1-Feb-08

Summary of Financial Status and Operating Resultsfor First Quarter of Fiscal Year Ending September 2008
Financial Highlights
1. INFORMATION OF EPS Co,Ltd & CONSOLIDATED SUBSIDIARIES 2007.12(2007.10.1-2007.12.31)(UNAUDITED)(1) CONSOLIDATED OPERATING RESULTS( UNIT:JPY MILLION )Net sales

Operating Income

Dec-07
Dec-06
Sep-07

4,956 (
3,738 (
17,980

Dec-07
Dec-06
Sep-07Net Income per Share(yen)
5,287.26
2,352.84
15,485.66

Note :

32.6% )
10.8% )−

Ordinary Income

859 ( 211.4% )
275 ( 102.7% )
2,980−

878 ( 204.5% )288 ( 99.3% )3,042−

Net Income
472 ( 124.7% )
210 ( 272.9% )1,384−

Net Income per
Share,diluted (yen)5,280.87
2,352.62
15,474.39

Percentages for net sales, operating income, ordinary income, and net income indicate growth ratio
to previous year.

(2) CONSOLIDATED FINANCIAL INFORMATION

Dec-07
Dec-06
Sep-07

Total Assets

Net assets

13,323
11,584
14,537

9,900
8,582
9,710

Shareholders'Equity ratio (%)
66.8%
66.5%
60.0%

( UNIT:JPY MILLION )Shareholders' Equity
per share (yen)99,621.34
86,207.40
97,517.76(3) CONSOLIDATED CASH FLOW INFORMATION( UNIT:JPY MILLION )Dec-07
Dec-06
Sep-07

Net cash provided by(used in) operating
activities
△ 398
△ 17
2,697

Net cash provided by(used in) investing
activities
△ 290
133
△ 605

Net cash provided by(used in) financing
activities
△ 281
△ 228
△ 637

Ending balance of cash
and cash equivalents
4,295
3,691
5,260

(4) CONSOLIDATED SUBSIDIARIES
Consolidated subsidiaries :Affiliated companies by equity accounting method :143companies
companies

2.OVERALL SITUATION OF DIVIDEND DISTRIBUTION( UNIT:JPY )Sep-07
Sep-08(Result)(Projection)

Interim Dividend
1,700.00
2,400.00

Cash Dividends per share
Year end Dividend
2,600.00
2,600.00

Annual4,300.00
5,000.00

3. INFORMATION OF CONSOLIDATED BUDGET 2008.09 (2007.10.1-2008.9.30)( UNIT:JPY MILLION )Net sales
Mar-08
Sep-0810,030 (20,930 (Operating Income
18.4% )
16.4% )

Budgeted net income per share :1,284 ( △ 3.4% )3,205 (
7.6% )
Mar-08
Sep-08

Ordinary Income

Net Income

1,308 ( △ 3.3% )3,235 (
6.3% )

621 ( △ 1.4% )1,602 ( 15.8% )6,955.84 yen
17,924.53

Notes :1 Above figures may differ from actual results as uncertain various factors may affect future earnings.
2 Percentages for net sales, operating income, ordinary income, and net income indicate growth ratio
to previous year.

4. INFORMATION OF NON-CONSOLIDATED 2007.12 (2007.10.1-2007.12.31)(UNAUDITED)(1) OPERATING RESULTS( UNIT:JPY MILLION )Net sales
Dec-07
Dec-06
Sep-07Note :

Dec-07
Dec-06
Sep-072,953 (
2,286 (
10,891

Operating Income
29.1% )
19.3% )−

604 ( 133.9% )258 ( 157.4% )1,983−

Ordinary Income
705 ( 130.6% )
305 ( 112.0% )2,105−

Net Income
457 ( 95.8% )
233 ( 151.7% )1,079−

Percentages for net sales, operating income, ordinary income, and net income indicate growth ratio
to previous year.
Net Income per Share(yen)
5,114.44
2,611.69
12,074.43(2) FINANCIAL INFORMATION

Dec-07
Dec-06
Sep-07

Total Assets

Net assets

9,985
9,019
10,663

7,769
6,914
7,588

Shareholders'Equity ratio (%)
77.8%
76.7%
71.2%

( UNIT:JPY MILLION )Shareholders' Equity
per share (yen)86,909.91
77,343.58
84,883.88

