Financial Highlights
1. INFORMATION OF EPS Co,Ltd & CONSOLIDATED SUBSIDIARIES 2008.09(2007.10.1-2008.9.30)(UNAUDITED)(1) CONSOLIDATED OPERATING RESULTS( UNIT:JPY MILLION )Net sales
Sep-08
Sep-07

21,182
17,980((17.8 % )17.8 % )Net Income per Share (yen)Sep-08
Sep-07

Ordinary Income

Operating Income
3,487
2,980

(
(

17.0 % )52.2 % )Net Income per Share,
diluted (yen)

3,562
3,042

17.1 % )53.7 % )

1,708
1,384

(
(

23.4 % )28.3 % )Return on
Ordinary
OperatingShareholders' income to total income toequity(%)
assets(%)
net sales(%)
18.4
16.9

19,074.29
15,474.39

19,110.92
15,485.66((

Net Income

23.2
22.9

16.5
16.6

Notes: 1 Percentages for net sales, operating income, ordinary income, and net income indicate growth ratio to previous year.
2 Average number of shares issued and outstanding during the period :Sep-0889,399 shares
Sep-0789,398 shares(2) CONSOLIDATED FINANCIAL INFORMATION
Total Assets

Net assets

16,181
14,537

10,9499,710

Sep-08
Sep-07Note :( UNIT:JPY MILLION )Shareholders' Equity
per share (yen)110,067.48
97,517.76

Shareholders'Equity ratio (%)
60.8
60.0

Total shareholders' Equity as of :Sep-089,840 Million yen

Sep-07

8,717

Million yen(3) CONSOLIDATED CASH FLOW INFORMATION( UNIT:JPY MILLION )Net cash provided by(used in) operating activities

Net cash provided by(used in) investing activities

Ending balance of cash andcash equivalents

△ 542
△ 637

△ 1,061
△ 605

1,995
2,697

Sep-08
Sep-07

Net cash provided by(used in) financing activities

5,638
5,260

(4) CONSOLIDATED SUBSIDIARIES
Consolidated subsidiaries :Associated companies by equity accounting method :144companies
companies

2.OVERALL SITUATION OF DIVIDEND DISTRIBUTION( UNIT:JPY )Dividend ratio
Total dividend Dividend ratiotoamountto net income
shareholders'(Million Yen)(%)
equity (%)

Cash Dividends per share

Sep-07
Sep-08
Sep-09(Result)(Result)(Projection)

Interim
Dividend

Year end
Dividend

Annual

1,700.00
2,400.00
2,800.00

2,600.00
3,000.00
3,200.00

4,300.00
5,400.00
6,000.00

384
482
－

27.8
28.3
29.4

4.7
5.2
－

3. INFORMATION OF CONSOLIDATED BUDGET 2009.09 (2008.10.1-2009.9.30)( UNIT:JPY MILLION )Operating Income

Net sales
Mar-09Sep-0911,84425,013((13.1 % )18.1 % )Budgeted net income per share :

1,622
3,784
Mar-09Sep-09((Ordinary Income△ 6.8 % )8.5 % )

1,649
3,835

8,116.70
20,440.64

yen
yen

(
(

△ 7.2 % )7.7 % )Net Income
725
1,827

(
(

△ 19.0 % )7.0 % )

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. OTHER INFORMATION(1) Total shares issued and outstanding as of :Sep-0890,400sharesSep-0790,400sharesSep-07

1,002

shares(2) Common stock for treasury as of :Sep-08

1,000

shares

5. INFORMATION OF NON-CONSOLIDATED 2008.09(1) OPERATING RESULTS( UNIT:JPY MILLION )Net sales
Sep-08
Sep-07

13,108
10,891((

Operating Income
20.4 % )14.9 % )Net Income per Share (yen)Sep-08
Sep-07Note :

15,220.18
12,074.43

2,442
1,983

(
(

23.1 % )25.0 % )Ordinary Income
2,610
2,105

(
(

Net Income

24.0 % )26.5 % )

1,360
1,079

(
(

26.1 % )10.1 % )Net Income per Share,
diluted (yen)15,203.86－

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

(2) FINANCIAL INFORMATION
Total Assets

Net assets

12,15910,663

8,400
7,588

Sep-08
Sep-07Note :( UNIT:JPY MILLION )Shareholders' Equity
per share (yen)93,967.76
84,883.88

