● Notes for shareholders
Fiscal year

January 1 to December 31

General meeting of shareholders

Each March

Administrator ofshareholders' register

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

OfficeThe 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)

AgencyThe Chuo Mitsui Trust and Banking Company, Limited Branches throughout Japan
Japan Securities Agents, Ltd. Head office and branches

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.

About our website
Our website introduces Funai
Zaisan’s business activities andtrends, including corporate andfinancial data, for all shareholders and investors.
Please visit our site for further
details.

IR information

http://www.funai-zc.co.jp/ir/eng/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
It gives me great pleasure to reflect that, in its 17th year of business ( to December 2007), Funai Zaisan Consultants has been able to achieve
powerful annual growth of 30.0%, 58.8% and 70.9% in operating income, ordinary current profit and net profit respectively. This is the fruitof the warm-hearted support with which we have been favored by you our stockholders, for which I would again like to thank you mosthumbly and sincerely.
Since it's founding in 1991, our company has operated under the business model of " a comprehensive asset
consulting company for high net worth individuals which is unique among the approximately 4,000 listed companies inFunai 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 Eguchi Support
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 Shimane Support
Funai Zaisan Consultants Co., Ltd. Hiroshima
Funai Zaisan Consultants Kochi Support
Funai Zaisan Consultants
Sasebo Support

Japan. We have conducted our business on the foundation of "100-year asset consulting," in which we provide
consulting services taking an effective long-term perspective on "asset preservation" for Japan's high net worth
individuals down to the second and third generation. In our 18th business year (to December 2008), in addition tocontinuing our existing consulting services, we have three key projects underway, through which we are further developing our services tomake them even more efficient and better tailored to our customers' needs.

Funai Zaisan Consultants Co., Ltd. Okinawa

Specifically, these projects include our " N Project," in which we are developing sector-specific consulting services nationwide for

Funai Zaisan Consultants Aomori Support
Funai Zaisan Consultants Co., Ltd. Sendai
Funai Zaisan Consultants Co., Ltd. Tochigi
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 Jonan Support
Funai Zaisan Consultants Co., Ltd.
Funai Zaisan Consultants Kawasaki Support
Funai Zaisan Consultants Co., Ltd. Yokohama
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

businesses endowed with substantial areas of land, such as driving schools and child minding facilities. There is also our unique "BusinessSuccession Consulting" whose theme is to ensure the succession not only of client businesses' assets but also of their corporate culture,

52 bases established as of February 2008

and which is exemplified by our affiliate Ukai Co. Ltd. (JASDAQ stock code 7621). And we have our highly regarded and unique real estate
investment product, our "Joint Real Estate Ownership Schemes (Advantage Club )".
®

These services have received strong support from our customers, and through them we are aiming to assist in the vitalization of regional
companies and to be of service in our customers' asset formation.
Finally, in order to incorporate into our company policies the information management disciplines needed to meet the requirements ofinternal control and J-SOX, from 2008 we have explicitly made it part of our employee creed to " practise standards of behavior that would
be applauded by our grandparents, parents and families," and we will be running our business on the basis of high standards of behavior as
Japan's largest comprehensive consulting company for high net worth individuals.
This year will be significant in that it will mark the fifth anniversary of our listing on the Mothers market of the Tokyo
Stock Exchange, and as such all of our employees are determined to embrace their work with renewed vigor.
I humbly request that you continue to honor us with your kind encouragement and support.

Message from the President · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 1
Business Lineup · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 3

President & CEO
Funai Zaisan Consultants Co., Ltd.

Yoshihito Hirabayashi
1Business Results for the Year Ended March 31, 2008 · · · · · · · · · · · · 5
Consolidated Financial Data (Summary) · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 7
Stock /Company Information / Executives · · · · · · · · · · · · · · · · · · · · · · · · · · 92

Business Lineup
Individual Asset Consulting

Japanese-style customerfirst consulting tailored
towards individual high networth Japanese investors

Asset Consulting

Institutional Asset Consulting

Asset Management Consulting

Corporate revitalization
experience and know-how
assisting more than 100
firms every year

Corporate Revitalization Consulting•100-Year Asset Consulting•Corporate Revitalization Network

Looking two to three generations ahead, the 100-Year Asset
Consulting service primarily addresses one of the most important
issues for high net-worth individuals: inheritance. We provide thebest possible advice, given each individual client's circumstances,
covering the areas of real estate, insurance and asset management.

