December 2009 1

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1. Beverage Market in Japan 2. Results of Operations 10. TULLY'S COFFEE (The 2nd Quarter of the FY) 11. Business in North America 3. Annual Forecasts 12. Medium Term Goal 4. Management Strategies 5. Vending Machine Business 6. Category Results and Forecasts Reference (Non-consolidated) 7. RTD Green Tea 8. Agricultural Business - Developing Tea Farms 9. RTD Black Tea

Annoucement of Financial Results for the Second Quarter of the Fiscal Year Ending April 30, 2010: Explanatory Materials December 2009 1. Beverage Market in Japan

Trends in Average Monthly Temperatures Market Trends （Tokyo Area）

Monthly Ave. Temp. ITO EN Change from (\ Billion) (Non-consolidated) 11.3 22.7 52.8 105.6 190.2 297.8 308.6 312.6 315.5 Previous Yr. （℃） Precipitation (mm) 4,000 6℃ 277 300 1,424.8 1,883.9 2,707.5 3,100.2 3,540.3 3,631.5 3,715.6 3,616.0 3,509.0 3,506.0 Market 242 242 Monthly 226 Precipitation 183.6 4℃ 200 176.2 183.9 Others/ 163 142 222.0 288.9 174.8 175.0 Functional 282.0 265.9 2.3℃ 99 1.6℃ 260.1 250.0 250.0 Sports Drink 2℃ 74 79 100 211.3 71 1.0℃ 1.2℃ 206.6 214.0 0.9℃ 47 53 97.7 0.8℃ 3,000 201.2 200.0 Mineral Water -0.2℃ 379.6 -0.4℃ 359.6 324.2 0℃ 0 447.4 307.5 300.0 Pioneering of Fruit Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Canned Green Tea 190.0 -0.2℃ 184.5 156.2 149.0 -0.7℃ -0.7℃ 144.1 Vegetable 145.6 -2℃ -1.4℃ -100

Pioneering of Canned Sources: Japan Meteorological Agency, ITO EN, LTD., November 2008 to October 2009 Oolong Tea

2,000 956.6 969.1 955.0 Coffee 922.3 948.2 961.0 Monthly Sales Trends (Volume Basis)

(YOY % Change) 9.1% 10% 8.2% ITO EN 6.6% 4.7% 555.9 581.9 592.0 598.7 600.0 Carbonated 648.9 5% 3.8% 2.8% 1,000 2.2% 3.5% 1% 0.4% 1% 0.1% -1% 0% -1.8% 918.2 923.4910.5 871.7 877.0 Tea (Including Green tea) -2% 796.4 -1% -3.1% -2% -5% -4% -4% -4% 421.0 415.0 402.0 382.0 382.0 Green Tea 85.2 -6% -6% 217.1 -7% Market 0 -10% 1981 1985 1990 1995 2000 2006 2007 2008 2009 2010 Forecast Est. Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Source: ITO EN, LTD., Period: Market (Calendar Year), ITO EN (May to April) Note: Market Size of Tea includes Green Tea. Source: ITO EN, LTD., November 2008 to October 2009

- 1 - 2. Results of Operations (The Second Quarter of the FY)

First and Second Quarter Totals For the Year Ended For the Year Ending Apr. 30, 2009 Apr. 30, 2010 Performances of Subsidiaries YOY % For the Year Ending Sales Sales ¥ Million Composition ¥ Million Composition Change Apr. 30, 2010 Operating Net Sales Impact of Changes in Lease Accounting Income Net Sales 181,451 100.0% 179,506 100.0% -1.1% \ Million \ Million Policy (non-consolidated) (\ Million) ITO EN 2,665 26 2009/4 2010/4 Gross Profit 89,792 49.5% 87,986 49.0% -2.0% (North America) INC. (2,629) (-253) Second Qr. Second Qr. Tully's Coffee 6,943 353 Lease Expenses Selling Commission 25,873 14.3% 26,005 14.5% 0.5% Japan Co., Ltd (6,933) (218) -506 -1,937 16,865 633 Domestic Subsidiaries Depr. and Amort. Advertising 7,899 4.4% 5,351 3.0% -32.3% (17,490) (742) 453 1,691 852 -14 Other Subsidiaries Interest Expenses Transportation 8,213 4.5% 8,206 4.6% -0.1% (892) (-115) 97 341 Elimination of Internal -17,177 -479 （Lease transactions contracted after Depr. and Amort. 1,265 0.7% 2,456 1.4% 94.1% Transactions (-17,539) (-523) May 2009 were recognized on a balance sheet.） Selling, General and ※（ ） is the Second Qr. of FYE April 30, 2009 Administrative Expenses 82,670 45.6% 78,825 43.9% -4.7% Consolidated Operating Income 3.9% 5.1% 28.6% 7,122 9,161 Amortizations of Goodwill (\ Million) Breakdown of Gross Profit Change 2009/4 2010/4 Ordinary Income 7,110 3.9% 8,713 4.9% 22.6% (Non-Consolidated) Second Qr. Second Qr. Extraordinary Expenses For the Year Tully's Coffee Ending -734 - -99 -- Japan Co., Ltd 393 417 and Income Apr. 30, 2010 Net Sales U.S. Subsidiaries Net Income 3,190 1.8% 4,701 2.6% 47.4% \ Billion 60 53

