Eurus Energy Group has completed the first phase of construction (28MW) at the Gangwon Wind Park in South Korea, which is the first overseas project undertaken by our group in Asia. Operation is scheduled to start on December 12, 2005.

This project aims to build a wind farm of which the total output capacity is 98MW in Gangwon-do of South Korea and remaining construction (70MW) will be completed by September, 2006. Both local Korean companies and Marubeni also are investing in the project company that is to build and operate this plant. It is planned to apply to the United Nations for registration of this project as CDM (Clean Development Mechanism) under the Kyoto Protocol. This application requires the approval of both the Japanese and South Korean governments. The Japanese Government gave its approval in October of this year, and it is expected that South Korean Government to give its approval before the end of December.

The South Korea plans to build wind power generation with a total output of 2,250MW by 2011 and has launched an active support policy, including a special price purchase program. It is expected that efforts to generate electricity from wind in South Korea will accelerate in the future.

Eurus Energy Group has promoted its global operations in Japan, the United States and Europe . Our group is now adding South Korea as an important new market. To carry out full scale operations in that country, our overseas subsidiary called Eurus Energy Korea Corporation (Seoul) was established in this August

On November 15, Eurus Energy Group celebrated the completion of Japan's largest wind farm at Cape Soya, Wakkanai, Hokkaido. Total project cost is 12 billion yen and total output capacity is 57MW.

To take advantage of excellent wind condition on Cape Soya, 57 turbine units, each rated at 1MW, are installed along a windy rolling hill. The wind farm is capable of feeding approximately 41,000 households while reducing about 120,000 tons of CO2 emission a year as compared with oil-fired thermal power plant.

Soya Wind Farm surpasses Eurus Energy Group-operated Kamaishi Wind Farm in Iwate Prefecture, currently largest in Japan at an output capacity of 42.9MW.

Eurus Energy Group has operated wind farms all over the world in Japan, the United States of America and Europe. Completion of its Soya Wind Farm increases wind energy output to 240MW in Japan and 1,080MW in world total.

On September 13, Eurus Energy Group celebrated the buildup of Hamatonbetsu Wind Farm by 1MW to add to three wind turbines operating in the breeze of the Okhotsk Sea since December 2001. The total output capacity has thus been increased to 3.97MW to serve about 3,300 households.

With the addition of a 1MW wind turbine to the Hamatonbetsu Wind Farm, Eurus Energy Group's total installed capacity of wind power plants in Japan has increased to 18.5MW.

In this December, a 57MW wind farm, the largest of its kind in Japan, will be completed at Cape Souya, Hokkaido, to join forces with the ever-growing battalion of Eurus Group's environmentally friendly sustainable wind power plants.

Eurus Energy Group started the construction of Eurus Hitz Kitanozawa Cliff Wind Farm, a project jointly promoted with Hitachi Zosen at Higashidori-mura, Shimokita-gun, Aomori Prefecture. It is designed to generate a total output of 12MW, and is scheduled for commissioning in October, 2006.

On the cliff of Shitsukari, the northeastern end of Honshu known for its high winds throughout the year, six units of wind turbine generator from Gamesa Eolica (Spain) will be installed. All of the electric energy generated will be sold to Tohoku Electric Power. Hitachi Zosen undertakes the construction work, and at the same time holds 14% equity in the wind farm operating company.

Eurus Energy Group are currently operating three wind farms in Aomori with a total output capacity of 64.8MW. By the end of 2006 when Noheji Wind Farm which is under construction and Eurus Hitz Kitanozawa Cliff Wind Farm will join, the installed capacity of Eurus Energy wind farms in Aomori will increase to about 127MW.

Construction of a 50MW wind farm, the largest of its kind in Aomori, got started at Noheji-machi, Kamikita-gun, Aomori Prefecture. It is scheduled to be put into commission in October 2006, when a 12MW wind farm will also be put into operation at Higashidori-mura, Shimokita-gun, Aomori Prefecture. By the end of 2006, Eurus Energy will have five wind farms in Aomori Prefecture with a total installed capacity of 127MW with those already in operation are included.