Shareholders'Equity ratio (%)
69.1
71.2

Total shareholders' Equity as of :Sep-088,400 Million yen

Sep-07

7,588

Million yen

6. INFORMATION OF NON-CONSOLIDATED BUDGET 2009.09 (2008.10.1-2009.9.30)( UNIT:JPY MILLION )Net sales
Mar-09Sep-097,004
14,670((Operating Income
11.5 % )11.9 % )Budgeted net income per share :

1,196
2,603
Mar-09Sep-09((Ordinary Income

6.3 % )
6.6 % )

1,312
2,756

7,041.74
15,763.20

yen
yen

(
(

4.9 % )
5.6 % )Net Income
629
1,409

(
(

△ 13.1 % )3.6 % )

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.

Summary of Financial Results
For the year ending September 2008
1.

Management Results(1)

Analysis of management results(Management results of the current period)
The Japanese economy in the current period was affected by world-wide financial crisis against the backdrop of thesubprime lending issue in U.S., soaring crude oil prices, and trends in interest rates, and the outlook about its economy
trends has been in severe stage. Under such circumstances, our CRO (Contract Research Organization) industry
and the SMO (Site Management Organizations) industry, in which one of our consolidated subsidiaries EP-Mint Co.,
Ltd., operates, are continuing to grow in the process of reorganization, and the pre-clinical study industry, in which ourLSG. Co., Ltd. Group operates, is also performing steadily.

Additionally, in the software development industry, inwhich our All Right Software Inc. group operates, demands of IT engineers are slightly downward due to mainlycompletion of system integration and reduction in investments by major financial institutions.

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 implementation of existing projects,
acquisition of new projects and testing for anti-cancer, diabetes, and CNS (Central Nerves System) drugs. The sales
for the current period, with the enormous progress of contract projects, increased substantially compared with the lastyear. The medical device development service also showed a favorably performance, however its sales growth isslow down compared with the last year.

As for the data management and statistical analysis services, the Biometrics Division is showing a favorable
performance in both implementation of existing projects and acquisition of new projects.

In the medical writing andpharmacovigilance services, it is continuously making efforts to acquire more contracts, making an increase inturnover over compared with the last year.

As for the registration & project management, we have worked toward acquiring new projects. However, turnover inincrease is slow compared with the last year.
The Clinical coordination Center, which provides new business planning and associated services, reported anincrease in sales figures compared with the last year as for acquisition of new projects, though its post-marketingclinical trials for an anti-cancer drug having been tested over a long period of time has finished. We received alarge-scale post-marketing clinical trial (drug for treatment of rheumatism) in the current consolidated fiscal year, andwe will start work on this project from the next period

On the non consolidated basis, valuation loss on investment securities is reported as extraordinary loss. However,
the Company achieved a significant increase in both sales and profits compared with the last year, with a marked

increase in sales owing to smooth progress in contract projects as well as 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 smoothly
improving its performance. EP-Mate Co., Ltd., engaged in the temporary staffing service (dispatched CRO business)for pharmaceutical companies, also increased its turnover. However, its profit has decreased due to securing of
human resource and its incidental expenses showed up.

Moreover, EP-Medical Co., Ltd., providing a MR dispatching service (CSO business), has been performing significant
increase in both sales and profits adding dispatched MRs to implement a large-scale projects contracted during theprevious period and to deal with new contracts.

On the other hand, as for our overseas CRO business, EPS International Co., Ltd., together with its group companies,
is continuing to improve a system for dealing with an increasing demand for CRO services relating to clinical trials
across borders (especially those in Asia).

Individually, EPS International Co., Ltd. is facing an uphill battle due to delayed execution of a schedule contract, andEPS China Co., Ltd. is making efforts to acquire new orders while conducting operations in the finishing stage of alarge-scale project carried on since the previous period. Ever progressing System Pte. Ltd. has been smoothly
performing contracts acquired in 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
and thus expanding its scale and activities. Furthermore, the Taiwan Branch of EPS International Co., Ltd. is also
working on improving structure for joint contracts.

Consequently, our consolidated net sales for the CRO business amounted to ¥15,233 million, up 24.3% on a year toyear basis, and consolidated operating income ¥2,661 million, up 23.4% on the same basis, posting a significant
increase in both sales and profits.

