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DIS
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To the members

Name of the Company Daiwabo Information System Co., Ltd
Representative Mitsuru Yokoyama, President and CEO
(Code # 9912, Tokyo and Osaka Stock Exchange, 1st Section)
Head Office 3-2-5, Hommachi, Chuo-ku, Osaka
Contact person Saito, General Affairs Department
(Public Relations)
TEL +81-6-6281-9100

Restructuring and Strengthening of Information Device Retail Business
We at Daiwabo Information System Co., Ltd., have reached an agreement to acquire 51% of Nagashima Johotsushin Company's stock and make the same company a subsidiary in order to facilitate the restructuring and strengthening of our information device retail sales business. We would like to report the following details to our shareholders.


1. Reason for the Acquisition
The DIS group of companies comprises six subsidiaries and one affiliate and encompasses such businesses as sales of information devices and peripheral equipment. Over-the-counter retail sales have been handled by Pasokon no Yakata (PC Palace), which is operated by DIS Information Equipments Sales Co., Ltd.

It is part of DIS's middle term and long term business strategy to improve our product procurement, sales, and support capabilities, expand our services in related fields, and focus the efforts of the entire group toward contributing to the advanced information society. In order to meet these objectives, we have been considering forming an alliance with a company having advanced know-how that can improve our core competence in the information industry. Therefore, we recently decided to purchase 51% of Nagashima Johotsushin's stock and acquire the company as a subsidiary.

Nagashima Johotsushin has grown and expanded in the information equipment retail sales business in Shizuoka Prefecture. We believe we can achieve a more broad and effective service that will increase the satisfaction of our customers if we combine the know-how of our group companies with the know-how Nagashima Johostsushin has in over-the-counter sales. Simultaneously with our acquisition of Nagashima Johotsushin's stock, we will sell some stock from DIS Information Equipments Company (which is wholly owned by Daiwabo Information System Co., Ltd.) to Nagashima Johotsushin in order to facilitate the early unification of the two companies. A merger of the two companies is scheduled for April 1, 2002, and we hope that new merger company will grow so as to enable public sale of its stock in the future.


2.

Overview of the New Subsidiary
(1) Company Name Nagashima Johotsushin Co., Ltd.
(2) Company Representative Shinobu Nagashima
(3) Location 719 Ozuwa, Numazu-shi, Shizuoka-ken
(4) Date Established April 27, 1984
(5) End of Fiscal Year March 31
(6) Number of Employees 130 (as of September 30, 2001)
(7) Number of Stores 16 (as of September 30, 2001)
(8) Capital 100 million yen
(9) Number of Stock Shares Issued 2000
(10) Main Shareholders Shinobu Nagashima 1245 shares (62.3%)
Yutaka Nagashima 445 shares (22.3%)
(11) Recent Fiscal Activity (in millions of yen)

 Fiscal year ending
March 2000		 Fiscal year ending
March 2001
Sales revenue 18,983 19,249
Operating profit 522 297
Ordinary profit 543 380
Current net profit 304 200
Total assets 4,696 4,622
Shareholder capital 847 978

<For Reference>
(1) Company Name DIS Information Equipments Co., Ltd
(2) Company Representative Kikuo Hayashi
(3) Location 2-5, 3-chome, Chuo-ku Hommachi, Osaka
(4) Date Established May 30, 1994
(5) End of Fiscal Year March 31
(6) Number of Employees 71 (as of September 30, 2001)
(7) Number of Stores 7 (as of September 30, 2001)
(8) Capital 700 million yen
(9) Number of Stock Shares Issued 14,000
(10) Main Shareholders Daiwabo Information System Co., Ltd. (100%)
(11) Recent Fiscal Activity (in millions of yen)

 Fiscal year ending
March 2000		 Fiscal year ending
February 2001		 Fiscal year ending
March 2001
Sales revenue 9,845 9,644 995
Operating profit -61 -216 11
Ordinary profit -19 -170 15
Current net profit -21 -199 15
Total assets 2,682 2,363 2,598
Shareholder capital 141 -58 -43
(Note) March 2001 shows anomalous balance results because of a change in the settlement period (one month).


3.

Description of Change in Holdings
(1) Shares held before acquisition 0 shares (0% holding ratio)
(2) Number of shares to be acquired 1020 shares
(3) Shares held after acquisition 1020 shares (51% holding ratio)


4.

Date of Acquisition
The shares are scheduled to be transferred on November 11, 2001.


5.

Outlook
The acquisition of Nagashima Johotsushin as a subsidiary will have little effect on this fiscal year's (ending March 2002) consolidated account results. However, we believe that in the subsequent fiscal years a synergetic effect will occur among the group companies and retail sales of information equipment will contribute greatly to the profits of the DIS group.


For questions regarding this issue, contact
Daiwabo Information System Co., Ltd.
Contact person: Saito
PHONE +81-6-6281-9100
FAX +81-6-6258-9351
October 31, 2001
DAIWABO INFORMATION SYSTEM CO., LTD.