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 Benesse Corporation announced today the launch of a new educational loan business. The loans, called Benesse Study Loans, will be available from February 1, 2005.

Utilizing its own sources of cash, Benesse will provide loans with a more competitive interest rate than typical educational loans offered by private providers. The loans will allow customers to cover the cost of education expenses. This new service reflects Benesse's desire to go beyond simply providing educational guidance products and services in its core education business field, to offer a more extensive range of new products and services that provide total customer support.

Going forward, the company plans to look at the feasibility of launching a variety of other new services under its unifying Benesse brand in the wider education field.


Overview of Benesse Study Loans

Product Name: Benesse Study Loans

Interest Rate: 5.40% (fixed)
(Preferential rate of 4.80% (fixed) available to parents of children who have been enrolled in Shinkenzemi Senior High School Courses for at least one year.)

Intended Use: To cover the costs of a student's educational development

Guarantor: UFJ Card Co., Ltd.

Head Office: Otemachi, Chiyoda-ku, Tokyo

President: Mitsutaka Ando
(UFJ Card is providing extensive support to Benesse based on a guarantee agreement and the provision of some outsourced loan operations.)

Additional Services: Partner Leopalace21 Corporation offers special discounts on the contract deposit for any of its rental properties to customers who have signed a Benesse Study Loan contract.


Features of Benesse Study Loans

(1)A more competitive interest rate than typical educational loans offered by private providers

(2)A preferential interest rate for users of certain Benesse products
-Normal 5.40% (fixed) interest rate reduced to a preferential rate of 4.80% (fixed) for parents of children who have been enrolled in Shinkenzemi Senior High School Courses for at least one year.

(3)A wide range of possible uses for funds
-In addition to enrollment, study and other education fees, the use of funds is not restricted, provided there is a connection to education. Funds could therefore be used for key money and deposits to help students pay initial rental accommodation expenses, or for acquiring qualifications and funding overseas study. (The funds cannot be used for business purposes.)

(4)Additional unique services.
-As an additional service designed to provide total support for a student's educational development, Leopalace21 offers special discounts on the contract deposit for any of its rental properties.


Background to Benesse Study Loans

By providing comprehensive support to customers in the education field, Benesse is aiming to become the leading brand in the education services market. However, due to diverse customer needs in this area, including childrearing, Benesse believes it will be difficult to respond to all these needs with its current lineup of products and services.

Based on this thinking, Benesse has decided to launch its educational loan business. This decision was supported by the realization that by utilizing its own sources of cash, Benesse could provide loans at a more competitive rate than typical educational loans offered by private providers, and that by forming tie-ups with partner companies, it could provide other strategic services. Benesse has also positioned this new business as a Customer Relationship Management initiative with two goals: to improve services for loyal Benesse customers by providing preferential interest rates to users who renew contracts for Shinkenzemi products, and to develop Benesse's position in the university student market by creating links to customer behavior in this segment.


Launch Strategy for Benesse Study Loans

Compared to conventional educational loans offered by financial services companies, Benesse Study Loans have two key advantages: a competitive interest rate, and sales channels unique to Benesse-Shinkenzemi members and users of other Benesse products.

Consequently, we plan to initially market the product to families of Shinkenzemi members, aiming to secure 2,000 customers by the end of fiscal 2005, ending March 31, 2006.