Notice Regarding Use of Placement Proceeds Raised on Singapore Exchange (Co-equity Investment in a Private Fund)

Tosei Corporation

Toranomon Tosei Building, 4-2-3 Toranomon, Minato-ku, Tokyo

President and CEO: Seiichiro Yamaguchi

Securities code: 8923 (Tokyo Stock Exchange, First Section)

S2D (Singapore Exchange, Mainboard)

Contact: Director and CFO: Noboru Hirano

TEL: +81-3-3435-2864

Notice Regarding Use of Placement Proceeds Raised on Singapore Exchange
(Co-equity Investment in a Private Fund)

Tosei Corporation (the "Company") issued 2,600,000 shares of common stock pursuant to a placement in Singapore and overseas markets (excluding the United States and Canada) on July 25, 2013 ("Placement") and raised \1,933,438,000 as net proceeds of the Placement. In relation to the issuance of the new shares, the Company announced on July 22, 2013 that the proceeds were expected to be applied to its Revitalisation Business, Development Business, and Fund and Consulting Business, which are the core operations of the Company.

Further to the announcement, the Company wishes to provide an update that it has utilised a portion of the net proceeds from the Placement, for co-investment in a private fund investing in six logistics facilities ("Fund"), as shown below. With this utilisation, the Company has disbursed the full amount of \ 410,687,000 the portion of the net proceeds that was expected to be applied to the Fund and Consulting Business.

The Fund has been set up by a third party company. By making such equity investments, the Company intends to expand the opportunities to undertake asset/building/property management and other services.

1. 1.Use of Placement Proceeds (\ thousand)

   Total amount raised in July 2013	1,933,438
   Total amount utilised from the proceeds as of Sep. 30, 2013	817,083
   Total amount utilised on Oct. 21, 2013	360,687
   Total amount utilised from the proceeds as of Oct. 21, 2013 (cumulative)	1,177,770
   Balance proceeds	755,667

2. 2.Details of Use of Proceeds (\ thousand)

   Fund and Consulting Business
   Co-equity investment in Private Fund (partial)	360,687
   Subtotal	360,687
   Total amount utilised as of Oct. 21, 2013 (cumulative)	1,177,770

The above disclosure on use of net proceeds from the Placement is made pursuant to a requirement of the listing rules of the Singapore Exchange Securities Trading Limited The above mentioned utilisations are in accordance with the stated use of the proceeds disclosed by the Company in the announcement dated July 22, 2013. The Company will make further announcements via SGXNET as and when such funds are materially disbursed.

End

• Notice Regarding Use of Placement Proceeds Raised on Singapore Exchange (Co-equity Investment in a Private Fund)