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 Benesse Corporation today reported consolidated earnings projections for the fiscal year ending March 31, 2002 (FY2001). The company projects net sales of 277.27 billion yen, an increase of 5.4 percent from the previous fiscal year, mainly due to expected sales increases in language services, senior nursing-care operations and the telemarketing business. These increases should more than offset lower revenues from the Shinkenzemi home study correspondence courses, which are expected to continue to decline.

Ordinary income for FY2001 is projected to decrease 12.2 percent from a year earlier to 28.61 billion yen, as the result of aggressive investments in new businesses as well as decreased profits from the Shinkenzemi operations. However, net income is expected to grow 0.8 percent to 16.63 billion yen, since the company does not foresee any more expenses related to restructuring costs at Berlitz International, Inc. Benesse took a one-time charge of 1.32 billion yen as extraordinary loss to finance Berlitz's restructuring costs during the fiscal year ended March 31, 2001.

Benesse forecasts basic earnings of 156.37 yen per share in FY2001, on revenues of 16.63 billion yen.


[Consolidated Earnings Forecasts for First Half and Full Year FY2001]

(April 1, 2001-March 31, 2002)

- Midyear (September 30,2001)
Net Sales: 136,330 million yen
Ordinary Income: 15,170 million yen
Net Income: 8,640 million yen

- Year-end (March 31, 2002)
Net Sales: 277,270 million yen
Ordinary Income: 28,610 million yen
Net Income: 16,630 million yen

(Reference)
[Non-consolidated Earnings Forecasts for FY2001]
(April 1, 2001-March 31, 2002)

- Midyear (September 30,2001)
Net Sales: 94,030 million yen
Ordinary Income: 15,300 million yen
Net Income: 8,900 million yen
Midyear Per-Share Dividend: 14.50 yen

- Year-end (March 31, 2002)
Net Sales: 187,560 million yen
Ordinary Income: 26,340 million yen
Net Income: 14,940 million yen
Annual Per-Share Dividend: 29.00 yen (Year-end Per Share Dividend: 14.50 yen)
Basic Earnings Per Share of Common Stock: 140.47 yen


NOTES:

1)Benesse did not report up-to-date consolidated earnings projections because its U.S. subsidiary, Berlitz International Inc. (Berlitz) did not disclose such projections. Benesse reports earnings projections on the basis of accounting principles generally accepted in Japan, in accordance with the Japanese Commercial Code, since its tender offer for all the outstanding shares of common stock of Berlitz was completed on July 2, 2001, in New York and Berlitz shares were delisted from the New York Stock Exchange as of July 31, 2001(Local time).

2)Projections in this document are based on Benesse's assumptions and beliefs in light of the financial and economic data currently available to the company. Corporate earnings are subject to risks and uncertainties that could cause actual results to differ materially from these projections. Accordingly, the company wishes to caution readers to refrain from placing undue reliance on them in making investing and other decisions.