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1 Corporate Name: Company Representative: Code Number: Inquiries: Telephone: Fax: July 29, 2005 PARCO Co., Ltd. Isamu Ito, President & CEO 8251, TSE 1st Section Matsumoto/Sugimoto Corporate Planning Office (Public & Investor Relations) 15-1 Udagawa-cho, Shibuya-ku Tokyo PARCO Announces Property Management Agreement and Establishment of New Asset Management Company for Large-Scale Kohoku Newtown Center Kita Shopping Complex* in Spring 2007 PARCO has signed an agreement to manage sub-project operations at the Kohoku Newtown Center Kita Shopping Complex* (hereinafter referred to as Kohoku NT Kita SC ), a large-scale multipurpose complex scheduled to open in spring 2007 in Yokohama s Tsuzuki Ward. PARCO will also manage property operations after the opening of the complex. Moreover, PARCO has established a new asset management company in preparation of the opening of Kohoku NT Kita SC. 1) Operation contracts related to Kohoku NT Kita SC Kohoku NT Kita SC will be ideally situated in front of Center Kita Station on the Yokohama Municipal Subway line. This location will place it within the heart of Kohoku Newtown, which spreads over the hilly area of Tsuzuki Ward in Yokohama. PARCO has concluded a sub-project management agreement with SI Asset Services Corporation. (SIAS; CEO: Shogo Ono, Head Office: Tokyo), the project management company for Kohoku NT Kita SC. Under the terms, PARCO will be in charge of operations that include store planning and tenant leasing. With the opening of the complex, as property manager, PARCO will be in charge of drafting operational plans, tenant management, and drafting and running sales promotion campaigns. Note: Please see reference note 1 and 3 for an overview of Kohoku NT Kita SC. 2) Establishment of new asset management company

2 In a joint venture with SIAS, PARCO has established a new company, JAPAN RETAIL ADVISORS CO., LTD., which will deal with asset management operations at Kohoku NT Kita SC. PARCO seeks to gain expertise related to asset management through this project, as it prepares to make a full-scale entry into the real estate securitization business. Note: Please see reference note 2 for an overview of Japan Retail Advisors Co., Ltd. * Kohoku Newtown Center Kita Shopping Complex is a provisional name.

3 Reference note 1 Overview of Kohoku NC Kita SC Kohoku NC Kita SC will be located in front of Center Kita Station on the Yokohama Municipal Subway line. Its opening in 2007 will correspond with the scheduled launch of the Yokohama Loop Railway, which will run from Nakayama Station on the JR Yokohama Line through Hiyoshi Station on the Tokyu Toyoko Line and, most importantly, through Center Kita Station as well. In addition, Kohoku NT Kita SC will be close to the Yokohama Aoba Interchange on the Tomei Expressway and the Tsuzuki Interchange on the Daisan Keihin Expressway. With such outstanding accessibility, the complex is expected to attract customers from over a wide area. Tsuzuki Ward has been working devotedly toward the enhancement and increased vitality of Kohoku Newtown. This is an area of marked population growth, with an increase of 29% in the population base compared to the 2% average for Yokohama and 35% in the household base compared to Yokohama s 12% over the six years between 1998 and The average age is also the lowest in the city. Note: Population of Tsuzuki Ward as of July 1, 2005: 177,465; number of households: 65,345 (Source: Data from Tsuzuki Ward s website, Yokohama City) The details of the facility are currently being planned, and development is being promoted based on the concept of a multipurpose complex with a central mall consisting of a number of large-scale specialty stores, as well as mini malls integrating small-scale retail stores in a thematic way. Overview of the Plan Address: 1-25 Nakagawa Chuo, Tsuzuki-ku, Yokohama, Kanagawa (in front of Center Kita Station on the Yokohama Municipal Subway line) Project entity: Kohoku SC Limited Land area: Approximately 18,990 m 2 Building: Nine floors aboveground, two floors belowground (floors 1B and floors 5 through the roof have parking as well as shopping space) Floor area: Approximately 141,400 m 2 Number of parking spaces: Approximately 1,590 Schedule: Reference note 2 Construction begun July 2005; completion and opening scheduled for spring 2007 Overview of JAPAN RETAIL ADVISORS CO., LTD.

4 Company name: JAPAN RETAIL ADVISORS CO., LTD. Address: Chiyoda-ku, Tokyo Representative: Shogo Ono Business activities: Real estate asset management, real estate consulting, etc. Establishment: June 2005 Paid in capital: 10 million yen Capital composition: PARCO: 49%, SIAS: 51% Fiscal year end: December

5 Reference note 3 Image of Kohoku Newtown Center Kita Shopping Complex (provisional name) Location Map for Kohoku Newtown Center Kita Shopping Complex (provisional name)