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Consolidated operating results for the nine months ended December 31, 2008

Net sales – ¥309,018 [compared to ¥342,092 nine months ended 12/31/07]

Operating income (loss) – ¥(2,757) [compared to ¥(1,528) nine months ended 12/31/07]

Net income (loss) – ¥(10,840) [compared to ¥(15,766) nine months ended 12/31/07]

During the first three quarters of the fiscal year ending March 31, 2009, the Japanese economy faced more severe hardships as pressure on corporate earnings from the ongoing and sharp rise in the yen, the country’s worsening job picture, and other factors amid continued turmoil in the global financial markets, raised concerns that the real economy would slow further.

In this environment, the momentum in the pachislot and pachinko industry to replace older pachinko machines with models offering more diverse gameplay remained strong as the industry responds to recent revisions to regulations pertaining to the Entertainment Establishments Control Law of Japan. Meanwhile, the partial amendment in March 2008 of Standards for Interpretation of Technical Specifications is expected to invigorate the pachislot machine market by stimulating the development and supply of highly original pachislot machines with an emphasis on outstanding gameplay.

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