On October 29, Eurus Energy Group celebrated the completion of Aridagawa Wind Farm - its first wind generation project in the Kinki Region - in the presence of all the parties concerned, including the representatives of local communities.

This wind farm stretches about 2 kilometers east to west along the Nagamine Mountain Ridges on the boundaries of Aridagawa Town, Kainan City and Arida City, and consists of ten wind turbines (Siemens, DK), each rated at 1,300 kW. It is capable of supplying about 7,800 households while reducing the carbon footprint by 24,800 tons a year.

Currently under final test, the Aridagawa Wind Farm will be put into commission shortly to increase Eurus Energy Group's installed capacity to approximately 450MW in Japan and approximately 1,840MW throughout the world.

Eurus Energy Group solemnly held a groundbreaking ceremony this July 17 to pray for the safety and successful completion of the Kunimiyama Wind Farm Project (total output capacity: 25.05MW) on the Ohsumi Peninsula, Kagoshima Prefecture. More than one hundred people concerned participated in the ritual at Kimotsuki Town, the hub community of the project site.

The greater part of the project site consisting of government-owned forests was accredited in November 2006 as "Environmental Symbiotic Zone" by the Cabinet Office to recognize Kimotsuki Town's commitment to the development of tourism industry setting great store by the harmonious relationship between nature and man in accordance with the Law concerning the Areas/Zones/Districts Designated for Structural Reform.(*)

For the Kunimiyama Wind Farm Project, Eurus Energy Group will use Japan Steel Works' wind turbines for the first time. Fifteen such turbines each rated at 1,670kW will be installed on the eastern ridge of Mt. Kunimi, approx. 880m above sea level. A scenic coastline stretching over 50 km and wind turbines towering high in the verdure of pristine forests are expected to become a symbolic tableau of the area.

Eurus Energy Group has already been operating a 20.8MW windfarm in Kihoku-cho, Kagoshima, and the Kunimiyama Wind Farm is our second largest project in Kyushu. Its construction will start shortly, and the Wind Farm will be put into commission in the end of October 2010.

*) Law concerning a system for designating areas/districts/zones for their socio-economic vitalization through deregulation in specific fields of activities in a manner to make the most of the unique characteristics of their localities.

The Shin Izumo Wind Farm with a total output capacity of 78MW was completed in a joint project between Eurus Energy Group and Kinden Corporation, and was officially dedicated this May 20 in the presence of more than a hundred parties concerned.

The wind farm consists of 26 state-of-the-art Vestas 3MW wind turbine generators. Each wind turbine generator is mounted on a 75m-high tower and equipped with 44m-long blades. It is the largest and first of its kind in Japan. In addition, the Shin Izumo Wind Farm is Eurus Energy's first project in Chugoku Region.

All the power generated by the wind farm is delivered to Chugoku Electric Power in accordance with a 17-year long-term power sales agreement, to serve about 40,000 households and at the same time to reduce 85,000 tons of CO2 every year.

With the completion of the Shin Izumo Wind Farm, Eurus Energy Group's total installed capacity has increased to about 430MW in Japan and to about 1,820MW in the world.

Eurus Energy Group's Windfarm Project in Texas was completed and put into commission on December 24, 2008, as scheduled. Its total output is 180MW (1MW x 180 units), the largest of all windfarms constructed by Eurus Energy Group, increasing our total installed capacity to 524MW in the United States alone and to approx. 1,722MW in the world.

In 1987, Eurus Energy Group launched a 5 MW pilot plant in California. Since then, the Group has continued to develop wind farms in California, Oregon and Illinois.

U.S.A.'s aggregate installed capacity of windfarms is estimated at about 24,000MW (*) toward the end of 2008, ranked second to Germany. But, it is expected to climb to first soon, because it has a vast tract of land favored with excellent wind regime, and also because the federal government will continue to endorse steady growth of wind power development with production tax credit. In addition, President-elect Obama is expected to step up support for renewable energy policies to encourage and facilitate the wind power generation market in the United States. In view of this, Eurus Energy Group is determined to actively pursue this promising US wind power market.

*) Emerging Energy Research "US Wind Power Markets and Strategies,2008-2020"

Summary of Texas Project

Name of power plant

Bull Creek Wind Farm

Installed capacity

180MW (1MW x 180 Mitsubishi wind turbines)

Location

Borden County, Texas, U.S.A.

Total investment

US$ 330 million (J. ¥32,000 million)

Purchaser

Texas Electricity Wholesale Market governed by ERCOT

2009 Update
The Bull Creek turbines were commissioned and test energy generation commenced on December 24, 2008. Certain grid operating requirements were not met during the initial test period and remedial actions were undertaken. Balance of Plant substantial completion was achieved on May 14, 2009 resulting in transfer of the balance of the plant to Eurus. Commercial Operations was declared under the Interconnection Agreement in July 2009 and Final Completion was achieved in August 2009.