Our company manages the risk of accident and trouble in real estate business using preventive activities which were cultivated in shipping business. Taking the satisfaction of tenants and visitors into consideration, we pursue the quality of safe.

In this chapter, we would like to introduce following three activities. Building Security and Security system, Fire Prevention Management System and Start of efforts for Business Continuity Plan (BCP).

1. Building Security and Security System

Following the completion of the Iino Building in 1960, the former Iino Real Estate Co., Ltd. established a security section for the self-policing of the Iino Building. The assets of knowledge and experience that Iino Real Estate had accumulated over many years were adopted by the succeeding building management services company (Iino Building Technology Co., Ltd.). Since its certification as a security services business by the Tokyo Municipal Public Safety Commission, Iino Building Technology has been committed to providing safe, comfortable environments for the tenants of our buildings.

We have adopted two modes of security: round-the-clock, provided by resident security staff stationed in our buildings, and automated, provided by security staff dispatched in vehicles in response to an alarm signal transmitted when sensors installed in any of our buildings detect an unusual situation.

As for machine security, the building with the most cases in which security staff were called into action was 24 times (highest number in the past, 74 times in fiscal year 1997, and the lowest number of 9 times in 2003). The causes were operational errors (not noticing that someone was still in the office and setting the alarm, forgetting to lock up, etc.), leaving the exit open for a long period of time, and requests to lock, unlock, or set alarms. The actions taken in the case of break-in alarms were to send out security staff, confirming the security alarm situation, inspecting the rooms in question, creating an Operation Report, and reporting the situation to the Iino Building Monitoring Center.

Due to the increase in vacant room because of the reconstruction plan from the second half of the fiscal year 2007, Iino Building management began strengthening security by closing off uninhabited areas, inspecting the inside of empty rooms every day, using ITV to monitor the vacant floors, and working with the security center at the nearby Sakurada Building.

2. Fire Prevention Management System

In a building with many office tenants, it is necessary to implement a well-organized disaster preparedness program in order to prevent the occurrence of chaos in a disaster such as fire or earthquake.

Among our main buildings for rent, the Iino Building, Tokyo Sakurada Building, and Siodome Shiba-Rikyu Building are required by the Fire Defense Law to have a Building Tenants' Fire Prevention Association made up of all office tenants. We have voluntarily organized such an association for the Sasazuka Center Building.

The councils make decisions on matters necessary for the joint management of fire prevention, including planning and implementation of fire drills in all the buildings, planning and implementation of regular building inspections, and head-counts in the buildings.

Tokyo Sakurada Building and Shiodome Shiba-Rikyu Building have been designated as in compliance with the Report System for Building Regular Fire Inspection, which makes building superintendents check whether the items necessary for fire prevention in their offices comply with the requirements, and report the results to firehouses.

3. Start of Efforts for Business Continuity Plan (BCP)

Our company started development of the Business Continuity Plan (BCP) for continuity and quick recovery of business in the event of a crisis, such as a large-scale disaster or accident.

Our company owns six buildings in Tokyo as part of the building lease business. Considering the profound effect of disasters, we assumed the risk of a 7.3-magnitude earthquake directly underneath the north of Tokyo Bay.

We are considering and developing a plan from the aspects of both the shipping business and the building lease business from the second half of fiscal year 2007 to fiscal year 2008.

In our building leasing business, the function of headquarters is located in our own buildings in many cases due to the location features, and thus we think that recovering building functions immediately is essential and that careful advance preparation for a crisis may lead to the improvement of services in the building lease business.