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

Notice of Amendment of Expected Results and Extraordinary Loss

We wish to make some amendments of the expected results for the term ended March 2004 (1 April 2003 – 31 March 2004) that we published in the midterm account settlement on 6 November 2003.

Amendment of the expected results for the term ended March 2004 (1 April 2003 – 31 March 2004)
(Unit: ¥million, %)
  Unconsolidated Consolidated
Sales Ordinary
Sales Ordinary
Expected results
previously published (A)
(Published on 16
Nov. 2003)
325,000 2,500 1,000 346,000 2,800 1,400
Amended expected
results (B)
326,880 3,150 1,100 347,390 3,330 1,600
Increase(B–A) +1,880 +650 +100 +1,390 +530 +200
Rate of increase +0.6% +26.0% +10.0% +0.4% +18.9% +14.3%
Results of the
previous term
(term ended March 2003)
311,962 2,225 1,041 334,541 2,623 1,012

Reasons for the amendment
With the upward trend in economic conditions, sales exceeded the projection in the fourth quarter thanks to the now apparent effects of special incentive measures and investment in IT-related facilities. Although the gross income rate was originally predicted to decrease because of intensifying competition, it seems to have been almost the same in the current term as it was in the previous term. Efforts to reduce expenses have helped ordinary income to grow considerably.

Because our subsidiary DIS System Trading Co.,Ltd. recorded liabilities in excess of assets, we decided to make an appropriate allowance for doubtful debts of about ¥500 million on the loan extended to DIS System Trading Co.,Ltd. because of the need to appropriate the amount to special losses. We have already appropriated the appraisal loss of subsidiary stocks in the midterm account settlement.

The amendments to the expected consolidated results are mainly those to the unconsolidated results. We anticipated about ¥300 million as a structural improvement expense for relocation of the offices of DIS Solution. The unconsolidated extraordinary loss due to allowance for doubtful debts on loans extended to associated companies does not affect the consolidated account settlement, because it has been erased from the settlement balance sheet.

Note: The expected figures given above are based on assumptions available on the day of publication of this material, and the actual results may differ from these figures. We are scheduled to publish the consolidated and unconsolidated account settlements for the current term on 13 May.

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

April 27, 2004