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In September 2007, the Financial Instruments and Exchange Law (hereafter “the Financial Law”) came into effect. Accordingly, the so-called “real estate private funds” now come under the Financial Law. To date, Simplex Investment Advisors Inc. (SIA) has been involved mainly in real-estate asset management and real-estate development. However, in response to the Financial Law, in September 2007 we established our fully owned subsidiary, Simplex Real Estate Management Inc. (hereafter, “SRM” or “our company”) specializing in real-estate asset management.

SRM will handle the trading of financial instruments such as investment management, so we have made preparations such as compliance. Our company structure was recently finalized, and as of March 1, 2008, SIA’s real-estate asset management will be taken over by SRM according to corporate division and we will officially launch operations.

Existing contracts and other positions in writing, which will be subject to corporate division, will all be taken over by SRM. In principle, our business partners do not need to do anything as a result, but if procedures such as changing documents become necessary, we will contact you separately.

In regard to SIA, after the TOB in November 2007, SIA dissolved its conventional capital ties with Nikko Cordial Group and Simplex and received investment from a fund created by Goldman Sachs and Aetos. Due to the change of major shareholders, SIA will withdraw from the stock market in March 2008. However, SIA will strengthen its foundation in cooperation with Goldman Sachs and Aetos, and will build a stronger structure in the future.

SRM and SIA will continue to do their utmost to deliver good performance, and would sincerely appreciate your ongoing support.

Sincerely,
CEO & President
Masashi Takato
Simplex Real Estate Management Inc.