5. INFORMATION OF NON-CONSOLIDATED BUDGET 2008.09 (2007.10.1-2008.9.30)( UNIT:JPY MILLION )Net sales
Mar-08
Sep-085,863 (
12,430 (Operating Income
14.1% )
14.1% )

Budgeted net income per share :815 ( △ 8.3% )2,052 (
3.5% )
Mar-08
Sep-08

Ordinary Income
912 ( △ 5.4% )2,178 (
3.5% )Net Income
492 (1,170 (

5,509.22 yen
13,091.94

Notes :1 Above figures may differ from actual results as uncertain various factors may affect future earnings.
2 Percentages for net sales, operating income, ordinary income, and net income indicate growth ratio
to previous year.

0.9% )
8.4% )

CONSOLIDATED BALANCE SHEETS
December 31 2007, 2006 and September 30, 2007
(UNAUDITED)(IN THOUSANDS,JPY)ASSETS
CURRENT ASSETS
Cash and cash equivalents
Notes and accounts receivable
Investment securities
Inventories
OthersAllowance for doubtful accounts
Total current assets

December 31.2007

December 31.2006

4,295,536
3,873,527
400,515
567,403595,566△ 1,683
9,730,865

3,691,094
3,365,597−
486,207598,654△ 1,091
8,140,462

5,260,080
4,126,574
200,012437,696
931,877△ 1,523
10,954,717

398,406
328,834

325,472
363,680

376,393
345,077

979,072
710,742

1,233,965
599,986

1,074,612
681,724

September 30.2007

FIXED ASSETS
Tangible Assets
Intangible Assets
Investments and other assets ;Investment securities
Deposits
Time deposits and banking arrangements
other than cash equivalents
OthersAllowance for doubtful accounts
Total investments and other assets

500,000

500,000

500,000

685,860△ 10,000
2,865,675

421,312−2,755,264

614,722△ 10,000
2,861,059

Total fixed assets

3,592,915

3,444,417

3,582,530

TOTAL ASSETS

13,323,780

11,584,880

14,537,247

LIABILITIESCURRENT LIABILITIES
Accounts payable
Current portion of long-term debt
Income taxes payable
Provision for bonuses
OthersTotal current liabilities

305,148
216,700
114,780
171,979
1,785,021
2,593,629

288,426
213,200
22,505
122,207
1,366,537
2,012,876

201,903214,300
1,063,181
649,722
1,861,952
3,991,058

350,000
281,296
186,631
11,438829,367
3,422,996

616,700
228,603
134,612
9,630
989,546
3,002,423

405,700
258,448
155,023
16,722
835,895
4,826,953

1,875,251
1,825,298
5,441,960△ 322,080

1,875,251
1,825,298
4,183,528△ 322,080

1,875,251
1,825,298
5,205,599△ 322,080

22,41385,961

66,076−
63,105
8,905,948
994,835
9,900,784
13,323,780−
58,8107,706,769
875,687
8,582,456
11,584,880

485
67,262
8,717,892
992,401
9,710,293
14,537,247

LONG-TERM LIABILITIESLong-term debt
Provision for employees' retirement benefits
Provision for directors' retirement benefits

OthersTotal long-term liabilities
TOTAL LIABILITIESNET ASSETS
Common stock
Additional paid-in capital
Retained earnings
Common stock for treasury
Unrealized gain on
available-for-sale securities
Deferred gain on hedges
Foreign currency translation adjustments
TOTAL SHAREHOLDERS' EQUITYMinority interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETSCONSOLIDATED STATEMENTS OF INCOME
For Three months ended December 31 2007, 2006 and the year ended September 30, 2007
(UNAUDITED)

Three months ended
December 31.2007

Three months ended
December 31.2006

Year ended
September 30.2007

NET SALES

4,956,705

3,738,855

17,980,875

COST OF SALES

3,297,036

2,775,659

12,046,656

Gross profit

1,659,668

963,196

5,934,218

800,656

687,382

2,953,488

859,011275,8132,980,730(IN THOUSANDS,JPY)SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating income
OTHER INCOME (EXPENSES)Interest income