Our consultants can oversee and coordinate corporate
revitalization projects that utilize our impressive network oflicensed tax accountants, real estate appraisers, debt
servicers, certified accountants, attorneys, management
consultants and other professionals.

•10 (Ichimaru) Consulting•Establishment of Revitalization Funds

10 (Ichimaru) Consulting targets a 10% return on the client's
taxable assets. This service advises clients regarding theeffective utilization of real estate, with respect to thereadjustment of real-estate portfolios to include properties infavorable locations or the outright purchase of such properties,
and on the use of Funai's joint real-estate ownership schemes.

We are engaged in launching corporate revitalization funds
in an effort to revitalize Japan and its corporations.

Addressing polarization in prices of real estate, a category that accounts for 60% of the averagehigh-net worth portfolio
From savings to management: effective asset management reduces risk. We provide asset
management consulting targeted towards an ideal US and European style portfolio composition.

Joint Real-Estate Ownership Schemes
We are now in what is sometimes called the age of real estate
securitization, but to meet the needs of clients who want toenjoy the benefits of owning actual real estate, Funai Zaisan
has created joint real-estate ownership schemes. These
schemes involve the formation of voluntary partnershipagreements (through monetary investment) for the coownership of income-bearing real estate and the apportionmentof that income. This system is operated in accordance with theReal Estate Specified Joint Enterprise Law.

Land owners frequently require consulting tailored towards
the needs of specific business endeavors, such as theoperation of a tennis court facility or the management of agolf driving range. Our consultants put forward various
ideas for preserving wealth and developing clients'
businesses, and these services currently enjoy an
excellent reputation.

3

This services takes advantage of
the Internet to bring together people wishing to sell real estate withthose wishing to buy, and facilitates real estate transactions in a
way that promotes confidence andsatisfaction from clients.
October 2004: Funai Real Estate Net Auction launched
April 2005:

Business alliance formed with DeNA Co., Ltd. (TSE Mothers, Mothers: 2432)

November 2005: Business alliance formed with Tokyu Resort Co., Ltd.
(as of end February 2008)

Total Assets
Under Custody:

18.53 billion yen

July 2006:

Business alliance formed with Benefit One Inc. (TSE, 2nd section: 2412)

Nippon Real Estate Rating Services Co., Ltd.
Providing a safe and accessible real estate market, boosting
market activity and specializing in building diagnosis

Funai's real estate joint ownership scheme

Individual Business Consulting

Funai Real Estate Net Auction

Business Succession Consulting
Business succession is not just an issue of finance andassets. It also encompasses the passing on of corporate
culture, and we see it as very important to keep this at thecore of any thinking about long-term management
planning. At Funai Zaisan, we draw upon the consulting
expertise that we have built up over many years to
objectively identify the strengths of our client companies,
and to provide our advice in such a way as to extend
those strengths.

Real estate target(urban buildings)

Voluntary partnership
Acquisition,
price
Proprietors in specified
real estate joint enterprise
RentalSublease company
Lease
RentalLease
TenantChair

Earnings distribution

Funai Zaisan
Consultants Co., Ltd.

Participants(partners)

On January 23, 2006, we established Nippon Real Estate
Rating Service Co., Ltd. as a joint venture with the
NIS Group ( TSE, 1st section). Collaborating through thisentity, we launched real estate rating, building diagnosis,
real estate appraisal and due diligence services.