Sales Changes -0.8 Total 454 470

Net Sales 171,045 100.0% 169,357 100.0% -1.0% Changes in Product Mix -1.0

Gross Profit 83,005 48.5% 81,071 47.9% -2.3% Fluctuations in Sales Prices -1.5 Fluctuations in Raw Operating Income 7,053 4.1% 8,642 5.1% 22.5% Material Costs 1.4 Ordinary Income 4.4% 5.2% 17.4%

Non-Consolidated 7,461 8,760

- 2 - 3. Annual Forecasts

Annual Totals For the Year Ended For the Year Ending Apr. 30, 2009 Apr. 30, 2010 Est. Forecasts of Subsidiaries YOY % For the Year Ending Sales Sales ¥ Million Composition ¥ Million Composition Change Apr. 30, 2010 Est. Operating Net Sales Impact of Changes in Lease Accounting Income Net Sales 332,847 100.0% 335,500 100.0% 0.8% \ Million \ Million Policy (non-consolidated) (\ Million) ITO EN 5,247 0 Gross Profit 163,852 49.2% 163,984 48.9% 0.1% (North America) INC. (4,977) (-399) 2009/4 2010/4 Tully's Coffee 13,860 650 Lease Expenses Selling Commission 47,280 14.2% 47,372 14.1% 0.2% Japan Co., Ltd (13,881) (625) -1,777 -4,474 32,757 1,031 Domestic Subsidiaries Depr. and Amort. Advertising 11,210 3.4% 10,432 3.1% -6.9% (31,751) (1,193) 1,587 3,854 1,758 -83 Other Subsidiaries Interest Expenses Transportation 14,917 4.5% 15,193 4.5% 1.9% (1,669) (-200) 342 770 Elimination of Internal -32,122 -1,098 (Lease transactions contracted after Depr. and Amort. 3,251 1.0% 5,764 1.7% 77.3% Transactions (-32,055) (-833) May 2009 were recoginzed on a balance sheet.） Selling, General and ※（ ） is the FYE April 30, 2009 Administrative Expenses 153,239 46.0% 151,984 45.3% -0.8% Consolidated 3.2% 3.6% 13.1% Operating Income 10,613 12,000 Amortizations of Goodwill (\ Million) Breakdown of Gross Profit Change Ordinary Income 10,376 3.1% 11,000 3.3% 6.0%(Non-Consolidated) 2009/4 2010/4 Extraordinary Expenses For the Year Ending Tully's Coffee and Income -597 － -520 －－ Apr. 30, 2010 Est. Japan Co., Ltd 786 834 Net Sales U.S. Subsidiaries Net Income 4,765 1.4% 5,200 1.5% 9.1%\ Billion 114 103 Sales Changes0.6 Total 901 938

Net Sales 312,622 100.0% 314,000 100.0% 0.4% Changes in Product Mix -1.8 Fluctuations in -1.9 Gross Profit 150,446 48.1% 150,603 48.0% 0.1% Sales Prices Fluctuations in Raw 3.3 Operating Income 10,227 3.3% 11,500 3.7% 12.4% Material Costs Ordinary Income 3.3% 3.5% 5.3%

Non-Consolidated 10,449 11,000

- 3 - 4. Management Strategies

Numbers of Customers Management Strategies (Numbers of Sales Compositon by Area Vending Machines & Vending Machines 250,000 and Customers) 228,742 234,817 ～ The severe situation is made the best use 216,408 Chugoku & 198,586 204,175 Shikoku Area Kyushu of as a chance. ～ 200,000 5.7% 7.3% Hokkaido & Tohoku Area Number of Customers 10.4%

