Daiwabo Information System Co., Ltd.

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 General Affairs Section (Public Relations)
PHONE	+81-6-6281-1161

Loss on Reevaluation of Subsidiaries and Revision of Interim Results Forecast

Recently Daiwabo Information System Co., Ltd., accounted for loss on reevaluation of its subsidiary DIS System Trading Co., Ltd., (of which it holds 83.9% of the stock) as an extraordinary loss. As a result, the interim results for the fiscal year ending in March of 2004 (April 1, 2003 to September 30, 2003) forecasted in the settlement statement published on May 15, 2003, have been revised as indicated below.

1.Details Regarding Loss on Reevaluation of Subsidiary

DIS System Trading Co., Ltd., is a subsidiary of Daiwabo Information System Co., Ltd., conducting system development. Although DIS System Trading has made efforts to improve its profits, it has recorded cumulative losses for the past fiscal year and in the current business environment it will have difficulty recovering short term net assets value. Therefore, we have decided to record a loss on reevaluation of subsidiaries.

(A) Total loss on reevaluation of subsidiaries

482 million yen

(B) Net asset value for fiscal year ending March 2003

(A/B × 100)

27,063 million yen

(1.8%)

(A/C × 100)

2,225 million yen

(21.7%)

(D) Net income for same period of fiscal year ending March 2003

(A/D × 100)

1,041 million yen

(46.4%)

2.Revision of Interim Results Forecast for Fiscal Year Ending March 2004 (April 1, 2003 to September 30, 2003)

(Values indicated in millions of yen or %)

	Non-consolidated			Consolidated
	Sales	Ordinary income	Interim net income	Sales	Ordinary income	Interim net income
Previous forecast (A) (May 15, 2003)	154,000	900	460	166,000	960	380
New forecast (B)	149,620	730	100	159,420	500	240
Increase or decrease (B)-(A)	-4,380	-170	-360	-6,580	-460	-140
Percent increase or decrease	-2.8%	-18.9%	-78.3%	-4.0%	-47.9%	-36.8%
Interim results for previous year (year ending March 2003)	146,611	877	410	158,687	955	352

Reason for Revision

The demand for computers in Japan increased compared to the previous year in terms of quantity but decreased in terms of monetary value due to large decreases in sales price. We were able to secure increased income over the previous year by supplementing the reduced sales volume of computer main units by concentrating aggressively on sales of items other than computer main units. However, our gross profit rate decreased due to vigorous competition from other companies in the field. By recording the aforementioned loss on reevaluation of subsidiaries as an extraordinary loss, it is expected that the numbers shown above will be achieved.

The revision of the consolidated results forecast was executed because the revision of the non-consolidated results forecast and the system integration business conducted by DIS System Trading did not reach the planned results. Since the loss on reevaluation of subsidiaries is eliminated from the consolidated balance sheet, it will not affect the consolidated results.

Forecasts for the non-consolidated and consolidated yearend results will be published in the midyear balance statement.

Dividends are scheduled to be disbursed as previously announced (10 yen at midyear and 10 yen at yearend (total 20 yen)).

Direct inquiries to
Osamu Koyama, Finance Department
PHONE +81-6-6281-1161
FAX +81-6-6258-2636

Oct. 29, 2003