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 of Finance affairs section
PHONE +81-6-6281-1161

Strengthening the system solutions business

We have agreed with Tomen Cyber-business, Inc. (hereinafter referred to as TCB) that we will acquire 30% of TCB’s stocks to increase our presence in the system solutions business.

1.Reasons for the acquisition
With our business of marketing the distribution of information appliances and peripherals as a mainstay, our group has been developing its system solutions business. This has included the construction of intra-company networks through our group companies, such as DIS System Trading Co.,Ltd.

With the advent of an advanced information society, we believe that it will benefit our business to be allied with a company that has advanced products and know-how. This will enable us to continue to offer even higher quality products and services, so we decided to take a stake in, and establish a business alliance with, TCB.

TCB has been active in the broadband solutions business, in both the business and consumer fields, since it was established in 1996. In the field of business applications, it offers middleware for client server systems as well as Visual Nexus, an Internet multipoint video conferencing software (TCB’s self-developed next-generation Internet video conferencing system) featuring image and sound quality of the highest level. In the field of consumer applications, it provides solutions to the introduction of broadband in housing complexes and solutions for service providers of broadband Internet.

We will acquire 30% of TCB’ stocks from Tomen Corporation (TCB’s parent company) on 25 March 2004. We and TCB will start negotiating on the business alliance after the capital participation is formalized and will conclude an agreement on the business alliance toward the end of April 2004.

(1) Corporate name Tomen Cyber-business, Inc.
(2) Representative Takumi Nishimura, President
(3) Head Office 2-11-19, Minato minami Minato-ku, Tokyo
(4) Establishment July 1996
(5) Main business activities  Internet-related business
(Internet-related software business, construction of network infrastructure)
(6) Fiscal term 31 March
(7) No. of employees 51 people (as of 31 March 2003)
(8) Main business office Tokyo (as of 31 March 2003)
(9) Capital ¥811 million (as of 31 March 2003)
(10) Sales ¥2,191 million (term ended March 2003)

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

March 24, 2004