News Release

Aug. 05, 2008

Tsumura Revises Earning Forecast

Tsumura & Co. (Headquarters: Tokyo, President: Junichi Yoshii) is pleased to announce that it has revised the earnings forecast announced on May 14, 2008, based on recent performance trends. Details are as follows:

Revision of the earnings forecast for the first half of the fiscal year
ending March 2009
(from April 1, 2008 to September 30, 2008)

(Million yen)

  Net sales Operating profit Recurring income Net income
Previous forecast (A) 46,600 7,800 7,700 4,700
Revised forecast (B) 44,200 7,400 7,700 5,000
Change (B - A) -2,400 -400 - 300
Rate of change -5.2% -5.1% - 6.4%
(For reference) Results in the first half of the previous fiscal year
(First half of the fiscal year ended March 2008)
45,729 7,546 7,360 4,204

Revision of the earnings forecast for the fiscal year ending March 2009
(from April 1, 2008 to March 31, 2009)

  Net sales Operating profit Recurring income Net income
Previous forecast (A) 97,600 17,000 16,800 10,000
Revised forecast (B) 88,400 16,000 16,300 10,000
Change (B - A) -9,200 -1,000 -500 -
Rate of change -9.4% -5.9% -3.0% -
(For reference) Results in the previous fiscal year
(Fiscal year ended March 2008)
94,799 15,820 15,258 9,139

Reason for the revision
Tsumura decided to transfer all the shares in Tsumura Life Science Co., Ltd., a subsidiary, on July 15, 2008, which decision was announced on the same date. The decision is the main reason of the revision of the earnings forecast.

[For reference]
The Company revised part of the numerical targets in the (consolidated) medium-term management plan for fiscal 2007 through fiscal 2009 and disclosed the revision in the section "3. Management policy, (2) Target financial data and medium- to long-term management strategies" in the brief announcement of the results for the fiscal year ended March 2008. In association with the revision of the earnings forecast for the fiscal year ending March 2009, the Company also revised the numerical targets. The details of the revision are shown in the table below.

Revision of the earnings forecast for the fiscal year ending March 2010
(from April 1, 2009 to March 31, 2010)

(Million yen)

  Net sales Operating profit Recurring income Net income
Previous forecast (A) 103,700 20,000 19,900 11,800
Revised forecast (B) 91,800 19,000 19,200 11,300
Change (B - A) -11,900 -1,000 -700 -500
Rate of change -11.5% -5.0% -3.5% -4.2%