Sale of Asset

8 June 2010

Japan Residential Investment Company Limited ("the Company")

Notice Concerning the Sale of Asset

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

The Company announces the sale of Celeb the Dream Miyakojima Uchindai, one of the properties in the Fund portfolio. The property which is located in Osaka was sold for ¥209 million (£1.57 million) excluding taxes and sales costs, on 8 June 2010. The price paid represents an initial net yield of 5.6%.

This property was externally appraised at ¥186 million (£1.40 million) as at 28 February 2010. The Investment Advisor has reviewed the property portfolio of the Fund and considers the property to be a non-core asset holding. Proceeds from this sale will be used to pay down debt thereby reducing leverage on the portfolio.

Note: £ denominated values are based on an exchange rate of ¥132.892/£.

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