Notice Regarding Use of Placement Proceeds Raised on Singapore Exchange (for the Month of September 2013)

[Translation]

To whom it may concern

October 7, 2013

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
(for the Month of September 2013)

Tosei Corporation (the "Company") had issued 2,600,000 shares of common stock pursuant to a placement inSingapore and overseas markets (excluding the United States and Canada) on July 25, 2013 ("Placement") and received￥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 during the month of September 2013, it had utilised a portion of the net proceeds from the Placement as follows:

  1. 1.Use of Placement Proceeds (\ thousand)
    Total amount raised in July 2013 1,933,438
    Total amount utilised from the proceeds as of Aug. 31, 2013 321,884
    Total amount utilised during the month of September 2013 495,199
    Total amount utilised from the proceeds as of Sep. 30, 2013 (cumulative) 817,083
    Balance proceeds 1,116,355
  2. 2.Details of Use of Proceeds (\ thousand)
    Revitalisation Business        
      Acquisition cost of residential property in Shonan (partial) Fujisawa-shi,Kanagawa Apartment 29,864
      Acquisition cost of residential property in Kokubunji (partial) Kokubunji-shi,Tokyo Apartment 234,785
          Subtotal 264,649
    Development Business        
      Construction cost of THE Palms Nishigahara (partial) Kita-ku,Tokyo Condominium 230,550
          Subtotal 230,550
          Total amount utilised during the month of September 2013 495,199

    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 abovementioned 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