Greeting Message

  Please accept my best wishes for your continued good health and prosperity.
  I would like to express my thanks for your loyal patronage.

  Japan's economy has not escaped from a global recession which had broken out two years before. Involving the Japanese political instability, the economic recovery in Japan is two steps behind from the world economy.

  But I believe it is also a chance for us. Instead of simply relying on only the business cycle, we will be looking at ourselves from many aspects again. We intend to aim at self-sustaining business recovery next fiscal year based on the medium-term policies and strategies.

  Even before discussing a future strategy, I am sincerely sorry about the underachievement of the current fiscal year business, it is responsibility of my own.

  I will talk about the outline of strategies and measures.

  First of all, any company has to adapt and contribute to the surrounding environment such as customers, employees, shareholders and society.

  As you may be aware, our corporate policy is "highly sustainable management". I think the "growth" is the most appropriate word to realize our policy. The growth of the scale is important, but also the growth of the contents is more important. I believe these two competitive growth perspectives (Innovation) are required to withstand change and to conform to the surroundings. I believe that we will meet the expectations of shareholders and investors by ensuring the implementation and transformation.

  In the aim of the "growth", I think the following priority measures are required to make a fresh start based on the reassessment of a current business situation.

[Current Business Summary]

• Made a downward revision of our business forecast.
• Could not demonstrate the business synergies of security solution services, systems integration services, and dealer business.
• Holdings and each operating company could not keep up with the needs of innovations.
• Delay in the selection and the concentration of human resource needed to accomplish sales and proposal-oriented business approach.
• Reexamine our services to meet customer needs.
• The sluggish performance of this fiscal year affects the financial condition of the company.

[Priority Measures]

• Realize cost savings and business synergies through the office integration of group companies during golden week holiday in May of this year.
• Improve the quality of policies, strategies and business planning ever more deeply into the study.
• Strategic new business development in conjunction with synergies of three business segments.
• Sorting out current businesses from the viewpoint of the effectiveness.
• Enhance employee self-reform in line with the changing times.
• Recruitment of young leaders.
• Empower business promotion division to create the group-wide synergy effect of LACHD group companies.
• Formed a new division of international business; South Korea (CSLAC) and China (Shanghai LAC); to accelerate the business expansion.
• Introduced a new information system for reengineering and streamlining everyday business processes of the support organization.
• Daily management of financial status.

  I enumerate the overall situation and the important measures above. There are still many challenges, and those resolutions will not be done in one day. Our group will act together and will continue to persevere in our work. We intend to continue our efforts to ensure the above key measures.

  To all of our shareholders and investors, the further guidance and your support will be greatly appreciated.

February, 2010
Gen Mishiba
President, and CEO
LAC Holdings, Inc.