Cash investment
Managerial business decisions

Business
activities•Real estate appraisal and due diligence related activities•Building diagnosis, earthquake resistance, asbestos andProbable Maximum Loss (PML) evaluations•Operation of a ratings website

4

Business Results for the Fiscal Year Ended December 2007
● Overview of Results●Highlights of Consolidated Business Results

This consolidated business year, the Funai Zaisan group(comprising Funai Zaisan, our seven consolidated affiliates andfour equity affiliates) conducted its asset consulting business on
the basis of our all-encompassing motto of "Customers first,"
and under our management philosophy of "Building a company
respected by society, and pursuing the happiness of customers
and employees." We have also maintained a focus on developing
new clients, for example by conducting an active program ofseminars and distributing published materials relating to our asset
consulting service.
We have enjoyed very good revenue results from real estatetransactions [this year] thanks to the marketing of our "RealEstate Joint Ownership Schemes (Advantage Club )" and ourmarketing as packaged financial products of large scale realestate properties, especially central urban properties. Because ofthis, on the profit side we have been able to secure grossoperating profits substantially in excess of our original plans, andachieved significant growth in our [ final ] earnings performance.
This consolidated business year, as an illustration of our businesssuccession consulting service, in February 2007 we used abusiness succession fund to spin off the Kawaguchi lagoon
museum business of our affiliated company Ukai Co. Ltd. (headoffice: Hachioji City, Tokyo; President and CEO: Isamu Okubo),
thus securing the financial soundness of Ukai and realizing
efficiencies in its management.
We will drive on further with our business succession consulting®

service, which supports the planning and implementation of ourclients' business succession plans. In March 2007 we mergedwith our former consolidated affiliate Funai Zaisan Consulting
Network Systems, making the management of our national area
companies and area partners more efficient.
Looking further forward, we will be aiming to further energize ourbusiness by generating synergies from two of the special assetsthat we possess as a group, namely the success stories that wehave in each sector of industry and the strong geographicalbases of our national area companies and area partners in eachregion of Japan.
As a result of the factors described above, operating income forthe consolidated interim period under review was up 30.0% yearon-year to 17,887 million yen, operating profit rose 56.6% to
3,031 million yen, ordinary profit surged 58.8% to 2,586 million
yen, and 4th quarter net profit jumped 70.9% to 1,543 million yen.

Operating income (unit: million yen)

Ordinary profit (unit: million yen)

20,0003,000●Operating Income by Category

20,000(unit: million yen)Previous interim period Current interim period(Jan. – Jun. 2006)(Jan. – Jun. 2007)
AmountRatio (%)

Income from asst consulting

2,897

21.1

2,848

15.9

-1.7

Income from real estate deals

9,508

69.1

13,528

75.6

42.3

Income from sublease

1,122

8.1

1,113

6.2

-0.8

227

1.7

397

2.3

74.6

13,756100.0

17,887

100.0

30.0

Other income
Total●Business Results

AmountRatio (%)

Increase(%)

Current year
(Jan. -- Dec. 2 007)

2,000

1,835

2,500

16,000

1,543
1,500

13,756
12,000

2,946
2,586

2,000

11, 237

1,628
1,000

1,5 00
1,115

8,000

903
640

1,000
500

4,000

500

0

0

0
Full year
2005

Full year Full year Full year
2006
2007
2008
(projected)

Full year
2005

Full year Full year Full year
2006
2007
2008
(projected)

Net profit per share for the current year (unit: yen)*

Total assets (unit: million yen)

30,00025,00017,507.21
14,726.36

15,000

8,000
6,259

20,00017,229.43

Full year Full year Full year
2006
2007
2008
(projected)

Net assets (unit: million yen)
22,21024,750.98

Full year2005

17,684

6,000
4,829

14,535
4,000

3,732

10,00010,0002,000

00Full year
2005

Full year Full year Full year
2006
2007
2008
(projected)

0
Full year
2005

Full year
2006

Full year
2007

Full year
2005

Full year
2006

Full year
2007*The company implemented a wo-for-one stock split in the years as follows:
Feburary 1 4, 2005 (15th financial term) Three-for-one stock split.
December 20, 2005 (15th financial term) Two-for-one stock split.
November 1 , 2006 (16th financial term) Two-for-one stock split.
October
1 , 2007 (17th financial term) Two-for-one stock split.

