| 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,
Managing Director in charge of Personnel Dept. & Finance Dept.
General Manager of Corporate Planning Dept. |
| PHONE |
+81-6-6281-1161 |
|
| Notice of Subsidiary Dissolution |
| We hereby notify that we decided to dissolve our subsidiary DIS System Trading Co., Ltd. at the company's board of directors meeting held February 16, 2006. Details are as follows. |
| 1. |
Facts behind dissolution |
| |
We split off our system integration business and set up a wholly owned subsidiary company in 1995. With the aim of going public, the subsidiary reinforced its workforce up- front to boost sales in too short a period of time. It also saw a sharp increase in the costs of public listing. These factors, coupled with a downturn in system integration business, deteriorated the earning position of the subsidiary whose liabilities exceeded assets, making it difficult for the company to operate as a business entity.
To overcome the difficulties, we made restructuring efforts to reorganize our group operations by implementing a drastic reform and clarifying the position of system integration business. We finally resolved to shut down the subsidiary with all these efforts nearly completed and its liquidation starting shortly. |
| 2. |
Profile of subsidiary (As of January 31, 2006) |
|
| (1)
Corporate name |
DIS System Trading Co., Ltd. |
| (2)
Representative |
Sachio Takai, President and CEO |
| (3)
Head office location |
3-2-5 Honmachi, Chuo-ku, OsakaCity |
| (4)
Date of establishment |
June 22, 1995 |
| (5)
Core business |
System integration |
| (6)
Accounting period |
March 31 |
| (7)
Capitalization |
316 millions of yen |
(8)
Equity capital
Total assets |
- 404 millions of yen
87 millions of yen |
| (9)
Ratio of shareholders' equity |
100% owned by Daiwabo Information System Co., Ltd. |
|
| 3. |
Schedule |
|
We are set to begin liquation procedures after approval of a resolution on the dissolution of the subsidiary at an extraordinary shareholders' meeting scheduled for February 28, 2006. |
| 4. |
Effects of the dissolution on our business results |
|
The effects on our business performance in the current fiscal year will be minimal, if any, because we already posted our evaluation losses on stockholdings and loss reserves. |
Reference
Daiwabo Information System Co., Ltd.
Osamu Koyama,
Director of Finance Dept
PHONE +81-6-6281-1161
Fax +81-6-6258-2636
|
| 
