PRESS RELEASE

Mori Trust Group

Business performance for the fiscal year ended March 2004
～ Revenue and ordinary income both set new record highs. Profit growth achieved for ten consecutive years. ～July 5, 2004
This is a report of the business performance figures for FY 2003 (ended March 2004) for theseventeen companies of the Mori Trust Group, including the Mori Trust Group Inc., Mori Trust Co.,
Ltd., and Mori Kanko Trust Co., Ltd. Details of the consolidated settlement of accounts for theseventeen companies follow.

[Mori Trust Group consolidated business performance ] (April 1, 2003 – March 31, 2004)(Monetary amounts are given in millions of yen; figures in parentheses indicate percentage rates of increase or decrease from theprevious fiscal year.)

FY 2002

FY 2003

FY 2004 (projected)

1 Revenue from operations

111,964

121,149（8.2%）

125,000（3.2%）

Lease-related income

55,99357,274（2.3%）

57,500（0.4%）

Hotel-related income

18,452

27,623（49.7%）

30,000（8.6%）

Other income

37,51936,252（▲3.4%）

37,500（3.4%）

2 Ordinary income

27,031

28,354（4.9%）

31,000（9.3%）

3 Net income

9,437

15,723（66.6%）

16,500（4.9%）(interior construction in leased spaces, subdivisions, etc.)○Consolidated companies (thirteen companies)
Mori Trust Group Inc., Mori Trust Co., Ltd., Mori Kanko Trust Co., Ltd., Mori Investment Trust Co.,
Ltd., MT Facility Service Co., Ltd., Yokohama Grand InterContinental Hotel Co., Ltd., Mampei Hotel,
Nippon Intelligent-Building Systems Corporation, MT Genex Corp., Mori Trust Asset Management Co.,
Ltd., Shiroyama Heating & Cooling Supply Co., Ltd., Universal Express Co., Ltd., MT Golf
Management Co., Ltd.
○EquityEquity-method
method affiliates (four companies)
Parco Co., Ltd., Urban Life Co., Ltd., Foretseine Co., Ltd., Mori Trust Sogo REIT, Inc.

（Notes）
Notes）
Although Mori Sangyo Trust Co., Ltd. is not included in the list of consolidated companies because it
merged with Mori Trust Co., Ltd. on August 1, 2003, the related business performance during fiscal
2003 up to the merger is booked in the business performance for FY 2003.
＜Next page: overview and business summary＞-1-

Overview of FY 2003 business performance○Sales and ordinary income both increased. Sales exceeded by 8.2% the previous record high of 112
billion yen from FY 2002 (ended March 2003), for a figure of 121.1 billion yen. Ordinary income alsoreached its highest level ever, increasing by 4.9% from the previous fiscal year to 28.4 billion yen, for
its tenth consecutive year of growth (since 1994).
○A breakdown of sales reveals that lease-related income grew 2.3% over the previous fiscal year to 57.3billion yen. Against a backdrop of a harsh sales climate for existing buildings, factors such as theopening of Marunouchi Trust Tower North (1 Marunouchi, Chiyoda-ku, Tokyo; 19 floors aboveground,
three floors underground; total floor area 65,243 square meters; completed in September 2003) andthe encouraging performance of the seven buildings acquired from Daikyo Inc. (September 2002,including Kojimachi Millennium Gardens) over the whole fiscal year contributed to this growth.
○Hotel-related income grew 49.7% over the previous fiscal year to 27.6 billion yen. Sales generated overthe entire fiscal year from the Yokohama Grand InterContinental Hotel Co., Ltd. (headquarters:
Yokohama, Kanagawa Prefecture; President: Kazuoki Sone), which was subject to consolidation in theprevious fiscal year made a marked contribution to this figure.
○Other income decreased by 3.4% from the previous fiscal year, to 36.3 billion yen. Although income
from interior construction in leased spaces increased together with the completion of Marunouchi
Trust Tower North (covered above), sales of properties decreased from the previous fiscal year.
○Ordinary income grew 4.9% over the previous fiscal year to 28.4 billion yen. Factors contributing tothis increase include a reduction of interest-bearing debt and further improvements in borrowing
conditions, as well as income from equity-method affiliates.
○Net income grew 66.6% over the previous fiscal year to 15.7 billion yen. This was realized throughfactors such as the sale of securities, against a loss booked due to revaluation of real estate—in linewith asset-impairment accounting preparations.