The SMO business is operated by EP-Mint Co., Ltd.
EP-Mint Co., Ltd. has been continuously improving sales and achieving results in expenses management byenhancing the branch-based management system, centering on the site-supporting business by the clinicaladministration in cooperation with local trial sites, in addition to its CRC service.

Consequently, in our SMO business, we achieved growth in both sales and profits with consolidated net sales of¥3,500 million (up 3.7 %on a year to year basis) and the consolidated operating income of ¥695 million (up 8.0% 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 a decline in sales of laboratory animals in the first half
which could not be offset in the second half.

Consequently, in our pre-clinical study business, both sales and profits decreased, posting the consolidated net salesof ¥1,092million (down 13.3% on a year to year basis) and consolidated operating loss of¥ 1 million (77 million yen

profit in the previous period).

The software development business is operated by All Right Software Group.
All Right Software Inc. has affiliated Qingdao Tidever Software Co.,Ltd (Qingdao,China) as a group company byreceiving 33.4% of proprietary rights.

All Right Software Inc. is also continuing to reinforce a business utilizing

Chinese IT engineers and remarkably making growth in its contract SE service relating to backbone systems forfinancial institutions and major companies.

Consequently, in our software development business, the consolidated net sales amounted to ¥1,499 million (up19.9% on a year to year basis) and the consolidated operating income ¥136 million (up 52.1% on the same basis).

After deducting inter-segmental transactions from the segmental figures shown above, the consolidated net sales
amounted to ¥21,182 million (up 17.8% on a year to year basis), the consolidated operating income ¥3,487 million (up17.0% on the same basis), the consolidated ordinary income ¥3,562 million (up 17.1% on the same basis), and thenet income ¥1,078 million (up 23.4% on the same basis), resulting in a significant increase in both sales and profits.

（Outlook for the next period）

As it is assumed that the Japanese economy will remain under worldwide strong recession triggered subprime loan
bankruptcy in U.S. and fluctuation of currency exchange rate, it cannot make any predication in the future.

Our CRO business is mainly composed of the Clinical Development Division engaging in clinical development andmonitoring, and Biometrics Division engaging in the data management, post-marketing surveillance data center, statisticalanalysis, registration and progress management, off-shore data management office, medical writing, phamacovigilanceservices, etc., supplemented by the Clinical Coordination Center engaging in new business planning and associatedservices and medical devices, the Business Development Division engaging in information collection and order reception.
In addition to acquiring new contracts, we will forces on monitoring and data management services for achieving thefull-year profit plan, by enhancing operating rate, reducing expenses and collaborating with subsidiaries in China throughoff-shore data management office which newly set up.

As for our consolidated subsidiaries, E-Trial Co., Ltd, will continuously strive to win new projects from pharmaceuticalcompanies and medical research institutions, using EDC system.

EP-Mate Co., Ltd. engaging in the dispatched CRO services will aim for full-scale business development mainly for theCompany and pharmaceutical companies. EP-Medical Co., Ltd., providing CSO services including MR dispatching, will
enhance sales, concentrating on performing existing substantial scale contracts acquired during the previous fiscal year,
and on acquiring new contracts.

As for overseas businesses, EPS International Co., Ltd. will continue to take a leadership in developing the system for thecontract of multi-national clinical trials, and its group companies such as EPS China Co., Ltd., Ever progressing System Pte.
Ltd., ADM Korea Inc., as well as the Taiwan Branch of EPS International will pursue the synergetic effect throughcollaboration to enhance their overseas clinical trial contract services, focusing on winning new clinical trial contract mainlyin Asia.

EP-Mint Co., Ltd., engaging in the SMO business will continue to improve the reinforcement of the system for wining
contracts and to develop branch-based management system, working towards maintaining its high operating rate andacquiring new projects

LSG Corporation, engaging in the pre-clinical study business, intends to increase its agency revenue through the increased
contracts with new partners such as overseas per-clinical study institutions, and to expand its operation in new fields suchas supply of experimental animals and special animal feeds.

All Right Software Inc., a software developer, has acquired a software developing business and a video communication
system business by a business transfer from Digital Technology Inc., as of October 1, 2008, and pursue a synergy effectwith these businesses. In addition, All Right Software Inc. will continue to utilize Chinese IT engineers to strengthen
offshore software development with All Right Software Beijing Inc. and Qingdao Tidever Software Co.,Ltd. that are groupcompanies, and to promote SE service contacts, offshore software development, and acquisition of new softwaredevelopment contracts in communication, finance, and network fields.

