TOKYO, January 31, 2001 - CSK Corporation (TSE: 9737) today revised downward its consolidated earnings forecasts for the fiscal year ending March 31, 2001. The revision is mainly attributable to costs associated with SEGA Corporation's planned exit from the Dreamcast video-game console business.

SEGA Corporation, 24.6% owned by CSK Corporation, is a CSK affiliate company that is accounted for by the equity method. While revenues at CSK Corporation will not be impacted by the Dreamcast withdrawal, earnings are expected to decrease as detailed below.

Consolidated forecasts

Fiscal year ending March 31, 2001

(¥ million)

	Net Sales	OrdinaryIncome (loss)	Net loss
Previous (A)	421,000	3,500	-12,000
Revised (B)	421,000	-5,100	-20,600
Change (B)-(A)	-	-8,600	-8,600

CSK Corporation said that SEGA's performance is expected to improve in the fiscal year ending March 31, 2002 in line with business structural changes unveiled in October 2000. In particular, SEGA is further strengthening its leadership in content businesses by pursuing a content-centric strategy. The company has reinvigorated senior leadership; is working to expand its amusement businesses; and is deepening its strengths in the key area of network gaming. Future performance should also benefit from a broadening of the Dreamcast architecture going forward.

Corporate information

CSK Corporation, established in 1968, is one of Japan's leading providers of information and communications technology. The CSK Group comprises a full spectrum of solutions, entertainment, and support companies, including SEGA Corporation, BellSystem24 Inc., NextCom K.K., and ASCII Corporation.

For the fiscal year ending March 31, 2000, CSK Corporation reported consolidated net sales of ¥409.7 billion, ordinary income of ¥2.4 billion, and a net loss of ¥5.5 billion. Most recently, on November 24, 2000, the Company announced consolidated half-year net sales of ¥198.7 billion, operating income of ¥3.6 billion, and a net loss of ¥13.5 billion for the fiscal year ending March 31, 2001.