[TRANSLATION]

April 28, 2010
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 TSE, OSE and NSE)
Contact Person: Katsumi Miyazawa,
Director and General Manager of the Public Relations Department(Telephone No.: 052-564-2549)
Regarding Estimated Results to be Presented to Council for Transport Policy
Currently under discussion in the Council for Transport Policy pursuant to Article 14-2 of theNationwide Shinkansen Railway Development Law (the “Law”) are the matters regarding
the designation of an operation entity & construction entity, and matters regarding thedecision of a development program in respect of the Tokaido Shinkansen Bypass (the“Bypass”), which is also known as the Chuo Shinkansen, that will utilize the Superconducting
Maglev system. At the meeting of the Board of Directors of the Central Japan Railway
Company (the “Company”) held today, the Company resolved the following matters to handle
the expected situation in which the area for which the above entity is to be designated and theplan decided is anticipated to be the section stated in the submitted report; namely, the area
between the Tokyo Metropolitan and Osaka City.
1.

Resolved Matters
Pursuant to Article 6 of the Law, the Company will proceed with necessary steps inpreparation for the case in which the Minister of Land, Infrastructure, Transport and Tourism
requests the Company’s consent to the designation of an operating entity & construction
entity with respect to the section of the Chuo Shinkansen between the Tokyo Metropolitanand Osaka City. Such preparation will be made on the premise that the Company intends toconsent on such request.
2.

Long-Term Estimated Forecast
In adopting the above resolutions, based on the principle that discretion of management
and autonomy of capital expenditures are to be retained, the Company reviewed thelong-term estimated forecast by placing assumptions that are considered to be reasonable asof today, and subject to conditions that: (i) the Company will bear the cost of the project, (ii)the Company will maintain sound operation and stable dividends during construction and also
after inauguration of the Bypass, and (iii) it is forecasted that the balance of long-term debt
and payables does not exceed the historical record (JPY 5 trillion or less) even at its peak andthat such balance can be swiftly reduced to the current level. The estimated results of such
review are as follows.

* The construction of the Bypass would be able to be completed to Osaka City on the above
assumptions, in the same way as to the Nagoya City regions.
* The timing of the inauguration of the Bypass between the Tokyo Metropolitan and theNagoya City regions will be in 2027, and the inauguration to Osaka City will be in 2045.
Note 1.
(1)

Major Business Factors and Assumptions
Revenues Assumptions
The Company is assumed to earn constant revenues at the level of the 5-year
average for the period between FY 2006 (actual performance) and FY 2010
(forecast) before the inauguration of the Bypass between the Tokyo Metropolitan
and the Nagoya City regions; and after the inauguration, the Company’s revenues
are assumed to increase by 5% in the first year as compaired to thepre-inauguration levels, while, by the tenth year after the inauguration, revenues
are assumed to increase gradually to a level that is 10% higher thanpre-inauguration levels. This is due to the reduction of the transportation time
between the Tokyo Metropolitan and the Nagoya City regions that would resultin a revision of fares and surcharges, which would in turn cause current airpassengers who travel between the Kanto region and the Kansai/Sanyo regions toswitch to the Bypass. It is assumed that revenues will remain flat thereafter.
 After the inauguration of the Bypass all the way to Osaka City, revenues are
assumed to increase to a level that is 15% higher compared to the revenues
immediately before the inauguration of the entire Bypass section, on theassumption that more passengers will switch to the Chuo Shinkansen.
(2)Costs and Expenses Assumptions
With respect to the Chuo Shinkansen, the Company will gradually employ
personnel for construction work and education/training. The Company willrecognize training and test operation costs for two years prior to the inaugurationof the Bypass to the Nagoya City regions. After the inauguration of the Bypass,
the Company will recognize necessary costs for maintenance and operation (*)
and for depreciation and amortization (approximately JPY 330 billion at the time
immediately after the inauguration of the Chuo Shinkansen to the Nagoya City
regions, and approximately JPY 610 billion at the time immediately after theinauguration of the entire Bypass section).
(*)

Maintenance and operating costs include property tax, and the Company
expects to be allowed for special exemptions in relation to property tax asin the case of new Shinkansen lines (so-called Seibi Shinkansen project)

For the Tokaido Shinkansen and conventional lines, etc., before the inaugurationof the entire Chuo Shinkansen section, the Company will recognize the samelevel of personnel expenses as those required for the workforce of the current
level, and the Company will also recognize non-personnel expenses, consideringongoing cost reductions and based on a 5-year average of business results
through the forecast of FY 2010. Such necessary expenses are expected todecline by approximately 10% after the inauguration of the entire Bypass section,on the assumption that more passengers will switch to the Chuo Shinkansen.

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Capital Expenditures
 With respect to the Tokaido Shinkansen and conventional lines, etc., (1) during
the period in which the Bypass has not yet been commenced its operation
between the Tokyo Metropolitan and the Nagoya City regions, the Company willrecognize, on average, approximately JPY 190 billion a year, taking into account(i) investment in maintenance and renovation work necessary for ensuring safeand reliable transportation, (ii) investment necessary for the enhancement ofcompetitiveness, such as replacement of all regular “Nozomi” services with theSeries N700, and (iii) investment in the Yamanashi Maglev Test Line, and (2)after the inauguration of the Bypass between the Tokyo Metropolitan and theNagoya City regions, the Company will recognize approximately JPY 150 billion
necessary for maintenance and renovation work.
 With respect to the Chuo Shinkansen, the Company will recognize JPY 5.10
trillion as necessary investment in construction of the Southern Japanese Alps
route to the Nagoya City regions utilizing the Superconducting Maglev system.
The Company expects to invest JPY 3.34 trillion in the construction of this routeto Osaka City, and such construction is expected to start after the inauguration ofthe first phase, when the Company regains business strength. Moreover, theCompany also expects necessary investment in facility renovation. With respectto stations, there will be one station per prefecture (*) and it is assumed that theconstruction cost will be borne by local municipalities that will receive the mostbenefit, excluding stations in the Tokyo Metropolitan region, Aichi Prefectureand Osaka City that will be connected to the Tokaido Shinkansen.
(*)

With respect to stations, the Company will further discuss relevant matterswith the local municipalities involved in the first phase when appropriate.

(4)

Ordinary Income
 Regarding ordinary income, the Company will be able to sustain a level of
earnings that will enable it to maintain sound management and pay stabledividends (1) when the construction is under way and (2) immediately after theinauguration of the Bypass to the Nagoya City regions, and immediately after theinauguration of the entire Bypass section when the burden of depreciation andinterest payments is heavy (ordinary income level immediately after theinauguration of the Bypass, when the burden of payments is heavy:
approximately JPY 63 billion immediately after the inauguration of the Bypass tothe Nagoya City regions, and JPY 50 billion immediately after the inaugurationof the entire Bypass section).

(5)

Balance of Long-Term Debt and Payables
 Although the balance of long-term debt and payables will increase as theconstruction proceeds, and although such balance will increase to approximately
the JPY 5 trillion level by the time of the inauguration of the Bypass to theNagoya City regions and by the end of the fiscal year of the inauguration of theentire Bypass section, it will be possible to reduce such balance steadily
thereafter by means of cash flow earned from depreciation and amortization etc,
down to approximately the same level as the current level.

Note 2The inauguration timing is, in its nature, subject to acceleration and delay,
because the progress of construction will be flexibly controlled in accordance-3-with changes in the business environment, such as revenue trends, in order tomaintain sound management.

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