(Translation)
Fields Corporation
Summary of First Quarter Financial Information and Business Results (Consolidated)Year Ending March 31, 2005
August 6, 2004
Company Name:Fields Corporation (Stock code: 2767)(URL: http://www.fields.biz)

Representative Director:

Hidetoshi Yamamoto
President, Representative Director, and CEO

Inquiries:

Hiroyuki Yamanaka
Manager, Administration Division for Board of Directors (Tel: (03) 5784-2111)

1. Summary of quarterly report of business results(1) Simplified methods applied for accounting (Yes/No): Yes(2) Changes made in accounting methods usedsince most recent fiscal year (Yes/No):No(3) Changes to the scope of consolidation
or application of the equity method (Yes/No):

No

Simplified methods were partially applied for
calculating tax expense and other items.

2. Summary of business results for the first quarter of the year ending March 31, 2005 (April 1 to June 30, 2004)(1) Consolidated operating results (Truncated to lower of one million)
Net salesFirst quarter, year
ending March 31, 2005
First quarter, year
ended March 31, 2004
Year ended March 31,
2004 (For reference)First quarter, year
ending March 31, 2005First quarter, year
ended March 31, 2004
Year ended March 31,2004 (For reference)

Operating income

Ordinary income

Net income

Millions ofyen(% change)

Millions ofyen(% change)

Millions ofyen(% change)

Millions ofyen(% change)

17,004(-25.4)1,820(-56.7)1,870(-57.4)

1,107(-53.2)

22,782

(—)

4,202

(—)

4,392

(—)

2,367

(—)

66,211

11,866

12,209Net income per share

Diluted net income per share

Yen

Yen

6,694.06—

73,284.45—

40,465.97

—

6,620

Notes: 1. The average number of shares outstanding was 165,500 for the first quarter of the year ending March 31, 2005,
32,300 for the first quarter of the year ended March 31, 2004, and 161,500 for the year ended March 31, 2004.
2. Percentages for net sales, operating income and other items denote changes compared with the corresponding
quarter of the previous fiscal year.
3. The financial statements presented in this summary are prepared under Japanese generally accepted accounting
principles.

Qualitative data relating to business results (Consolidated)
In the first quarter of the year ending March 31, 2005, to maximize the benefits of its strategic alliance withBisty Co., Ltd., of the Sankyo Corporation Group—announced in autumn 2003—Fields Corporation focusedon expanding its network of sales offices, increasing its sales force and other strategies aimed at bolstering
performance. We expect these efforts to contribute substantially to results in the second half of the year
ending March 31, 2005, by bringing our product planning to fruition and expanding our product lineup.
As part of our core growth strategy of acquiring usage rights for well-known copyrighted material, weformed a strategic alliance with SUN R&P Co., Ltd., which is involved in the management of copyrights
relating to three major Hollywood movie studios. We also formed an alliance with FEG Co., Ltd., which
promotes K-1 martial arts sports events. Through the expansion of our network of partnerships in a wide
range of fields, we expect these copyright usage operations to be reflected in our performance during thesecond half of the current fiscal year.
In the future, as well as developing top-quality amusement machines (pachinko and pachislot) with highentertainment value, we will also strive to gain significant synergies by developing businesses in such fields
as video games and merchandising.
In addition, in our traditionally strong area of marketing high entertainment value amusement consoles
fitted with large liquid crystal display screens we performed well by gaining a high level of customer support.
During the quarter, the volume of sales for two machines launched in the previous fiscal year—Bisty’s CR
Fever Kung-Fu Gal pachinko machine and Rodeo Corporation’s Gamera High Grade Vision pachislot
machine—continued to rise. In addition, the Company commenced sales of such products as Sammy
Corporation’s CR Linda no Do-Ni-Mo Tomaranai pachinko machine, as well as Bisty’s CR Fever Twins
pachinko machine and Fever Natsu Matsuri pachislot machine.
As a result of these efforts, sales volumes in the first quarter, ended June 30, 2004, amounted to 60,966
pachinko machines and 39,175 pachislot machines. Consequently, first-quarter net sales totaled ¥17,004
million, operating income ¥1,820 million, ordinary income ¥1,870 million and net income ¥1,107 million.

