Industrial & Infrastructure Fund Investment Corporation (Tokyo Stock Exchange Company Code:3249) News Release December 20, 2010

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1 Industrial & Infrastructure Fund Investment Corporation (Tokyo Stock Exchange Company Code:3249) News Release December 20, 2010 IIF Acquire Property in Yokohama, Kanagawa Prefecture Industrial & Infrastructure Fund Investment Corporation ( IIF ) announced today the planned acquisition of IIF Yokohama Tsuzuki Technology Center in Yokohama, Kanagawa prefecture as outlined below. 1. Summary of Acquisition 1) Type of asset (scheduled to acquire) : Real estate 2) Asset name : IIF Yokohama Tsuzuki Technology Center (please refer to section 3. Summary of Property ) 3) Acquisition price : 1,100 million yen 4) Appraisal value : 1,240 million yen (as of December 1, 2010) 5) Completion date of contract : December 21, 2010 (scheduled) 6) Acquisition date (scheduled) : December 21, 2010 (scheduled) 7) Seller Nippon Tochi-Tatemono Co.,Ltd. (please refer to section 4. Profile of Seller ) 8) Acquisition funds : Internal cash 9) Payment : Full payment at time of transfer 2. Reasons for Acquisition IIF decided to acquire the IIF Yokohama Tsuzuki Technology Center (hereinafter referred to as the Property ), judging that its features will meet IIF s investment strategy (the acquisition of prime assets to contribute higher distributions). The Property is the second transaction relating to a research and development facility, following the IIF Totsuka Technology Center (land with leasehold interest). In deciding to acquire the Property, IIF viewed the following three points as particularly appealing: its profitability, continuity and versatility. 1) Profitability The Property has a yield of NOI of about 7.3% and yield after amortization which contributes distributions of about 6.6%. It will contribute a better yield for IIF than those after amortization, calculated on the portfolio IIF is currently holding, and will contribute to an increase in distributions accordingly. In addition, its rent will be increased by 2% every three years until September 30, 2020, so a further increase in distributions can be expected. (Please refer to Section 3. Summary of Property to be acquired as described below for details of the lease contract.) 2) Continuity A fixed-term lease contract of building on a long-term basis has been concluded for the Property (until September 30, 2030 with about 20 years remaining on the lease). It has been concluded with TÜV Rheinland Japan Ltd., the Japanese arm of the TÜV Rheinland Group whose head office is located in Germany and the largest corporation in the certification business industry. We can therefore expect that company to stably and continuously utilize the Property on a long-term basis. The certification business relating to products, services, and such like is its main business activity. It supports international distribution, which is globally expanding day by day, by certifying the assurance of products and manufacturing processes requested from its clients such as manufacturers. It is an ongoing business, indispensable for the trade development of our country. (Please refer to the Attachment for details of the tenant, structure of the certification business and importance of the Property for the tenant.)

2 3) Versatility The Property had been used as a laboratory by a foreign manufacturer since its establishment. TÜV Rheinland Japan Ltd. highly evaluated the property in terms of its specifications and location. Therefore, after the relevant manufacturer pulled out, it inherited the testing facility and other parts almost as they were and has been using them up to the present. The Property, accordingly, is highly versatile as a laboratory. In addition, as the Property is located in a mixed area where there are apartment buildings, detached houses, shops such as car dealers, a data center and so on, the land in its own right is highly versatile as well. 3. Summary of Property Property name IIF Yokohama Tsuzuki Technology Center Location , Kitayamada, Tsuzuki-ku, Yokohama-shi, Kanagawa Zoning Semi residential area (a part of zoning: 2 middle-and-high-rise exclusively residential area) Area Land:3, m 2 Building:4, m 2 Structure / stories Five story flat-roofed and steel-framed construction Type of building Designated floor area ratio / building-to-land ratio Earthquake PML Research institute Type of possession Construction date February 1996 Collateral note Acquisition price Semi residential area : 200% / 70% (Note*) 2 middle-and-high-rise exclusively residential area : 150% / 60% *Building-to land ratio is 60% in the property, however, it is 70% by calculating of corner lot Percentage of prospective loss : 3.3% (based on the search report of earthquake risk by Engineering & Risk Services Corporation) Ownership None 1,100 million yen Appraisal value 1,240 million yen (as of December 1, 2010) Appraisal firm Japan Real Estate Institute Others None Number of tenant 1 Name of tenant TÜV Rheinland Japan Ltd. Rent 85,290,000 yen Annual fee for common area of building 28,422,000 yen Total leasable area 4, m 2 Total lease area 4, m 2 Term of contract October 1, 2008 September 30, 2030 : for 22 years Type of contract Fixed term lease contract of building <Part of rent> -Every three years rent may be risen by 2% of rent from October 1, 2008 to September 30, From October 1, 2020 to September 30, 2030, every two years rent may be revised after mutual consultation considering of general economic condition as Japan Revision of rent Consumer Price Index, etc., and if we disagree with each other, rent will be as before. Cancelation before ended contract period <Part of service fee for common area> -Rent may not be revised from October 1, 2008 to September 30, From October 1, 2020 to September 30, 2030, every two years rent may be revised after mutual consultation considering of general economic condition as Japan Consumer Price Index, etc., and if we disagree with each other, rent will be as before. Not possible until September 30, 2020, thereafter the tenant can cancel with notice by letter twelve months before.