Accordingly, the full consolidated budget for the fiscal year ending September 2009 is as follows:

On a consolidated basis(UNIT: JPY Million)
Net Sales

operating income

Ordinary Income

Net Income

Sep-0821,182

3,487

3,562

1,708

Sep-0925,013

3,784

3,835

1,827

Changes

3,831

297

273

119

year-to-year rate

18.1%

8.5%

7.7%

7.0%

On a non-consolidated basis(UNIT: JPY Million)

Net Sales

operating income

Ordinary Income

Net Income

Sep-08

13,108

2,442

2,610

1,360

Sep-0914,670

2,603

2,756

1,409

changes

1,562

161

146

49

year-to-year rate

11.9%

6.6%

5.6%

3.6%

(2) Analysis on Consolidated Financial Status
1) Analysis on status of assets, liabilities, net assets
The following describes the changes of the financial statues during the current consolidated fiscal year since the end of
the previous consolidated fiscal year
The current assets for the current consolidated accounting period increased to 12,307 million yen by1,353 million yen, with
the increases by 378 million yen in cash and cash equivalents, 475 million yen in notes and accounts receivables, 300
million yen in investment securities, and 216 million yen in deferred income tax assets respectively. The fixed assets
increased to 3,873 million yen by 290 million yen, despite of the decreases by 241 million yen due to maturity and valuation
loss in investment securities, with the increases by 104 million yen in intangible fixed assets and 149 million yen in deposits,
and 248 million yen in deferred income tax assets (long term). Consequently, the total assets at the end of the current
consolidated fiscal year were 16,181 yen, an increase by 1,643 million yen compared to the previous consolidated fiscal
year
As for liabilities, the increases by 150 million yen in short-term debts, and 438 million yen in provision for bonuses, and thedecreases by 205 million yen in long-term debts by repayment, compared to the previous consolidated fiscal year. As aresult, total liabilities at the end of the current consolidated fiscal year were 5,232 million yen, an increase by 405 million
yen compared with the previous consolidated fiscal year.
As for net assets, the net assets of 10,949 million yen in the current consolidated fiscal year, an increase by 1,238 million
yen, with the increases by 1,257 million yen in retained earnings, compared to the total net assets of the previous
consolidated fiscal year.

2) Analysis on consolidated cash flow status
As for the cash and cash equivalents (hereinafter referred to as ”capitals”) for the current consolidated fiscal year, the cash
inflow generated through operating activities reached 1,995 million yen, while the cash outflow incurred through investing
and financing activities were 1,061 million yen and 542 million yen respectively. As a result, the capitals for the current
consolidated fiscal year reached 5,638 million yen (increase by 378 million yen compared to the previous consolidated
fiscal year) with the addition of the exchange difference related to the capitals.

(Cash flow from operating activities)
The capitals acquired through operating activities reached 1,995 million yen, a decrease by 702 million yen compared tothe previous consolidated fiscal year.

The decrease of inflow is mainly attributable to the current net income before income taxes reaching 3,204 million yen(increase 482 million yen compared to the previous consolidated fiscal year), increase 438 million yen in provision forbonuses (increase 211 million yen compared to the previous consolidated fiscal year), and inflow 76 million yen in otheroperating activities (increase 180 million yen compared to the previous consolidated fiscal year) and inflow 93 million yen incompensation for office removal and deceases outflow 160 million yen in other current liabilities (increase 828 million yen
compared to the previous consolidated fiscal year), and out flow 1,731 million yen in corporate income tax payment(increase 1,000 million yen compared to the previous consolidated fiscal year)(Cash flow from investing activities)
The capital outflow by investing activities was 1,061 million yen, a increase by 456 million yen compared to the previous
consolidated fiscal year. This increase of the outflow is mainly 24 million yen inflow of collection of deposits for rent offices
and others in current consolidated fiscal year (decrease149 million yen compared to the previous consolidated fiscal year),and outflow 812 million yen in purchasing investment securities (increase 472 million yen compared to the previous
consolidated fiscal year), despite of 200 million yen inflow in proceeds from maturity of investment securities(Cash flow from financing activities)
The Capital outflow by financing activities was 542 million yen, a decrease by 94 million yen compared to the previous
consolidated fiscal year.
This is mainly due to the repayment of 214 million yen for long-term loan in current consolidated fiscal year (decrease 48
million yen compared to the previous consolidated fiscal year), and outflow 477 million yen in payment of dividends toshareholders and minority stockholders (increase 104 million yen compared to the previous consolidated fiscal year),
despite of inflow 150 million yen in short-term debt by new loan.