9,358

11,77838,069Interest expenses△ 2,899△ 4,145△ 15,771

Gain on cancellation of life insurance

1,553

5,547

16,746

Service fee income

1,010

1,477

6,056

−

2,720

14,618△ 514△ 2,800△ 5,350

Foreign exchange gain or loss (△loss)

5,675△ 2,706

739

Gain on sale of investments in securities

26,50041,161

51,186

Gain on consumption tax
Payment to the Association for employment of persons with disabilities

4,567

−

−

Loss on sales and disposal of property and equipment△ 10,403△ 9,607△ 61,266

Loss on lease cancellation△ 2,076−−

Allowance for directors' retirement benefits△ 7,250−−

Equity in gains of associated companies

3,069

−

−

Others- net

2,145

778

△ 303,562

Other income (expenses)-net

30,737

44,202△ 258,533

Income before income taxes and minority interests

889,749

320,016

2,722,197

Gain on sale of other investments

INCOME TAXES
Current

116,423

4,953

1,409,739

Deferred

257,060

106,333△ 255,795

Total

373,484

111,286

1,153,944

MINORITY INTERESTS

43,594△ 1,609

183,865

NET INCOME

472,670

210,339

1,384,387

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSFor Three months ended December 31, 2007 and 2006

(UNAUDITED)2008(IN THOUSANDS,JPY)
Attributable to equity holders of the Company
Common stock

Balance at 30
September 2007

1,875,251

Additional paid-in
Common stock for
Retained earnings
capitaltreasury

1,825,298

Changes during the period
Cash dividends
Net income
Others△ 322,080

5,205,599△ 232,434
472,670△ 3,873

Sub total

8,584,068△ 232,434
472,670△ 3,873

Net increase/decrease in evaluation,translation adjustment and minority
interest
Total changes during the period

Balance at 31
December 2007−−

1,875,251

1,825,298−

236,361△ 322,080

5,441,960

Evaluation and translation adjustment

Balance at 30
September 2007

Unrealized gain on
available-for-salesecurities

Deferred gain on
Hedges

66,076

485

Foreign currencytranslation
adjustments

67,262

Total evaluation andtranslation
adjustments

133,823

Changes during the period
Cash dividends
Net income
Others236,361
8,820,430
Total
Shareholders'equity8,717,892

Minority interest

Total net assets

992,401

9,710,293△ 232,434
472,670△ 3,873△ 232,434
472,670△ 3,873

Net increase/decrease in evaluation,translation adjustment and minority
interest△ 43,663△ 485△ 4,156△ 48,305△ 48,305

2,434△ 45,870

Total changes during the period△ 43,663△ 485△ 4,156△ 48,305

188,056

2,434

190,490

Balance at 31
December 2007

22,413−

63,10585,5188,905,948

994,835

9,900,784

2007(IN THOUSANDS,JPY)
Attributable to equity holders of the Company
Common stock

Balance at 30
September 2006

1,875,251

Additional paid-in
Common stock for
Retained earnings
capitaltreasury

1,825,298

Changes during the period
Cash dividends
Net income
Others4,180,774△ 322,080△ 205,615
210,339△ 1,970

Sub total

7,559,243△ 205,615
210,339△ 1,970

Net increase/decrease in evaluation,translation adjustment and minority
interest
Total changes during the period

Balance at 31
December 2006−
1,875,251−
1,825,298

2,753
4,183,528

Evaluation and translation adjustment
Unrealized gain on
available-for-salesecurities

Balance at 30
September 2006

89,590Foreign currencytranslation
adjustments

40,552

Total evaluation andtranslation
adjustments

130,142

Changes during the period
Cash dividends
Net income
Others−△ 322,080

Total
Shareholders'equity7,689,386

2,753
7,561,997

Minority interest

Total net assets

880,745

8,570,131△ 205,615
210,339△ 1,970△ 205,615
210,339△ 1,970

Net increase/decrease in evaluation,translation adjustment and minority
interest△ 3,629

18,257

14,628

14,628△ 5,057

9,571

Total changes during the period△ 3,629

18,257

14,62817,382△ 5,057

12,325

Balance at 31
December 2006

85,961

58,810144,771

7,706,769

875,687

8,582,456

CONSOLIDATED STATEMENTS OF CASH FLOWSFor Three months ended December 31 2007, 2006 and the year ended September 30, 2007
(UNAUDITED)(IN THOUSANDS,JPY)
Three months ended Three months ended
December 31.2007 December 31.2006

OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments to reconcile income before income taxes and minority
interests to net cash provided by operating activities:
Depreciation and amortization
Increase in provision for bonuses(△Decrease)
Increase in allowance for retirement benefits for employees
Increase in allowance for retirement benefits for directors
Interest and dividends income
Interest expense
Gain on sale of investments in securities
Loss on sales and disposal of property and equipment
Changes in operating assets and liabilities:
Decrease in accounts receivable-trade(△Increase)
Increase in inventories
Increase in accounts payable -trade
Increase in other current liabilities(△Decrease)
Others , Net
SubtotalInterest and dividends received
Interest paid
Compensation for office removal
Income taxes paid
Net cash provided by (used in) operating activities

Year ended
September 30.2007

889,749

320,016

2,722,197

47,353△ 478,052
22,84831,608△ 10,708
2,899△ 26,500
10,40340,490△ 300,690
999
4,113△ 12,378
4,145△ 41,161
9,607

171,336
226,430
30,844
24,524△ 39,569
15,771△ 51,186
61,266251,344△ 133,681
105,050△ 101,569△ 60,958
549,786
16,064△ 2,874
85,000△ 1,046,724△ 398,748

246,956△ 134,608
103,520
147,241△ 66,673
321,579
17,561△ 4,108−△ 352,377△ 17,344△ 511,143△ 71,298
16,734
667,652
143,194
3,406,754
37,797△ 15,749−△ 731,149
2,697,652

INVESTING ACTIVITIES:
Disbursements for purchase of tangible fixed assets
Disbursements for purchase of intangible fixed assets
Payment for purchase of investments securities
Proceeds from sales of investments securities
Payment for deposit for rent office and others
Collection for deposit for rent office and others
Others , Net
Net cash provided by (used in) investing activities△ 72,437△ 16,813△ 200,326
48,000△ 43,648
14,783△ 19,842△ 290,283△ 35,732△ 3,315−
75,161△ 48,753
115,700
30,659133,719△ 178,665△ 37,714△ 439,793
95,186△ 197,211
173,885△ 20,696△ 605,009

FINANCING ACTIVITIES:
Disbursements for repayment of long-term debt
Dividends paid
Dividends paid for minority stock holders
Others , Net
Net cash provided by (used in) financing activities
EFFECT OF EXCHANGE DIFFERENCE ON CASH & CASH EQUIVALENTS
NET INCREASE IN CASH AND CASH EQUIVALENTS
BEGINNING OF BALANCE,CASH AND CASH EQUIVALENTS
ENDING OF BALANCE,CASH AND CASH EQUIVALENTS△ 53,300△ 196,854△ 30,508△ 388△ 281,050
5,537△ 964,544
5,260,080
4,295,536△ 53,300△ 158,720△ 15,813△ 388△ 228,222
10,718△ 101,128
3,792,223
3,691,094△ 263,200△ 357,397△ 15,813△ 1,553△ 637,964
13,1781,467,856
3,792,223
5,260,080

STATEMENT OF ORDER ENTRY AND SALES BY ITEMS(UNAUDITED)(1) RESULT OF ORDER ENTRY
2007.12<2007.10.1-2007.12.31>(IN THOUSANDS, JPY )DIVISIONAMOUNT OF
ORDER ENTRY

year-to-yearcomparison (%)

ORDER
BACKLOG

CRO
Monitoring
Data Management534,61238.8
8,411,563
837,405
88.4
4,966,995
CRO others
554,591139.6
557,994
TOTAL OF CRO
1,926,609
70.8
13,936,553
SMO
1,040,512
150.2
2,050,447
Preclinical Service
402,49798.3
205,078
System Development
271,564
106.2
374,887
TOTAL
3,641,183
89.2
16,566,967* These figures are expressed by sales price.
* These above figures do not include the consumption tax.

year-to-yearcomparison (%)

139.4
112.5
149.1
128.8
117.3
99.6
176.0
127.5

(2) RESULT OF SALESDIVISION

2007.12
year-to-year<2007.10.1-2007.12.31>
comparison (%)(IN THOUSANDS, JPY )CRO
Monitoring
Data Management

