LEOPALACE21 : Notice of Receipt of Audit & Supervisory Board Members' Opinion on the Responsibility of Directors in the Purchase of Treasury Stock for the 46th Fiscal Period

PRESS RELEASE

July 31, 2019

Company Name:	Leopalace21 Corporation
Representative:	Bunya Miyao, President and CEO
Code Number:	8848 (Tokyo Stock Exchange, First Section)
Contact:	Kiyoshi Arai, Executive Officer
	Tel: [phone]
	E-mail: [e-mail]

Notice of Receipt of Audit & Supervisory Board Members' Opinion on the Responsibility

of Directors in the Purchase of Treasury Stock for the 46th Fiscal Period

As stated in the " Notice Concerning Acquisition of Treasury Stock in the Fiscal Year Ended March 2019" dated May 29, 2019, it was found that there was an insufficiency in the amount available for distribution to shareholders at the time of approval of the financial statements for the 46th Fiscal Period (the "Case").

Our Audit & Supervisory Board has carefully conducted the following investigations and deliberations regarding the director's responsibilities regarding this matter, based on the opinions of several lawyers who have no interests with us.

• Minutes and documents of internal meetings such as the Board of Directors and Management Committee, as well as investigations into the content of financial statements.
• Conducted interviews with directors and related personnel in related internal divisions deemed necessary.
• Investigation into the contents of the investigation report of the External Investigation Committee concerning the construction defects.

Today, we have received an opinion from Audit & Supervisory Board that we will not pursue responsibility for the Directors, considering the status of recognition and consideration of the Directors at the time and the background of the deficit, etc. with regard to the Directors' responsibilities related to this matter, and that we have concluded that our Directors will not be liable for deficit compensation and damages in accordance with Article 465, Paragraph 1 of the Companies Act in conducting this share buyback.

We believe that the Audit & Supervisory Board conducted a thorough investigation and review of the matter and reached the above conclusion.