CSK Group is moving forward with transformation of its business structure toward becoming a service provider using IT strengths, aiming to transcend the conventional IT service provider framework and create innovative new types of services.

The service provider that CSK Group aims to become will provide a combination of the IT and business processes necessary for supporting clients in their business management over the long term. The key prerequisites for providing such services are: (1) being thoroughly versed in clients' industries and sectors; (2) effectively coordinating the Group's various capabilities; and (3) having the expertise to create competitive advantage for clients.

CSK Group has reorganized its Group companies according to given capabilities or themes, aiming to promote unified Group management and increase expertise and strengthen competitiveness in each business area. The reorganization of the business services area is intended as the next step in the transformation to become a service provider, following the Group reorganization carried out in the technology services area on July 1, 2007.

Key points:

(1)Integration of technical support business

• The technical support business of ServiceWare Corporation, ServiceWare Kyushu Corporation, and CSK Communications Corporation will be integrated
• The new integrated entity will specialize in technical support business and strengthen productivity and quality competitiveness, targeting further growth and development

(2)Creation of nearshore/offshore development system

• The systems development business of CSK Communications Corporation, Fukui CSK Corporation, SHIMANE CSK CORPORATION, IWATE CSK CORPORATION, OITA CSK CORPORATION will be integrated to form a new entity
• A Group nearshore/offshore development system will be created, in combination with CSK SYSTEMS (SHANGHAI) CO., LTD.

(3)Review of the roles of ServiceWare Corporation and CSK Marketing Corporation

• The roles of ServiceWare Corporation and CSK Marketing Corporation other than technical support-related business will be reviewed. Consideration that includes other Group companies will be given to determining the best possible business system from the perspective of capabilities and themes.

(4)Unification and strengthening of internal control system

• The corporate staff functions of companies subject to the reorganization will be consolidated at CSK ADMINISTRATION SERVICE CORPORATION^*, with the aim of unifying and strengthening internal controls and improving efficiency of business processes

  *	CSK ADMINISTRATION SERVICE CORPORATION provides corporate staff services and operational services for CSK Group companies.

(1)Process of reorganization

• First stage: January 1, 2008
  1. Consolidation of technical support-related business
  2. Separation of systems development business of CSK Communications Group
  3. Consolidation of corporate staff functions of companies subject to the reorganization at CSK ADMINISTRATION SERVICE CORPORATION
• Second stage: Review of roles of ServiceWare Corporation and CSK Marketing Corporation and subsequent decisions on and gradual implementation of specific policies

(2)Overview of companies subject to the reorganization
(Representatives as of October 1, 2007; business as of January 1, 2008)

1. ServiceWare Corporation
   

   Representative:	Keiichi Machida Executive Vice President of ServiceWare Corporation at present Executive Vice President of CSK Marketing Corporation at present
   Business:	Services other than technical support of ServiceWare Corporation Services other than technical support of ServiceWare Kyushu Corporation (Kyushu Business Office (provisional name))

2. CSK Marketing Corporation
   

   Representative:

   Keiichi Machida Executive Vice President of ServiceWare Corporation at present Executive Vice President of CSK Marketing Corporation at present

3. CSK Communications Corporation
   

   Representative:	Hisatoshi Kawamoto President & Chief Executive Officer of ServiceWare Corporation at present President & Chief Executive Officer of ServiceWare Kyushu Corporation at present President & Chief Executive Officer of CSK Marketing Corporation at present
   Business:	Technical support-related business of ServiceWare Corporation Technical support-related business of CSK Communications Corporation

4. KITA-KYUSHU CSK CORPORATION (provisional name)
   

   Representative:	Hisatoshi Kawamoto President & Chief Executive Officer of ServiceWare Corporation at present President & Chief Executive Officer of ServiceWare Kyushu Corporation at present President & Chief Executive Officer of CSK Marketing Corporation at present
   Business:	Technical support-elated business of ServiceWare Kyushu Corporation

5. New systems development business company (company name not yet decided)
   

   Representative:	Not yet decided
   Business:	Systems development business of CSK Communications Corporation, Fukui CSK Corporation, SHIMANE CSK CORPORATION, IWATE CSK CORPORATION, and OITA CSK CORPORATION

CSK will announce further details regarding the reorganization as soon as they are decided.
Furthermore, since the reorganization will take place among consolidated subsidiaries of CSK Group, CSK expects that its impact on its business results will be immaterial.