News Releases

To all the members
Name of the Company Daiwabo Information System Co., Ltd.
Representative Hirokazu Matsumoto, President and CEO
(Code No. 9912, First Section of Tokyo Stock Exchange/Osaka Securities Exchange)
Head Office 3-2-5, Hommachi, Chuo-ku, Osaka
Contact person Osamu Koyama,
Director in charge of Personnel Dept. & Finance Dept.General Manager of Corporate Planning Dept.
PHONE +81-6-6281-1161

Notice of Initial Public Offering and Relocation of Subsidiary, ZOA Corporation

It was decided at the Board of Directors meeting of May 17, 2005, to publicly offer shares of company subsidiary ZOA Corporation, via listing on JASDAC. Because of the offering, ZOA changes from a consolidated subsidiary to an equity subsidiary.

1. Overview of ZOA Corporation (As of March 31, 2005)
(1) Name ZOA Corporation
(2) CEO Yutaka Nagashima
(3) Headquarters address 3-2-5 Hommachi, Chuo-ku, Osaka
(4) Date established April 27, 1984
(5) Line of business Store retail of information equipment
(6) Closing March 31
(7) Employees 191 (As of April 30, 2005)
(8) Store locations Numazu, Akita, Sendai, Akihabara, Atsugi, Gotemba, Oroshidanchi, Fuji, Fujinomiya, Shizuoka, Kofu, Kakegawa, Hamamatsu, Hamamatsunishi, Toyohashi, Toyama, Kanazawa, Fukui, Tsuruga, Himeji, etc.
(9) Capital ¥112 million
(10) Outstanding shares 20,250
(11) Major shareholders
Daiwabo Information System   50.37%
Shinobu Nagashima 23.21%
Yutaka Nagashima 22.22%
Performance over recent fiscal years Units: million yen
  March 31, 2003 March 31, 2004 March 3, 2005
Sales 19,307 18,498 17,589
Ordinary profit 476 524 800
Net profit for year 281 296 481
Assets 6,992 6,123 6,736
Shareholder capital 1,137 1,254 1,629
Note: Figures for March 31, 2005 have not been audited.

2. Number of Shares Offered, Offering Price and Daiwabo Ownership Before and After Offering
Daiwabo ownership before offering (50.37%)
Number of shared offered 1,000 shares
Daiwabo ownership after offering (40.06%)
Note 1 Ownership percentage after offering includes the asset increase (2,100 new shares) after the public offering.
Note 2 Plans are to offer 2,000 shares between those made available by the company and those made available by shareholders, with an over-allotment limit of 615 shares. However, the offering of over-allotment shares may be stopped or the number of available shares reduced depending on the supply and demand situation of the stock market. The above ownership after offering percentage assumes all 615 over-allotment shares are sold and new shares are issued by third party allotment.
Note 3 Plans are to set the offering price and purchased price on June 8, 2005.

3. Date of Stock Certificate Transfer
  June 17, 2005 (Planned)
  Date that ZOA Corporation lists on JASDAC

4. Affect on Daiwabo Performance
ZOA Corporation will change from a consolidated subsidiary to an equity subsidiary. Consolidated performance as of the May 12 announcement is projected to show a slight decrease in sales and a slight increase in profits from earnings off the public offering and equity changes. If performance projections require adjusting after the offering price has been decided, they will be announced at a later date.

Daiwabo Information System Co., Ltd.
Osamu Koyama,
Director of Finance Dept
PHONE +81-6-6281-1161
Fax +81-6-6258-2636

May 17, 2005