Product Marketing Strategies 150,000 133,624 137,314 -Oi Ocha towards sales of 100-million cases! 117,124 119,820 123,692 Kansai Area 13.0% -Strengthen brand values of 100,000 TEAS' TEA, TULLY'S COFFEE, and Tennen Mineral Mugicha Chubu Area - Increase contribut Number of Vending 10.0% Kanto Area 50,000 Machines 53.5% Sales & Distribution Basis ions from new items 0 -Increase the num 2006/4 2007/4 2008/4 2009/4 2010/4 -Diversify product lines Semiannual Period： May to Ocｔober 2009 Total -Strengthen fieldber marketing of customers strategies -Reinforce vending machine strategies Cash Flows

Cost Reductions (\ Million) -Complete cost reduction Net Cash Flow from Operating Activities 20,000 Cash Flow from Investing Activities 15,715 13,095 -Improve productivity a 11,127 Free Cash Flow 10,000 4,945 5,350 9,890 Oversea Businesses 8,371 - 0 Expand the businesses innd the cost United competitiveness States, and -3,421 -1,871 improve the profitability -9,221 -4,723 -10,000 -7,222 -5,825 Strategy for Sustainable Growth -14,549 -14,167 -Solidify the business foundation through employee -20,000 training 2006/4 2007/4 2008/4 2009/4 2010/4 Est. -Build new information systems （Started in November 2009) Capital Investments 4,517 4,320 7,085 2,804 1,976 -Share buyback Depr. and Amort. 1,232 1,813 2,330 2,687 3,061 Ｌｅａｓｅｄ Assets Depr. - 1,600 3,893

- 4 - 5. Vending Machine Business

Numeber of Vending Machines Sales Composition ITO EN's Market Share Policies of the Current Fiscal Term & Net Sales by Channels (Volume Basis, 2008)

(\ Billion) (Number of There is room for expantion of Vending Machines) Vending Machines business ＜Accommodate to changing 57.8 57.7 60 56.5 55.3 200,000 100% 100% business environments＞ 53.7 11.4% Others Increase the Number of Vending Machines 24.2% 80% 80% 133,624 150,000 20.2% 123,692 Convenience ◆Increase 10,000 vending machines from 40 117,124 119,820 111,516 60% Stores 60% the last fiscal year 23.5% 33.5% Number of Vending Machines 100,000 ◆Acquire more vending machine locations 40% Supermarkets 40% using entire company's strength 20 34.6% 50,000 ITO EN share 20% 20% 13.1% Pursue Efficiency 34.9% 9.7% Vending Machines 3.4% 17.7% ◆Improve efficiencies of vending machine 0% 0 0 0% operations 2005/4 2006/4 2007/4 2008/4 2009/4 ITO EN Markets Markets Store Sales Vending Machine Total Markets Markets ◆Pursue further cost reduction

Market: January to December 2008 (Volume Basis) Period: Market (Calendar Year), ITO EN (May to April) ITO EN: May 2008 to April 2009 (Sales Basis) Note: The market data is partially estimated. ◆Review entire expenses Source: ITO EN, LTD. Create Attractive Brands Alliance with NEOS Corporation. GREEN VALUE CO., LTD. ◆Put optimal products lineup in each location

Formed a business alliance on Planning to establish at February 2010 ◆Generate more brand values utilizing the October 2009 synergetic effects Spin-off ・Launch the first canned coffee product under ●Purpose of the Alliance TULLY'S COFFEE 's brand & its quality ・Vending machine standard ･ To increase sales through obtaining ・Grow TEAS' TEA to be a signature brand of ITO EN maintenance operations GREEN VALUE additional cells for ITO EN’s items in ・A part of purchasing CO., LTD. RTD black tea NEOS vending machines. operations ◆Execute effective sales promotions ･ To ensure ITO EN's business basis on the western region in Japan

●Cut purchacing costs & other expenses ●Increase efficiency of operations Pursue speeding up & improve specialities of the operations - 5 - 6. Category Results and Forecasts (Non-Consolidated)

First and Second Quarters Total Annual Total Goals of Each Category

For the Year For the Year For the Year Ending For the Year Ending Ended Ended Green Tea Leaves Apr. 30, 2010 Apr. 30, 2010 Est. Apr. 30, 2009 Apr. 30, 2009 -Expand distributions of Easy-to-use product ¥ Million ¥ Million YOY % Sales ¥ Million ¥ Million YOY % Sales Change Composition Change Composition RTD Green Tea Net Sales 171,045 169,357 -1.0% 100.0% 312,622 314,000 0.4% 100.0% (Oi Ocha ２０th -Toward sales of 100-million cases! -Expand distributions Anniversary） of "Hojicha" Tea Leaves 13,693 13,848 1.1% 8.2% 29,833 30,173 1.1% 9.6% (Roasted green tea) & "Genmaicha" (Green tea with roasted rice) Drinks 155,405 153,611 -1.2% 90.7% 278,820 279,959 0.4% 89.2% Vegetable Beverages

