Notice of Performance Forecast Revision

To whom it may concern

October 5, 2012

Tosei Corporation
Toranomon Tosei Building, 4-2-3 Toranomon, Minato-ku, Tokyo
President and CEO: Seiichiro Yamaguchi
Ticker code: 8923 (Tokyo Stock Exchange, First Section)
Contact: Noboru Hirano, Director and CFO
TEL: +81-3-3435-2864

Please note that this document is a translation of the official announcement that was released on October 5, 2012. The translation is prepared and provided for the purpose of the readers’ convenience only. All readers are strongly recommended to refer to the original Japanese version of the news release for complete and accurate information.

Notice of Performance Forecast Revision

October 5, 2012 – Tosei Corporation ("Tosei") has revised its consolidated and non-consolidated performance　forecasts for the fiscal year ending November 30, 2012 (December 1, 2011 to November 30, 2012) which were　announced on January 10, 2012. The detail is as follows:

  1. 1.Performance Forecasts Revisions for the Fiscal Year Ending November 30, 2012
    (December 1, 2011 to November 30, 2012)

    (a) Consolidated

     Revenues
    (\million; %)    		Operating
    income
    (\million; %)    		Ordinary
    income
    (\million; %)    		Net income
    (\million; %)    		Earnings
    per share
    (\)
    Previous forecast (A) 29,063 3,079 2,226 1,278 2,799.12
    Revised forecast (B) 25,046 3,035 2,241 1,384 3,029.86
    Amount of change (B-A) (4,017) (43) 14 105 -
    Percentage change (%) (13.8%) (1.4%) 0.7% 8.2% -
    Reference:
    Results for the same period of previous fiscal year (Dec.1, 2010 to Nov. 30, 2011)    		 24,759 2,389 1,574 751 1,646.05

    (b) Non-Consolidated

     Revenues
    (\million; %)    		Operating
    income
    (\million; %)    		Ordinary
    income
    (\million; %)    		Net income
    (\million; %)    		Earnings
    per share
    (\)
    Previous forecast (A) 23,350 2,787 1,999 1,165 2,550.73
    Revised forecast (B) 19,845 2,682 1,951 1,126 2,465.83
    Amount of change (B-A) (3,504) （105） (48) (38) -
    Percentage change (%) (15.0%) (3.8%) (2.4%) (3.3%) -
    Reference:
    Results for the same period of previous fiscal year (Dec. 1, 2010 to Nov. 30, 2011)    		 20,719 2,345 1,601 993 2,174.76
  2. 2.Reasons for Revisions

    The Company revised its forecast for consolidated revenues of the fiscal year ending November 30, 2012 to \25,046million, down \4,017 million. This is mainly because the sale of Restyling condominiums under the Revitalizationbusiness has been slower than planned and the sale of some entire buildings expected in the 4th quarter will likely be conducted in the next fiscal year.
    In line with revenue decline, profit decrease is projected; however, profit margins are likely to exceed our originalprojection in sales recorded in the 3rd quarter and projected sales of the 4th quarter.
    For the reasons stated above, Tosei projects consolidated ordinary income of \2,241 million and net income of \1,384million, up \14 million and \105 million respectively.

End

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Note: The above performance forecasts are based on information available at the time of announcement. Varioussubsequent factors may cause actual performance to differ from forecasts.