1,763,190
1,231,685
383,511
3,378,386
890,696
313,169
374,452
4,956,705

CRO others

TOTAL OF CRO
SMO
Preclinical Service
System Development
TOTAL

145.0
121.2
153.7
136.1
131.5
89.0
164.2
132.6

INDUSTRY SEGMENT(UNAUDITED)2008 (2007.10.1-2007.12.31)

SALES
Sales to customers
Intersegment sales
Total
Operating expenses
Operating income

CRO

SMO

3,378,386
5,177
3,383,564
2,765,815
617,748890,696
3,466
894,162
711,604
182,558

Preclinical
Service

SystemDevelopment

313,169
1,035
314,204
321,112(6,908)374,452
14,258
388,710
326,656
62,054

Preclinical
Service

SystemDevelopment

351,887
2,552
354,439
359,110(4,671)

228,027
8,538
236,565
248,652(12,086)

SystemDevelopment

Total

1,181,770
69,1181,250,889
1,161,162
89,726

17,980,875
159,488
18,140,364
15,172,962
2,967,402

Total
4,956,705
23,9374,980,642
4,125,188855,454

2007 (2006.10.1-2006.12.31)

SALES
Sales to customers
Intersegment sales
Total
Operating expenses
Operating income

CRO

SMO

2,481,801
5,891
2,487,692
2,220,372
267,319

677,140
8,627
685,767
664,669
21,097

Total
3,738,855
25,6083,764,464
3,492,805
271,658

2007 (2006.10.1-2007.9.30)

SALES
Sales to customers
Intersegment sales
Total
Operating expenses
Operating income

CRO

SMO

Preclinical
Service

12,232,620
21,501
12,254,122
10,096,860
2,157,261

3,315,293
60,617
3,375,910
2,732,511
643,399

1,251,190
8,251
1,259,441
1,182,427
77,014(IN THOUSANDS, JPY)
Eliminations/
Consolidation
Corporate−(23,937)(23,937)(27,494)
3,557

4,956,705−
4,956,705
4,097,693
859,011(IN THOUSANDS, JPY)
Eliminations/
Consolidation
Corporate−(25,608)(25,608)(29,763)
4,154

3,738,855−
3,738,855
3,463,042
275,813(IN THOUSANDS, JPY)
Eliminations/
Consolidation
Corporate− 17,980,875(159,488)−(159,488) 17,980,875(172,817) 15,000,144
13,3282,980,730