3 Deposit Others 92,000,000 yen IIF ordered an environmental investigation and evaluation, (PHASE1) Land Solution Inc. As a result, we received report that there is slight possibility of environmental contamination in this land. 4. Profile of Seller 1) Name Nippon Tochi-Tatemono Co.,Ltd. 2) Location 1-4-1, Kasumigaseki, Chiyoda-ku, Tokyo 3) Name and Job title of President & CEO : Takuro Yoshida Representatives 4) Business -Planning, development, design, administration, rent, leasing of tenant in office buildings, retail facilities, logistics facilities, condominiums, and detached houses -Planning, taking effect, preparation, development of urban development business -Strategic support on CRE (company real estate) -Consulting on good use of real estate, securitization and investment -Appraisal, research, analysis and due diligence of real estate 5) Capital 17 billion yen (as of October 31, 2010) 6) Date Established May ) Relationship with JRF or asset manager There is no capital, personal trade relationship between the Investment Corporation/the Asset Management Company and Capital relationship Personal relationship Trade relationship Nippon Tochi-Tatemono Co., Ltd. In addition, there is no noteworthy capital, personal or trade relationship between affiliated companies of the Investment Corporation/the Asset Management Company and those of Nippon Tochi-Tatemono Co., Ltd. Nippon Tochi-Tatemono Co., Ltd. does not meet the condition of interested party of the Investment Corporation/the Asset Interested party Management Company. In addition, interested parties of Nippon Tochi-Tatemono Co., Ltd. do not meet the condition of those of the Investment Corporation and the Asset Management Company. 5. Seller IIF acquires IIF Yokohama Tsuzuki Technology Center from the seller which has not special interests with IIF and Asset Management Company 6. Broker IIF completed a contract on broking in which broker is the third party, it has no special relationship with IIF. However, the broker has not agreed to disclosure of its company name and broker fee etc. 7. Payment We schedule to pay with internal cash 8. Schedule of acquisition Execution date of contract for acquisition Payment date Date for transfer of property December 21, 2010 (scheduled) December 21, 2010 (scheduled) December 21, 2010 (scheduled)

4 9. Future Outlook of IIF This transaction has an impact on increasing revenue in the 7 th Fiscal Period ended December 31, 2010 (July 1, 2010 December 31, 2010), however these days in which this transaction has an impact are little and the amount of increasing revenue is very restricted, so we do not revised the operation results in the 6 th Fiscal Results Press Release dated August 10, 2010.

