February 1, 2002

ISID and Deloitte & Tohmatsu Consulting to set up joint venture

Making inroads into consulting business based on broadband solutions

  Information Services International-Dentsu, Ltd (Head office: Nakano-ku, Tokyo. President: Jutaro Takinami. Abbreviation: 'ISID'.) and Deloitte & Tohmatsu Consulting, Ltd (Head office: Minato-ku, Tokyo. President: Kazumasa Nishioka. Abbreviation: 'DTC'.) have agreed to establish a new joint-venture company offering consulting and systems-building services based on broadband solutions.
ISID, who has successful records in building large-scale mission critical systems, and DTC, who has established a name for top-class results among domestic consulting companies in management strategies and ERP implementation consulting, are aiming for the business expansion in e-business with the infrastructure based on broadband which is expected to grow in near future, utilizing the strengths of both companies.

About the new company:
Company name: ISID Deloitte, Inc.
Representative: President: Norio Otake (Currently Executive Director of ISID's New Business Development Division at Corporate Headquarters)
Scheduled date of establishment: February 1, 2002
Scheduled date of opening: March 1, 2002
Capital: ¥150 million (ISID: 66%, DTC: 34%)
Number of employees: 23 planned, including officials/executives
Head office: 2-3-17 Toranomon, Minato-ku, Tokyo
Sales forecast: Approximately ¥700 million for the fiscal year 2002

Objectives of establishing the new company
The new company, ISID Deloitte, holds the vision of "being an enterprise-innovating consulting firm with excellence in IT and strength in systems-building." Focusing on broadband utilization in marketing field and the distribution of digital contents, the company will offer consulting and systems-building services to customers that will support e-business related strategic planning, business model building and business reform.
ISID Deloitte has the following advantages descended from ISID:
• Industry and business knowledge for clients, and in particular marketing expertise of Dentsu Group.
• A broad customer base of nearly 1600.
• The ability to realize by building systems, not just making proposals.
and the following advantages descended from DTC:
• Already well-known brand as a consulting company.
• Skilled personnel who are trusted as brains by clients' top managements.
• Proven results as consultants to world-class corporations.
• Consulting methodology.
By combining all the above strengths, the company aims to pursue an edge over the competition.

Benefits anticipated by both companies
ISID's expected benefit:
- Advancement and diversification of solutions by having consulting services features within the group.
- An edge over the competition in systems integration.
- Acquisition of large-scale systems development projects deriving from consulting services.

DTC's expected benefit:
- Expansion of systems construction business.
- Expansion of consulting services to ISID's large customer base.
- Advancement into the areas of marketing promotion and broadband solutions markets, using ISID's and Dentsu Group's marketing expertise as a basis.

ISID has a strategy to offer comprehensive solutions to the customers by actively promoting partnerships with other companies that enables mutual supplementation of management resources, and establishing a joint-venture with DTC is also in line with this strategy. ISID is planning to keep on further strengthening its group strategies, aiming for the diversification of and value-adding to IT solutions.

Future outlook
The establishment of ISID Deloitte is expected to have little impact on the ISID's forecasted consolidated results for the current period (ending March 31, 2002). The projected results for the next period will be announced when they became definite.
      

Overview of Deloitte & Tohmatsu Consulting, Ltd. (DTC)

Company Name: Deloitte & Tohmatsu Consulting, Ltd.

Represented by: Kazumasa Nishioka (President)

Head office: Hibiya Central Building, 1-2-9 Nishi-Shimbashi, Minato-ku, Tokyo

Operations information: Deloitte & Tohmatsu Consulting is a part of the Deloitte Consulting group which employs over 30,200 professionals all over the world, and is able to deliver highly specialized services to customers around the world together with those professionals. There are 1,500 consultants in Japan, offering superior consulting services in a large number of industries, including manufacturing industries, health care, financial services, consumer business, energy, telecommunications/media and public services.