The Company’s cash flow index is as follows:
Fiscal year

Fiscal year ended

Fiscal year ended

Fiscal year ended

Fiscal year ended

ended 9/ 2004

9/ 2005

9/2006

9/ 2007

9/ 2008

Shareholders’ equity
63.6

62.9

64.2

60.0

60.8

380.7

292.8

189.6

230.0

182.9

Ratio (%)
Shareholders’ equity
Ratio at Market Price(%)
Cash flow -Interest
0.1

-

0.7

0.2

0.3

205.4

-

65.6

171.3

181.6

bearing debt ratio
Interest Coverage ratio(times)Shareholders’ equity ratio: Capital / Total assets

Shareholders’ equity ratio at market price:

Total market value of shares / Total assets

Cash flow - Interest bearing debt ratio: Interest bearing debt / operating cash flow
Interest coverage ratio:

Operating cash flow / Interest payment

Note:
1. Each index is calculated using the consolidated financial values.
2. The total market value of shares is calculated based on the number of shares issued at the end of each period
excluding common stock for treasury.
3. The cash flow uses net cash provided in operating activities in the consolidated cash flow statement of eachperiod.
4. The interest-bearing debt includes all debts of which interest is being paid among debts that are posted on the
consolidated balance sheet.

In addition, interest paid posted in the consolidated cash flow statement is used

for interest payment.

(1) Basic profit distribution policy and dividend for the current and next period
The Company considers it an important management agenda to improve the profit return to the shareholders while
reinforcing the business structure for the enhancement of profitability.

As for profit distribution, we basically intend to

distribute the profit steadily considering the improvement of our financial infrastructure to respond to rapid market
change, with yearly target dividend payout ratio set to 30%.
The Company intends to continue to pay out dividends twice a year as interim and year-end dividends even after the
implementation of the Corporate Law.
(JPY)
Interim Dividend

2.

Year end Dividend

AnnualCurrent period

2,400

3,000

5,400

Next period (forecast)

2,800

3,200

6,000

Status of the Corporate GroupAs there has not been major changes from “Business of Our Group” and “Status of our Group Companies” in ourrecent business report (issued on February 15, 2008), please refer to such report.

3.

Management Policy(1) Basic Management Policy of Our Group
Our Group has managed our businesses, setting it our basic management philosophy to provide services that will satisfy
our customers by pursuing, implementing, and establishing a business style to fulfill contracting missions of high efficiency
and high quality, while maintaining corporate compliance.
We are committed to managing our businesses to be “Ever Progressing System” as the Company name suggests, for the
purpose of further expanding our business and playing a role as the industry leader under the above management

philosophy.

(2) Target Management Index
Our Group set the management targets as below:-

Sales growth rate-

Ordinary profit rate approximately 13 to 15%

approximately 15%

Our Group is promoting the following management strategies to achieve the above targets.

In the above statement, the future target management index are based on prescribed assumption reasonably judged
by the Company at present, and any of each index are not guaranteed by the Company as such index may differ from
actual results.

(3) Mid and Long-Term Management Strategies
Our Group has managed our businesses, setting it our basic management philosophy to provide services that will satisfy
our customers by pursuing, implementing, and establishing a business style to fulfill contracting missions of high efficiency
and high quality, while maintaining corporate compliance.
We are committed to managing our businesses to be “Ever Progressing System” as the Company name suggests, for the
purpose of further expanding our business and playing a role as the industry leader under the above management
philosophy.

1)

Our Group has adopted the following specific management strategies.

Establishment of CRO businessIn order to respond to full-scale outsourcing of the development of pharmaceutical products, we will not only manage
clinical trials but also promote the establishment of a full-service system ranging from planning to pharmaceuticalapplications.
Furthermore, we also aim to establish our leading position in this industry as the CRO which can provide total support
for the development of pharmaceutical products including development of medical devices, an specified health foods
as well as active response to bio-venture-and doctor-led clinical trials.

