On behalf of the entire Japan Vilene Group, I would like to express my condolences and sympathies to everyone affected by the recent Great East Japan Earthquake. The situation remains very difficult and many challenges still lie ahead. As the nation recovers from the unprecedented devastation, all of us in the Japan Vilene Group will do everything possible to support the reconstruction of the affected areas.

The fiscal year ending March 31, 2011, was a difficult one for the Group as we had to deal with a rising yen and uncertain economic conditions. Despite this challenging environment, we were able to achieve results that were better than the previous fiscal year. The Group recorded net sales of ¥45,979 million which was an increase of 0.3% from the previous fiscal year. Our net sales were driven by robust sales during the first half of the year in our automotive materials business and in our industrial and electrical segments of our industrial business.

Our income results were particularly strong. Ordinary income was up 69.8% to ¥3,347 million and net income was up 76.4% to ¥2,232 million. We achieved this significant increase in profits as a result of our efforts to reduce our cost of sales and expenses. The solid performance of our overseas joint venture operations also contributed to our results.

In 2010, the Group celebrated its 50^th year anniversary and at the same time adopted a mid term management vision, entitled , which will serve as our platform for future growth. By fiscal year 2014 (ending March 31, 2015), we aim to achieve net sales of ¥70 billion and ordinary income of ¥6.5 billion. Beyond these targets, our expectation is that this vision will lay a solid foundation for the Group during the next 50 years.

The goals are ambitious, but we believe we are off to a good start. In fiscal year 2010, in what was just the first year of our mid term management vision, the Group actively made investments that will help drive our future growth. We established a new manufacturing and sales company in North America specializing in synthetic fibers. We made the decision to upgrade our automotive floor mat factory in China. And we invested in a new state of the art manufacturing line for our promising medical business here in Japan.

During this current fiscal year, we plan to complete these projects as well as look at new initiatives to ensure that we will achieve our mid term management vision. To this end, we would like to ask all our shareholders for their continued support and understanding as we move forward.

June 2011
Toshio Yoshida
President and Representative Director
Japan Vilene Company, Ltd.