NEWS RELEASE April 24, 2015

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PR - 33 NEWS RELEASE April 24, 2015 About the Smart Hotel Project A first of a kind low-cost hotel First period opens in July 2015 The Smart Hotel Project, " Henn na Hotel A commitment for evolution" (number of rooms: first period 72 rooms) will be opened on the grounds of Huis Ten Bosch (location: Sasebo, Nagasaki Prefecture) on July 17, 2015. With these three initiatives below, the Smart Hotel Project aims to realize an entirely new low cost hotel (LCH) that provides a comfortable stay and world-class productivity. The implementation of construction methods expandable to the world, intended to reduce construction costs The implementation of automation and service robots aimed to reduce labor costs Initiatives towards saving energy and the implementation of solar power intended to improve the self-sufficiency rate of fuel and light expenses. The design of 72 rooms in this project, which is half of the entire 144 rooms, will be headed by Kawazoe Lab, the Institute of Industrial Science, University of Tokyo and Kajima Corporation, who have kindly agreed to support our efforts, which will be a first of a kind. The service robot that will be introduced is scheduled to be implemented in scenes such as at the front desk, porter service, locker service, and room cleaning. We will receive cooperation from corporations that have advanced technology in the same field, such as Kokoro Company Ltd., Aldebaran Robotics, Yasukawa Electric Corporation, as well as a few other companies. The hotel name and concept, with the cooperation of GRAPH CO. LTD., has been named "Strange Hotel", with the promise that the hotel itself will always change and adapt to the constantly changing world. The main features of the hotel are as follows. Efficient support by robot staff Robot staff will be positioned for each duty such as the front desk, porter, and cleaning. We will correspond appropriately according to customer information. Enjoy conversations with robots with a humanly kind of warmth, while they work efficiently. Smart Check-in, Check-out Self-service check-in and check-out. We eliminated the need to go to the front desk or to wait in line. A staff centered around robots will support you when necessary. The realization of a keyless stay It is possible to stay in rooms without having a key at this hotel, according to the customer's preference. The latest face authentication system will register you through image recognition and let you into the room. It will liberate you from the hassle of 1

carrying keys and the anxiety of losing it. Customers who wish to not be face authenticated can stay with a contactless IC card key as well. At the time of face authentication registration, operation using the card key is required. Relaxed rooms with a modern design We provided cool and stylish rooms, as we consider room design an essential condition for a comfortable stay. The room size is more relaxed than a typical low cost hotel, allowing for a leisurely stay. Sufficient room facilities with the minimum necessary We eliminated excessive services and amenities, and rethought what facilities are truly necessary in order to stay. Room facilities can be operated with a tablet in your hand at once. There is no need to move busily around the room. Air-conditioning that allows for a comfortable stay in all seasons Air conditioning is an important factor for a comfortable stay. A comfortable indoor environment with even air conditioning is created with advanced technology called radiation panels rather than the conventional air conditioning through ventilation. * Radiation is a way heat is conducted in the form of direct electromagnetic waves from one solid to another, without being affected by objects between the solids. It is possible to provide coolness by depriving direct heat from the body when it is hot. It is also possible to provide warmth by reducing the amount of heat that is deprived from the body when it is cold. After opening, we aim to promote this project with a vision of expanding outside of Huis Ten Bosch in the future, while striving to further improve comfort and productivity through operations. [Smart Hotel Project Overview] Hotel Name: Henn na Hotel A commitment for evolution Location: Huis Ten Bosch-cho, Sasebo-shi, Nagasaki Prefecture Site area: 16,402.72 m2 Total floor area: 5,530.87 m2 Number of rooms: 144 rooms (First period: July 17, 2015 open 72 rooms / Second period: scheduled to open in 2016 72 rooms) First Period building Overview Site area: 10,188.92 m2 Total floor area: 3,541.16 m2 2