Breakdown Others 1,946 1,897 -2.5% 1.1% 3,968 3,866 -2.6% 1.2% -Expand distributions of Paper packaged beverages Japanese Tea 91,259 90,462 -0.9% 53.4% 162,211 162,828 0.4% 51.9% RTD Barley Tea Chinese Tea 7,525 7,591 0.9% 4.5% 13,461 13,736 2.0% 4.4% -Achieved １0.0-million cases FY2008 9.0 million cases FY2009 10.2 million cases Vegetable 19,666 18,900 -3.9% 11.2% 35,324 34,356 -2.7% 10.9% FY2010 Forecast 12.0 million cases -Expand distributions including Fruit 10,588 8,194 -22.6% 4.8% 17,334 14,190 -18.1% 4.5% tea bag products

Coffee 8,770 9,514 8.5% 5.6% 19,173 20,656 7.7% 6.6% RTD Black Tea -Foster TEAS' TEA to be Drinks Black Tea 3,007 4,475 48.8% 2.6% 5,697 9,816 72.3% 3.1% a major brand

Functional 4,024 3,321 -17.5% 2.0% 6,220 5,451 -12.4% 1.7% RTD Coffee -Expand distributions of canned TULLY'S COFFEE and Mineral Water 6,699 5,953 -11.1% 3.5% 11,847 10,062 -15.1% 3.2% Warm-cup coffee -Increase the brand awareness of Others 3,864 5,198 34.5% 3.1% 7,550 8,861 17.4% 2.8% TULLY'S COFFEE - 6 - 7. RTD Green Tea

ITO EN's Share in RTD Green Monthly Sales and ITO EN's Share in Market Overview Tea Market (Sales Basis) RTD Green Tea Market (in Top 7 Companies, Volume Basis) (\ Billion) 500 30% 447.0 49% RTD 47% 2009 421.0 Jan. to Dec. 2009 Est. 50% 46% 47% 409.3 415.0 45% 45% 45% 45% ITO EN 45% Beverage Ratio 402.0 25% 42% 43% 400 382.0 Share 40% 45% 44% 42% 43% 43% 43% 2008 42% Green Tea Other Companies 42% 41% 40% 309.4 20% 16% 39% ITO EN Beverage Market 279.2 20.1% 20.4% 300 268.5 20.5% 20.5% 20.4% Company D 30% Share 18.7% 3% 217.1 15% ITO EN 20% 200 14.8% Company C 38% 161.9 13.2% 9% 146.1 12.5% 10% 11% 10% 10% 5% 6% 9.6% 135.8 143.0 144.8 145.1 Company B ITO EN 2% 100 119.3 130.3 12% 0% 2% 2% 6.6% 5% 5.7% 101.8 ITO EN 0% 75.8 87.5 Company A 66.3 -1% -1% -3% -2% 50.5 58.8 22% -2% -3% -5% -5% -6% -5% -6% Market 0 0% -10% -7% -6% -9% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May June July Aug Sep Oct Total Est. Source: ITO EN, LTD., Calendar Year Source: ITO EN, LTD. Source: ITO EN, LTD., January to October 2009 Market Share(%) 35 36 31 28 31 33 29 29 32 34 36 38

History of ITO EN's RTD Green Tea Products

1999 Launched "Oi Ocha New Haiku Contest" 2009 "Oi Ocha" 1990 Over 1 million entries 2001 2004 2008 1996 2000 1989 1993 1985

●20th anniversary of "Oi Ocha" ●Launched "Catechin Ryokucha" Total valume sales had been over ●Launched "Oi Ocha Koi Aji" which helps reduce cholesterol. 15 billion cases ●Launched seasonal puroducts The specified health food ※Converted into 500ml PET bottle ●Launched the heatable PET bottles designated by government ●Launched green tea in ●Launched paper packaged ahead of the beverage industry ●Developed the world's first small PET bottles (500ml) ●Developed the world's first green tea (250ml) 2003 (annual basis) canned green tea "Oi Ocha" got No.1 share in the all RTD tea markets "Canned Sencha" plastic (PET) bottled green tea

