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Benesse Corporation has revised its consolidated and non-consolidated full-year earnings forecasts for fiscal 2007 (April 1, 2007 to March 31, 2008) announced on February 7, 2008, as follows.

1. Revisions to fiscal 2007 full-year forecasts

(1) Consolidated Projections (million yen, %)

[Net Sales]
Previous forecast (A):380,600
Revised forecast (B):384,500
Difference (B - A):3,900
Difference (%):1.0
Fiscal 2006 results (for reference):354,595

[Operating Income]
Previous forecast (A):33,300
Revised forecast (B):34,800
Difference (B - A):1,500
Difference (%):4.5
Fiscal 2006 results (for reference):31,316

[Ordinary Income]
Previous forecast (A):34,300
Revised forecast (B):34,900
Difference (B - A):1,600
Difference (%):4.7
Fiscal 2006 results (for reference):33,279

[Net Income]
Previous forecast (A):19,100
Revised forecast (B):15,400
Difference (B - A):(3,700)
Difference (%):(19.4)
Fiscal 2006 results (for reference):18,244

(2) Non-consolidated Projections (million yen, %)

[Net Sales]
Previous forecast (A):223,600
Revised forecast (B):226,300
Difference (B - A):2,700
Difference (%):1.2
Fiscal 2006 results (for reference):223,033

[Operating Income]
Previous forecast (A):22,800
Revised forecast (B):24,400
Difference (B - A):1,600
Difference (%):7.0
Fiscal 2006 results (for reference):24,032

[Ordinary Income]
Previous forecast (A):24,600
Revised forecast (B):26,200
Difference (B - A):1,600
Difference (%):6.5
Fiscal 2006 results (for reference):27,892

[Net Income]
Previous forecast (A):13,300
Revised forecast (B):8,100
Difference (B - A):(5,200)
Difference (%):(39.1)
Fiscal 2006 results (for reference):12,583

2. Reasons for Revisions
(1) Consolidated
Benesse plans to post an impairment loss of 2,727 million yen as an additional special loss, having reevaluated the current carrying value of goodwill in consolidated subsidiary AVIVA Co., Ltd. The reevaluation of goodwill follows the start of a radical overhaul of AVIVA's operational structure to prepare it for medium- to long-term growth in light of prospective market trends. As a result of this charge, consolidated net income is now projected to be 15,400 million yen.

(2)Non-consolidated
Benesse plans to post additional special losses of 6,617 million yen on a non-consolidated basis. These losses comprise a 475 million yen loss on devaluation of subsidiaries and affiliates, a 3,880 million yen provision to the allowance for doubtful receivables, and a 2,262 million yen provision to the allowance for loss on support to affiliates. The posting of the additional special losses was prompted by concerns regarding the possibility of deterioration in AVIVA's financial position as reflected by the booking of a 2,727 million yen impairment loss relating to goodwill in AVIVA. As a result, non-consolidated net income is projected to be 8,100 million yen.

Note:
Earnings forecasts are based on information currently available to management and on certain assumptions considered reasonable. Actual results could differ substantially from forecasts due to a variety of factors.