Repayment of Debt

24 November 2010

Japan Residential Investment Company Limited ("the Company")

Repayment of Debt

Japan Residential Investment Company Limited (AIM: JRIC) is a closed-ended Guernsey registered company established to make and hold investments in residential property in Japan. The Company, its subsidiaries and entities in which it has a beneficial interest are referred to collectively as "the Fund".

Further to the announcement of 17 November 2010, the Fund has completed a voluntary, partial pay down of JPY 3.0 billion (GBP 22.8 million) of the debt outstanding to Orix Corporation and DB Trust Bank (the "Pay Down"). Effective 22 November 2010, the debt owed to Orix Corporation and DB Trust Bank totaled JPY 7.0 billion (GBP 53.2 million). This represents a loan-to-value ratio ("LTV") of 60.4% per the most recent external valuation as at 31 May 2010.

As a result of the Pay Down, the average interest rate of the debt owed to Orix Corporation and DB Trust is reduced from 1.59% to 1.55% and the average interest rate of the total debt owed by the Fund is 1.68%. The interest rate spread on Mizuho Corporate Bank debt is scheduled to increase by 75bps on 1 January 2011 and then remain constant for the remainder of the loan term resulting in a new average interest rate of the total debt owed by the Fund of 1.90%.

A summary of the Fund's debt financing, following the Pay Down, is shown below:

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