5 [Attachment] [Photo of the property] Dark room for radio wave Test room for module of soler cell [Map of the property : large area and detail] The Tomei 東名高速道路 Expressway Yokohama 横浜 Aoba IC 246 The Property 対象資産 第三京浜道路 Daisan Keihin Road Tsuzuki IC 都築 IC Photovoltaic 太陽光発電 Evaluation 評価センター Center Kohoku 港北 IC IC 新横浜本社 Head Office Shin-Yokohama St. 新横浜駅 国道 Route 1 号線 1 青葉 IC (Map data from PASCO テュフラインランドジャパン TÜV Rheinland Japan Ltd. CORPORATION) Kawasaki St. 川崎駅 国道 Route 号線 高速湾岸線 Bayshore Route An anechoic chamber Test facility for module of soler cell outdoor (Note) These test facilities in the above photo are not owned by IIF 羽田空港 Haneda Airport Ushikubo Nishi Park Transportation Bureau, City of Yokohama Blue Line 横浜市営地下鉄ブルーライン Mosaic Mall Kohoku Ushikubo elementary school Ushikubo Park Center North St. The Property 対象資産 Transportation Bureau, 横浜市営地下鉄 City of Yokohama グリーンライン Green Line Tokusho Park Yokohama St. 横浜駅 Port of 横浜港 Yokohama North Port Mall センター北駅 (Map data from PASCO CORPORATION) (Note) It is prohibited to use this map with making copy partially or all of this map without permission by PASCO CORPORATION. (A source of aerial photo : yahoo) データセンター Data Center カーディーラー Car dealer

6 [Prospective Income and Expenditures for Property] Forecast of Prospective Income and Expenditures NOI (Net Operating Income) 80.8 million yen NOI yield 7.3% Amortization 8.5 million yen Yield after amortization 6.6% *NOI in the above table is based on income and expenditures in lease contract *NOI yield is calculated as taking acquisition price from NOI, rounded to the nearest tenth. * Amortization is estimated roughly as of December 20, *Yield after amortization is calculated as taking acquisition price from NOI excluding amortization, rounded to the nearest tenth. [Summary of Appraisal] Summary of Appraisal Report Appraisal firm Japan Real Estate Institute 1,240 million yen Appraisal value Appraisal date December 1, 2010 Value based on direct capitalization 1,240 million yen Direct cap rate 5.8% Value based on DCF method 1,230 million yen Discount rate 5.9% Terminal cap rate 6.3% [Property Portfolio Overview after acquisition] Asset Type Industrial Properties Factory and Research Development Property Property No. Name of Property Acquisition Price (million yen) Rate of Investment (%) L-1 IIF Shinonome Logistics Center (Note2) 13, L-4 IIF Noda Logistics Center 6, L-5 IIF Shinsuna Logistics Center 5, L-6 IIF Atusgi Logistics Center 2, L-7 IIF Koshigaya Logistics Center 2, L-8 IIF Nishinomiya Logistics Center 1, L-9 IIF Narashino Logistics Center (land with leasehold interest) 1, Sub total 32, F-1 IIF Totsuka Technology Center (land with leasehold interest) 4, F-2 IIF Yokohama Tsuzuki Technology Center 1, Sub total 5, Infrastructure I -1 IIF Kobe District Heating and Cooling Center 18, Properties I -2 IIF Haneda Airport Maintenance Center 41, Sub total 59, Total 96, (Note1) The prefix indicates the property category(l for logistics facilities, F for factory, research and development facilities and I for infrastructure facilities). (Note2) The appraised value of IIF SHINONOME Logistics Center is calculated by taking 53% (the percentage of its joint trust beneficiary interest) of the total, as described in relevant lease agreements.