Number of floors: 2 stories above ground Number of rooms: 72 rooms (A type 28.27 m2 / 40 rooms B type 21.32 m2 / 20 rooms C type 33.75 m2 / 12 rooms) Structure: Steel Construction period: Scheduled during the beginning of January 2015 - the end of June 2015 Design: Kawazoe Lab, the Institute of Industrial Science, University of Tokyo (design cooperation: design by Nichidai Sekkei Co., Ltd.) Construction: Umemuragumi Co., Ltd. Second Period Building Overview Site area: 6,269 m2 Total floor area: 1,989.71 m2 Number of floors: 2 stories above ground Number of rooms: 72 rooms (T type 20 m² / 54 rooms F type 32 square meters / 18 rooms) Structure: Wooden (CLT method) partly steel construction Construction period: Scheduled during early August 2015 - end of February 2016 Design: KAJIMA DESIGN (design cooperation: Sumitomo Forestry Co., Ltd.) Construction: Kajima Corporation Kyushu branch (construction and technical assistance: Sumitomo Forestry Co., Ltd.) About the Concept An ever-changing hotel We want to provide a pleasant and comfortable hotel to stay in, at a more reasonable price. While equipping modern "smart facilities" that is also friendly to the environment, we wish to bring "fun" that will encourage people to visit, and also wish to create lasting memories. Rethinking each service and facility included in the traditional hotel, we have created an entirely new hotel that will be the first of it's kind in the world, utilizing advanced technology with robots as the main staff. We pursued "ultimate productivity" to provide comfort and fun. However, with advanced technology evolving every day, 3

there is plenty possibility of more new technology being born in the few years to come. In utilizing advanced technology, we considered the state of constantly changing as a natural state, and set the concept of "an ever-changing hotel". The name we chose to give the hotel was "Strange Hotel". It will be opened in mid-july 2015 on the grounds of Huis Ten Bosch. About Service Robots 1) Front desk robots 2 robots 2) Service robots 1-2 robots 3) Porter robots 2 robots 4) Locker robot 1 robot 5) Cleaning robot Scheduled to implement a few robots * Number of robots scheduled to be implemented at time of opening About the face recognition system Our customer's facial data used at the time of check-in will be recognized by the facial recognition system by Glory Ltd. The camera installed in the room entrance will recognize your registered face and unlock your room. This allows for smart entry in the room by eliminating the handing over and carrying of keys. About Prices We will adopt an open price (auction system). We will set prices in 3 stages, "Bottom", "Middle", and "Top" according to the period. Base price "Bottom" price for 1 night 1 room with breakfast service charge included, taxes not included Single Minimum price 9,000 yen ~ Fixed price 16,000 yen Twin Minimum price 13,000 yen ~ Fixed price 20,000 yen Triple Minimum price 19,000 yen ~ Fixed price 26,000 yen * "Middle" is 2,000 yen + base price "Bottom" * "Top" is 4,000 yen ~ 13,000 yen + base price "Bottom" * Room Upgrade Fee Superior Rooms cost an additional 2,000 yen Deluxe Rooms cost an additional 4,000 yen * When booking, please enter your desired price at 1,000 yen units within the price range mentioned above. * The season calendar can be checked on the homepage. * Breakfast is at the "Kenko Restaurant AURA" adjacent to the hotel It will be pre-opened on 5/24 this year. * Price settings may change due to customer's circumstances. 4

Bid Acceptance We will accept bids on the "Strange Hotel" website. "Strange Hotel" website URL http://www.h-n-h.jphttp://www.h-n-h.jp/ Go to the dedicated form on the "Strange hotel" website Please fill in the necessary items in the dedicated form. After you have sent the form, your reservation will be completed with an email reply from the hotel. The confirmation of the reservation will be notified by email. * We have also started accepting phone reservations. * If reserving by phone, you may only apply at the highest price. * Details will be notified on the website. * The scheme of the reservation may change due to customer's circumstances. Inquiries: 6-5 Huis Ten Bosch, Sasebo, Nagasaki 859-3292 E-mail: ask@h-n-h.jp Reservations: If you are interested in making a reservation, please let us know by e-mail. We will send you a reservation form you to fill out. The result will be sent to you via e-mail later. The reservation by the e-mail is only highest price, not a bid. First Period Building Conceptional drawing 5

Second Period Builing Conceptional drawing Image inside the entrance building Hotel Logo 6

First Period Building Room (deluxe type) 7