(2) Consolidated financial position

First quarter, year
ending March 31, 2005
First quarter, year
ended March 31, 2004
Year ended March 31,
2004 (For reference)

Total assets

Shareholders’ equity

Shareholders’equity ratio

Shareholders’ equity
per share

Millions of yen

Millions of yen%

Yen

43,02728,05265.2

161,685.62

25,698

10,74841.8

332,782.30

37,115

14,50739.1

89,305.39

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end ofterm

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Summary of consolidated cash flow

First quarter, year
ending March 31, 2005
First quarter, year
ended March 31, 2004
Year ended March 31,2004 (For reference)

1,328

(709)

12,65918,717(1,459)

(320)

(292)

3,666

851

(3,190)

2,029

5,437

Qualitative data relating to changes in cash flows (Consolidated)
At June 30, 2004—the end of the first quarter—cash and cash equivalents increased ¥13,279 million
compared with the end of the previous fiscal year. This was mainly due to the issuance of common stock inJune 2004 and expenditures for the purchase of property and equipment.
Net cash provided by operating activities totaled ¥1,328 million. Significant items within this included
income before income taxes and minority interest of ¥2,033 million; decrease in notes and accounts
receivable—trade of ¥8,812 million; decrease in accounts payable—trade, which came to ¥6,031 million; andincome taxes paid and other tax payments, which totaled ¥4,048 million.
Net cash used in investing activities amounted to ¥709 million. This was mainly attributable to purchasesof property and equipment of ¥879 million, and ¥237 million in proceeds from sales of investment securities.
Net cash provided by financing activities came to ¥12,659 million. This was primarily due to proceedsfrom issuance of common stock, which totaled ¥13,305 million, and cash dividends paid of ¥646 million.
3. Forecast earnings for the year ending March 31, 2005
Net sales
Millions of yen

Ordinary income

Net income

Millions of yen

Millions of yen

Interim32,000
4,100
2,190
Full-year
74,00014,0007,490
Reference: Forecast net income per common share for the year ending March 31, 2005, is ¥21,340.06.
Note:
On September 3, 2004, the Company will effect a two-for-one stock split (free issue). As a result, forecast
net income per common share stated above has been calculated based on an average of 343,000 sharesthroughout the fiscal year.

Qualitative data for earnings forecasts
Fields commenced sales of Rodeo’s Umematsu Dynamite Wave pachislot machine in July 2004, which
received a strongly favorable reception and is expected to be a major driver in achieving our sales volume
targets for amusement machines during the interim period. Our volume of orders has also been bolstered by ageneral lack of new machine releases in the marketplace and we do not foresee any major changes in market
conditions in the near future.
We will continue vigorously pursuing growth in the amusement machine market, our main line of business. At
the same time, we will focus on tapping into new entertainment fields outside the amusement machine area.
To procure the funds needed for this aggressive plan, Fields issued new shares in overseas markets following
a resolution adopted at a Board of Directors’ meeting held on May 25, 2004. We will effectively invest the¥13,100 million raised from the stock issue to implement key operating strategies. At the same time, we willremain focused on improving business performance and further enhancing corporate value by building a morestable financial base.
1. Strengthening our copyright business by acquiring superior content
Demand in the entertainment market is increasing across all demographic segments in Japan. The
diversification of entertainment needs also means the use of copyrighted characters is becoming an essential
part of producing competitive amusement machines. Through collaborative efforts in various business sectors,Fields is actively acquiring usage rights for copyrighted material and product development rights for superior
content and well-known characters, both in Japan and overseas. We see this as one of the Company’s core
strategies and are therefore expanding our network of business partners in a variety of fields. We intend to use
this content not just for amusement machines but across a wide spectrum of entertainment-related fields. In
the future, we plan to use this approach by continuing to aggressively acquire usage rights for otherwell-known characters to further bolster the value of the content and build linkages to other products, whichwill in turn lead to an increase in our corporate value.
2. Strengthening the Group by bolstering our capabilities in all-round content development
By acquiring and utilizing well-known character rights and to enhance content value and build linkages toother products, we are focusing on enhancing the role of companies related to the Fields Group. To maximize
the synergies from collaboration with such companies, we will make investments and loans to them asnecessary.
3. Strengthening the corporate structure by reinforcing our operational base and enhancing our management
systemsFields will continue to focus on raising customer satisfaction by developing superior products and working
with each customer to provide highly tailored solutions. To this end, from the previous fiscal year we have
expanded our nationwide network of sales offices and added capacity to existing offices. In the current fiscal
year to date, we opened new showrooms in Shizuoka in April, Fukuoka in July, and in Sendai, Mie andKanazawa in August. The new Utsunomiya showroom will be our 28th in Japan.
We will invest in plant and equipment to build management system capabilities linked to marketing
activities—functions that will enhance our showrooms, which are the core of our sales bases. We intend tobuild a system that is even more attentive to customer needs and facilitates the provision of high-quality
services.