- 7 - 8. Agricultural Business - Developing Tea Farms

Labeling Requirements of Origin for Project of the Developing Green Tea Products Green Tea-Producing Regions 500 ◆Transform idle agricultural (Thousand ha) Area of idle land 386 ・Accretion of consumer's interests in products quality lands into large-scale tea farms 400 ・Multiplying misleading labels of places of origins 343 ⇒Indications of origins became mandatory Example of labeling ◆Produce suitable beverage materials with "Oi Ocha" 350ml PET bottle 300 by law proprietary technology 244 ◆Exclusive contracts with ITO EN 200 151 (Quality labeling standard for processed foods based on 93 Ｊａｐａｎｅｓｅ Ａｇｒｉｃｕｌｔｕｒａｌ Ｓｔａｎｄａｒｄ Low) Cost reduction of 100 raw materials Applied to Green Tea Leaf Products in September 2004 Stable supply of high 0 Applied to Green Tea Beverages in October 2007 quality tea leaves 1985 1990 1995 2000 2005 Source: The Ministry of Agriculture, Forestry and Fisheries, Japan Expansion of target items with 2 years transition period (tons) (ha) Area of Green Tea Farms 1,500 Production Volume Green Tea (Japan) 2,135 2,000 1,905 Completely Effective from 1,000 October 2009 1,214 Domestic Supply and Demand of 809 1,000 688 Green Tea (crude tea leaves basis) 799 500 474 380 2006 2007 2008 2009 Est.

YOY % YOY % YOY % YOY % 0 0 Tons Tons Tons Tons Change Change Change Change 2006 2007 2008 2009 2010 2011 2012 Domestic Tea Plan Plan Plan -8.2% 2.5% 1.5% -3.0% Source: ITO EN, LTD. Leaf Production 91,800 94,100 95,500 92,600 Import 11,254 -25.9% 9,590 -14.8% 7,326 -23.6% 6,000 -18.1%

Export 1,576 43.8% 1,625 3.1% 1,701 4.7% 2,200 29.3% Domestic -2.4% -0.7% -2.1% -0.3% Consumption 106,900 106,200 104,000 103,700 ITO EN 6.0% 2.2% 5.7% -6.6% Utilization 21,800 22,277 23,556 21,993 （Ratio of Production (23.7%) (23.7%) (24.7%) (23.8%) of Tea Leaf) Source: ITO EN, LTD. Period: ITO EN (May to April), Others (Calender Year) Large-scale tea farm in Oita prefecture

- 8 - 9. RTD Black Tea

Market Share RTD Black Tea Market & Type of Drinks (Sales Basis) Customers Feedbacks of TEAS' TEA

(\ Billion) 2008/2005 +14.4% All my friends love it, 200 Aug - Oct 2008 Aug - Oct 2009 too. This is the best tea I've （Female 20's） ever had, and goes very 61.4 Flavor 54.9 ITO EN well with fruit. 150 54.2 Others Delicious! I've been waiting 48.6 0.1% （Female 30's） Others 7% ITO EN for a beverage like this as a 6% 6.0% black tea lover. Company C Company C （Male 40's ） 10% 9% 100 61.4 62.2 65.3 Milk 58.7 Company B Company B ■Perceptions of TEAS' TEA & other companies' 17% 15% Company A Company A 20(%) TEAS’TEA Bergamot & 67% 63% 50 16 Orange Tea 12 60.4 65.0 65.9 65.3 Straight Company A Lemon Tea 8 4 0 0 Company B Lemon Tea

2005 2006 2007 2008 a e nts m bl sh Source: ITO EN, LTD. Source: ITO EN, LTD. ie na re wery Source: ITO EN, LTD. ed io ref lo r r F sh o a F e Ing F in Mellow Aro F TEAS' TEA , Jointly Developed with ITO EN (North America) INC. ◆Expand TEAS' TEA Brand Awareness Launching the brand linked to leaf products New Style of Black Tea, New York Taste ●Bergamot & Orange Tea ●Chai Milk Tea

Orange & Earl●Tea Grey Bags ●Instant Tea Ginger Chai Flowery Aroma Rose & Apple Tea of Bergamot & Sweet mixture of Orange deeply brewed harmonizing milk tea and Earl Grey with Milk with Black Tea spices

