News Releases

To whom it may concern,
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 in charge of Personnel Dept. & Finance Dept.General Manager of Corporate Planning Dept
PHONE +81-6-6281-1161

Notice of Transfer of Affiliated Company

This is to inform you that we have made the following decisions on the transfer of IT Agent Co., Ltd, our affiliated company, at the board of directors meeting held on September 9, 2005:

1. Summary of affiliated company to be transferred (as of March 31, 2005)
(1) Company name IT Agent Co., Ltd.
(2) Representative Akio Eshi
President and chief executive officer
(3) Location of head office 4-4-6, Ebisu, Shibuya ward, Tokyo
(4) Date of establishment April 7, 2000
(5) Main business Consulting services for IT-related services
(6) Settlement period March 31
(7) Number of employees 9 (as of August 31, 2005)
(8) Location of main office Ebisu, Shibuya ward, Tokyo
(9) Capital ¥225 million
(10) Outstanding shares 4,500 shares
(11) Percentages of major shareholders
Daiwabo Information System Co., Ltd.
Future System Consulting Corp.
ITOCHU Corporation
(12) Sales for the most recent accounting period ¥15,77 million (Fisical year ending March, 2005)

2. Number of voting rights held by Daiwabo Information System Co., Ltd. (hereinafter called DIS Co., Ltd.) and its ratio to the total number of voting rights before and after the transfer of affiliated company
  Before transfer After transfer
(1) Number of voting rights held by DIS Co., Ltd. 1,755 0
    (Number of shares held by DIS Co., Ltd) (1,755) (0)
(2) Total number of voting rights 4,500 4,500
    (Number of outstanding shares) (4,500) (4,500)
(3) Ratio of voting rights held byDIS Co., Ltd to total voting rights 39.0% (39.0%)
    (Ratio of shares held by DIS Co., Ltd to total outstanding shares) (39.0%) (0%)

3. Reason for transfer
We endeavored to develop business focusing on the provision of solutions for application service providers (ASP), website construction for electronic commerce (EC) and support for their operation. Although we worked hard to put these business lines on the track, it didn't work well. We therefore began our restructuring efforts aiming for success in our online sales (title of the website is "PASO Q") since the beginning of this fiscal year. The prospects of securing stable profits, however, was nowhere in sight. At that point, we were given the offer of acquisition of IT Agent Co., Ltd from Plaza Create Co., Ltd., and as a result of diligent consultation at the board of directors meeting, we decided to transfer IT Agent Corp. to Plaza Create Co., Ltd..

4. Transferee
Plaza Create Co., Ltd.

5. Date for the delivery of share certificates
September 12, 2005(scheduled date)

6. Prospective influence on our business results
This transfer is estimated to have a minor influence on our consolidated and non-consolidated business results for the current fiscal year.

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