Company information( as of March 31, 2007 )Executives( as of March 31, 2007 )Name of company:

Funai Zaisan Consultants Co., Ltd.

President & CEO

Yoshihito Hirabayashi

Head office:

18F, Shinjuku NS Bldg. 2-4-1 Nishishinjuku,
Shinjuku-ku, Tokyo 163-0818

Deputy President

Hideo Murakami

Incorporated:

September 17, 1991

Managing Director

Hisao Nakatsuka

Capital stock:805.81 million yen

Director, 4th Division Manager

Seiki Noda

Business line:

Individual asset consulting, institutional asset
consulting, and asset management

Director, 2nd Division Manager

Takahiko Makino

Number of employees:

120Director, 1st Division Manager

Masayuki Yagi

Director, 5th Division Manager

Yasuhiko Sato

Director, 6th Division Manager

Takeshi Matsuura

Director in charge, 3rd Division Manager

Tetsuo Akiyama

Outside Director

Haruo Shimada

Outside Director

Kiyoshi Ohno

Business network:
50 locations
throughout Japan

Sapporo, Aomori, Sendai, Yonezawa, Koriyama,Mito, Tsukuba, Tochigi, Gunma, Saitama,Kumagaya, Chiba, Johoku, Ginza, Yokohama,Odawara, Niigata, Kanazawa, Fukui, Matsumoto,Takayama, Shizuoka, Nagoya, Mie, Shiga, Kyoto,Osaka, Hyogo, Nara, Wakayama, Tottori,
Hiroshima, Tokushima, Takamatsu, Matsuyama,Kochi, Fukuoka, Kitakyushu, Nagasaki, Sasebo,Kumamoto, Miyazaki, Kagoshima, Okinawa

Outside Auditor (full-time)

Takao Kitamura

Consolidated
subsidiaries:

10 companies including Funai Estate, Nippon
Real Estate Rating Service Co., Ltd., and theCentennial Fund Investment Limited Partnership

Auditor

Takehiko Yamamura

4 companies including Nippon Investors Securities
Co., Ltd., Ukai Co., Ltd.

Outside Auditor

Hiroshi Yamagishi

Affiliates under equity
method:Outside Auditor

Toshio Honda

Notes for shareholders

About our website

Fiscal year:

January 1 to December 31

General meeting ofshareholders:

Each March

Administrator ofshareholders’ register:

The Chuo Mitsui Trust and Banking Company,
Limited
3-33-1 Shiba, Minato-ku, Tokyo

Office:The Chuo Mitsui Trust and Banking Company,
Limited
2-8-4 Izumi, Suginami-ku, Tokyo 168-0063
Stock transfer agency department
Phone ( toll-free : 0120-78-2031 )Our website introduces
Funai Zaisan’s businessactivities
andtrends,
including corporate andfinancial data, for all
shareholders and investors.
Please visit our site forfurther details.

Agency:The Chuo Mitsui Trust and Banking Company,
Limited Branches throughout Japan
Japan Securities Agents, Ltd. Head office andbranches

Public announcements:

Please refer to the Funai Zaisan website

For information on balance sheet and income statements,
please see http://www.funai-zc.co.jp/ir/houtei.html

We will remain your best partner over 100 years

Funai Zaisan Consultants Co., Ltd.

Newsletterfor shareholders Vol.

6First quarter (17th) business summary
January 1 to March 31, 2007

Funai Zaisan Consultants
IR information
http://www.funai-zc.co.jp/ir/index.html

18F, Shinjuku NS Bldg. 2-4-1 Nishishinjuku, Shinjuku-ku,Tokyo 163-0818 Tel. +81 3 5321 7020 Fax. +81 3 5321 7271

We will remain your best partner over 100 years

Funai Zaisan Consultants Co., Ltd.

