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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
PHONE +81-6-6281-1161


Further Revision of Projected Business Results for the Fiscal Year


We wish to inform you that we have further revised the projected business results for the fiscal year ending March 2007 (from April 1, 2006 to March 31, 2007) published in the "Revision of Projected Business Results for the Fiscal Year" notification of February 9, 2007.

1.Further revision of projected consolidated business results for fiscal year ending March 2007 (from April 1, 2006 to March 31, 2007)
(Unit: ¥ million)
  Sales Ordinary income Net income
Projected business results (A)
388,000
5,400
2,720
Revised business results (B)
370,000
4,050
1,800
Increase and decrease (A-B)
-18,000
-1.350
-920
Rate of change (%)
-4.6%
-25.0%
- 33.8%
Reference
Business results for the preceding fiscal year (fiscal year ended March 2006)
375,759
4,679
2,765


2.Further revision of projected unconsolidated business results for fiscal year ending March 2007 (from April 1, 2006 to March 31, 2007)
(Unit: ¥ million)
  Sales Ordinary income Net income
Previous projected business results (A)
380,000
4,900
2,470
Revised business results (B)
362,200
3,700
1,670
Increase and decrease (A-B)
-17,800
-1,200
-800
Rate of change (%)
-4.7%
-24.5%
-32.4%
Reference
Business results for the preceding fiscal year (fiscal year ended March 2006)
368,308
4,411
2,627


3.Reasons for revision
In the case of the unconsolidated results, the new Windows Vista operating system launched in late January was expected to stimulate consumer demand for PCs beginning in February. However, it did not contribute significantly to PC sales to personal users because its functions were not fully understood by personal PC users and because maintenance of the previous Windows XP operating system was extended. Term-end demand in March for PCs for corporate users also did not grow as expected because their PCs are in the middle of an upgrade cycle. With regard to income, we will appropriate 57 million yen for valuation losses on investment securities in addition to the extraordinary loss announced in the previous notification.

For the above reasons, we have revised the figures for sales, ordinary income, and current net income because we will not able to achieve the previously announced target values for these three items. The same reasons basically apply to the projected consolidated results.

(Note) The above projected business results are based on all information available at the present time, but actual results may differ from the projected results for various reasons.


Reference
Daiwabo Information System Co., Ltd.
Osamu Koyama,
Director of Finance Dept
PHONE +81-6-6281-1161
Fax +81-6-6258-1164
April 27, 2007
DAIWABO INFORMATION SYSTEM CO., LTD.