Outline of Results Briefing held on May 13, 2011

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(Continued from previous page.)*

We now understand that past failures in creating new IPs were the result of relaxing our selection standards upon project inception with a thought that launching as many projects as possible will lead to having new IPs. The result was the failure of all titles which did not have sufficient early-stage evaluations.

Therefore, we are now more rigorously evaluating all titles from the early planning stages.
The development of these 10 strong IPs is not necessarily limited to consumer software. Creating these strong 10 pillars is what is essential, but they may take different forms.

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For the fiscal year ending March 31, 2012, we are forecasting revenues to be near those of 2011, at ¥130 billion, and with operating revenues of ¥10 billion. The reason is the release of a limited number of AAA packaged software titles. Further, social gaming and other high-growth areas are not strongly factored into these numbers. The result is the numbers you see here. For the fiscal year ending March 31, 2013 and beyond, we are planning for concrete successes on both fronts, and believe that we can deliver a recovery in our results.

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These are our forecasts by segment.

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