2) Promotion of SMO business
As the clinical trial support service for medical institutions expands, EP-Mint Co., Ltd. our consolidated subsidiary,
promotes reinforcement of branch-based management system, achieving more effective management of sales andexpenses, and expanding its scope of SMO business with the aim of being ranked as top 3 in the industry.

3) Promotion of overseas business
EPS International Co., Ltd. will continue to take a leading rule in responding to the shift to international simultaneous
clinical development and decisions of the ICH* and pursue a synergy effect through collaboration between its Group
companies and branches, continue to develop the system for contracts of multi-national clinical trials, and improve
clinical contract services in overseas (especially East Asia).

* ICH (International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for
Human Use) is a conference held by administrative authorities of Japan, U.S, and EU to promote harmonization ofstandard of approval for pharmaceutical products.

4) Entry into drug discovery
In Japan, we intend to engage in the drug discovery business through capital investment, consulting and contractingof development services under partnership with bio-ventures, rather than being directly involved in this businessalone.
In China, we plan to develop our own strategy in drug discovery and development business through collaboration with
bio-ventures utilizing our local subsidiaries.

5) Reinforcement of group management
Currently, the EPS Group is composed of the Company and 14 consolidated subsidiaries that belong to the industry
related to the development of pharmaceutical products.

We consider it essential to recruit, develop and effectively allocate human resources in expanding our scope ofbusiness. We also intend to reinforce the group management by pursing the synergetic effect of launching new
business promotion and M&A.

(4) Agendas to be addressed by the Company
As the outsourcing from customers and their international diversification are expected to increase in the future, the entire
Group will work together to improve the quality via the reinforcement of QC/QA divisions, compliance with standardized
operating procedures and enhance skills through education and training.

As a part of these efforts, our divisions and departments handling clinical trial information (CRO services including
pharmaceutical products, medical devices and specified health foods, etc.) have been awarded ISO 27001 certification(valid until December 8, 2009) by the international certification institution. We will continue to develop our system toenhance the security of information management and to win more trust from our customers.
Furthermore, in order to respond to increasingly intensive cost competition, we will promptly establish the process
management system ranging from receipt of orders to delivery, improving the efficiency of our business.

CONSOLIDATED BALANCE SHEETSSEPTEMBER 30, 2008 AND 2007
(UNAUDITED)(IN THOUSANDS,JPY)ASSETS
CURRENT ASSETS
Cash and cash equivalents
Notes and accounts receivable
Investment securities
Inventories
Deferred tax assets
OthersAllowance for doubtful accounts
Total current assets

2008

2007

5,638,984
4,601,623
500,492
562,056
607,790
400,242△ 3,288
12,307,901

5,260,080
4,126,574
200,012437,696
391,347
540,529△ 1,523
10,954,717

420,635△ 211,667
282,876△ 179,497
177,777△ 70,929
419,193383,711△ 200,747
238,233△ 143,660
175,931△ 77,075
376,393

179,666
201,784
381,451

247,666
97,410345,077

832,702
831,360

1,074,612
681,724

FIXED ASSETS

Tangible Assets ;Leasehold improvements
Accumulated depreciation
Furniture and fixtures
Accumulated depreciation
Others
Accumulated depreciation
Total property and equipment

Intangible Assets ;Goodwill
OthersTotal intangible assets
Investments and other assets ;Investment securities
Deposits
Time deposits and banking arrangements
other than cash equivalents
Deferred tax assets
OthersAllowance for doubtful accounts
Total investments and other assets

500,000

500,000

569,486
349,142△ 10,000
3,072,691

320,997
293,724△ 10,000
2,861,059

Total fixed assets

3,873,335

3,582,530

TOTAL ASSETS

16,181,236

14,537,247

233,212150,000
205,700
1,070,965
1,088,414
57,0001,722,684
4,527,976

201,903－214,300
1,063,181
649,722－
1,861,952
3,991,058

200,000
282,215
209,060
12,840704,115405,700
258,448
155,023
16,722
835,895

5,232,092

4,826,953

1,875,251
1,825,431
6,463,232△ 321,437

1,875,251
1,825,298
5,205,599△ 322,080△ 36,111

66,076

3
33,6619,840,032

485
67,262
8,717,892

Minority interests
TOTAL NET ASSETS

1,109,111
10,949,144

992,401
9,710,293

TOTAL LIABILITIES AND NET ASSETS

16,181,236

14,537,247

LIABILITIESCURRENT LIABILITIES
Accounts payable
Short-term debt
Current portion of long-term debt
Income taxes payable
Provision for bonuses
Provision for loss on order received
OthersTotal current liabilities
LONG-TERM LIABILITIESLong-term debt
Provision for employee's retirement benefits
Provision for director's 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' equity

CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007
(UNAUDITED)
2008

2007

NET SALES

21,182,869

17,980,875

COST OF SALES

14,378,094

12,046,656

Gross profit

6,804,774

5,934,218

3,317,311

2,953,488

3,487,463

2,980,730

Interest income

42,22438,069Interest expenses△ 10,920△ 15,771

Gain on cancellation of life insurance

14,014

16,746

Service fee income

4,363

6,056

Gain or loss on consumption tax filing(△ loss)△ 3,273

14,618Equity in gain or loss of associated companies (△ loss)

11,722△ 5,708

Gain on sales of property and equipment

1,992

584

Gain on sale of investments in securities and subsidiaries

35,91351,186Compensation for office removal

8,650

61,080Loss on sales and disposal of property and equipment△ 30,495△ 61,266

Loss on devaluation of investment in securities△ 360,787△ 345,918

3,411△ 18,210

Other income (expenses)-net△ 283,182△ 258,533

Income before income taxes and minority interests

3,204,281

2,722,197

Current

1,726,381

1,409,739

Deferred△ 395,445△ 255,795

1,330,936

1,153,944

164,847

183,865

1,708,497

1,384,387(IN THOUSANDS,JPY)SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating income
OTHER INCOME (EXPENSES)

Others- net

INCOME TAXES

Total
MINORITY INTERESTSNET INCOME

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

(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

5,205,599△ 322,080△ 446,990
1,708,497
133

Sale of Common stock for treasury642△ 3,873

Others

Sub total

8,584,068△ 446,990
1,708,497
776△ 3,873

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

Balance at 30
September 2008－

133

1,257,633

642

1,258,409

1,875,251

1,825,431

6,463,232△ 321,437

9,842,478

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

Balance at 30
September 2007

66,076

Foreign currencytranslation
adjustments

Deferred gain on
hedges

485

67,262

Total evaluationand translation
adjustments

133,823

Changes during the period
Cash dividends
Net income
OthersTotal changes during the period

Balance at 30
September 2008

8,717,892

Minority interest

Total net assets

992,401

9,710,293△ 446,990
1,708,497
776△ 3,873

Sale of Common stock for treasury
Net increase/decrease in valuation,translation adjustment and minority
interest

Total
Shareholders'equity△ 446,990
1,708,497
776△ 3,873△ 102,187△ 102,187

△ 481
△ 481

△ 33,600△ 33,600△ 136,269△ 136,269△ 136,269
1,122,140

116,710
116,710△ 19,558
1,238,850△ 36,111

3

33,661△ 2,445

9,840,032

1,109,111

10,949,144

Minority interest

Total net assets

880,745

8,570,131

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△ 357,592
1,384,387△ 1,970

Sub total

7,559,243△ 357,592
1,384,387△ 1,970

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

Balance at 30
September 2007－－

1,024,824－

1,024,824

1,875,251

1,825,298

5,205,599△ 322,080

8,584,068

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

Balance at 30
September 2006

89,590

Deferred gain on
hedges－Foreign currencytranslation
adjustments

40,552

Total evaluationand translation
adjustments

130,142

Changes during the period
Cash dividends
Net income
Others
Net increase/decrease in valuation,translation adjustment and minority
interest
Total changes during the period

Balance at 30
September 2007

Total
Shareholders'equity7,689,386△ 357,592
1,384,387△ 1,970△ 357,592
1,384,387△ 1,970△ 23,514△ 23,514

485
485

26,70926,709

3,681
3,681

3,681
1,028,505

111,655
111,655

115,337
1,140,161

66,076

485

67,262

133,823

8,717,892

992,401

9,710,293

CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

(UNAUDITED)(IN THOUSANDS,JPY)
2008

2007

3,204,281

2,722,197

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
Amortization of goodwill
Increase in provision for bonuses
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 and subsidiaries
Loss on devaluation of investments in securities
Loss on sales and disposal of property and equipment
Changes in operating assets and liabilities:
Increase in accounts receivable-trade
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

