However, due to the severe cost competition since last year, the profitability tends to be suppressed. Especially in this interim fiscal period, the tendency is outstanding in the business for the financial industry. In these circumstances, additional cost for the system test conducted in the last year's low-profitable development project has also been a cause to pressure the company's profitability. As a result, while business for the manufacturing industry contributed to enlarge profit, non-consolidated operating income is estimated to fall short of the initial plan (�¢490Myen) by 90Myen. Regarding consolidated operating income, it will exceed the plan (�¢810Myen) by 87Myen, since the business results of ISID's group companies, such as SIID, ISID Intertechnologies and others are forecasted to exceed the initial plan.

    ISID gained from sales of investment securities (appox.410Myen), which mainly contributed to increase the interim forecasts of both non-consolidated and consolidated ordinary profits by 421Myen and 642Myen respectively.
 

ISID will devote every managerial effort with regard to further increase in sales, increase in profit by cost reduction. However, for now, from the point of view of the continuing severe business environment pressuring the company profit as mentioned above, the management decided not to revise the forecast for the financial year ending in March 31, 2004 of both consolidated and non-consolidated financial results.