OTA Floriculture Auction Co.,Ltd.

Contents

CORPORATE PROFILE

• 2-2-1, Tokai, Ota-Ku, Tokyo 143-0001, Japan
• Tel: +81 (03) 3799-5000 Fax: +81 (03) 3799-1871
• URL: http://www.otakaki.co.jp/
• Stock Exchange Code: 7555
• Established: January 1989
• CEO: Nobuo Isomura
• Capitalization: 551.5 million Yen

A LEADER IN FLORICULTURE

OTA FLORICULTURE AUCTION is a leading company licensed to operate one of Japanese central wholesale markets for floriculture products. This market is the largest in Japan in scope and volume, and is the world's third largest after the number one ranked Dutch market.

The term "floriculture" encompasses cut flowers, potted plants, seedlings, turf, other matting, and bonsai. Floriculture products are one of the fresh product groups handled by wholesale markets according to Japanese regulations.

Ota Floriculture Auction coordinates shipping and handling of merchandise from the producers, organizes auctions and facilitates transshipments to the purchasers, charging a commission to the producers for this service. In a field where product freshness and accuracy are key, we have created a highly efficient logistics network utilizing state-of-the-art computerized auction and information processing systems.

CORPORATE PHILOSOPHY

AS THE INDUSTRY LEADER, our goal is to set new standards of distribution efficiency to foster the growth of floriculture. We view ourselves as an orchestrator of the industry. We also aim to enrich society’s perception of these products to fully develop the understanding that flowers contribute just as much to our "spiritual enrichment" as to our "material enrichment." We pursue our business every day with the satisfaction that we are in an industry that offers "healing" products.

Toward these ends, we have made it our mission to:

• Earn the respect and admiration of society as a good corporate citizen.
• Assist in expanding the range of products and services offered by the industry, and;
• Become a global player in the floriculture business.

FUTURE GROWTH

WE PLAN TO GROW OUR BUSINESS by enhancing information dissemination, upgrading our computer systems and improving our understanding of market needs in Japan and abroad.

RESEACH AND DEVELOPMENT

TO DATE, INDUSTRY GROWTH has been driven by the enthusiastic embrace by consumers of flowers as a casual decoration as well as by the introduction of flowers into mass merchandisers, such as large home centers. With a maturing industry, proactive measures are now required. We have launched several initiatives, including the Flower Testing Laboratory and New Product Development project, to gain customers' loyalty and assist producers. Other promotional activities involve the use of our producer and wholesaler network to propose new products that will meet consumer expectations and carve out new niche markets.

LOGISTICS INFORMATIONS SYSTEM/NETWORK

The price of flowers varies to a large extent with the degree of product freshness. The length of time that the product is saleable matters much more than the shape and color, and becomes the deciding criterion for improving one’s product selection. To speedily deliver flowers from the producer to the customer, we continue to refine a complex distribution network for all aspects of the floriculture market.

Using our special functions as a large-scale consumer and distributor of floriculture products, we also serve as a disseminator of information over the Internet and other media, being an early adopter of an information collection and distribution system. Just as freshness is the key to flowers, up-to-date information is also vital. Through our network connecting the production and consumer sides, we provide the information to keep the floriculture market flourishing.