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Ichigo Increases Stake in Steel Maker Tokyo Kohtetsu to 12.64%

[Tokyo, February 20, 2007] Ichigo Asset Management International, Pte. Ltd. filed a Large Shareholder report in Japan today, stating that it has increased its holding in steel maker Tokyo Kohtetsu Co., Ltd. (JASDAQ 5448) ("Tokyo Kohtetsu") to 12.64% on behalf of Ichigo Japan Fund A ("Ichigo").

Ichigo is currently undertaking a proxy solicitation against a mandatory share exchange of Tokyo Kohtetsu shares into shares of Osaka Steel Co., Ltd. (Tokyo, Osaka 5449) ("Osaka Steel"), and has received proxies worth approximately 16% of Tokyo Kohtetsu shares from over 500 individual investors. Ichigo has also received either proxies or commitments to vote against the share exchange from institutional investors with 7% of Tokyo Kohtetsu shares, in addition to Ichigo's approximately 10% of shares. In total, 32.9% of shareholder votes are now against the share exchange.

Scott Callon, Partner and Chief Executive Officer of Ichigo Asset Management, Ltd., which is the proxy agent for Ichigo, comments: "Ichigo recognizes the significant value creation from the business integration of Tokyo Kohtetsu and Osaka Steel and is happy to agree to it at an appropriate price for Tokyo Kohtetsu's many shareholders. We believe Tokyo Kohtetsu is an outstanding steel company with a bright future, and if there is no improvement in the terms of the share exchange and the shareholders reject this proposal, Ichigo will support Tokyo Kohtetsu as a significant shareholder. Our increased shareholding underscores Ichigo's continuing commitment to Tokyo Kohtetsu."

N.B. Ichigo's new shares do not come with voting rights at Tokyo Kohtetsu's February 22 shareholder meeting, so Ichigo's shareholding is 12.64% and voting rights are 9.98%.

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For further information, please contact:
Gavin Anderson & Company: Hayden/Hattori/Higashi +81-3-5404-0640

Notes to editors:

Ichigo is an independent asset manager specializing in Japanese equities. Ichigo believes good corporate governance lies at the heart of strong company performance, and is seeking a new model for Japanese corporate governance that includes active, committed, and responsible shareholders. Ichigo’s Singapore-based fund manager, Ichigo Asset Management International, Pte. Ltd., undertakes investments for a Cayman Islands-domiciled unit trust, Ichigo Japan Fund A, and its Japan-based investment advisor, Ichigo Asset Management, Ltd., provides investment advice.

For further information, please visit the website: http://www.ichigoasset.com/

Ichigo Fund A is the shareholder of record on Tokyo Kohtetsu’s shareholder registry and as the official proxy solicitor has delegated the proxy solicitation process to Ichigo.