IR News｜Results

In light of recent business performance, Benesse Corporation has revised its earnings forecasts for fiscal 2007 announced on May 9, 2007 as follows.

1. Consolidated Projections
(1)Revised Consolidated Results for the First Half of FY2007(April 1, 2007 - September 30, 2007)

Revised Projection(A)
Net Sales : 186,500 million yen
Operating Income : 23,400 million yen
Ordinary Income : 24,000 million yen
Net Income : 13,200 million yen

Projection announced on May 9, 2007(B)
Net Sales : 179,700 million yen
Operating Income : 19,900 million yen
Ordinary Income : 20,400 million yen
Net Income : 11,300 million yen

Difference (A)-(B)
Net Sales : 6,800 million yen (3.8%)
Operating Income : 3,500 million yen (17.6%)
Ordinary Income : 3,600 million yen (17.6%)
Net Income : 1,900 million yen (16.8%)

(2)Revised Consolidated Results for FY2007 (April 1, 2007 - March 31, 2008)
Revised Projection(A)
Net Sales : 380,600 million yen
Operating Income : 33,300 million yen
Ordinary Income : 34,300 million yen
Net Income : 19,100 million yen

Projection announced on May 9, 2007(B)
Net Sales : 365,500 million yen
Operating Income : 31,500 million yen
Ordinary Income : 32,500 million yen
Net Income : 18,300 million yen

Difference (A)-(B)
Net Sales : 15,100 million yen (4.1%)
Operating Income : 1,800 million yen (5.7%)
Ordinary Income : 1,800 million yen (5.5%)
Net Income : 800 million yen (4.4%)

2. Non-consolidated Projections
(1) Revised Non-consolidated Results for the First Half of FY2007
(April 1, 2007 - September 30, 2007)

Revised Projection(A)
Net Sales : 111,200 million yen
Operating Income : 19,000 million yen
Ordinary Income : 20,300 million yen
Net Income : 11,400 million yen

Projection announced on May 9, 2007(B)
Net Sales : 110,600 million yen
Operating Income : 17,100 million yen
Ordinary Income : 18,200 million yen
Net Income : 10,700 million yen

Difference (A)-(B)
Net Sales : 600 million yen (0.5%)
Operating Income : 1,900 million yen (11.1%)
Ordinary Income : 2,100 million yen (11.5%)
Net Income : 700 million yen (6.5%)

(2)Revised Non-Consolidated Results for FY2007 (April 1, 2007 - March 31, 2008)
Revised Projection(A)
Net Sales : 223,600 million yen
Operating Income : 22,800 million yen
Ordinary Income : 24,600 million yen
Net Income : 13,300 million yen

Projection announced on May 9, 2007(B)
Net Sales : 223,600 million yen
Operating Income : 22,800 million yen
Ordinary Income : 24,600 million yen
Net Income : 13,700 million yen

Difference (A)-(B)
Net Sales : -
Operating Income : -
Ordinary Income : -
Net Income : -400 million yen (-2.9%)

3. Reasons for Revisions

Non-consolidated
New enrollments in the mainstay correspondence course business are running slightly above plan. To reflect this, we have partially revised our initial first-half sales targets and shifted a portion of planned sales to the second half of the year. As a result, we have raised earnings forecasts for the interim period but expect full-year earnings to be in line with initial forecasts.

Consolidated
In addition to the above non-consolidated factors, subsidiary Berlitz International, Inc. is performing ahead of plan and new consolidated subsidiary Tokyo Individualized Educational Institute, Inc. will contribute to consolidated results from the second quarter. In light of this, we have raised our consolidated forecasts for fiscal 2007.

Note:
The above-mentioned projects are based on the information available to date and the premise at present relating to uncertain factors that affect our future performance. Actual performance may be significantly different from this projections depending on various factors going forward.