-2-Business performance projections for FY 2004

○Sales of FY 2004 (ending March 2005) are projected to be 125 billion yen, for an increase of approximately
3.9 billion yen.
○For a breakdown of expected sales, lease-related income is expected to remain level with the figure forthis fiscal year, at 57.5 billion yen. Although the sales climate for existing buildings is expected to remainharsh, contributions from factors such as the operation over the entire fiscal year of Marunouchi TrustTower North (covered above) and the opening of the Tokyo Shiodome Building (1 Higashi-Shinbashi,Minato-ku, Tokyo; 37 floors aboveground, four floors underground; total floor area 192,000 square meters;slated for completion at the end of January 2005) are expected to contribute to this figure.
○Hotel-related income is expected to grow by approximately 2.4 billion yen over this fiscal year to 30 billion
yen. Contributing to this expected growth is an anticipated bullish trend in business performance in thissector, resulting

fromfactors suchas incomefromsaleof

memberships totheupscale

individual-membership resort club Granforet Villa Gora Club (Gora, Hakone, Ashigara-gun, Kanagawa
Prefecture; five floors aboveground, two floors underground; total floor area 14,000 square meters;planned to open in March 2005) and anticipated growth in income from Yokohama GrandInterContinental Hotel Co., Ltd.
○Other income is expected to grow by approximately 1.2 billion yen over this fiscal year to 37.5 billion yen.
Contributing are factors such as anticipated income from interior construction in leased spaces in theTokyo Shiodome Building (covered above) and sales of properties.
○Ordinary income and net income are both expected to grow together with the increase in income in eachsegment covered above.

-3-FY 2003 business summary○In May 2003, Mori Kanko Trust Co., Ltd. acquired 86.5% of the total shares of travel agent Universal
Express Co., Ltd. (headquarters: Chuo-ku, Tokyo; President: Yoshinobu Ikeda), including a capitalincrease via third-party allotment of shares.
○ In June 2003, Mori Kanko Trust Co., Ltd. began construction of the Group’s first upscale
individual-membership resort club, Granforet Villa Gora Club (Gora, Hakone, Ashigara-gun, Kanagawa
Prefecture; five floors aboveground, two floors underground; total floor area 14,000 square meters).
(Refer to the FY 2005 business summary for a summary of this facility.)○In July 2003, Mori Trust Co., Ltd. underwrote a capital increase via third-party allotment of shares for
Urban Life Co., Ltd. (listed on the second section of the Osaka Securities Exchange; headquarters:
Chuo-ku, Osaka; President: Takayuki Yamada), of which it is the largest shareholder, and increased its
holdings to 42.78% of company equity.
○In August 2003, Mori Trust Co., Ltd. merged with Group company Mori Sangyo Trust Co., Ltd. in orderto further increase management efficiency and to strengthen the corporate foundation.
○ In August 2003, sale of the upscale condominium Foretseine Shimazuyama (Higashi-Gotanda,Shinagawa-ku, Tokyo; three floors aboveground, one floor underground; eleven units in total), built andsubdivided by Foretseine Co., Ltd., was completed.
○In September 2003, construction was completed for the Marunouchi Trust Tower North (Marunouchi,Chiyoda-ku, Tokyo; 19 floors aboveground, three floors underground; total floor area 65,243.54 squaremeters), on which construction had proceeded as the first stage of Mori Trust’s Grand Central
conceptual project underway in Marunouchi, Chiyoda-ku, Tokyo.
○In November 2003, it was decided that the upper floors of the Tokyo Shiodome Building, underconstruction in the Shiodome redevelopment district of Tokyo, would be home to the most upscale hotel
brand of Hilton International (headquarters: United Kingdom), the Conrad. Opening of the Conrad
Tokyo (290 rooms) has been targeted for early summer 2005.
○In December 2003, Mori Investment Trust Co., Ltd. acquired the Oak Village Golf Club (Ichihara, ChibaPrefecture), which had hosted many women’s professional golf tournaments and is well known as achampionship-caliber course with a high difficulty level and a wealth of strategic features. Managementof the golf club is handled by MT Golf Management Co., Ltd., which was established by Mori Investment
Trust Co., Ltd. in July 2003.
○In February 2004, Mori Trust Sogo REIT, Inc., formed by Mori Trust Asset Management Co., Ltd., waslisted on the Tokyo Stock Exchange REIT Index.

-4-FY 2004 business summary○The Tokyo Shiodome Building, on which Mori Trust Co., Ltd. has been proceeding with construction
since October 2002, is planned for completion at the end of January 2005.
The office floors of this building (the third through 26th floors) will be occupied by Softbank Corp.
(headquarters: Chuo-ku, Tokyo; President: Masayoshi Son) and its group companies. The retail facilityon the lower floors is planned to be operated by Parco Co., Ltd.
In addition, the hotel floors will be home to the first Japanese hotel of the most upscale hotel brand ofHilton International, the Conrad. Opening of the Conrad Tokyo (290 rooms) is planned for early summer
2005.
LocationSize

1-9-1 Higashi-Shinbashi, Minato-ku, Tokyo
37 floors aboveground, four floors underground

Land area

17,847 square meters (5,399 tsubo)

Total floor area

192,000 square meters (58,081 tsubo)

Uses

Office (first and third through 26th floors)
Hotel (first and 28th – 37th floors; first and second floors of low-risebuilding)Retail facility (first and second basement floors, first and secondaboveground floors)