1. Qualitative Information regarding Consolidated Operating Results
The Japanese economy in the current period was affected by a downside risk in the U.S. economy against the
backdrop of the subprime lending issue, soaring crude oil prices, and trends in interest rates, and the outlook
about its recovery trend has been adding to uncertainty. Under such circumstances, our CRO (Contract
Research Organization) industry and the SMO (Site Management Organizations) industry, in which one of ourconsolidated subsidiaries EP-Mint Co., Ltd. operates, are continuing to grow under the process ofreorganization, and the pre-clinical study industry, in which our LSG Co., Ltd. group operates, is also
performing steadily. Additionally, in the software development industry, in which our All Right Software Inc.
group operates, business is brisk in spite of a shortage of IT engineers.
The CRO business is operated mainly by the Company.
As regards the monitoring service of the Company, the Clinical Development Division has been favorably
performing clinical trials in both development and post-marketing stages, centering on existing projects,
acquisition of new projects and testing for anti-cancer, diabetes and CNS drugs. The sales for the current
quarter, with the enormous progress of contracted projects, increased substantially compared with the same
period in last year. The medical device development service also showed a strong performance and achieved a
considerable growth in sales compared with the same period in last year.
As for the registration & project management, data management and statistical analysis services, theBiometrics Division is showing a favorable performance in both existing projects and acquisition of new
projects. In the medical writing and pharmacovigilance services, it is continuously making efforts to acquire
more contracts, making an increase in turnover over the same period in last year.
The Clinical Coordination Center, which provides new business planning and associated services, reported
decreased sales figures compared with the same period in last year as its post-marketing clinical trials for ananti-cancer drug having been tested over a long period are drawing to an end.
On an individual basis, the Company achieved a significant increase both in sales and profits compared withthe same period in last year with a marked increase in sales under its smooth progress in contracted projects aswell as its efforts to reduce expenses.
As regards our consolidated subsidiaries in Japan, e-Trial Co., Ltd., which was established for the purpose of
acquiring clinical trial contracts using the EDC system, is continuously striving to acquire new contract orders
and achieving good performance. EPMate Co., Ltd., engaged in the temporary staffing service (dispatched
CRO business) for pharmaceutical companies, also increased its turnover.
Moreover, EPMedical Co., Ltd., providing a MR dispatching service (CSO business), has been improving its
performance continuously adding dispatched MRs to implement a big project contracted during the previous
period and deal with new contracts.
On the other hand, as for our overseas CRO business, EPS International Co., Ltd., together with its groupcompanies, is continuing to improve a system to deal with increased demand for CRO services relating toclinical trials across countries borders (especially those in Asia).
Individually, EPS International Co., Ltd. is struggling due to delayed execution of contract, and EPS China
Co., Ltd is making efforts to acquire new orders while conducting operations in the finishing stage of a big
project carried on since the previous period. EPS Singapore has been smoothly performing contracts acquiredin the previous period while promoting new customer acquisition activities on its own. ADM Korea Inc.,
providing a clinical trials contract service in Korea, is improving a structure for joint contracts in Korea andthus expanding its scale and activities. Furthermore, the Taiwan Branch of EPS International Co., Ltd. is also
working on improving a structure for joint contracts.
Consequently, our consolidated net sales for the CRO business amounted to ¥3,383 million, up 36.0% on ayear to year basis, and consolidated operating profit ¥617 million, up 131.1% on the same basis, posting asignificant increase in both sales and profits.

EPS Co., Ltd. (4282) Summary of Financial Standing and Operating Results for First Quarter of Fiscal Year Ending September 2008

The SMO business is operated by EP-Mint Co., Ltd.
EP-Mint Co., Ltd. has been continuously improving its performance underpinned by strong orders withimproved sales and expense management effectiveness by enhancing the branch-based management system,
centering on the site-supporting business by the clinical trial administration in cooperation with local trial sites,in addition to its CRC service.
Consequently, in our SMO business, we achieved significant growth in both sales and profits with theconsolidated net sales of ¥894 million (up 30.4% on a year to year basis) and the consolidated operating profitof ¥182 million (up 765.3% on the same basis).
The pre-clinical study business is operated by LSG Corporation Group.
LSG Co., Ltd. is facing an uphill battle in performance due to the delay in the scheduled shipment oflaboratory animals for the client's reason.
Consequently, in our pre-clinical study business, both sales and profits decreased, posting the consolidated
net sales of ¥314 million (down 11.4% on a year to year basis) and the consolidated operating loss of ¥6 million(¥4 million a year earlier).
The software development business is operated by All Right Software Inc.Group.
All Right Software Inc. is continuing to promote a business making use of Chinese IT engineers andremarkably growing in its contract SE service relating to backbone systems for financial institutions and major
companies.
Consequently, in our software development business, the consolidated net sales amounted to ¥388 million (up64.3% on a year to year basis) and the consolidated operating profit ¥62 million (¥12 million operating loss ayear earlier), posting a significant increase in both sales and profits.
After deducting inter-segmental transactions from the segmental figures shown above, the consolidated net
sales amounted to ¥4,956 million (up 32.6% on a year to year basis), the consolidated operating profit ¥859
million (up 211.4% on the same basis), the consolidated ordinary profit ¥878 million (up 204.5% on the same
basis), and the net profit ¥472 million (up 124.7% on the same basis), resulting in a significant increase in bothsales and profits.

