President's Message

I (SHINJI YAMAMOTO), took the position as the Representative Director and President on December 1, 2006. I will strive for achievements and improvements of the ICHIYA group to meet all your expectations.

Our company was able to add an equity method associated company and four consolidated subsidiaries. The company performed a positive M&A in order to expand the business scale in the first half of the year.

However, the earnings structure has still been weak because we had the sudden expansion. Therefore, as a future subject, I will perform a review of the group companies to make those unprofitable businesses into a business group that can achieve a stable profit.

In addition, in the first half of the year (term ended July, 2006), the financial situation has greatly reformed due to the exercise of the 4th stock acquisition rights advanced well, and the loan was repaid in full amount.

For the future, I always do my best with the entire group to make the company better and I fully appreciate your support.

December 1, 2006

SHINJI YAMAMOTO

President and Representative Director