March 31, 2010

Best Bridal, Inc.
President and CEO Masayuki Tsukada
TSE Mothers Code: 2418
For information, contact:
Director and Manager, Administration Division Tomoharu Fujitani
Tel: 03 (5464) 0081
http://www.bestbridal.co.jp

Notice concerning basic agreement on capital and business partnership with
Hospitality Network Corporation
At the meeting of the Board of Directors on March 31, 2010, it was decided to enter into a basic agreement
covering a capital and business partnership with Hospitality Network Corporation, as detailed below.
1. Purpose of the partnership
Hospitality Network Corporation (HNC) operates the Hotel InterContinental Tokyo Bay (24 stories, threebasements, 339 guest rooms) in the Takeshiba district of Tokyo. It maintains a high level of service,including the provision of a range of training programs to organizations and companies through theHospitality Academy located there.
Since the establishment of Best Bridal in 1995, we have enjoyed the growing support of customers as apioneer in guest house weddings, today operating 47 guest houses (including ten in the Tokyo region andeight in Osaka, Sendai, Nagoya and Kyoto) recognized for their quality and authenticity. We also now
operate wedding facilities overseas, including in Hawaii (America) and Bali (Indonesia).
To continue to accurately address diversifying and increasingly sophisticated customer needs Best Bridaland HNC have reached an understanding that sharing management resources would be an effective
strategy both in terms of capital and operations, promoting continuing expansion in our range of businessactivities. Based on this understanding we have entered into this formal basic agreement.
Through this partnership Best Bridal will now receive all wedding and banquet work at the HotelInterContinental Tokyo Bay through a joint venture formed between the two firms, and will apply its
expertise in the bridal business (wedding facility planning and management) to achieve business andprofitability growth. The establishment of the cooperative relationship between the two firms is a synergistic
one that will improve the level of service in all of our facilities.
2.

Description of the partnership agreement

2-1 Capital
HNC will issue 19,500 new shares as a private allocation, to be acquired by Best Bridal at 5,000 yen
per share, for a total cost of 97.5 million yen. This will make Best Bridal the fourth-largest shareholder
in HNC, holding 13.5% of voting stock.
Best Bridal will acquire 300 million yen of HNC convertible corporate bonds. In the event the bonds

are converted, Best Bridal would hold 33.9% of voting stock after March 31, 2012.
At the general meeting of shareholders held by HNC on this date, Best Bridal president Masayuki
Tsukada was appointed a director.
2-2 Management
Best Bridal and HNC will establish a new joint venture together.
The joint venture will contract with HNC to provide wedding, banquet and related services at the HotelInterContinental Tokyo Bay.
2-3 Outline of the joint venture
Name: Best Hospitality Heart Inc.
Address: 3-11-10 Higashi, Shibuya-ku, Tokyo
Legal representative: Masayuki Tsukada, president
Business lines: Provision of hotel wedding, banquet and related services
Capital: 50 million yen
Establishment: April 16, 2010 (planned)
Fiscal year: December 31
Capitalization ratio: Best Bridal 50%, HNC 50%
2-4 Joint venture business forecast
Joint venture Best Hospitality Heart is expected to show revenues of at least 2,500 million yen in the fiscal
year ending December 31, 2012.
3.

Outline of HNC (as of December 31, 2009)
Name: Hospitality Network Corporation
Address: 1-16-2 Kaigan, Minato-ku, Tokyo
Legal representative: Yuji Tsutsumi, president
Business lines: Management and operation of Hotel InterContinental Tokyo Bay
Capital: 50 million yen
Employees: 287
Established: Feb. 3, 1983
Major shareholders and capitalization ratios: InterContinental Hotels Group PLC 16.8%, Seiyu GK
16.0%, Yuji Tsutsumi 16.0%
Relationship with Best Bridal: No capital, business or personnel relationships existPerformance and fiscal standing for the last three years (Unit: million yen)
Term ended

Dec. 31,

Dec. 31, 2007

Dec. 31, 2008

Net assets

727

742745

Total assets

3,747

4082

4,010

5,846.10

5,963.68

5,989.53

5,671

5,322

4,544

Per-share equity (yen)
Revenues

2009

Operating profit

60

32

45

Ordinary profit

42277

Current net profit

236

14

3

1,896.67

117.4925.94－－－

Current per-share net profit (yen)Per-share dividend (yen)4.

5.

Schedule
Board of directors meeting

March 31, 2010

Basic agreement (capital partnership) signing

March 31, 2010

Establishment of joint venture

April 16, 2010

Sales services agreement signing

April 26, 2010

Stock acquisition

April 26, 2010

New-issue corporate bond acquisition

April 26, 2010

Joint venture business start

May 1, 2010

Future outlook

The effect on future corporate performance is thought to be minimal, but reports on the effect on corporate
performance will be provided as necessary to reflect business developments.