We trust all our Stockholders are doing well in all respects and we thank you for your confidence and support. September 3, 2007 was an important day for the company as it marked our 90th anniversary. We, as a company, and all of our employees, thank our stockholders and stakeholders, and all those who have supported us in the regional communities we operate in. This would not been possible without your support. On the occasion of our 90th anniversary, and to prepare for even greater achievements ahead, as we approach our 100th anniversary, we launched a program themed "KYOSAN New Vision-100" It is the first step in a long-term plan, the first step being our Intermediate Plan for the next five years. It is based on our vision of where we want to be as a company in the years ahead. We would like the name "Kyosan" to be associated with the highest levels of reliability. More importantly, we would like to see our leading-edge technologies consistency to evolve to ever higher levels of sophistication and quality, providing greater safety and peace of mind to all concerned.

Our vision includes maintaining a high degree of ethics, a strong sense of responsibility, of being involved as a proactive participant in all areas of our business, and being guided by a steadfast corporate code of behavior which dictates honesty in all of our business dealings and fostering the spirit of "developing new ideas and facing new challenges," while "maintaining speed and cconsistency." To develop a corporate culture that will be a shining example Once again, we thank all of our stockholders for your support and continued support in the future.

Representative Director/CEO