To Our Shareholders

It is indeed a pleasure to address shareholders visiting the Aderans Holdings website, and let me add that the support and encouragement of shareholders is very much appreciated, especially during these difficult times.

My name is Tadao Otsuki, and I assumed the position of president and chief operating officer at Aderans Holdings on December 1, 2009. I have taken on this new role at an extremely difficult time -- the operating environment remains very challenging -- but rest assured that I will do everything in my power to facilitate the Company�fs return to profit.

In regard to business results, I must convey disappointing progress in the first two quarters of fiscal 2010, from March 1, 2009 through August 31, 2009. On a consolidated basis, the Company posted net sales of ¥30,404 million, down 15.7% year-on-year, an operating loss of ¥186 million, and an ordinary loss of ¥89 million. Regrettably, this performance precluded the distribution of dividends at the end of the second quarter. Please accept our sincere apologizes for not delivering the results shareholders were undoubtedly expecting.

Despite persistently inclement operating skies, we are committed to realizing a return to profit and to raising shareholder value. Toward this end, we will maintain our invigorated approach toward operational restructuring -- the pillar of management reforms -- which emphasizes a return to the corporate starting point in the core hair-related products and services business and growth-oriented investment as well as groupwide actions that enhance customer satisfaction.

On behalf of the Board of Directors, I ask for the continued support and encouragement of shareholders.

Tadao Otsuki
President and Chief Operating Officer
Aderans Holdings Co., Ltd.