[TRANSLATION]
November 21, 2011
To Whom It May Concern:
Name of Company: Central Japan Railway Company
Name of Representative: Yoshiomi Yamada,President and Representative Director(Code: 9022, First Sections of the TSE, OSE and NSE)
Contact Person: Katsumi Miyazawa,
Executive Director and General Manager of the Public Relations Department(Telephone No.: +81-52-564-2549)
Construction Costs Burden of the Chuo Shinkansen’s Intermediate Stations
On November 21, 2011, Central Japan Railway Company (the “Company”), at a governor-levelmeeting with related prefectures, explained to each prefecture the attached Exhibit “Preparing for
Early Realization of the Chuo Shinkansen Project”, with the goal of dividing roles between theCompany and each prefecture and promoting early realization of the Chuo Shinkansen project.
The Company will continue to work towards early realization of the Chuo Shinkansen project,while ensuring its sound management and stable dividends.
z Future Outlook
The total amount of the increased construction costs due to the establishment of intermediate
stations in the four (4) prefectures of Kanagawa, Yamanashi, Nagano and Gifu that the Japan
Railway Construction, Transport and Technology Agency and the Company clarified in theexamination pursuant to Article 5 of the Nationwide Shinkansen Railway Development Act (the“Act”) is approximately JPY 330 billion. As described in detail in “3. Conclusion -Future
Construction Process, etc.-” in the aforementioned Exhibit, the Company will continue to work
towards the realization of the project.

[Exhibit]
Preparing for Early Realization of the Chuo Shinkansen ProjectCentral Japan Railway Company
November 21, 2011
1.

Introduction
1)

Past Progress

With respect to the financial resources for the construction of the Chuo Shinkansen, since there isno prospect of realizing the Chuo Shinkansen project with the previous Shinkansen public burden
method, (i.e., the method where the national government bears two-thirds (2/3) and the local
government bears one-third (1/3) of the construction costs), instead, in December 2007, theCompany proposed the idea of proceeding with construction with the Company bearing theconstruction costs for the line in two steps: first, constructing the portion to Nagoya, and thereafter,
working towards the opening to Osaka, the final goal.
In this regard, with respect to the construction costs for the intermediate stations, sinceA.

the Company needs to promote the project involving large expenses without relying on thefinancial resources of the national government, andB.

local communities are expected to benefit from tax revenue, such as real estate taxes
associated with line construction, as well as from various wide-ranging and long-term
development profits,

the Company has proceeded with the policy that “the Company would like the local governments tobear at least the construction costs for the intermediate stations.”, as there will be one (1) station perprefecture.
In response to this, each prefecture has expressed opinions opposing arrangements stipulatingthat the local governments bear the entire amount of the construction costs.
On the other hand, with respect to the Chuo Shinkansen project, the Company was designated asboth the operator and constructor by the Minister of Land, Infrastructure, Transport and Tourism in
May 2011, and through the determination of the development plan, the Company has received
instruction to construct the line. Subsequently, the Company started its assessment of theenvironmental impact, and hereafter, the Company will enter a new stage involving moving forwardwith various specific preparations while steadily proceeding with the environmental assessment. Inaddition, the Company believes that the urgency of early realization of the Chuo Shinkansen project,which contributes to the establishment of a dual-route system for the main transportation artery ofJapan, has further increased after the Great East Japan Earthquake which occurred earlier this year.
2)

Future Direction

Based on the progress described above, in order to facilitate rapid and uninterrupted progress on
the various preparations for early realization of the project, the Company recognizes that theresolution of the issue regarding the construction costs for the intermediate stations, and ensuringthat the related parties each steadily play their original roles and work cooperatively, are the mostimportant aspects in order to achieve effective implementation of the project. Therefore, the-1-Company will modify the existing idea with respect to the bearing of the construction costs for theintermediate stations.
Specifically, the Company will construct the intermediate stations at its own expense.
Accordingly, for the implementation of the Chuo Shinkansen project, the Company asks that thelocal governments cooperate in various ways on the administration side with respect to furthering
the progress of the construction. This would include mediation with respect to the acquisition ofsites, which is essential for advancing construction progress, and to play the original role ofgovernment as local administration with respect to the effect of the Chuo Shinkansen on thedevelopment of the relevant prefectures as a whole.
The Company would like to work towards its major goal of early realization of the Chuo
Shinkansen project, sharing the roles as described above, and cooperating without causing
confusion of roles.
2.