Consolidated Balance Sheets(Thousands of yen, %)PeriodItem
AssetsⅠ Current assets
1. Cash and cash equivalents
Notes and accounts receivable―
2.
trade
3. Inventories
4. Deferred tax assets
5. Other current assets
6. Allowance for doubtful accounts
Total current assets

First quarter previous term(As of June 30, 2003)
Amount% total

First quarter current term
(As of June 30, 2004)
Amount% totalPrevious fiscal year
(As of March 31, 2004)
Amount% total3,666,016

18,717,182

5,437,758

15,044,279

10,073,327

18,865,138

254,606
243,528
1,028,577(84,300)
20,152,707

78.4

366,057
371,033
4,137,000(86,953)
33,577,647

78.0

256,541
371,033
3,309,085(86,953)
28,152,604

75.9

Ⅱ
1.

Fixed assets
Tangible fixed assets

1,945,600

7.6

3,936,890

9.2

3,351,355

9.0

2.

Intangible fixed assets

178,2470.7

393,095

0.9

384,585

1.0

3. Investments and other assets
1) Investment securities
2) Long-term loans3) Deposits4) Deferred tax assets
5) Other assets
Allowance for doubtful
6)
accounts
Total investment and other assets

1,459,731—
1,208,375
280,931558,572

2,611,803
106,879
1,734,283
323,139
436,4622,824,195
107,599
1,661,745
222,779
503,240(85,977)(92,265)(92,265)

3,421,634

13.3

5,120,303

11.9

5,227,294

14.1

Total fixed assets

5,545,483

21.6

9,450,289

22.0

8,963,234

24.1

Total assets

25,698,190

100.0

43,027,936

100.0

37,115,839

100.0

(Thousands of yen, %)PeriodItem
Liabilities
Ⅰ Current liabilities
1. Accounts payable—trade
2. Short-term borrowings
3. Accrued income taxes
4. Accrued bonuses
5. Other current liabilities
Total current liabilities
Ⅱ
1.

Long-term liabilities
Retirement benefit provisions
Reserve for directors’
2.
retirement bonuses
3. Deposits received
Excess of net assets acquired
4.
over cost
5. Other liabilities
Total long-term liabilities
Total liabilities

Minority interest
Minority interest inconsolidated subsidiaries
Shareholders’ equity
Ⅰ Common stock
Ⅱ Capital surplus
Ⅲ Retained earnings
Unrealized holding gain onⅣavailable-for-sale securities
Total shareholders’ equity
Total liabilities, minority
interest and shareholders’equityFirst quarter previous term
(As of June 30, 2003)
Amount% total9,446,560—
2,097,112
31,5001,604,904
13,180,077

51.3First quarter current term
(As of June 30, 2004)
Amount% total5,614,173
3,000,000
937,589
32,1002,267,113
11,850,975

27.6

Previous fiscal year
(As of March 31, 2004)
Amount% total

11,645,579
3,000,000
3,960,019
18,6001,930,638
20,554,837

110,804

126,924

120,815

561,825

699,800

699,800

1,010,785

2,227,507

1,161,922

2,713

1,231

1,602

55.4

73,231
1,759,359

6.9

51,065
3,106,528

7.2

51,0652,035,204

5.5

14,939,437

58.2

14,957,504

34.8

22,590,042

60.9

9,885

0.0

17,9760.0

17,9760.0

1,295,500
1,342,429
8,027,822

5.0
5.2
31.3

7,948,036
7,994,953
12,017,495

18.5
18.6
27.9

1,295,500
1,342,429
11,631,695

3.5
3.6
31.3

83,115

0.3

91,9690.2

238,194

0.7

10,748,868

41.8

28,052,455

65.2

14,507,820

39.1

25,698,190

100.0

43,027,936

100.0

37,115,839

100.0

Consolidated Statements of Income(Thousands of yen, %)PeriodItem

ⅠⅡNet Sales
Cost of sales
Gross profit

Ⅲ

Selling, general andadministrative expenses
Operating income

First quarter previous termFirst quarter current termPrevious fiscal year
(Three months ended June 30, (Three months ended June 30,(Year ended March 31, 2004)
2003)
2004)
Amount% sales
Amount% sales
Amount% sales

