(Translated from the Japanese original)
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IT Holdings Corporation
http//www.itholdings.co.jp
Susumu Okamoto, President
First Section of the Tokyo Stock Exchange
3626
Yukio Urata, Vice President+81-3-6738-7557 (in Japan, 03-6738-7557)
May 15, 2008

Consolidated Subsidiaries’ Business Results for Fiscal 2008,
Forecasts for Fiscal 2009, and Basic Business Direction of the Group1.

Consolidated Subsidiaries’ Business Results for Fiscal 2008, ended March 31,2008
On April 1, 2008, IT Holdings (“the Company”) was established as a joint holding
company through stock transfer, with TIS Inc., (“TIS”) and INTEC Holdings Ltd.,(“INTEC Holdings”) as wholly owned subsidiaries. Each company’s businessresults for fiscal 2008, ended March 31, 2008, are presented below.
(1)

TIS
Fiscal 2008 results for the TIS Group reflect the impact of a significant delay
for TIS in the operational start of systems for certain large-scale projects stillin progress and the additional costs that Company incurred on those projects
and chose to address fully in its fiscal 2008 settlement. The startup delay
arose because ordering clients, seeking to ensure a smooth operational start totheir respective systems, assumed a more cautious approach that called formore pre-startup tests than originally agreed upon. This set back the launch of
the systems and inflated costs.
These additional costs had a major impact on consolidated net sales,
which fell 5.8%, to ¥199,261 million. However, good sales on TIS’ othersystem development projects and solid performances from principal
subsidiaries prevented a steeper year-on-year decline. In addition, the TIS
Group rebounded from an operating loss of just under ¥1 million in fiscal
2007 to operating income of ¥10,432 million. Recurring profit skyrocketed
more than nine times, to ¥11,170 million, and net income settled at ¥4,153
million, returning to a positive position from an ¥818 million net loss a yearearlier.
For more details on the TIS Group’s consolidated performance, pleaserefer to the financial statements for fiscal 2008 disclosed today.
1(2)

2.

INTEC Holdings
Fiscal 2008 results for the INTEC Holdings Group were mixed. Demand forsoftware and system integration services was generally favorable, fueled byprivate-sector investment in information technology, especially among
members of the finance, manufacturing, distribution and service industries,
which supported the group’s mainstay information and communications
business. But liquidation of the leasing business squeezed the bottom line.
Consequently, consolidated net sales grew 6.6%, to ¥123,151 million.
Operating income slipped 0.5%, to ¥9,541 million, but recurring profit
increased 4.6%, to ¥8,777 million. Net income settled at ¥4,520 million,
down 8.9%.
For more details on the consolidated performance of the INTEC
Holdings Group, please refer to the financial statements for fiscal 2008
disclosed today.

Basic Policy on Profit Distribution and Dividends for Fiscal 2008 and Fiscal
2009
The Company’s basic policy on profit distribution emphasizes its ability to ensurestable, long-term dividends as a business worthy of long-term investment while
securing internal reserves vital for maintaining a sound financial position andcontinued growth.
For fiscal 2008, TIS plans to pay a year-end dividend of ¥17 per share andINTEC Holdings a year-end dividend of ¥9 per share to shareholders whose names
are entered or electronically recorded in respective shareholders’ registers as ofMarch 31, 2008.
The Company’s Articles of Incorporation contain a clause allowing allocationof surplus funds to interim dividends, as provided in Article 454, Paragraph 5 of theCorporation Law. However, the Company intends to pay an annual dividend of ¥27
per share at year-end for fiscal 2009 to shareholders of record on March 31, 2009.
From fiscal 2010, the Company is prepared to pay dividends twice a year, atrecord dates of September 30 and March 31, as was the practice before
management integration.

Date of Record
Fiscal 2009

Dividends per Share (Forecast)
At September 30 At March 31
Annual
27.00
27.00
－2

3.

Fiscal 2009 Performance Forecasts
The quarterly tankan—a short-term economic survey of enterprises—released by
the Bank of Japan, showed a decrease in the diffusion index—a key barometer ofbusiness sentiment—and a shift from the vigorous IT investment trend of the past
few years to a more cautious approach.
The Company sees fiscal 2009—the first year of operation following
management integration—as a period of preparation for the new medium-term
management plan scheduled to start in April 2009 and will strive to maximize theopportunity afforded by management integration to reinforce the accumulated hightechnology capabilities of TIS and INTEC Holdings and raise the value-addedqualities of respective solution services still higher.
Specifically, to boost sales and profits, the Company will seek to formulate
and implement a fine-tuned business direction and consolidate the operation of datacenters. To elicit ongoing improvements in quality and efficiency, the Company
will prioritize measures to promote shared back office operations, amalgamate
peripheral and redundant businesses, lay the industry’s best production platform,and consolidate information systems.
These efforts should lead to the following fiscal rewards.

(1) Fiscal 2009 Consolidated Performance Forecast(Millions of yen, except for net income per share)
Net Sales
OperatingRecurring
Net Income Net Income
IncomeProfitper Share(yen)
First and
160,000
8,0008,300
3,900
45.15
secondquarter total
Full-year
340,000
22,00022,00011,000127.36(2) Fiscal 2009 Nonconsolidated Performance Forecast(Millions of yen, except for net income per share)
Net Sales
OperatingRecurring
Net Income Net Income
IncomeProfitper Share(yen)
Full-year
4,2002,500
2,400
2,400
27.79

34.

Basic Business Direction
The Company has established the following management philosophy. It permeates
all activities that underpin decisions on the business pursuits undertaken by the ITHoldings Group. With the concepts of this philosophy in mind, the Group will
strive with determination toward goals, supported by the inherent excellence inquality and technological capabilities of each founding company to make the mostof newfound corporate value.
Management Philosophy
The IT Holdings Group seeks to be a corporate citizen whose activities, namely, theprovision of services utilizing IT, match its status as a leading corporate group, andwill strive to raise corporate value, supported in this effort by the high regard of allits stakeholders, including clients and shareholders as well as employees and theirfamilies.
We will cultivate a vibrant corporate culture that encourages companies andindividuals under the Group umbrella to work toward higher goals and embrace
new challenges, and thereby ensure corporate growth.
We will always provide our very best to clients by combining Group strengths tofoster higher quality and greater sophistication in our technological capabilities.
We will uphold high corporate morals and fulfill our social obligations.

Cautionary note regarding forward-looking statements
Performance estimates and other forward-looking statements in this news release arebased on information available as of May 15, 2008 and certain reasonable assumptions.
Actual figures may differ from estimates, due to various factors.

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