Roles for Early Realization of the Chuo Shinkansen Project - Specific Explanation 1)-A

Roles of the Company

The Company will develop stations with facilities which the Company deems necessary forthe customers to use, and will bear the construction costs.
Provided, however, that since the financial burden on the Company increases significantly
compared to the cost assumptions initially anticipated, the Company will conduct thefollowing:(a)reduce comprehensively the overall cost of construction, and(b)with respect to station facilities, based on the concept of future passenger
transportation, seek compact stations, dramatically pursuing efficiency andfunctionality also on the operational side, such as not assigning full-time sales staff,
etc., free from the traditional method, and reduce not only the construction costs but
also operating costs after opening.

1)-B

Structure of Facilities which the Company Deems Necessary

Specific details of the facilities will be made clear hereafter, following consideration.
<Above ground station>- Two (2) island platforms with four (4) lines.
- Place entrance and exit gate, ticket gate facilities, public toilets for passengers on theground, and connect the ground and the elevated platform with the stairs, elevator andescalator.
<Underground station>- Two (2) island platforms with four (4) lines.
- Place a space on the second basement floor immediately above the platform, place entrance
and exit gate, ticket gate facilities, public toilets for passengers in such space, and connect
this space and the platform, the space and exit and entrance way on the ground, respectively
with the stairs, elevator and escalator.
In addition, since there are separate issues with construction costs, construction capacity, etc.
in repairing the existing stations adjacent to the intermediate stations and organizing-2-connecting facilities, the Company will give priority to early realization of the first stage
section to Nagoya, and following this, the section to Osaka, and will not plan to conduct such
repairs and organization in the meantime.
1)-CFacilities which the Local Governments would Like to PrepareWith respect to the facilities that the local governments would like to prepare other than thefacilities that the Company deems necessary, the Company will consider such facilities to beincluded in the construction plan on the condition that the local governments bear theconstruction costs and the costs related to operation and maintenance; provided, however, thatit is necessary to proceed with the preparation of such facilities in strict accordance with theschedule for construction process management.
2)

Roles of Local Governments

The Company would like the local governments, including the relevant prefectural
governments to play the roles set forth in the Act and their original roles as the local
governments for early realization of the Chuo Shinkansen project as follows:
The Company would like the prefectural governments to continue to coordinate between
local municipalities for the implementation of the following tasks.
A.

Cooperation for furthering the progress of the Construction Including Acquisition ofSites Pursuant to the Act
The Company would like the local governments to actively implement the acquisition ofconstruction sites, and conduct mediation regarding the procurement of a disposal site for soil
created by construction and the administrative procedures related to the construction, etc., bothof which are essential for furthering the progress of construction and the roles that the local
governments should play pursuant to the Act.

B.

Preparation of Facilities that Promote the Development of the Entire Prefectures
With respect to facilities adjacent to stations (traffic square, etc., including free passages)
and the facilities for promoting use among wide areas of the Chuo Shinkansen (access system
to nearby roads and high-standard roads, etc.), it is necessary that each local government,
including prefectural governments prepare such facilities as a local administrative matter thatwill promote the development of their entire prefecture through utilizing the rules, etc., thathave been established between the national government and the local governments thus far.
The Company would like Kanagawa prefecture, which will have an underground station, tocooperate with the utilization of a construction site for the station and extra underground spaceon the basis of the special circumstances related to underground station construction.

3.

Conclusion - Future Construction Process, etc. -The Company believes that the responsibilities of the Company and the local governments fortheir respective original roles while implementing the construction plan under the close cooperative
relationship and strict management of the construction process as described above will further theprogress of the construction in the fastest possible manner, and will result in early realization of theChuo Shinkansen project.
-3-

Even though bearing the construction costs for the intermediate stations will be a large financial
burden for the Company, with respect to the station facilities, the Company would like to work
towards compact stations by dramatically pursuing efficiency and functionality that is free from thetraditional method, upon preparing the necessary functions for customers’ use. In addition, theCompany requests understanding and cooperation since it does not plan to change the proposed
timing of opening even though it bears the construction costs of the intermediate stations, throughfurther cost reduction in all areas of the construction costs related to the Chuo Shinkansen project, aswell as making continuous annual management efforts and reducing operating costs after opening.

-4--5-