The two wind farm projects - Noheji and Higashidori - now under way will use wind turbines available from Gamesa Eólica (Spain), each having an output capacity of 2MW, also the largest of its kind in Japan.

At present, Eurus Energy Group is operating nine wind farms with a total output capacity of 184MW. And if the wind power plants under construction are included, Eurus Energy Group will have more than 300MW of wind power plants by 2006.

Eurus Energy Japan Corporation, a subsidiary of Eurus Energy Holdings Corporation, has been engaged in a wind power generation business with a power output exceeding 180MW in Japan. Eurus Energy Japan has recently decided to take a stake in the largest wind power generation project in South Korea (total output: 98MW) that is promoting under the leadership of Unison, the biggest wind power company in South Korea, as a new market.

The total project cost is estimated at 16 billion yen, and the planned construction site is Gangwon-do in the northeastern part of South Korea. An agreement among the shareholders and a loan agreement for financing the project have already been executed. The construction started in April, 2005 and all the wind turbine generators (49 units) are expected to be brought into commercial operation in September, 2006.

Under the Renewable Energy R&D Basic Plan announced at the end of 2003 in South Korea, the target for introducing wind power generation in fiscal 2011 is set at 2,250MW. The South Korean government has set tariff protection for 15years to electricity generated by wind park at the predetermined fixed price (107.66 Korean won/kWh for 15 years). And this will help accelerate the expansion of wind power business in this country from now on. Eurus Energy Japan will participate in this project at the invitation of Unison. Unison is targeting its expansion of the wind power generation business under the supportive national policy.

The Eurus Energy Group will take part in the above project, drawing on its experience and expertise in the wind power generation business (installed capacity : 1,020MW) that it has developed in Japan, the United States and Europe up to now. The Eurus Energy Group will undertake wind power generation business in South Korea as a new market on a full scale.

Outline of Project Company

Company

Gangwon Wind Power Co. Ltd.

Capital

37.8 billion won (Approximately 3.8 billion yen)

Shareholders

Unison	35%
Axia Power Holdings (Subsidiary of Marubeni)	30%
Eurus Energy Investments (Subsidiary of Eurus Energy Japan)	10%
Others	25%

Total Project Cost

160.4 billion won (Approximately 16 billion yen)

Total output

98 MW (2MW x 49units)

Purchaser

Korean power market (Settlement under governmental determined fixed price purchase program)

Sales period

Over 15 years

Eurus Energy Holdings Corporation has promoted wind farms all over the world under its principle of being a key player in providing viable energy solutions in this changing global climate. Toward the end of December 2004, Eurus Energy Holdings joined the 60MW wind farm Oasis Project in California, increasing our total installed capacity to 1,019MW.

In the midst of global concerns over climate changes and the preservation of fossil fuels, Eurus Energy Holdings recognized the potential of wind energy ahead of many other players and the company has operated wind farms all over the world in Japan , the United States of America and Europe.

Since 1987 when the first 5MW pilot wind plant was put into operation in California, Eurus Energy Holdings has developed 290MW of capacity in the United States of America, 550MW in Europe (UK, Spain and Italy) and 180MW in Japan, making the company the largest wind power developer in Japan and one of the world leaders in the field.

In recent years, more and more attention is being paid to the wind energy as one of viable solutions to environmental issues and energy problems of the world, and the use of wind energy is expected to be accelerated not only in America and European countries, but in the other countries as well. In support of this, the Japanese Government has increased the target installed capacity of wind farms to 3,000MW by 2010 while promulgating the Special Measures Law concerning the Utilization of New Energy by Electric Power Utilities (so-called Renewable Portfolio Standard (RPS) law) in June 2002 to require every electric power company to use wind energy, solar energy, geothermal energy and other new energy sources for more than a specified proportion of electricity they produce. Under the aegis of the Government, the wind farms are mushrooming here and there to enrich the energy landscape of Japan.

With all these as a momentum in favor of the business, Eurus Energy Holdings will step up its efforts for further promotion of wind power projects while continuing research and development for new possibilities in the energy field.