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,
Managing Director in charge of Personnel Dept. & Finance Dept.
General Manager of Corporate Planning Dept.
PHONE +81-6-6281-1161

Notice of Subsidiary Dissolution

We hereby notify that we decided to dissolve our subsidiary DIS System Trading Co., Ltd. at the company's board of directors meeting held February 16, 2006. Details are as follows.

1. Facts behind dissolution
We split off our system integration business and set up a wholly owned subsidiary company in 1995. With the aim of going public, the subsidiary reinforced its workforce up- front to boost sales in too short a period of time. It also saw a sharp increase in the costs of public listing. These factors, coupled with a downturn in system integration business, deteriorated the earning position of the subsidiary whose liabilities exceeded assets, making it difficult for the company to operate as a business entity.
To overcome the difficulties, we made restructuring efforts to reorganize our group operations by implementing a drastic reform and clarifying the position of system integration business. We finally resolved to shut down the subsidiary with all these efforts nearly completed and its liquidation starting shortly.

2. Profile of subsidiary (As of January 31, 2006)
(1) Corporate name DIS System Trading Co., Ltd.
(2) Representative Sachio Takai, President and CEO
(3) Head office location 3-2-5 Honmachi, Chuo-ku, OsakaCity
(4) Date of establishment June 22, 1995
(5) Core business System integration
(6) Accounting period March 31
(7) Capitalization 316 millions of yen
(8) Equity capital
      Total assets
- 404 millions of yen
87 millions of yen
(9) Ratio of shareholders' equity 100% owned by Daiwabo Information System Co., Ltd.

3. Schedule
We are set to begin liquation procedures after approval of a resolution on the dissolution of the subsidiary at an extraordinary shareholders' meeting scheduled for February 28, 2006.

4. Effects of the dissolution on our business results
The effects on our business performance in the current fiscal year will be minimal, if any, because we already posted our evaluation losses on stockholdings and loss reserves.

Daiwabo Information System Co., Ltd.
Osamu Koyama,
Director of Finance Dept
PHONE +81-6-6281-1161
Fax +81-6-6258-2636
February 16, 2006