We have set in place a major three-year management target for improving business performance "T-2006", and as a part of this strategy we wish to advise that we have made wholesale reductions in the burden of interest repayments by returning the funds borrowed from financial institutions.

1. Regarding the Repayment of Debt Due to favorable changes in operating cash flow for our company in the current period, we made payment of 11.45 billion yen as debt repayment to financial institutions as of September 30. As a result of this action, our current Balance of Debt on a non-consolidated basis as of September 30 was 4 billion yen, a reduction of 11.45 billion yen since the middle of the year (June 30). In addition, in August of this year, we issued an interest-free, JPY Convertible Notes due August 8, 2008 (convertible notes type - notes with stock acquisition rights) and raised 10 billion yen, part of which has been used towards the current debt repayment. However, the majority of the raised funds will be appropriated for investment in plant and equipment and other investment financing. 2. Balance of Funds Borrowed from Financial Institutions (Non-consolidated Base) The Balance of Funds borrowed from financial institutions on a non-consolidated basis is as follows: (Unit: 1,000,000 yen) Current June 30(A) Current Sept. 30 (B) Gain/Loss (B-A) Short Term Borrowing 15,450 4,000 (11,450) Long Term Borrowing - - - Total Borrowings 15,450 4,000 (11,450)