News Release

ORIX Yatsugatake Farm to Increase Its Annual Production Capacity to 300-Ton

Sep 27, 2016

TOKYO, Japan - September 27, 2016 - ORIX Yatsugatake Farm Co. Ltd. ("OYF"), a subsidiary of ORIX Corporation ("ORIX"), announced today that it has completed phase two of construction of the hydroponic greenhouse that it operates in Yatsugatake Highlands, Nagano Prefecture. This extends the total cultivation area of the facility to approximately 11,700 m2, and enables annual production of 300 tons1 of leaf vegetables. Shipment will begin in October.

OYF is an agricultural corporation jointly established by ORIX and Honda Engei Co., Ltd. ("Honda Engei"), another agricultural production corporation. OYF launched production of spinach, arugula, and other leaf vegetables for fresh consumption in September 2015 using a hydroponic greenhouse. By using hydroponics to shorten the growing period, OYF is able to generate 19 harvests per year and produce and sell vegetables all year round.

ORIX is partnering with businesses throughout Japan and currently developing vegetable production projects at five locations. The total cultivation area of the production projects reaches approximately 149,200 m2. Using technologies to control cultivation environment such as temperature, humidity, CO2, light intensity, and other know-how in hydroponics, ORIX is aiming to sell products with "four fixed factors" (fixed prices, fixed quality, fixed timing, and fixed quantities). Utilizing the ORIX Group's sales network and other channels, the harvested vegetables are sold on a stable basis mainly to retail and food service industry clients in the greater Tokyo, Chubu, and Kansai areas. ORIX reorganized its specialized agriculture team and established the new Agribusiness Department in 2016. ORIX will continue to expand these projects while further developing their sales channels.

Japanese agriculture is facing the challenge of declining production volumes due to the aging population and the shortage of younger generations working in farming. Meanwhile, the agricultural sector is the subject of much expectation, with an aggressive agricultural policy and strengthened international competitiveness part of the Japanese government's growth strategy. Amid this situation, ORIX is building an efficient production framework through expanded project scale, standardization, and mechanization in order to provide a stable supply of agricultural products to consumers.

Going forward, ORIX will continue to leverage the ORIX Group's sales network and develop competitive agriculture projects with high added value while building up industry know-how through various business partnerships throughout Japan.

1) 300 tons of vegetables is equivalent to the quantity of green and yellow vegetables consumed by approximately 11,600 people annually on a per capital basis. (Reference: "Circumstances Surrounding Vegetable Consumption" (Japanese language), January 2013, Ministry of Agriculture, Forestry and Fisheries of Japan)

■ Company Overview
Company Name ORIX Yatsugatake Farm Co., Ltd.
Established April 10, 2015
Location 1312 Tatsuzawa, Fujimi-machi, Suwa-gun,
Nagano Prefecture
Representative Shunsuke Iijima
■ Facility Overview
Cultivation Area Approx. 11,700 m2 (total of Phase 2 construction)
Cultivation technique Solution culture hydroponics (pesticide-free)
Products Spinach, arugula, chrysanthemum greens, watercress, etc.
Main shipping destinations Kanto, Chubu, Kansai regions

■ ORIX Agriculture Division Development
Company Establishment Company Name Production Site Ownership Structure Business Overview
October 2004 Kada Green Farm Wakayama City, Wakayama Prefecture 70% Kagome, 30% ORIX Mainly produces fresh tomatoes for Kagome
February 2014 ORIX Agriculture Yabu City, Hyogo Prefecture 100% ORIX Constructed a new fully artificial light-based indoor cultivating facility for leaf lettuce and other vegetables
April 2015 ORIX Yatsugatake Farm Fujimi-machi, Suwa-gun, Nagano Prefecture 97% ORIX, 3% Honda Engei Constructed a new hydroponic greenhouse for leaf vegetables Phase 2 construction completed in Sept. 2016 to expand cultivation area
June 2015 Yabu Farm Yabu City, Hyogo Prefecture 25 % JA Tajima, 5% Yabu Partners, 20% ORIX Outdoor cultivation of bell peppers and soybeans
April 2016 Smart Agriculture IWATA Iwata City, Shizuoka Prefecture 51% Fujitsu, 39% ORIX, 10% Masuda Seed Cultivation of soil-grown kale, In the future, expected to begin cultivation of hydroponic tomatoes, bell peppers, kale, and leaf vegetables

Related Links

Agricultural Corporation Newly Established in Yatsugatake Highlands of Nagano Prefecture: Efficient Large-Scale Production Using Hydroponics and Direct Distribution Network to Be Developed
http://www.orix.co.jp/grp/en/news/2015/150715_ORIXE.html (July 15, 2015)
Production to Start at the Large-Scale Hydroponics Greenhouse in Yatsugatake Highlands Following Construction Completion
http://www.orix.co.jp/grp/en/news/2015/150915_ORIXE2.html (September 15, 2015)

Contact Information:
ORIX Corporation
Corporate Planning Department
Tel: +81-3-3435-3121

About ORIX:
ORIX Corporation (TSE: 8591; NYSE: IX) is an opportunistic, diversified, innovation-driven global powerhouse with a proven track record of profitability. Established in 1964, ORIX at present operates a diverse portfolio of businesses in the operations, financial services, and investment spaces. ORIX's highly complementary business activities span industries including: energy, private equity, infrastructure, automotive, ship and aircraft, real estate and retail financial services. ORIX has also spread its business globally by establishing locations in a total of 37 countries and regions across the world. Through its business activities, ORIX has long been committed to corporate citizenship and environmental sustainability. For more details, please visit our website: http://www.orix.co.jp/grp/en/

Caution Concerning Forward Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under "Risk Factors" in the Company's annual report on Form 20-F filed with the United States Securities and Exchange Commission and under "4. Risk Factors" of the "Summary of Consolidated Financial Results" of the "Consolidated Financial Results April 1, 2015 - March 31, 2016."

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