship between
Capital relationships
Not applicable.
the listed company and Personnel relationships
Not applicable.
Etrion Japan
Transaction relationships Not applicable.
* Because Etrion Energy 5 Godo Kaisha has not completed its first business year since being established,
information on the business results and financial status of the entity have been omitted.

3. Equity to be acquired, acquisition cost, and equity held in the prospective new equity-method affiliate
before the acquisition(1) Equity interest held before the acquisition

0 yen(2) Equity to be acquired

300,000 yen(3) Equity held after the acquisition

300,000 yen(30% equity interest in capital)

Notably, as announced in the Progression Release, the conditions of the term sheet concluded withEtrion Japan mean an agreement that Tamagawa Holdings can maintain 30% of the ownership rights tothe special purpose company that will run the Operations, forming the basis of this acquisition.
Moreover, Tamagawa Holdings will on the same date as the abovementioned equity acquisition (June24, 2016) pay ¥53,079,332 in additional capital to Etrion5GK. Notably, since the other equity owners
will follow suit with capital payments consistent with their equity interest percentages, the equity
interest percentage of Tamagawa Holdings will not be affected by the additional capital payment.
Furthermore, dated as of the day of the equity acquisition, the equity holders of Etrion5GK will
provide Etrion5GK with subordinated loan funds under subordinated loan agreements to be concluded
with Etrion5GK by the individual equity holders. Notably, it is planned that Tamagawa Holdings will
provided loan funds in the amount of ¥106,174,588.

4. Outline of the counterparty of the equity acquisition(1) Company name(2) Location(3) Date established(4) Position and name ofrepresentative(5) Business lines(6) Capital(7) Main shareholders andshareholder
percentages(8) Relationship between
the listed company andEtrion Japan

Etrion Japan KK
Ark Hills Sengokuyama Mori Tower, 28th Floor
1-9-10, Roppongi, Minato-ku, Tokyo(located inside the Baker & McKenzie office)October 2012
Representative director: Christian Lacueva CanutElectric power generation, transmission, and supply operations
5,000,000 yen
Etrion Corporation (100%)

Capital relationships
Personnel relationships
Transaction relationships

Not applicable.
Not applicable.
As announced in the Progression Release,
Tamagawa Holdings has concluded a term
sheet with Etrion Japan concerning theOperations.

5. Outline of Etrion Japan group
Etrion Japan, a group company of Etrion Corporation ("Etrion Corp."), is engaged in the construction,ownership, and operations of commercial-use solar energy power plants. Etrion Corp. is also anindependent power plant operator owning solar energy power plants with a total combined output
capacity of 139MW located in Italy, Chile, and Japan. The shares of Etrion Corp. are listed on theToronto Stock Exchange and the NASDAQ OMX Stockholm exchange. The company has US-based
headquarters in Miami and business sites in Genève (Switzerland), Rovereto (Italy), Santiago (Chile),and Tokyo, marking Etrion Corp. as a company engaged in the renewable energy business on a large
scale in countries around the world.
The group parent company of Etrion Japan, Etrion Corp., is a member of Lundin Group, a powerful
resource group highly regarded in the oil, gas, mining, and energy fields.
Lundin Group has a total market capitalization of CA$ 11.9 billion and consists of 11 group companies
with operations in 25 countries. Lundin Group is the top shareholder of Etrion Corp. with an equity
stake of 24.3%, marking Etrion Corp. as the group's foremost renewable energy company.

6. Purpose and meaning of running the Operations as a joint venture with Etrion JapanThe Operations will comprise large scale solar energy power generation operations with a total energy
output capacity of around 9.5MW consisting of four solar energy power plant (high-voltage) sections
each with an energy output capacity of 2.5MW. Tamagawa Holdings believes that throughdevelopment efforts conducted jointly with trusted large corporations and major engineering,procurement, and construction companies, the Operations can be operated with greatly enhancedefficiency. Moreover, for Tamagawa Holdings the Operations mark the first project to receive funding
from large financial institutions under a project finance scheme, giving the Operations high importancein the business strategy of Tamagawa Holdings group going forward.
Notably, Tamagawa Holdings is scheduled to transfer commercial-use land of the Operations toEtrion5GK for a price of ¥274,095,586 (book value) when Etrion5GK has received the first loan
tranche from financial institutions under the financing scheme.

7. Outline of the Operations(1) Location(2) Operator(3) EPC provider(4) Site area
(5) Power generating capacity(6) Electricity sales price (fixed for 20 years)(7) Estimated electric power sales volume in
the first fiscal year (projected)(8) Prospective construction start date
(9) Prospective start date of commercialoperations

8. Outline of the scheme of Operations

5-chome, Mukawame, Misawa-shi, Aomori and others
Etrion Energy 5 Godo Kaisha
Hitachi High-Technologies Corporation
Approximately 163,000 m2
Approximately 9.5 megawatts (total)
36 yen/kWh (tax excluded)
Approximately 10,740,000 kWh
From July 2016
In stages starting February 2017

9. Schedule(1)

Date of board decision

June 22, 2016

(2)

Agreement conclusion dateJune 22, 2016(3)

Equity acquisition dateJune 22, 2016

10. Outlook
Through the transaction set out in the foregoing, Etrion5GK will become an equity-method affiliate ofTamagawa Holdings.
The acquisition of equity in Etrion5GK will be financed using own funds of Tamagawa Holdings
group.
Effects from the transaction set out in the foregoing arising to Tamagawa Holdings group in the current
fiscal year are reflected in the consolidated results projections for the fiscal year ending March 31,2017 released in the summary of the financial statements for the fiscal year ended March 31, 2016
released on May 13, 2016. Full-scale electric power sales will commence in the fiscal year ending
March 31, 2018. Details will be released promptly as data become available.