February 1, 2002

ISID to make an additional investment to affiliate Japan Business Create

Moving into Consulting Business for manufacturing industry

  Information Services International-Dentsu, Ltd. (Head office: Nakano-ku, Tokyo. President: Jutaro Takinami. Abbreviation: 'ISID'.) has affiliated Japan Business Create Co., Ltd (Head office: Minato-ku, Tokyo. President: Kazuyasu Okada. Abbreviation: 'JBC'.) as one of its group companies, acquiring 66.8% of its total issued stocks.
In May of last year ISID underwrote JBC's 150 (2.4% ownership) newly issued stocks allotted to third parties, in order to focus on reinforcing cooperation between the two companies in the field of core operations systems such as ERP/SCM for the manufacturing industries. On January 31st ISID purchased additonal 4,100 stocks, bringing their proportion of shares owned to 66.8%.
With this, while respecting JBC's neutral position as an independent consulting firm for manufacturing industries, ISID is moving into consulting business for ERP/SCM systems field.

About Japan Business Create (JBC)
Founded in 1989 as a specialized consulting firm for manufacturing industries, JBC has been offering end-to-end solutions ranging from business model planning and reforming to practical IT planning and implementation, with the thorough practical knowledge of reforming business processes such as development, production and procurement, as its core element. Their advanced ideas and already established unique methods have made JBC the foremost company driving SCM reform in Japan's manufacturing industries, and it has been highly evaluated by both customers and related industries.

Company Name: Japan Business Create Co., Ltd (JBC)
Representative: Kazuyasu Okada (President)
Head Office: 5th floor, Tamachi ANA Building, 5-31-9, Shiba, Minato-ku, Tokyo
Founded: April 1989
Capital: ¥150 million
Number of employees: 60
Consolidated Sales: ¥800 million (consolidated settlement results for the 7 month period ending October 31, 2001)
Operations information: Business consulting in the following areas, as well as consulting for IT planning and implementation, mainly focused for manufacturing industries:
1. SCM-based business model planning and reforming.
2. SCM planning and business processes reforming.
3. Diagnosis, planning and support for ERP implementation.
4. SCM-based SCP (demand forecast and inventory control) diagnosis and implementation support.
URL: http://www.jbc-con.co.jp

Background to the additional investment
The plans behind underwriting newly issued stocks allotted to third parties in May last year were creating high quality solutions by combining ISID's advantage in technological support in implementation/utilization of softwares such as ERP/SCM etc. and JBC's consulting capability, while anticipating synergy effect in sales activities.
With this in mind, a comprehensive business partnership has been formed with the two companies mutually offering management resources in areas such as expertise, specialized knowledge and human resources, and so on.
As these plans are now on track and began to yield results, ISID decided to make additional investment in order to move into the consulting business as a group. While keeping respects on JBC's neutrality from any products as well as its management independence, ISID plans to develop consulting business in ERP/SCM systems field for manufacturing industries, with JBC as the core element.
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 affiliating JBC by the additional investment 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.

Share ownership before and after the acquisition
Number of stocks owned before acquisition: 150 (proportion of ownership: 2.4%)
Number of stocks newly acquired: 4,100
Number of stocks owned after acquisition: 4,250 (proportion of ownership: 66.8%)

Source of stocks acquired
4,100 stocks were acquired from existing stockholders.

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