CSK CORPORATION 

Tokyo, January 29, 2004 - CSK CORPORATION ("CSK") today announced changes to its retirement benefit and pension system, and applied to the Ministry of Health, Labour and Welfare for approval of the changes.

Over the past two years CSK has been carrying out reforms to its management structure and shifting to a group management system. As part of this, CSK has been reviewing the structure of its human resource and compensation systems and identifying ways to reduce the financial burden of its retirement benefits system. As a first step, CSK in March 2003 received approval of a waiver of its future obligations in respect of the proxy portion of its employee pension fund. Details of the latest reform are as follows.

1. Aim of reforms
   
   (1) Improving fiscal stability and reducing accrued retirement benefit obligations
   
   The reform of the employee retirement benefits and the corporate pension scheme, like the previously announced approval to return the proxy portion of the employee pension fund that CSK manages and pays on behalf of the government, is intended to stabilize pension fiscal management, reduce accrued retirement benefit liabilities, and lower costs associated with administering the system.
   
   (2) Meeting the diverse needs of CSK employees
   The retirement benefits system will change from a seniority-based system - set in proportion to employees' final salaries - to a points system that can better reflect individual performance. CSK will also introduce defined contribution pensions, which are transferable to other companies if employees leave CSK, and combine them with CSK's existing defined benefit system to create a flexible, two-tier employee retirement benefits system that is capable of meeting the increasingly diverse needs of employees.
   
   
2. Main revisions
   
   (1) Introduction of employee retirement point system
   
   The calculation method for benefits will be changed from one that sets benefits in proportion to employees' final salary to a system that reflects individual performance through the accumulation of points.
   
   (2) Introduction of defined contribution pension plan
   
   CSK will introduce a new defined contribution pension plan and make changes to the current defined benefit system. For both the defined benefit pension and the defined contribution pension, employees will be able to choose whether they receive their pension in a lump sum or as a series of pension payments. They will also be able to elect to receive part of this amount as an advance retirement payment.
   
   (3) Changes to existing defined benefit system
   
   i.  The pension yield will change from 5.5% to 3.0%
   ii. The entitlement period will change from 15 years or until death, whichever is the greater, to a fixed 15-year period
   iii. There will be no proxy portion managed on behalf of government, following the return of that portion to the government
   
   (4) Management structure
   
   To ensure the smooth administration of this system throughout the 16 group companies, the system will be administered as a fund
   
   
3. Schedule
   
   

   	March 1, 2003	Approval received for waiver of future obligations in respect of the proxy portion of employee pensions
   	January 29, 2004	Submission of application to the Ministry of Health, Labour and Welfare to return proxy portion of pension fund and to make changes to pension system
   	April 1, 2004	Implementation of new pension system (planned)

4. Impact on earnings
   

   Following the above changes to the pension system, CSK will write off some of its accrued employees' retirement benefit liabilities. As a result it will record an extraordinary loss of ¥5.0 billion on a non-consolidated basis and a ¥6.0 billion extraordinary loss on a consolidated basis.
   
   

   After switching to the new retirement benefits system and recording these extraordinary losses, the cost of maintaining the new system and the cost to make up shortfalls in pension liabilities from the next fiscal year will be lower than if CSK continued to maintain the current system.
   
   

   The above estimates for the extraordinary losses are liable to change should there be any fluctuations in the value of CSK's pension assets or other factors between now and the end of the fiscal year.