TOKYO, March 26, 2001 - CSK Corporation (TSE: 9737) today announced a broad structural reform of its operations. Scheduled for implementation on April 1, 2001, the far-reaching reform seeks to underpin CSK's goal of becoming the world's number one e-services provider.

The key goals of the reform are:

• To establish a simpler, more customer-focused organizational structure to deliver e-services
• To install a service system that can rapidly respond to customers' needs
• To institute a comprehensive service model covering everything from IT consulting, system development and system management to the e-contact centers, which are necessary for customers' successful e-businesses

Measures relating to e-services

1. Establishment of e-Services Planning Division
   This new division will formulate mid- and long-term strategies for e-services pursued by CSK and work to strengthen the corporate brand.
   
   
2. Establishment of e-Solution Promotion Division
   This new division will offer solutions for e-businesses including marketing & sales promotion, IT consulting, eCRM, eSCM, and EC. It will also work closely with relationship management teams from CSK's other divisions to strengthen sales and proposition capabilities.
   
   
3. Establishment of e-Solution Technology Division
   In the current IT market, there is a high demand for engineers specializing in Web system integration and network solutions for e-business development, as well as for experts in ERP and other package solutions and database technology. In the 34 th business term, CSK will place greater emphasis on the training of engineers in these areas by assigning new e-Solution Technology Division to train engineers and provide human resources to CSK's various divisions.
   
   
4. Reorganization of divisions
   Previously independent Sales Department will be integrated into a business division, and Business System Division, EC Division, and Manufacturing & Distribution Systems Division will be reorganized into the following three divisions:

   
   
   1. Communication Systems Division
      This division will offer e-service solutions for the telecom industry.
      
      
   2. Electric & Precision Machinery and Equipment Systems Division
      This division will develop embedded systems for home-use information appliances, and other electric and precision equipment. It also plans to support systems development and product development. Moreover, this division will offer e-service solutions for the electric and precision machinery industry.
      
      
   3. Manufacturing & Distribution & Service Systems Division
      This division will offer e-service solutions for the manufacturing, distribution, and service industries.

   
   
5. Elevation of Chubu Business Department to divisional status
   Chubu Business Department has steadily increased the scope and profitability of its business. In view of the growing importance of this area, this department will become Chubu Business Division.
   
   
6. Elevation of Partner Business Promotion Office to divisional status
   CSK is currently collaborating with more than 4,000 engineers from various business partners. CSK will reorganize the existing office into Partner Business Promotion Division in order to strengthen CSK's alliances with those business partners pursuing common strategies.

Measures relating to group management

1. Establishment of Group Strategy Division
   CSK leads a large number of group companies in addition to affiliated public companies such as SEGA Corporation, ASCII Corporation, CSK ELECTRONICS CORPORATION, Bellsystem24 Inc., and NextCom K.K. As a part of the current reform, CSK will establish Group Strategy Division, which will seek to achieve synergies in e-service, to reorganize and revitalize the group companies, and to make prerequisite investments for the future. This division will also manage the group companies to meet shareholders' expectations in accordance with the mid- and long-term e-service strategy.

Notes on CSK's e-Services

With the advent of the Internet age, a new corporate environment is emerging, and demands prompt response. New business relationships are arising in all- including customer relationships, technologies, corporate organization, human resources, and in-house systems- and new needs are emerging. However, we will not be able to deal effectively with these changes with traditional business style and ideas. Today's businesses have to enhance efficiency to maximize companies' competitiveness and profitability in order to succeed in the Internet age. At CSK we express this drive for business efficiency as "optimizing transaction costs," and we believe that only those that control this cost will rule Internet and e-business.

In these circumstances, we believe that it is CSK's mission to directly support our customers' successes in e-business, and to help them respond effectively to the changes brought by the onset of the Internet age. This overall approach is what we call "e-services." Nowadays e-business is our customers' business, and its information systems are greatly different from the traditional so-called "in-house systems." If the modern information system is to be used directly by the end-user - that is to say, by our customer's customer - then the system reliability, from system operation to customer support facilities such as e-contact center, is critically important. We believe that superior system reliability is the other key to our clients' success in e-business.

CSK offers a full range of e-services, from IT consulting and system design to system and operations management and content distribution. While systems development is driven by the search for efficiency, operation management and content distribution need a more user-friendly, human interface. CSK is therefore committed to providing customers with solutions that combine efficiency with user friendliness throughout its entire range of products and services. At CSK we are convinced that we can provide the greatest value to our customers by integrating efficient systems that optimize transaction costs with user-friendly, finely tuned operational services.

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.