March 22, 2001

                                                Company: Information Services International - Dentsu, Ltd (ISID)
Representative: Jutaro Takinami, President & CEO
(Code: 4812, TSE, 1st Section)
Contact: Yutaka Kimura, Senior Executive Director
(Tel.: 03-3228-6160)

Business and Capital Tie-up with Kanematsu Electronics Ltd.

  Information Services International - Dentsu, Ltd. (ISID, President and CEO: Jutaro Takinami) has announced its decision, taken at a board of directors meeting on March 22, 2001, to conclude a cooperative business agreement with Kanematsu Electronics Ltd. (KEL, President and CEO: Noboru Kinoshita), including capital investment to KEL.

1. Background to and Reasons for the Business Tie-up: As attached

2. Detail Information of the Business Tie-up: As attached

3. Overview of KEL: As attached

4. Timetable:

March 22, 2001: Decision by board of directors
March 22, 2001: Conclusion of the business cooperative agreement
April 1, 2001: Business commencement

5. Future Outlook:

  Because the business commencement and acquisition of 20% capital stake in KEL will take place in the next fiscal year, the business and capital tie-up has no effect on the consolidated results for the current period (ending in March 31, 2001). The anticipated consolidated results for the upcoming period will be released as son as a clear forecast is available. The contribution of the business tie-up to ISID's revenue is estimated to be 1 billion yen for the first year (ending in March 31, 2002) and 3 billion yen for the second year (ending in March 31, 2003).

Kanematsu Electronics Ltd.

Information Services International- Dentsu, Ltd. (ISID)

ISID and Kanematsu Electronics in Capital and Business Tie-up

  Information Services International - Dentsu, Ltd. (ISID, President and CEO: Jutaro Takinami) and Kanematsu Electronics Ltd. (KEL, President and CEO: Noboru Kinoshita) reached a cooperative business agreement including a capital tie-up effective March 22, which was resolved at the board of directors meetings of each company held today.

The main points of the agreement are as follows:

1) KEL's expertise and experience in building systems infrastructures will combine with the systems development skills of ISID in a complementary relationship between the two companies that takes full advantage of their respective strengths. In doing so, the new agreement paves the way for business expansion that will broaden the current horizons for both companies.

2) The staffing and administrative structures for implementing this business cooperation will be put in place within KEL.

3) To ensure that the benefits of this cooperation to be arisen in KEL are shared between the two companies, ISID will take on a 20% capital stake in KEL. ISID also plans a personnel exchange scheme which will include sending one full-time director and a few part-time directors to the KEL board .

4) By mutual agreement, ISID's capital investment took the form of a separate purchase by ISID of KEL shares held by existing shareholders, giving ISID a holding in excess of 10% of the issued share.
As regards the remainder of the investment, purchases of existing shares or the undertaking by ISID of private placement is being considered between the two companies.

[Background to and Reasons for the Business Tie-up]

The management environment surrounding the major corporations that comprise the principal client base for both ISID and KEL has changed enormously in response to rapid developments in IT technology and the emergence of Internet-based E-business. As a consequence, the needs of those client corporations have increased in terms of both technical complexity and diversity.

The key strategies for addressing these requirements are twofold: the large-scale databases constructed on conventional mainframe computers can be shared and used effectively with open systems; and various application programs can be organically integrated with such databases.

To this, KEL has its competitive advantages of:

• Skills in building backbone infrastructures including peripherals and networks in the mainframe system
• Expertise in providing integration support for multi-vender systems
• A wealth of systems installation experience, particularly for enterprise users.
  

Likewise, ISID has its competitive advantages of:

• Consulting skills aimed specifically at user applications
• Expertise in building large-scale and mission-critical systems
• Technical expertise in open-systems architectures (Java, object-oriented systems, etc.)
  

It was decided that, by bringing together their complementary strengths and respective areas of expertise above, this collaboration between ISID and KEL would generate a synergistic effect with enormous benefits for both sides. This business collaboration also benefits both parties because neither of the companies is tied to a particular manufacturer, making this a union of two user-oriented enterprises. This will enable ISID and KEL to build a base from which they can fully meet the technically advanced and diverse business needs of their clients.

[Benefits of the Tie-up]

- Increased business in the construction of network and server environments
- Expansion of the Internet-based solutions business
- Enhanced technical skills in open systems, including middleware
- Creation of new business through joint marketing
- More effective utilization of shared facilities (data centers, showrooms, etc.)

[KEL Outline]

Trade Name: Kanematsu Electronics Ltd.

Head Office Location: 2-17-5 Kyobashi, chuo-ku, Tokyo 104-8338, Japan

Representative: Noboru Kinoshita, President & CEO

Established: July 23, 1968

Capital: 8,437,250,000 yen

Sales: 45,492 million yen (consolidated sales for the period ending March 2000)

Employees: 573

URL: http://www.kel.co.jp

[Contact]

Investor Relations Group
Corporate Planning Department

4-11-10 Nakano, Nakano-ku, Tokyo 164-8520
Information Services International-Dentsu, Ltd.

TEL: 03-3228-6160
E-MAIL: g-ir@isid.co.jp

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