●Projection of Full-Year Results

Next year projected(Jan. -- Dec. 2008)

Demand for the company’s asset consulting services is%, net profit of 1,835 million yen, a rise of 18.9%, andexpected to continue to trend firmly.

net profit per share of 1,500 yen.

Projected full-year consolidated results for the year

Operating Income

13,756（+ 22.4％ ）17,887（+30.0 ％ ）19,033（+ 6 .4％ ）Operating profit

1,628（+46.0％ ）2,586（ +58.8 ％ ）2,946（+13.9％ ）Ordinary profit

9 03（+40.9％ ）1,543（ +70.9 ％ ）1,835（+18.9％ ）(The percentages are based on the figures of the same period previous FY)

519,033

5,000(unit: million yen)Previous year
(Jan. -- Dec. 2006)

17,887

Net profit of the current year (unit: million yen)ending December 2008 are as follows: operating incomeof 19,033 million yen, representing year-on-year growth of
6.4%, operating profit of 3,380 million yen, a rise of*The projected figures appearing above reflect analysis based on information
available at the time of preparation, and are subject to various uncertainties.
Actual realized results may vary significantly from the above projections due
to changes in business conditions and /or other factors.

11.5%, ordinary profit of 2,946 million yen, a rise of 13.9

6

Consolidated Financial Data (Summary)(Million of yen, rounded down to the nearest million)●Interim Consolidated Balance Sheet
Term
Item

●Full Year Consolidated Income Statements

Previous year ended

Current year ended

December 2006

December 2007

AssetsCurrent assets
Cash and deposits
Accounts receivable
Real estate held for sale

12,52817,030

5,213

6,704

408
5,944

592
8,578

Term
Item

Previous year ended

Current year ended

December 2006

December 2007

Term
Item

Previous year
ended
December 2006

544

955

Operating income

13,756

17,887

Current liabilities

Operating cost

9,890

12,589

3,865

5,297

1,930

2,266

1,935

3,031

5,520

5,355

Gross operating profit

Accounts payable

8870

Short-term debt

3,258

2,720

Operating profit

940

1,020

Non-operating income

930

Non-operating expenses

315

475

1,628

2,586

Bonds redemable within one year
Accrued corporate taxes
OthersFixed liabilities

Deffered tax assets

43

85

Others

373

116

Bonds

Allowance for doubtful accounts
Fixed assets

-0

-3

5,156

5,180

224

204

Long-term debt
Anonymous association investment deposits payable
Deffered tax liability

522

819

Property, plant and equipment

112

100

Transportation equipment

11

5

Land

76

70

710

725

7,334

10,595

3,145

3,025

94

3,500

3,098

3,037

64

28

25

31

Addition to reserve for compensation of retired directors 133

172

772

800

0

−

12,854

15,951

Allowance for employee retirement benefits
Tangible fixed assets

Deposits payable
OthersTotal liabilities

SG&A

Intangible fixed assets
Investments and other assets
Investment securities
Shares in affiliates

7

25
44
4,886
1,053
3,675

28
Shareholders' equity

4,550

5,936

58

Common stock

805

805

4,918

Capital surplus

875

875

2,869

4,255

Evaluation and conversion difference

224

267

Minority interests

55

55

Total net assets

4,829

6,259

Total liabilities and net assets

17,684

22,2101,253

Retained earnings

3,503

Others157

160

Total assets

17,684

22,210Extraordinary profit

5

1

Extraordinary loss

164

54

Anonymous association investment deposits payable

-168

-196

Interim net income before taxes

1,637

2,729

Income taxes

751

1,294

Deferred income taxes

- 24

-108

Minority interests
Net profit

7

0

903

1,543

Term

Previous year
ended
December 2006

Current year
ended
December 2007

Cash flow from operating activities

2,918

- 626

Cash flow from investing activities- 4,296- 553

Cash flow from financing activities

1,884

2,611

Change in cash and equivalents

505

1,431

Cash and equivalents at start of period

3,957

4,463

Cash and equivalents at end of interim period

4,463

5,895

Minority
interests

Total
net assets

Item●Full Year Consolidated Statement of Shareholders' Equity
Evaluation andconversion difference

