Announcement Concerning Reduction in Capital Reserve and Appropriation of Retained Earnings

Purpose of reduction in capital reserve
USS plans to reverse part of the capital reserve and transfer this amount to other capital surplus pursuant to Article 448, Paragraph 1 of the Corporation Law of Japan. The purpose is to allow USS to take quick and strategic actions involving its capital.

Amount of reduction in capital reserve
19,000,000,000 yen of the total capital reserve of 23,583,478,559 yen

Timetable for reduction in capital reserve

(1)	Resolution by board of directors	May 12, 2009
(2)	Approval at shareholders meeting	June 24, 2009
(3)	Date of public peremptory notice regarding the start of the period for creditor objections June 25, 2009
(4)	Final day for objections from creditors	July 25, 2009
(5)	Date of effectiveness	August 1, 2009

Purpose and description of appropriation of retained earnings
The voluntary reserve will be reversed and this amount transferred to retained earnings brought forward.

(1)	Retained earnings item to decrease and amount
	Voluntary reserve	42,705,000,000 yen
(2)	Retained earnings item to increase and amount
	Retained earnings brought forward	42,705,000,000 yen

Outlook
These proposed actions will cause no change in net assets because they involve transfers among items within net assets. Consequently, there will be no effect on results of operations.

The above reductions, reversals and transfers will take place only if the applicable resolutions are approved at the ordinary general meeting of shareholders scheduled for June 24, 2009.