February 26, 2016
For Immediate Release
Ryosan Company, Limited
Representative: Naoto Mimatsu, President
Listing Code No.: 8140
Listing: First Section, Tokyo Stock Exchange
Inquiries: Norihiko Takahashi
General Manager
Corporate Planning Headquarters
IR and Publicity Office
TEL: +81-3-3862-3816

Notice Concerning Transition to a Company with an Audit and Supervisory
Committee and Introduction of Executive Officer System
Ryosan Company, Limited ("the Company") has announced the transition to a company with an Audit andSupervisory Committee and the introduction of an Executive Officer System in accordance with a decision
made at the Board Meeting held on February 26, 2016. These changes are based upon the condition ofapproval at the Company's annual shareholders’ meeting which is scheduled to be held in June 2016.

Details
1. Company with an Audit and Supervisory Committee(1) Purpose of transition
・By constructing a governance structure for auditing and supervision by such Directors who holdthe right to vote at the Board Meeting and who also serve as members of the Audit andSupervisory Committee, the Company aims to strengthen the supervisory function over Directors
and the Board of Directors, and to improve the transparency and fairness of its governance.
・Through heightening the management supervision of the Board of Directors in addition to theExecutive Officer System mentioned below, the Company further enhances corporate governanceand increases the efficiency of its management.
・By streamlining the Board of Directors and by increasing the ratio of outside directors in the Boardof Directors as the result of changes mentioned above, the Company envisages to encourage those
discussions aimed at achieving sustained corporate growth and improving the Company's
corporate value in the mid to long-term horizon, as well as those discussions based on ashareholders’ perspective.
・As part of the Company's efforts for further global expansion, the Company constructs agovernance system which can be easily understood by foreign stakeholders.
(2) Transition period
At the Company's annual shareholders’ meeting which is scheduled to be held in June 2016, theCompany plans to receive approval for the required changes to the Articles of Incorporation, and totransform into a company with an Audit and Supervisory Committee.

2. Executive Officer System(1) Purpose of introduction
・As part of revisions to the Company's governance system, the Company clarifies the locus ofresponsibility with the business execution by separating the decision-making and supervisory
functions from the execution functions.
・ By transferring the authority over business execution, the Company constructs a flexible
management system.
・By appointing personnel who excel in business as Executive Officers, the Company strengthens thecompetitiveness of the company and improves its performance.
(2) Overview of system
・The Company implements an Executive Officer System and transfers authorities over businessexecution to those officers.
・Based on recommendations by the Nomination & Compensation Advisory Committee, ExecutiveOfficers are appointed through resolutions by the Board of Directors.
・The term for Executive Officers is 1 year. Reappointment is possible.
(3) Introduction period
The Company plans to implement the Executive Officer System at the same time as the transition
to a company with an Audit and Supervisory Committee.

3. OtherDetails of changes to the Articles of Incorporation, as well as directors and executive officer
personnel decisions will be released as they are made.