We will remain your best partner over 100 years
for comprehensive individual consulting

Message from the President
Here is the report of our business results for the first quarter (17th) ending December 2007.
As one of the leading companies for comprehensive asset consulting aimed athigh net-worth individuals in Japan since our incorporation,
we are a de facto private bank in Japanese way targeting risk diversification andhigher income through optimal portfolios under the slogan of We will remain your best partner over 100 years .

Funai Zaisan Consultants Co., Ltd. Hokkaido
Funai Zaisan Consultants Tsuchida Management
Funai Zaisan Consultants Co., Ltd. Fukushima
Funai Zaisan Consultants Sanbe Accounting
Funai Zaisan Consultants Niigata Support
Funai Zaisan Consultants Co., Ltd. Tochigi
Funai Zaisan Consultants Co., Ltd. Gunma
Funai Zaisan Consultants Co., Ltd. Nagano
Funai Zaisan Consultants Co., Ltd. Kanazawa
Funai Zaisan Consultants Kimura Keiei Brain
Funai Zaisan Consultants Co., Ltd. Nagoya
Funai Zaisan Consultants Uesaka CPA
Funai Zaisan Consultants Shiga Support
Funai Zaisan Consultants Co., Ltd. Kyoto
Funai Zaisan Consultants Hirose
Funai Zaisan Consultants Co., Ltd. Osaka
Funai Zaisan Consultants Co., Ltd. Hyogo
Funai Zaisan Consultants Tottori Support
Funai Zaisan Consultants Co., Ltd. Takamatsu
Funai Zaisan Consultants Co., Ltd. Tokushima
Funai Zaisan Consultants Co., Ltd. Hiroshima
Funai Zaisan Consultants Kochi Support
Funai Zaisan Consultants Co., Ltd.
MatsuyamaFunai Zaisan Consultants
Sasebo Support

Funai Zaisan Consultants Co., Ltd.
Okinawa

We are trusted and rated highly by many wealthy clients.
We exploit our advanced asset consulting expertise honed by successin a host of revitalization projects for small and mid-sized companies.
Last year we gained a good reputation for consulting about business transfers among
listed companies (especially Ukai Co., Ltd.) using friendly TOB techniques.
Funai Zaisan Consultants Aomori Support
Funai Zaisan Consultants Co., Ltd. Sendai
Funai Zaisan Consultants MMG
Funai Zaisan Consultants Co., Ltd. Saitama
Funai Zaisan Consultants Kujirai Accounting Office
Funai Zaisan Consultants Co., Ltd. Johoku
Funai Zaisan Consultants Masuyama Soken
Funai Zaisan Consultants Co., Ltd. Keiyo
Funai Zaisan Consultants Co., Ltd. Tokyo Ginza
Funai Zaisan Consultants Co., Ltd. Yokohama
Funai Zaisan Consultants Co., Ltd.
Funai Zaisan Consultants Shonan Support
Funai Zaisan Consultants Co., Ltd. Shizuoka
Funai Zaisan Consultants Tokai Support
Funai Zaisan Consultants Mie Support

Funai Zaisan Consultants Co., Ltd. Nara
Funai Zaisan Consultants Nishioka
Funai Zaisan Consultants Kitakyushu Support
Funai Zaisan Consultants Co., Ltd. Fukuoka
Funai Zaisan Consultants Miyazaki Support
Funai Zaisan Consultants Co., Ltd. Kumamoto
Funai Zaisan Consultants Co., Ltd. Nagasaki
Funai Zaisan Consultants Kagoshima Support

Building 100 Bases
Nationwide by 2010
50 bases established as of April 2007

In February we took measures to steadily raise the corporate value of Ukai Co., Ltd.
by such means as transferring the Kawaguchiko Music Forest business operations to consolidated subsidiary
Kawaguchiko Ukai Co., Ltd. while also investing in Kawaguchiko Ukai.
We gained a good reputation in the market for the range of consulting methods we applied.
We believe that accounting houses will soon assume the role of local financial institutions.
We will meet the demands of our clients with business models supporting asset flow throughmajor transfers of the assets of high net-worth individuals from savings to investment .
We will implement this through Nippon Investors Securities Co., Ltd., our affiliate under equity method
operating based on accounting houses, and the management of Japan Wealth Management Consulting Society(JWMC), which aims to provide optimal portfolios to clients suitable for wealth management
by a network of more than 100 excellent accountants throughout Japan.
We intend to become a company respected by society
and to continue to grow steadily in the pursuit of
the happiness of our clients, shareholders and employees.
We look forward to your continued support.