10 bags 2 packs \250 (tax excluded) \100 (tax excluded) - 9 - 10. TULLY'S COFFEE

Number of TULLY'S COFFEE Shops TULLY'S Canned Coffee TULLY'S COFFEE BARISTA'S CHOICE (Number of Shops) 369 Nov. 9th, The first bottle- Build up TULLY'S COFFEE brand 357 released nationwide 232 shaped can under 328 222 TULLY'S COFFEE Actively introduce into vending machines 299 214 brand 300 282 ■Sales of bottle- shaped can coffee 209 245 191 （Thousand25,000 market. 23,206 ◆Carefully supervised & cases） 20,400 159 selected by the Barista of Franchise 20,000 17,800 200 186 TULLY'S COFFEE 15,230 +13.8% 97 15,000 ◆Roasted in Japan for better +14.6% 110 135 137 freshness 10,000 +16.9% 100 33 114 89 91 90 5,000 50 77 86 ◆High quality canned coffee 23 10 Direct Management 8 4 0 19 40 0 2006 2007 2008 2009 2000/3 2001/3 2002/3 2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 2009/3 2009/9 285ml \124 Est. Source: ITO EN, LTD. (tax excluded) Source: ITO EN, LTD. Develop to New Diverse Styles Cafés Chilled & Hot Cup Products

◆Actively opening in medical centers Develop New Products Strengthen Products ●Espresso ●Double Milk Café ●Winter Shot

◆Change price ◆Upgrade aroma ◆Expand distribution area 200ml 200ml \189 (tax excluded) TULLY'S at WASEDA University Science & Engineering dpt. \152 \160 available at 30 prefectures 180g (tax (tax ◆Develop cafés in college campuses, excluded) excluded) TULLY'S at Tokyo Women's Medical University Hospital and community cafés \150 (tax excluded) Sold at 20 prefectures, convenience stores only nationwide

- 10 - 11. Businesses in North America

ITO EN (North America) INC. Sales History USA Imports of Green Tea Leaves ($ Thousand) ($ Thousand) 57,013 +14.8% 80,000 Green Tea Leaf 49,657 47,872 Soy Sauce 23,197 40,341 +18.6% Japanese Sake 40,000 19,560 60,000 Mason 19,291 16,612 40,000 20,000 33,816 11,751 28,580 30,096 23,729 +12.4% 6,798 20,000 2,588 3,882 483 0 2002/4 2003/4 2004/4 2005/4 2006/4 2007/4 2008/4 2009/4 2010/4 0 Est. 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: USDA, Calendar Year ITO EN (North America) INC. ITO EN (North America) INC. Wholesale Division Sales by Channels Sales Composition by Category Toward the Future Growth

（$ Thousand） Introduced Naturally Sweetened 1) Develop close relationship Items of TEAS' TEA 7,000 6,350 with key customers 5,850 6,000 2009/4 Second Qr. Total ◆Strenghten product lineup 2010/4 Second Qr. Total 5,000 ◆Expand the target of customers 2） Strengthen the existing brands Tea Leaves TEAS' TEA 3,951 4,000 39% 28% 3,052 3） Open new prime accounts 3,000 2,291 2,219 2,000 1,599 1,550 Japanese 4） Strengthen the sales activities Products on the west coast 1,000 16% PB Drinks 0 9% 5） Expand private label businesses Direct Store Natural / Mass Market Asian Market Sweetened Tea Other Drinks Delivery Mainstream 4% 4% （NY) 6） Develop new products Source: ITO EN, LTD., Period: May to October 2009 Citrus Black Blueberry Green Mango Oolong

- 11 - 12. Medium Term Goal

Management Goals (\ Billion) Consolidated Sales Goals for the Fiscal Year ending April 30, 2012 500.0 500 Achieved the Long Term Sales Goal of \300 Billion Achieved the Long Term 400 Sales Goal of \260 Billion 328.0 332.8 335.5 310.2 New Business Phase 300 288.0 263.7 Consolidated 200 Net Sales 100 5\ 500Brands Billion with 2005/4 2006/4 2007/4 2008/4 2009/4 2010/4 2012/4 Brand 0 10-million cases Sales Est. Goal Establishment EPS Each Common Stock \233.15 \130.91 \137.59 \81.61 \35.47 \38.96 Preferred Stock －－－\91.69 \45.47 \48.96 １０％ ＲＯＡ Dividend per Share and Dividend Payout 120% Ratio (consolidated) Consolidated 100% ４０％ 106.6% 80% 97.7% Dividend Payout 60% Ratio 40% 48.3% 20% 34.2% 30.0% 30.2% Strengthen and Promote Strengthen Sales 0% Core Brands Fundamentals 2005/4 2006/4 2007/4 2008/4 2009/4 2010/4 ＜Dividends per share＞ Est. Strengthen Oversea Common Stock Common Stock Common Stock Common Stock Preferred Stock Common Stock Preferred Stock Common Stock Preferred Stock Total Cost Reductions Businesses Mid - Year \25.0 \35.0 \22.0 \19.0 \24.0 \19.0 \24.0 \19.0 \24.0 Full - Year \45.0 \22.0 \25.0 \19.0 \24.0 \19.0 \24.0 \19.0 \24.0 Total \70.0 \57.0 \47.0 \38.0 \48.0 \38.0 \48.0 \38.0 \48.0 ※ Division into 2 to 1 ※ 0.3 stocks to 1 common stock. Increase of capital stock (8.5 million stocks)

