Note: The U.S. dollar amounts represent translations of Japanese yen for convenience only at the approximate exchange rate on Sep. 30, 2004 of ¥111=U.S.$1.

• Total assets rose ¥181.8 billion from the end of the previous term as a result of the inclusion of Daiwa Kosho Lease Co., Ltd., within the scope of consolidation (¥204.4 billion). • The gross profit on sales rose 4.4% year on year, to ¥132,998 million due to sales growth, despite a 0.1 percentage point rise in the cost of sales as a percentage of sales. • Operating income rose 9.1% year on year to ¥29,125 million, due to efforts to curb selling, general and administrative expenses. • Net income increased 6.7% to ¥16,214 million, despite the posting of other expenses for the amortization of prior service cost resulting from the Company’s adoption of a new welfare pension system.

• The Daiwa House Group will place more emphasis on integrating groupwide management to create a group that can fully meet customers' needs at every stage of their lives. • Net sales are projected at ¥1,330 billion on a consolidated basis, up 8.6% from the previous year. The figure includes sales of Daiwa Kosho Lease Co., Ltd., Osaka Marubiru Co., Ltd., Royal Bix Co., Ltd. (tentative name) and others. • The full-year forecasts indicate year-on-year declines in net income. This reflects the non-repetition of an actuarial gain of ¥9.4 billion on retirement benefits that was recorded in the previous term.