Construction began

October 2002

Planned completion dateJanuary 2005

○Following completion of the Marunouchi Trust Tower North (covered above) in September 2003 as thefirst stage of the Grand Central (a conceptual project underway in Marunouchi, Chiyoda-ku, Tokyo),Mori Trust Co., Ltd. plans to begin construction of the second phase of construction on the same site inApril 2005, the Marunouchi Trust Tower Main Building, a high-rise complex consisting of offices, a hotel,
and a retail facility. Construction is slated for March 2008 completion.
○Construction of the upscale individual-membership resort club, Granforet Villa Gora Club (coveredabove), on which Mori Kanko Trust Co., Ltd. began construction in June 2003, is planned for completionin February 2005, with the facility due to open in March 2005. In addition, it has been decided that thespa facilities of this club would be operated by Banyan Tree Spa (headquarters: Singapore), which hasreceived favorable reviews from around the world.
Location

Gora, Hakone, Ashigara-gun, Kanagawa Prefecture

Size

Five floors aboveground, two floors underground

Land area

6,135 square meters (1,856 tsubo)

Total floor area

14,007 square meters (4,237 tsubo)

Summary of facility

Guest rooms: 80 (three room types, plus rooms for travelers with pets)
Capacity: approximately 200 persons
Other facilities include restaurants (Japanese, western), classic bar, onsen
baths, and spa

Planned to open

March 2005

-5-

〈Reference〉〉
Mori Trust Group: total floor area leased/managed■ Leased/managed
Leased/managed facilities (as of April 2004)○Leased buildings:

approximately 1.25 million square meters (68 buildings)○Hotels:

approximately 300,000 square meters (15 locations)(13 Laforet Club locations, Mampei Hotel, Yokohama Grand InterContinental Hotel)
Total floor area

Approximately 1.55 million square meters

Mori Trust Group: summary of consolidated companies
Mori Trust Group Inc.

Nippon Intelligent-Building Systems Corporation

Representatives
Established
CapitalBusiness sectors

President
Established
CapitalBusiness sectors

Akira Mori, Aiko Negishi
August 1, 1951
48 million yen
・Shareholder in group companies
・Property ownership and leasing

Mori Trust Co., Ltd.

MT Genex Corp.

President
Established
CapitalBusiness sectors

President
Established
CapitalBusiness sectors

Akira Mori
June 10, 1970
9 billion yen
・Urban development
・Property ownership, leasing

Masato Date
May 30, 1986
150 million yen
・Building operations/management
・General consulting

Hirokazu Takahashi
October, 1945
approx. 1.072 billion yen
・ Manufacture and sale of exterior products, etc.

Mori Kanko Trust Co., Ltd.

Yokohama Grand InterContinental Hotel Co., Ltd.

Chair
President
Established
CapitalBusiness sectors

President
Established
CapitalBusiness sectors

Akira Mori
Hiroshi Shimamoto
February 7, 1973
6 billion yen
・Development and operation of the Laforet Club
hotel system for corporate members

Kazuoki Sone
May 12, 1988
1.631 billion yen
・Operation ofthe Yokohama Grand InterContinental HotelMori Investment Trust Co., Ltd.

Shiroyama Heating & Cooling Supply Co., Ltd.

ChairPresident
Established
CapitalBusiness sectors

President
Established
CapitalBusiness sectors

Eijiro Kimura
Ken Mori
March 15, 2000
100 million yen
・Developing real estate for investment funds;

Akira Mori
November 6, 1989
300 million yen
・Local heating and cooling services
in the Shiroyama hills and surrounding district

property ownership and leasing, etc.
MT Facility Service Co., Ltd.

Universal Express Co., Ltd.

Chair
President
EstablishedCapitalBusiness sectors

President
Established
CapitalBusiness sectors

Akira Mori
Satoshi Mori
April 1, 2002
100 million yen
・Agents for building owners
・Building operation management, design,and subcontracting

Yoshinobu Ikeda
May 9, 1970
155 million yen
・Sales and planning for domestic
and overseas organized travel

Mori Trust Asset Management Co., Ltd.

MT Golf Management Co., Ltd.

President
Established
CapitalBusiness sectors

President
Established
CapitalBusiness sectors

Masaki Murata
February 28, 2000
400 million yen
・Operation of real estate investment trusts

Ken Mori
July 2, 2003
10 million yen
・Operation, lease, and management of golf courses
and other tourism/sporting facilities

Mampei Hotel
Chair
General Manager
Established
CapitalBusiness sectors

Yasuharu Sato
Kazuyasu Abe1894
approx. 529.7 million yen・Ownership and operation of the Mampei HotelMori Trust Group: summary of equity-method affiliates
Parco Co., Ltd.
President
Established
CapitalIsamu Ito
February 13, 1953
approx.
26.636 billion yen

Urban Life Co., Ltd

Foretseine Co., Ltd.

Mori Trust Sogo REIT, Inc.

President
Established

President
EstablishedNobuo Konomi
August 7, 2001

Executive Director

EstablishedMasaki Murata
October 2, 2001

Capital

200 million yen

Capital80 billion yen

CapitalTakayuki Yamada
July 31, 1970
approx.
6.554 billion yen-6-