- 12 - REFERENCE

1．Sales Performances and Forecasts by Packaging (Non-Consolidated) 2．Market behind Green Tea 3．New Information System Reference 1．Sales Performances and Forecasts by Packaging (Non-Consolidated)

First and Second Quarter Totals Annual Totals For the Year Ended For the Year Ending For the Year Ended For the Year Ending Apr. 30, 2009 Apr. 30, 2010 Apr. 30, 2009 Apr. 30, 2010 Est. Volume Volume Volume Volume YOY % Change YOY % Change YOY % Change YOY % Change (Thousands of cases) (Thousands of cases) (Thousands of cases) (Thousands of cases) Total Volume 95,504 3.7% 98,113 2.7% 169,458 3.3% 176,931 4.4% Cans 10,034 0.8% 10,660 6.2% 18,935 0.3% 19,544 3.2% Total PET Bottles 77,975 4.3% 79,392 1.8% 136,729 3.3% 142,325 4.1% 2Liter PET Bottles 24,840 7.1% 26,055 4.9% 41,548 6.5% 44,113 6.2% 500ml PET Bottles 28,423 0.9% 32,571 14.6% 48,564 4.0% 55,938 15.2% 350ml and smaller PET Bottles 15,483 10.3% 12,243 -20.9% 30,958 1.2% 27,280 -11.9%

Containers Other PET Bottles 9,228 -1.7% 8,523 -7.6% 15,658 -2.5% 14,993 -4.2% Cartons 6,629 2.9% 7,077 6.8% 12,132 7.1% 13,114 8.1% Others 864 -6.7% 982 13.7% 1,661 12.6% 1,946 17.2%

Sales Composition by Packaging Market (Volume Basis) ITO EN

Cans Large-sized PET Bottle Small-sized PET Bottle Others Cans 2L PET Bottles 500ml PET Bottles 350ml and Smaller PET Bottles Other PET Bottles Others

100% 100% 11%11% 11% 10% 10% 9% 10% 11% 10% 9% 9% 9% 80% 28% 80% 12% 25% 26% 28% 29% 28% 19% 18% 19% 18% 15% 60% 60% 24% 33% 25% 25% 26% 27% 28% 30% 30% 29% 29% 32% 40% 40%

21% 22% 24% 25%27% 25% 20% 40% 38% 36% 35%35% 35% 20% 13% 12% 12% 11% 11% 11% 0% 0% 2004 2005 2006 2007 2008 2009 2006/4 2007/4 2008/4 2009/4 2010/4 2010/4 Est. Semiannual Annual Est. Totals - Reference 1 - Reference 2. Market behind Green Tea

Market Size 2008 Market Volume & Annual Annual Consumption (\ Billion) per Capita (L) History of Major RTD Green Tea Products Consumption per Capita

1,483.6 100 1,500 ITO EN Coca-Cola Suntory Kirin Beverage Asahi Leaf / Beans 1985 Canned Green Tea Consumption 80 Cans / Plastic 1988 Georgia / Ocha Sencha bottles 1,000 60 1989 Oi Ocha Sencha 719.0 95L 1990 Green Tea in PET 78L 40 Bottle Nihon Cha 500 969.1 1991 Kafuku Sencha Hatsuzumi Cha 244.3 20 167.6 1992 Shinba Ocha Dozo 402.0 18L 194.5 138.2 13L 1993 Maru Cha 0 0 Saryu Saisai Green Tea Black Tea Oolong Tea Coffee Source: ITO EN, LTD. 1994 Seiryu Sabo KyoIssen Ban Cha Ready-to-Drink Beverage Ratio 20.5% 40.8% 51.1% 35.4% 1995

