On 6th August 2010 Hotel Okura Co., Ltd. announced that it had entered into an agreement with Japan Airlines International Co., Ltd. (“JALI”) to acquire 79.6% of the issued shares of JAL Hotel Co., Ltd. (“JAL Hotels”) held by JALI and as a result of the transaction JAL Hotels Co., Ltd. and Hotel Okura Co., Ltd. will partner to form a cooperative framework.

Hotel Okura believes that by combining “the guest house of Japan” with “the wings of Japan,” it is poised to be the only hotel chain in the world that offers Japanese hospitality, comfort and hotel services.

Okura Hotels & Resorts is an international hotel group operated by Hotel Okura Co., Ltd. Over the 30 years since its formation it has constructed a global network of 24 high quality hotels in Japan and abroad including three new hotels to be opened in Macau, Taiwan and Taipei in the autumn of 2010 and in 2011.

After the acquisition, Hotel Nikko and Hotel JAL City will retain their names. Various programmes, gift certificates, coupons and other marketing programs related to JAL mileage will also continue.

The effect that the transaction will have on the consolidated results of the fiscal year ending March 2011, will be restricted to a half-year period starting from October and ending in March.