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 Benesse Corporation today announced that the merger of its three consolidated subsidiaries, Benesse Care Corporation, Benesse Senior Style Corp., and Shinkokai Co., Ltd., to create Benesse Style Care Co., Ltd., effective December 1, 2003 had been resolved by each company's board of directors. Benesse Care will first merge the two companies into its organization, and then it will change the name to Benesse Style Care Co., Ltd..

The merger of the three nursing-care home companies reflects Benesse Corporation's strong commitment to further growing its nursing care business for seniors. In response to Japan's aging society, the Long-Term Care Insurance System was established in 2000, triggering expanded growth of the private-sector nursing care market. In view of continued growth potential, Benesse has been aggressively enhancing its nursing care business for seniors in Japan. It is currently the leading private company, in terms of the number of senior homes under its management and is further strengthening its nursing care business to meet its medium-term management goals for fiscal year 2006. As of the end of October this year, Benesse Care operated 33 Clara Homes and one Madoka Home, while Shinkokai managed 18 Granny Homes and 17 Granda Homes. As originally conceived by Benesse Senior Style, Benesse Style Care will open the first Aria Home, one of a planned chain of luxury nursing homes for wealthier seniors, in December 2003.
Benesse Style Care, a wholly owned subsidiary of Benesse, will be established as of December 1, 2003, with a capital of 100 million yen. Mr. Shigemi Asano will head the new company, concurrently serving as Benesse's Corporate Senior Executive Vice President. The merger of the three companies into one will accelerate Benesse's business expansion in the senior market and speed up decision-making in its nursing care business group, while streamlining branding and marketing efforts based on Benesse's overall brand strategies.

The merger of the three companies on a consolidated basis is expected to have only a slight impact on Benesse's sales and profits for the fiscal year ending March 31, 2004.

(Reference)
Benesse Care Corporation
Capital: 10 million yen
President: Kimiko Kunimasa
Employees: 874 (as of September 2003)
Sales: 6,877 million yen (fiscal 2002)
Head Office: Shibuya, Tokyo

Benesse Senior Style Corp.
Capital: 10 million yen
President: Yukio Nao
Employees: 4 (as of September 2003)
Sales: -
Head Office: Shibuya, Tokyo

Shinkokai Co., Ltd
Capital: 30 million yen
President: Masue Takada
Employees: 583 (as of September 2003)
Sales: 5,007 million yen (fiscal 2002)
Head Office: Yokohama, Kanagawa