1996 Japanese-Green-Tea (Seiryu Sabo) Green Tea in Small Annual Expenditure of Green jiwai Ryoku Demographics 1997 PET Bottle Tea per Household Cha A 1998 Nagomi Cha Toward an Aging Society (\) 8,606 (Million People) Naturals 35% 1999 128 8,000 125 Green Tea in Heatalbe 2000 Shimijimi Ryoku Cha Coffee 6,931 PET Bottle 2001 Seasonal Products Maro Cha Nama Cha Uma Cha 5,870 30% 5,608 100 6,000 2002 Ryokusui 4,867 Kuchidoke Nama Cha 4,330 2003 Regional Products Maro Cha 120 Wa Cha Oishii Uma Cha 4,732 Nihon Densho Gama no Cha 25% Oi Ocha, Koi- Maro Cha 4,000 3,509 2004 Iyemon Nekase Nama Cha Aji Chaba no Kou Morokosi Nama Cha Nigorase Uma Cha 50 2005 HajimeHajime Saori Sarai Wakamusha 2,110 Ratio of over 65 2,474 Iyemon Koi Nama Cha 2,000 year olds 20% 2006 Green Tea Koime, Shincha Nama Cha Kuradasifuugiri Nama Cha Daigomi 2007 Ayataka Jousencha Wakamusha Noko 1,482 1,443 Nama Cha Gyokuro100% 2008 Hajime Chaka Nama Cha Kobasi Fukairi Wakamusha Fuga 0 0 15% Kaorase Nama Cha Kaoru Ryoku Cha ～29 30～ 40～ 50～ 60～ 70～ Age 06 07 08 09 10 11 12 13 14 15 2009 Gyokuro no Umami Yawaraka Nama Cha 20 20 20 20 20 20 20 20 20 20 Ibuki Source: Ministry of Public Management Source: ITO EN, LTD.

- Reference 2 - Reference 3. New Information System

Objectives of Build a solid foundation for the ITO EN Group's midium term goal, Consolidated Sales of 500 billion yen the New Information System

Enhance budget control over the sales and administrative expenses, reduce inefficient jobs of sales force and establish the internal control system Reduce costs across the Company and loss on disposal of inventories through an optimal logistics, efficient inventory operations and reducing inventory levels Company-wide visibility of sales information enables more efficient distribution of budget to selling and marketing activities

Strengthen brand Company-wide visibility of development Optimal balance of supply and demand sales information

Enhance profitability management Establish the New Information System Improve the accuracy of at the account level Support ・Establish sales & account managemant system flexible Reduce inventory managemant sales force to any changes of business environment. entire cost ・Create "Real Time" and "Visible" inventory operations Establish the branch operation system to across the Company. Enhance the product's freshness match each local market management

Intensify the oversea Sales Operation System operations Production & Logistics Operation System (Launched in November 2009) (Launched in November 2008) Establish the sales operation system which supports account Establish a comprehensive supply chain management system manaegement and visibility of information

◆ Increase availability of the account information ◆ Control over production and shipping process Reduce leading time from receiving orders to shipment by Precise segmentation of account by type of operation utilizing the external online network with third parties Enables timely access to the latest sales information ◆ Ensure accurate inventory management ◆ Enhance the account profitability management Establish integrated management system throughout receiving Automated measure of profitability at the accout level orders, handling and shipping processes ◆ More accessibility to the sales information ◆ Integrate management systems to ensure accountability Company-wide visibility of sales information and security Enhance the internal control and the security of information Make the product tracing operations faster and secure Reduce time spent on data management and traceabilities support sales force to be more proactive Realize integrated work-flows and higher productivity

- Reference 3 - Advisory Note about the Materials

The current plans, forecasts, strategy, etc. outlined in these materials have not yet been realized and are based upon ITO EN management's best judgement given current obtainable information. Therefore, given only this forecasted information, please refrain from interpreting these materials as grounds for general conclusion. Please acknowledge that, depending on various important factors, actual operationg results can be quite different from what has been projected. The following are some principal factors that affect actual operating results: 1) Weather, especially summer temperatures; 2) Product mishaps or accidents, such as products being found containing foreign substances or impurities; 3) The economic conditions, particularly shifting consumer trends, surrounding ITO EN's operating environment; 4) In the midst an intensely competitive market characterized by things such as easily changing consumer tastes and preferences, the ability of ITO EN to continue the planning and development of products and services that meet customers' expectations. However, it should be noted that factors influencing operating results are not limited to these alone. The purpose of the materials you have received is to provide the means for a more thorough understanding of ITO EN and should not necessarily be regarded as a recommendation to invest. Furthermore, the data in these materials is based on what we believe is the most accurate information. However, please understand that even without advance notice, both past data and future forecasts may be revised.