7 [Attachment] [Tenant and structure of certification business, etc.] 1Lessee The TÜV Rheinland Group has about 490 offices in 61 countries in the world, and has its head office in Germany. It is extending its global business as one of the leading players in the certification business industry. It has been providing services in fields related to the safety of people, the environment and machinery as well as health for the last 140 years. TÜV Rheinland Japan Ltd. was established in 1983, and currently has four business offices including the head office in Shin-Yokohama. It also has (in addition to the Property as the main business center) four laboratories (in Yokohama, Osaka, Hiroshima and Fukuoka). TÜV Rheinland Japan Ltd. is the headquarters in the Asia and Pacific region of the group, and also an important business center that controls more than 30 offices including laboratories for testing located in 9 countries in Asia. 2Business of the lessee (meaning and structure of certification) Certification means that a third party certifies in writing that products, processes or services comply with specific requirements (standards, etc.). With progressing globalization in the distribution of products, there are more opportunities to see overseas products in shops or on Internet, and also lots of products have been exported from Japan. Thus, consumers have been getting more and more interested in the safety of products. As a result, it has become necessary to comply with specific standards and ensure safety when distributing products, and third party certification systems have been actively utilized to that end. A certification organization (Note*), accredited as a third party to implement certification, conducts testing and inspection. By certifying the quality and safety of products, its manufacturing processes, services, and such like, the safety of products is ensured. In addition, specific marks (CE mark, PSE mark, etc.) are affixed on the certified products as evidence. These marks mean the relevant products have been duly inspected and certified by a third party organization in terms of specific standards, safety, etc. TÜV Rheinland Japan Ltd., as a certification organization described above, has conducted various types of certification business including testing and inspection in relation to products, services, and corporations. It has the No. 1 track record in the world in terms of the numbers of certification issues. (Note*) A certification organization is an organization that inspects and certifies whether products, services, and such like comply with standards. Its capabilities are reviewed as a third party and it is accredited by an accreditation organization. [General image of certification for products] Approval 認定 Certification 認証 Request of certification 企業より認証依頼 by a company Co. A 企業 A 電化製品 Electronic products Approval 認定機関 Organization Certification 認証機関 Organization Laboratory 認証試験所 of Certification Certification through test 試験 審査をし認証 and examination 企業 Co. B Co. C 企業 Parts of 自動車 car 部品 Medical 医療機器 instrument In circulate internal マークを貼付し and abroad with 国内外に流通 certification mark 本物件のテナントである Tenant of this property TÜV Rheinland Japan Ltd. is テュフ Certification ラインランド Organization ジャパンは 認証機関 and this facility is Testing 本施設は 認証試験所 です laboratory of Certification Other various kind その他 of products 様々な製品

8 Model certification (example) CE marking PSE mark GS mark JIS mark Type Local standards National standards (Japan) National standards (Germany) National standards (Japan) Note This mark is obliged to attach in specified products sold in EU area, it shows that a product conforms requiring articles. It is as passport for liberal distribution in EU market. In selling and display in Japan, this mark is obliged to be affixed in electric instrument which is used by supplying AC100V from a wall outlet indoor, for showing that a product conforms to safety standards. This mark is attached in products which is tested and certified safety, based on the law on safety of German instrument and products. It is widely known. This mark is affixed in mining and industrial products which passed Japan Industrial Standards. 3Importance of the Property for the lessee The Property is the only laboratory for the tenant with a full-line facility equipped with multiple and diverse testing facilities in Japan. They are used to conduct safety and conformance testing on products and such like. The Property is the main facility the tenant uses in its business operations. In addition, the Property has been accredited by an accreditation organization in various countries around the world. The tenant mainly does its certification testing at the Property, based on which it has the world s highest volume of certifications issued. The Property is located along the same line of railway transportation as the head office of TÜV Rheinland Japan Ltd. (located in Shin-Yokohama, Kouhoku-ku, Yokohama), which are the headquarters at the Asia and Pacific region of the TÜV Rheinland Group. Therefore, it is convenient for employees and clients to access it. In addition, the Property also has superb linkage with the Photovoltaic Evaluation Center. This Center was established nearby in 2009 to deal with rapidly increasing needs for evaluating photovoltaic-related products. Therefore, it has an advantage in terms of its location, for conducting various types of certification business effectively. The Property, accordingly, is regarded as extremely important. About IIF: Industrial and Infrastructure Fund Investment Corporation ( IIF ) is the first J-REIT focused on acquiring and operating both industrial and infrastructure properties in Japan-properties that play a vital role in the Japanese economy, and for which IIF expects to see stable demand in the mid to long term. With respect to industrial properties, IIF intends to invest in a diverse portfolio of properties, including manufacturing and research and development facilities. Please refer to our website at Contacts: For the further information relating to this press release as well as the Fund and its Asset Manager, please feel free to contact Mr. Yoshito Nishikawa (Telephone Number: ), Head of Industrial Division at Mitsubishi Corp.-UBS Realty, Inc., Asset Manager for Industrial & Infrastructure Fund Investment Corporation. Investor Relations: Telephone Number: It is for informational purposes only, and the Japanese language release should be referred to as the original.