Daiwabo Information System Co., Ltd.

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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 Toshihiro Tatsumi,
Director Finance Dept in charge of Sales Administration Dept.
General Manager of Finance Dept.
PHONE +81-6-6281-1161


Notice of Revision of Summary Report on Financial Results (Consolidated and Unconsolidated) for Six Months ended September 30, 2008 and Occurrence of Extraordinary Profit and Loss



The performance projection for the Summary Report on Financial Results for Six Months ended September 30, 2008 (April 1, 2007-September 30, 2007) that was released at the time of the financial settlement on May 10, 2007 will be revised as follows, and extraordinary profits and losses will occur as discussed below.

1. Revised Projection for the Summary Report on Financial Results for Six Months Ending September 30, 2008
(1)(Units: million yen, %)
  Sales Operating Profit Ordinary Profit Midterm Net Profit
Projection Announced on May 10, 2007 (A)
174,000
1,500
1,430
720
Revised Projection (B)
174,800
1,100
1,020
570
Increased Amount (B)-(A)
800
- 400
- 410
- 150
Rate of Increase (%)
0.5
- 26.7
- 28.7
- 20.8
(Reference)
Actual Summary Report on Financial Results for Six Months ended September 30, 2007
174,774
1,598
1,509
860

(2)Unconsolidated (Units: million yen, %)
  Sales Operating Profit Ordinary Profit Midterm Net Profit
Projection Announced on May 10, 2007 (A)
170,000
1,150
1,300
700
Revised Projection (B)
171,100
950
1,140
330
Increased Amount (B)-(A)
1,100
- 200
- 160
- 370
Rate of Increase (%)
0.6
- 17.4
- 12.3
- 52.9
(Reference)
Actual Summary Report on Financial Results for Six Months Ending September 30, 2007
170,770
1,309
1,403
854

2. Reasons for the Revised Performance Projection
Unconsolidated sales were mostly as originally expected, thanks to investment backed up by improved profits and increased demand for security, but both the operating profit and ordinary profit will be lower than expected because of intensification of competition, which lowered the profit rate. At the same time, we also revise our projection of the midterm net profit, which will also be lower than expected because extraordinary profits and extraordinary losses will be incorporated as described later. Almost the same reasons are applied to the projection of consolidated performance.

3. Occurrence of extraordinary profit and extraordinary loss
 
( 1)Consolidated
  We will appropriate a ¥69 million reversal of the bad debt reserve as an extraordinary profit, and ¥102 million, equivalent to the actual depreciated value of stocks of affiliated companies, as an extraordinary loss for the six months ended September 30, 2007.
( 2)Unconsolidated
  We will appropriate a ¥69 million reversal of the bad debt reserve as an extraordinary profit and ¥475 million as a valuation of losses in affiliated companies as a result of temporary stagnation in the stock market during the six months ended September 30, 2007.

4. Projection of the full-term performance
We are currently reviewing the full-term performance projection on the basis of the Financial Results (April 1, 2007-March 31, 2008), and we will announce our projection of the full-term performance in the semiannual settlement scheduled for November 1.

* The above projections are based on data available on the day of publication of this material, and the actual performance will be different from the projections because of various factors.


Reference
Toshihiro Tatsumi,
Finance Dept.
PHONE +81-6-6281-1161
Fax +81-6-6258-1164

October 19, 2007
DAIWABO INFORMATION SYSTEM CO., LTD.