2. Qualitative Information regarding Consolidated Financial Status
The changes in the financial position for the current quarter from the end of the previous consolidated fiscal
year are as follows:
Current assets at the end of the current quarter decreased by ¥1,223 million to ¥9,730 million due mainly to adecrease of ¥964 million in cash and cash equivalents, and of ¥253 million in notes and accounts receivable.
Fixed assets increased by ¥10 million to ¥3,592 million due mainly to an increase of ¥71 million in others ininvestments and other assets, and of ¥29 million in deposits, respectively, in contrast to a decrease of ¥95
million in investment securities through sales, etc. Consequently, total assets at the end of the current quarterdecreased by ¥1,213 million to ¥13,323 million.
As regards liabilities, due mainly to a decrease of ¥948 million in income taxes payable as the result of thepayment thereof, and of ¥477 million in provision for bonuses, the total liabilities at the end of the current
quarter decreased by ¥1,403 million to ¥3,422 million.
The net assets at the end of the current quarter increased by ¥190 million to ¥9,900 million due mainly to a¥236 million increase in retained earnings in contrast to a ¥43 million decrease in unrealized gain on availablefor-sale securities.
As for the cash flow status, the net cash flow used in operating activities was ¥398 million, as the result of¥478 million decrease in provision for bonuses, and payment of ¥1,046 million for income taxes, despite
income before income taxes of ¥889 million and income of ¥251 million mainly through a decrease in accounts
receivable.
The net cash flow used in investing activities was ¥290 million due mainly to the payments of ¥89 million forthe purchase of tangible and intangible fixed assets, of ¥200 million for the purchase of investment securities,
and of ¥43 million for deposits, despite the proceeds of ¥48 million from sales of investment securities.

EPS Co., Ltd. (4282) Summary of Financial Standing and Operating Results for First Quarter of Fiscal Year Ending September 2008

The net cash flow used in financing activities was ¥281 million, as the result of the repayment of ¥53 million
for long-term debt and the payment of ¥227 million for dividends including those for minority stock holders.
Consequently, Cash and cash equivalents at the end of the current quarter decreased by ¥964 million to¥4,295 million, with the effect of exchange difference on cash and cash equivalents.

3. Qualitative Information regarding Consolidated Business Forecasts
The future Japanese economy is expected to be directly and indirectly affected by the impact of downside
factors such as the U.S. subprime lending issue and the soaring crude oil prices with continuing uncertainties
about overseas economies and trends of interest rates.
The Company's CRO business is operated mainly by the Clinical Development Division, responsible formonitoring and clinical development concerning medical devices, etc., and the Biometrics Division, responsible
for services such as data management, statistical analysis, registration & project management, medical writing,pharmacovigilance, together with the Clinical Coordination Center, in charge of new business planning andassociated services, and the Business Development Division, which engages in information collection and order
receiving activities. In addition to acquisition of new contracts, we will further focus on monitoring and data
management services to achieve our full-year profit plan by enhancing the operating rate and reducing expenses.
As regards our domestic consolidated subsidiaries, e-Trial Co., Ltd. will continuously strive to acquire neworders centering on EDC based contracts from pharmaceutical companies and medical research facilities.
EPMate Co., Ltd., a dispatched CRO service provider, will continue to expand its business with focus on the
Company and pharmaceutical companies. EPMedical Co., Ltd., providing CSO services including MR
dispatching, is concentrating on performing existing contracts of a relatively substantial scale acquired during
the previous fiscal year, and securing employees to deal with newly acquired contracts.
As for our overseas businesses, EPS International Co., Ltd., together with its group companies, will continue
to improve the system for clinical trial contracts across countries borders. Individually, EPS International Co.,
Ltd. will strive to receive delayed orders and acquire new orders. On a group basis, it will endeavor to acquire
new clinical trial contracts mainly in Asia aiming for the improvement of its overseas contract clinical trial
services, continuously pursuing the synergy effect of its collaboration with EPS China Co., Ltd., EPS Singapore
and ADM Korea Inc., as well as its Taiwan Branch.
EP-Mint Co., Ltd., which engages in SMO business, will continue to work on maintaining its high operating
rate and acquiring new orders by strengthening its structure to acquire contracts and enhancing its branch-based
management system.
LSG Co., Ltd., which engages pre-clinical study business, will expedite the delayed shipment of laboratory
animals according to its plan and endeavor to acquire new orders.
All Right Software Inc., a software developer, will continue to promote contract SE services and offshore
software development and to acquire more contracts for communication-, finance- and network-related
software development, making use of Chinese IT engineers.
Accordingly, the Company does not revise its half and full consolidated forecasts for the fiscal year ending
September 2008 announced on November 8, 2007.