148,816
68,789438,322
23,76654,036△ 45,254
10,920△ 35,913
360,787
30,495

109,352
61,983
226,430
30,844
24,524△ 39,569
15,771△ 51,186
345,918
61,266△ 481,773△ 140,573
34,259△ 160,376
85,4993,596,082
47,678△ 10,984
93,650△ 1,731,249
1,995,178△ 511,143△ 71,298
16,734
667,652△ 202,723
3,406,754
37,797△ 15,749

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 and subsidiaries
Proceeds from maturity of investment securities
Payment for deposit for rent office and others
Collection of deposits for rent office and others
Payment for insurance reserve fund
Others , Net
Net cash provided by (used in) investing activities△ 215,834△ 116,191△ 812,148
71,669200,000△ 175,406
24,474△ 60,472
22,860△ 1,061,050△ 197,211
173,885△ 52,289
31,592△ 605,009

150,000△ 214,300△ 447,392△ 30,508△ 777△ 542,978△ 12,244
378,904
5,260,080
5,638,984△ 263,200△ 357,397△ 15,813△ 1,553△ 637,964
13,1781,467,856
3,792,223
5,260,080

FINANCING ACTIVITIES:
Proceeds from borrowing short-term debt
Disbursements for repayment of long-term debt
Dividends paid
Dividends paid to 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－△ 731,149
2,697,652△ 178,665△ 37,714△ 439,793
95,186－－

STATEMENT OF ORDER ENTRY AND SALES BY ITEMSFOR THE YEAR ENDED SEPTEMBER 30, 2008

(UNAUDITED)(1) RESULT OF ORDER ENTRY
2008.09<2007.10.1-2008.9.30>(In Thousands, JPY)DIVISION

year-to-year
AMOUNT OF
ORDER ENTRY comparison (%)

ORDER
BACKLOG

CRO
Monitoring
10,142,884
12,473,050
103.9
Data Management
13,169,508
12,652,399
227.7
CRO others
2,302,493
682,742154.3
TOTAL OF CRO
25,614,885
25,808,192
150.3
SMO
3,746,449
3,456,723
88.4
Preclinical Service
1,087,560
115,001
89.2
1,282,948
352,168
System Development
87.0
TOTAL
31,731,844
29,732,085
132.4* These figures are expressed by sales price.
* These above figures do not include consumption tax.

year-to-yearcomparison (%)

129.4
236.0
176.5
167.7
108.0
99.4
73.7
155.0

(2) RESULT OF SALESDIVISION

2008.09<2007.10.1-2008.9.30>(In Thousands, JPY)

CRO
Monitoring
Data Management
OthersTOTAL OF CRO
SMO
Preclinical Service
System Development
TOTAL

7,309,976
5,878,383
2,006,665
15,195,024
3,490,979
1,088,309
1,408,555
21,182,869

year-to-yearcomparison (%)

122.0
119.8
150.7
124.2
105.3
87.0
119.2
117.8

INDUSTRY SEGMENT
FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

(UNAUDITED)(In Thousands,JPY)

2008 (2007.10.1-2008.9.30)
CRO
SALES
Sales to customers
Intersegment sales

Sales total
Operating expenses
Operating income

15,195,024
38,343
15,233,368
12,571,491
2,661,876

SMO
3,490,979
9,315
3,500,295
2,805,135
695,159

Preclinical
Service

SystemDevelopment

1,088,309
4,140
1,092,449
1,093,806(1,357)

1,408,555
90,8691,499,425
1,362,948
136,476

Preclinical
Service

SystemDevelopment

1,251,190
8,251
1,259,441
1,182,427
77,014

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

Total
21,182,869
142,668
21,325,537
17,833,382
3,492,1552007 (2006.10.1-2007.9.30)

Intersegment sales

Sales total
Operating expenses
Operating income

Consolidation－ 21,182,869(142,668)－(142,668) 21,182,869(137,976) 17,695,405(4,691)
3,487,463(In Thousands,JPY)
CRO

SALES
Sales to customers

Eliminations/
Corporate

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

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

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

Eliminations/
Corporate

Consolidation－ 17,980,875(159,488)－(159,488) 17,980,875(172,817) 15,000,144
13,3282,980,730