President & CEO
Funai Zaisan Consultants Co., Ltd.

Yoshihito Hirabayashi

Close up

Business results for the first quarter (17th)
Operating Results
During the first quarter of the current fiscal year (January 1 to March31, 2007) Japan’s economy was heading for recovery supported bystrong corporate earnings and the increasing trend of private capital
investment, despite evidence of weakness in private income andconsumption. In March 2007, the Ministry of Land, Infrastructure andTransport’s report on land price trends, based on public disclosure ofland values, showed that land prices continue to fall despite a rising
trend in Japan’s three metropolitan areas and the slowing of pricedecline in the regions.
The demand and supply for office space is expanding with thebusiness upturn, and the office vacancy ratio is falling remarkably inthe metropolitan areas.
In this environment, income from both asset consulting (Funai ZaisanConsulting, 10 consolidated subsidiaries and 4 affiliates under equitymethod) and real estate deals has increased steadily in our group.

As a result, the first quarter business results produced operating
income of 6,751 million yen (a 27.4% rise Y-o-Y), ordinary income of
2,004 million yen (a 108.3% rise Y-o-Y) and net income of the current
period of 1,205 million yen (a 115.4% rise Y-o-Y).

■ Operating income by category(unit: million yen)First quarter (16th) ending First quarter (17th) ending Rate ofDecember 2006
December 2007
increaseAmount Ratio（％）Amount Ratio（％） （％）
Income from asset consulting
Income from real estate deals
Income from sublease
Other income

950
3,981
274
92

17.9
75.2
5.2
1.7

788
5,616
275
71

11.7 △17.0
41.1
83.2
0.4
4.1
1.0 △23.1

Total

5,297

100.0

6,751

100.0

27.4

■ Highlights of consolidated business results (unit: million yen)
Operating income

Ordinary income
15,00015,00012,000

2,004

2,000

2,000

6,751

1,000962600
50001,3005590
16th period 17th period 17th period
First quarter First quarter Full year( plan)

16th period 17th period 17th period
First quarter First quarter Full year( plan)

Projection of Full-Year Results
Income from real estate deals greatly exceeding the figures in theinitial plan has already led ordinary income in the first quarter toexceed full-year projections.
We expect income from asset consulting and subleasing to be inline with initial plans. As for the income from real estate deals, thestock of real estate for sale amounting to some 11,000 million yen
indicates our selection of merchandise for the current and next
periods is progressing steadily. We are now reviewing plans for

From savings to management, effective
asset management reduces risk.
We provide asset management consulting
contributing to an ideal US and European
style portfolio.
Differentials are growing in the prices of real estate, which
comprises 60% of the average asset composition of high net-worth
Japanese. Funai Zaisan has created a real estate joint ownership
scheme named ADVANTAGE CLUB for wealthy clients who wish toown real estate and enjoy its merits.
The joint ownership scheme is a voluntary partnership agreement(monetary investment) system based on the Real Estates Specified
Joint Enterprise Law to co-own income-bearing real estate andapportion that income. This system has gained a high reputation,so we will continue to select good-quality properties carefully.

