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 At a meeting of the Board of Directors today, Benesse Corporation decided to dissolve consolidated subsidiary Shinken Advertising (NY), Inc., effective May 31, 2005, and non-consolidated subsidiary Fukutake Consulting Co., Ltd., accounted for by the equity method, effective March 31, 2005. Details are as follows.


1. Reasons for Dissolution
Shinken Advertising (NY) is a wholly owned U.S.-based subsidiary of Shinken-AD Co., Ltd., a consolidated subsidiary in which Benesse holds a 50.05% equity interest. Shinken Advertising (NY) has supported events and other operations in the U.S. for Shinken-AD that target universities. Business realignment has seen these operations transferred to Shinken-AD, bringing the role of Shinken Advertising (NY) to an end and resulting in the decision to dissolve this company.

Fukutake Consulting was set up to facilitate the smooth launch of business at Benesse's Taipei Office after its establishment. With operations now on track, Fukutake Consulting.'s role has been completed, resulting in the decision to dissolve this company.


Overview of Companies to Be Dissolved

Company Name: Shinken Advertising (NY), Inc.
Head Office: One Irving Place #U23D, New York, NY 10003, USA
Representative: Hiroshi Yamamoto, President
Business: Information support, planning and operations
Established: May 1, 1996
Capital: US$10,000
No. of Issued Shares: 100
Shareholders' Equity: US$79,006 (As of December 31, 2003)
Total Assets: US$89,106 (As of December 31, 2003)
Fiscal Year-end: December
Employees: 2 (As of December 31, 2003)
Main Customer: Shinken-AD Co., Ltd.
Main Shareholder and Equity Interest: Shinken-AD Co., Ltd. (100%)
Main Bank: Bank of Tokyo-Mitsubishi Trust Co., NY

(US$)
[Net Sales]
Year Ended Dec. 2001: 254,000
Year Ended Dec. 2002: 270,000
Year Ended Dec. 2003: 294,000
[Ordinary Income]
Year Ended Dec. 2001: 14,609
Year Ended Dec. 2002: 15,398
Year Ended Dec. 2003: 6,993
[Net Income]
Year Ended Dec. 2001: 10,406
Year Ended Dec. 2002: 10,422
Year Ended Dec. 2003: 4,312


Company Name: Fukutake Consulting Co., Ltd.
Head Office: Taipei, Taiwan
Representative: Haruna Okada, President
Business: Business analysis, business management and consulting operations, including the provision of domestic and international investment information
Established: December 21, 1993
Capital: NT$1,000,000
No. of Issued Shares: 100,000
Shareholders' Equity: NT$627,000 (As of December 31, 2004)
Total Assets: NT$627,000 (As of December 31, 2004)
Fiscal Year-end: March
Employees: 0 (As of December 31, 2004)
Main Customer: Benesse Corporation Taipei Office
Main Shareholder and Equity Interest: Benesse Corporation (100%)
Main Bank: Chinatrust Commercial Bank Co., Ltd.

(NT$)
[Net Sales]
Year Ended Mar. 2002: 0
Year Ended Mar. 2003: 0
Year Ended Mar. 2004: 0
[Ordinary Income]
Year Ended Mar. 2002: -9,477
Year Ended Mar. 2003: 9,758
Year Ended Mar. 2004: 5,526
[Net Income]
Year Ended Mar. 2002: -9,477
Year Ended Mar. 2003: 9,758
Year Ended Mar. 2004: 5,526

1.Schedule
Final Settlement Date:
Shinken Advertising (NY), Inc.: July 31, 2005
Fukutake Consulting Co., Ltd.: September 30, 2005

*The actual final settlement date may differ depending on the speed of local procedures.

2.Forecasts
The dissolution of both Shinken Advertising (NY) and Fukutake Consulting will have a negligible impact on Benesse's results.