Japanese Power Market

Thank you for letting me read our Market Overview and Business Model for
Japan.

When I went to the Exotic Energy Derivatives conference in December, I met
Masayuki Fujita, who studies the Japanese power market for the Mitsubishi
Research Institute. We chatted about deregulation of the industry and about
the entry of foreign companies into the market.

The Japanese understand the need to deregulate the industry, but want to
avoid the pain that may be associated with it. This process is very
unfamiliar and uncomfortable for the Japanese. They see power as a matter of
national security (like agriculture), so foreign entrants into the market
will have to tread with care, understanding, and sophistication.

Fujita is working on a report for the institute. He has agreed to let me
have copies of the non-confidential portions when it is finished. In the
interim, he sent me a copy of a presentation that I thought you might find
interesting.

Regards,

Eugenio