Funai’s real estate joint ownership scheme

Voluntary partnership
Real estatetarget(urban buildings)

Proprietors in specified real estate
joint enterprise

Acquisition,
price
RentalSubleasecompany
Lease
RentalLease

Earnings
distribution

Chair

Funai ZaisanConsultants Co., Ltd.

participants(partners)

Cashinvestment

TenantManagement / operation / trust

Total managed assets :15.68 billion yen( as of April 30, 2007 )300

0
16th period 17th period 17th period
First quarter First quarter Full year
( plan)1,205

Asset management consulting

900

5,297

3,000

1,500
1,200

1,500

9,000
6,000

Net income of the current periodBusiness lineup

the new structure of ADVANTAGE CLUB , Funai’s real estate joint
ownership scheme.
* At this time, the outlook for the current period remains in line withprojections for the period ending December 2007 released with theannouncement of settled accounts in February 14, 2007. We will
announce the revision of business results as soon as they are
confirmed after considering the progress of asset consulting and realestate deal plans.

NEWSADVANTAGE CLUB Ginza and Sugamo
Sales completed underfavorable conditions
On March 12, 2007, organization of voluntary partnership for theADVANTAGE CLUB Ginza and Sugamo was successfully completed.
Since the number of applications widely exceeded the 240 units
available, successful applicants were chosen by lottery.
Aggregate value: 2.4 billion yen
Number of investment units: 240 (10 million yen per share before tax)
Real yield (after tax): 4.12%* The yield shown refers to the yield at the time of the voluntary association'sorganization. There are no guarantees of future returns.

Ginza KN Building

Sugamo 3-chome
Building

General meeting of shareholders andintroduction of new executives
Funai Zaisan aims to be a company respected by society and managedwith an emphasis on compliance and the strengthening of corporate
governance required to implement this compliance. We will act based on
our policy that it is essential to make proposals from the customer's pointof view with fairness and neutrality in order to protect and advance customer assets.

The 16th General Meeting of Shareholders was held

Director
5th Division Manager

Director
6th Division Manager

The 16th General Meeting of Shareholders was held on
Saturday, March 24, 2007. One hundred and four out of 2,295
shareholders participated and a social gathering of shareholders
was held after the meeting.

Yasuhiko Sato

Takeshi Matsuura

The 5th Business Division supports offices throughout
Japan, increases office numbers, organizes and sells
real estate joint ownership schemes, and advises onsecuritization of real estate.
The main business is support of regional offices
throughout Japan. We take up various issues of clientsof our affiliated certified accountants and licensed tax
accountants, such as inheritance, corporate
reconstruction and disposal of assets associated withsuch reconstruction, and solve problems together.
In December 2005 we entered the securities businessby making Nippon Investors Securities Co., Ltd. oursubsidiary, and in September 2006 we established theoffice of JWMC (a group of asset consulting experts inwhich leading tax accountants, certified accountant
offices and FP offices throughout Japan participate)
within our office. We have started to provide active
support so that our individual clients can feel secure
about entrusting the management of their assets to us
in an era of self-responsibility for asset management.
We will continue to increase the number of regional
offices and grow as a corporate group respected bysociety.

The 6th business division purchases real estate forour high net-worth clients and organizes andmarkets purchased real estate. A real estate jointownership scheme named ADVANTAGE CLUB ispopular among our clients, and total assets exceed
15.6 billion yen. The 6th business divisionpurchased and marketed the greater part of its
merchandise.
We concentrate on marketing each property withadded value so that our clients can be satisfied with
our real estate merchandise. It is becoming moredifficult to purchase excellent properties ascompetition grows fiercer in the city centers, but ourunique abilities to gather information as a consulting
company have enabled us to steadily acquire prime
real estate.
We will continue to focus on purchasing objects
from our clients' point of view and provide highgrade real estate merchandise. We look forward toyour continued support.

General MeetingShareholders' Resolutions■ Modification of part of the articles of association■ Selection of 10 directors■ Selection of 1 auditor■ Revision of directors' remuneration

Introduction of new directors
We introduced new directors appointed at the 16th General Meeting of Shareholders held on March 24, 2007.

Outside Director

Outside Director

Outside Auditor

Haruo Shimada

Kiyoshi Ohno

Toshio Honda

President of Chiba Universityof Commerce

Funai Consulting Co., Ltd.
Executive Managing Director,
Corporate Control Division Director
Director of General Affairs DivisionAsuka Law Firm
Lawyer