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 and General Manager of Corporate Planning PHONE +81-6-6281-1161

Notice of Decision on Conditions for Executing Pre-emptive Right on Convertible Bonds

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The conditions for executing the pre-emptive right on the first unsecured convertible bonds were decided as follows.

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1. Conditions for Executing Pre-emptive Right Conversion price Yen1,353 per share Date of conversion price appraisal October 21 Closing share price on Tokyo Stock Exchange on above date Yen1,230 Appreciation rate [(Conversion price/Closing share price-1)x 100] 10.00% Remarks None 2. Recapitalization Price The recapitalization price of one share of ordinary stock issued by execution of the pre-emptive right will be the issue price of one share of ordinary stock issued by execution of the pre-emptive right multiplied by 0.5. If the resulting calculation contains a fraction of less than one yen, the fraction will be rounded up to the nearest whole number. 3. Interest Rate on Convertible Bonds with Pre-emptive Right Interests will not be added to the bonds. 4. Other Decisions None

(Reference) (1)Date of resolution (issuance) October 12 (2)Offering period October 22-27 (3)Date of issuance (Payment date) October 28 Note: This article on the first unsecured convertible bonds with the preemptive right issued by Daiwabo System Information was prepared as a press release and not with the intent of attracting investment. Any investments are at the discretion of the investor, therefore see the Prospectus on Unsecured Convertible Bonds with Pre-emptive Right issued at the notification to the authority.

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

October 21, 2004