22,782,691
16,383,357
6,399,333

100.0
71.9
28.1

17,004,122
12,296,390
4,707,732

100.0
72.3
27.7

66,211,589
44,633,469
21,578,120

100.0
67.4
32.6

2,197,014

9.6

2,887,649

17.0

9,711,541

14.7

4,202,319

18.5

1,820,083

10.7

11,866,578

17.9

195,413
5,297
4,392,434

0.8
0.0
19.3

236,669
186,332
1,870,419

1.4
1.1
11.0

369,784
26,853
12,209,509

0.6
0.1
18.4

1,612
2220.00.0

162,685―

1.0―

46,014
66,3220.1
0.1

4,393,825

19.3

2,033,105

12.0

12,189,200

18.4

Minority interest

2,016,852
9,885

8.9
0.0

925,238―

5.4―

5,557,676
11,2698.4
0.0

Net income

2,367,087

ⅣⅤ

Non-operating income
Non-operating costs
Ordinary income

ⅥⅦ

Extraordinary income
Extraordinary loss
Income before income taxes andminority interest
Income taxes

1,107,867

6,620,253

Consolidated Statements of Cash Flows(Thousands of yen, %)First quarter previous term
PeriodItemⅠFirst quarter current termPrevious fiscal year

(Three months ended June (Three months ended June (Year ended March 31,30, 2003)
30, 2004)
2004)
AmountAmountAmountCash flows from operating activities
4,393,825

2,033,105

12,189,200

62,499103,865

317,565

55,598―64,5404. Accrued bonuses

13,50013,500600

5. Increase (decrease) in retirement benefit provisions

4,806

6,109

14,816(7,175)―130,800

1. Income before income taxes and minority interest
2. Depreciation and amortization
3.

6.

Increase (decrease) in allowance for doubtfulaccounts

Increase (decrease) in reserve for retirement
benefits for directors and statutory auditors

7. Interest and dividend income(4,340)(7,614)(12,340)

8. Equity in earnings of affiliates(170,997)(119,818)(292,330)

—

7,351

2,197

(10,556,598)

8,812,497(14,546,569)

5,654(92,665)

7,919—(406,013)(1,457,951)

6,699,889(6,031,405)

8,823,448(77,000)(85,000)(77,000)

655,264

1,120,331

70,4281,074,926

5,354,243

5,235,325

25,291

28,61433,319—(6,409)(3,140)(2,560,103)(4,048,028)(4,414,311)(1,459,885)

1,328,420

851,192(102,913)(879,535)(1,520,955)

—

−

6,964

3. Purchases of intangible assets(34,537)(28,868)(287,452)

4. Purchases of investment securities(164,214)(10,713)(1,356,059)

5. Maturity of debt securities—

237,997

200,700

6. Expenditures for capital procurement

(50)

1,456

(1,050)

7. Expenditures for loans(5,636)(461,020)

8. Proceeds from repayment of loans

7,292

―
45,717

15,391

13,72574,495

9. Interest expense
10.

Decrease (increase) in notes and accounts
receivable—trade

11. Decrease (increase) in inventories
12.

Decrease (increase) in merchandising rightadvances

13. Increase (decrease) in accounts payable—trade
14.

Payments of bonuses to directors and statutory
auditors

15. Other
Subtotal
16. Interest and dividends received
17. Interest paid
18. Income taxes paid
Net cash (used in) provided by operating activities
II

Cash flows from investing activities

1. Purchases of property and equipment
2.

9.

Proceeds from sales of disposed property andequipment

Proceeds from repayments of deposits and108,250

guarantees at end of contracts(25,749)(86,263)(278,753)

11. Payment for long-term expenses—(2,687)(65,304)

12. Cancellation of life insurance policies—(10,534)―(798)(32,086)(320,951)(709,969)(3,190,193)

10. Payment of deposits and guarantees

13. Other
Net cash used in investing activities(Continued on next page)

422,076

(Continued from previous page)
III

Cash flows from financing activities

1. Increase (decrease) in short-term borrowings, net
2. Payment of long-term borrowings
3. Cash dividends paid
4. Proceeds from issuance of common stock
Net cash (used in) provided by financing activities

ⅣⅤⅥ
Ⅶ
Ⅷ

Effect of exchange rate changes on cash and cash—―

3,000,000(488)(291,720)―(646,000)(966,210)(3,790)―13,305,060—(292,208)

12,659,060

2,029,999

—

1,912

(1,892)(2,073,045)

13,279,423(310,893)

5,739,061

5,437,758

5,739,061

—

―

9,590

3,666,016

18,717,182

5,437,758

equivalents
Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of theperiod
Increase (decrease) in cash and cash equivalents
due to change of consolidation scope
Cash and cash equivalents at end of the period