TOKYO, March 9, 2001 - CSK Corporation (TSE: 9737) today revised its non-consolidated forecasts for the fiscal year ending March 31, 2001. The Company is raising its forecast for net sales to ¥118 billion, 2.6% higher than original estimates. While CSK anticipates this strong top-line performance will result in record-level net sales, operating income, and ordinary income, extraordinary losses related to liquidation of certain Group subsidiaries are expected to result in a parent company net loss of ¥5.3 billion.

Revised non-consolidated forecasts are as follows.

Non-consolidated forecasts

Fiscal year ending March 31, 2001

(¥ million)

	Net Sales	OrdinaryIncome	Net Income (loss)
Previous (A)	115,000	12,100	3,300
Revised (B)	118,000	12,100	(5,300)
Change (B)-(A)	3,000	-	(8,600)
Change in percent	+2.6%	-	-

As part of the previously announced restructuring program currently underway at SEGA, which includes most notably a halt in production of the Dreamcast console, SEGA decided to liquidate its unprofitable SegaSoft Networks Inc., a San Francisco based multimedia R&D subsidiary. With this liquidation, CSK Corporation, which has outstanding loans to and equity holdings in the subsidiary, will register an extraordinary loss of ¥6.5 billion.

CSK also plans to streamline its CSK Software Group, which provides system integration consulting services specially designed for financial operations. This restructuring, which will incur an additional ¥6.3 billion extraordinary loss, will include liquidation of all subsidiaries of the CSK Software Group, with the exception of CSK Computer Services Kaisha (Deutschland) GmbH and CSK Software, N. A., Inc. based in New York.

Digital Media Lab Corporation (DML), which engages in R&D and sales of the single chip-based encoder for MPEG2, the global video compression standard, will refocus its core business going forward. In particular, DML will concentrate on leveraging its leading-edge video compression technology to develop the digital video network business. To assist DML's efforts, CSK Corporation will waive an outstanding credit obligation, and thereby register an extraordinary loss of ¥2.2 billion.

Partially offsetting the above charges, CSK Corporation expects to record ¥4.0 billion in extraordinary profit from its exchange of VisionTech Ltd. shares, following that company's merger with Broadcom Corporation.

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 non-consolidated sales of ¥101.8 billion, ordinary income of ¥11.3 billion, and net income of ¥5.8 billion.