Shareholders' equity
Jan. 1 – Dec. 31 2007

Net assets
OthersCurrent year
ended
December 2007

Liabilities

Ordinary profit
Purchased receivables●Full Year Consolidated Cash Flows

Commonstock

CapitalsurplusRetainedearnings

Total shareholders'equityOther marketablesecurities evaluationdifference

Total evaluationand conversion
difference

805

875

2,869

4,550

224

224

55

4,829

Distribution of reserves

−

−

- 157

- 157

−

−

−

- 157

Interim net profit

−

−

1,543

1,543

−

−

−

1,543

Changes in other items (net)

−

−

−

−

43

43

0

43

−

−

1,386

1,386

43

43

0

1,430

805

875

4,255

5,936

267

267

55

6,259

Balance on Dec. 31, 2006
Consolidated interim period changes

Total
Balance on Dec. 31, 2007

8

Stock/Stockholder Information/Company information/Executives●Overview(as of December 31, 2007)

Total number of authorized shares
Number of shares in issue
Number of shareholders

288,000
104,824
4,991*The company implemented a two-for-one stock split of its common stock on October 1, 2007.

●Major Shareholders (Top 10)
Name

Taihei Shoji Co., Ltd.
JP Morgan Chase Oppenheimer
Funds JASDEC AccountFunai Consulting Co., Ltd.
BBH Matthews Asian Pacific FundJapan Trustee Services Bank Ltd.
City Bank London Global
Window Scottish Equitable
Yoshihito Hirabayashi
The Bank of New York, GCM
Client Accounts EISG
BBH Matthews Japan Fund
Goldman Sachs Internationall

Other Japanese companies: 71 (1.42%)

Foreign nationals:
33,526 (31.98%)

9

Head office

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

Incorporated

September 17, 1991

Capital stock805.81 million yen

Business line

Individual asset consulting, institutional asset consulting, andasset management

10.07

Number of employees

125

10,000

9.53

9,132
5,202
3,672

8.71
4.96
3.50

Business network
52 locations
Throughout Japan

2,962

2.82

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

2,824

2.69

Consolidated
subsidiaries

2,733

2.60

7 companies including Funai Estate,
Nippon Real Estate Rating Services Co., Ltd.,and the Centennial Fund Investment Limited Partnership

1,948
1,797

1.85
1.71

Affiliates underequity method

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

Securities firms: 24 (0.48%)
Financial institutions: 11 (0.22%)●Number of Shareholders by Category
Other Japanese companies:
22,942 (21.88%)

Funai Zaisan Consultant Co., Ltd.

10,560Individuals / others:
4,815 (96.48%)

Financial institutions: 7,875 (7.51%)(as of December 31, 2007)

Name of company

No. shares held Ratio of shareholding (%)●Number of Shareholders by Category
Foreign nationals: 70 (1.40%)●Company information

Securities firms: 1,584 (1.51%)
Individuals / others:
38,897 (37.12%)●Executives(as of March 23, 2008)

President & CEO

Yoshihito Hirabayashi

Deputy President

Hideo Murakami

Managing Director

Hisao Nakatsuka

Managing Director

Takahiko Makino

Director, 4th Division Manager

Seiki Noda

Director, 1st Division Manager

Masayuki Yagi

Director, 5th Division Manager

Yasuhiko Sato

Director, 6th Division Manager

Takeshi Matsuura

Director, 3rd Division Manager

Tetsuo Akiyama

Outside Director

Haruo Shimada

Outside Director

Kiyoshi Ohno

Outside Auditor (full-time)

Takao Kitamura

Auditor

Takehiko Yamamura

Outside Auditor

Hiroshi Yamagishi

Outside Auditor

Toshio Honda

We will remain your best partner over 100 years
Funai Zaisan Consultant Co., Ltd.

10