Strong real estate sales in urban development and the introduction of new consolidated accounting standards led sales for fiscal 1999 to jump 106.0%, to 43.9 billion yen. Operating income soared 358.2%, to 19.7 billion yen.

  With regard to Company land development projects, urban development projects that emphasize distinctive regional features are currently underway in the New City Center in eastern Kobe and O's Town in Akashi, both in Hyogo Prefecture, and Hachinohe in Aomori Prefecture.

  We broke ground for the Maya Seaside Place condominiums in the New City Center in eastern Kobe in fall 1999, and construction and unit sales are progressing smoothly. Developed to showcase urban development in the region, O's Town features a harmonious blend of residential and commercial areas centered around Mycal Akashi, one of the largest commercial facilities in Japan. Since March 1997 when the first residential units were occupied, over 1,000 families have moved in and sales of another 320 units will begin in fall 2000.

  Our real estate subsidiary Shinko Kosan, Ltd., is expanding its businesses in real estate sales, the rental business, and building management services in the Hanshin area, centering on Kobe. As a comprehensive lifestyle company, Shinko Kosan plans to extend its operations to the Tokyo area as it steadily strengthens profitability.