October 15, 2010
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Shibatsuji, Executive Director
Nihon-bashi Nishikawa Bldg.
1-5-3 Nihon-bashi, Chuo-ku, Tokyo, Japan(Securities code: 8963)
URL: http: //www.invincible-inv.co.jp/eng/
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Shibatsuji, CEOContact: Yuji Kubo, CFO(Tel. +81-3-3272-7311)

Notice concerning Supplementary Explanations to“Notice concerning Note regarding the Going Concern Basis” and Future Efforts
Invincible Investment Corporation (INV) provides the following supplementary explanations to thebackground to the note regarding the going concern basis in its interim financial statements for the15th Fiscal Period Ending December 2010 disclosed in the press release titled “Notice concerning
Note regarding the Going Concern Basis” dated September 28, 2010. At the same time, INV
announces the following future activities.
1.
Background to the Note Regarding the Going Concern Basis
As of September 30, 2010, INV possesses a total of JPY 43.1 billion in borrowings which arecomprised of the following: JPY 16.8 billion in a Term Loan (hereinafter, “Securitized Loan”),
JPY 11.3 billion in a Term Loan, JPY 3.6 billion in 24 individual credit loans, and JPY 11.3 billion
in Term Loan (D). (For details of the borrowings, please refer to the press release titled “Noticeconcerning Change of Terms of Existing Borrowings” dated September 28, 2010.)
Of the abovementioned borrowings, making repayment of the Securitized Loan has become afactor for raising the risk of a going concern due to the following reasons: (1) and (2).
(1) As a trend, conditions are such that the selling prices in the Japanese real estate market
continue to decline. Therefore, it is difficult to sell the collateral of the Securitized Loan atprices whose sales amount fulfills the repayment amount of the loan principal.
(2) The loan-to-value (LTV) level of INV remains high and, as a result, it is extremely difficult
to take out loans without pledging collateral. Furthermore, since INV has no owned
properties which INV can newly pledge as collateral, it would be difficult to makerepayments through the utilization of new borrowings.

1With regard to the Securitized Loan, INV has extended the maturity date twice this year. As
disclosed in the press release titled “Notice concerning Change of Terms of ExistingBorrowings” dated March 26, 2010, INV was able to secure an agreement concerning an extensionof six months at the first maturity date extension. However, as disclosed in the press release titled“Notice concerning Change of Terms of Existing Borrowings” dated September 28, 2010, which
was after the announcement of the interim financial report (Kessan-Tanshin), the secondmaturity date extension was set to three months after holding discussions and negotiations.
As of INV’s interim closing date (June 30, 2010) and as of the announcement of the interim
financial report (Kessan-Tanshin) (August 20, 2010), INV had been examining and discussing
various measures in detail, such as selling collateral, holding negotiations with new financial
institutions towards taking out new loans, conducting equity financing through capital increases
by way of third-party allotment, extending invitations to new sponsors, and others. Due to suchexaminations and discussions, repayment of the Securitized Loan or a maturity date extensionof a commensurate period was expected to be realized at that point in time. Accordingly, INV
judged that no serious uncertainties over the going concern basis existed.
However, as no specific agreement was reached in subsequent negotiations with related parties
concerning the various methods mentioned above, conditions as of September 28, 2010
became such that the specific source for securing repayment funds for the Securitized Loan was
not yet clear. Furthermore, there were no clear prospects for obtaining an agreement from
related parties of the Securitized Loan concerning the further extension of the maturity date of
the Securitized Loan after the maturity date (December 30, 2010). As a result, INV judged that
there existed serious uncertainty over the going concern basis as of September 28, 2010 anddecided to make a note regarding the going concern basis.
2.
Future Efforts
As it is difficult to sell properties amid current real estate market conditions and it is extremely
difficult to obtain new lenders as mentioned before, in order for INV to establish a stablefinancial foundation and growth strategy on a medium- to long-term basis, INV thinks thatsearching for a new sponsor and conducting equity financing through capital increases by wayof third-party allotment, etc. which would accompany that, are vital. Therefore, INV is positioning
such efforts as issues of top priority at the current moment and are conducting examinations.
Based on the assumption that INV will be able to gain understanding from its major financial
institutions, INV will strive to secure a stable financial foundation by realizing INV’s enhanced
credibility of INV as quickly as possible through an invitation to a new sponsor who possesses
credibility and by improving its financial standing through equity financing. Through such efforts,
INV will return to the growth track that is inherent to REITs and will strive to obtain returns forunitholders in the medium to long term.
INV and its asset manager will continue pouring their utmost effort into bringing about a swift2resolution of the note regarding the going concern basis.

Note: This English language notice is a translation of the Japanese language notice released on October
15, 2010 and was prepared solely for the convenience of, and reference by, non-Japanese investors. No
warranties or assurance are given for its accuracy or completeness of this English translation.

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