Financial Highlights
1. CONSOLIDATED FINANCIAL RESULTS OF EPS GROUP FOR THE SECOND QUARTER
ENDED MARCH 31, 2009(2008.10.1-2009.3.31)(UNAUDITED)(1) CONSOLIDATED OPERATING RESULTS( UNIT:JPY MILLION )Operating Income

Net sales䇭䋭 )23.6% )

Mar-09Mar-08

11,687 (
10,472 (Mar-09Mar-08Net Income per Share(yen)
6,275.55
10,019.36

1,966 (
1,741 (

Ordinary Income

䇭䋭 )31.0% )

1,980 (
1,777 (Net Income䇭䋭 )31.4% )

561 (
895 (

䇭䋭 )
42.1% )Net Income per
Share,diluted (yen)6,270.32
10,003.30

Note : 1 Percentages for net sales, operating income, ordinary income, and net income indicate growth ratio
to previous year.
2 Percentage for current period is not prepared because quartly accounting standards, as defined andpublished by Accounting Standards Board of Japan, are applied for the first time from this year.

(2) CONSOLIDATED FINANCIAL INFORMATION
Total Assets

Net assets

15,59816,181

11,008
10,949Mar-09Sep-08

Shareholders'Equity ratio (%)
63.7%
60.8%

( UNIT:JPY MILLION )Shareholders' Equity
per share (yen)111,101.75
110,067.48(3) CONSOLIDATED CASH FLOW INFORMATION( UNIT:JPY MILLION )Mar-09Mar-08Net cash provided by(used in) operating
activities
911
690

Net cash provided by(used in) financing
activities
ٌ 406
ٌ 320

Net cash provided by(used in) investing
activities
ٌ 162
ٌ 300

Ending balance of cash
and cash equivalents
5,942
5,292

(4) CONSOLIDATED SUBSIDIARIES
Consolidated subsidiaries :Affiliated companies by equity accounting method :15
4companies
companies

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

Sep-09Interim Dividend
2,400.00
2,800.00䋭Cash Dividends per share
Year end Dividend
3,000.00
䋭3,200.00

Annual5,400.00
6,000.00

3. INFORMATION OF CONSOLIDATED BUDGET 2009.09 (2008.10.1-2009.9.30)( UNIT:JPY MILLION )Net sales
Sep-0925,013 (Operating Income
18.1% )

Budgeted net income per share :3,784 (
Sep-09Ordinary Income

8.5% )

3,835 (

7.7% )Net Income
1,827 (

20,440.64

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 number of shares issued and outstanding as of :Mar-0990,400sharesSep-0890,400sharesSep-08

1,000

shares(2) Common stock for treasury as of :Mar-091,000

shares(3) Average number of shares outstanding during the period as of :Mar-0989,400sharesMar-0889,398shares

7.0% )

Financial Highlights
CONSOLIDATED FINANCIAL RESULTS OF EPS GROUP FOR THE SECONDQUARTERENDED MARCH 31, 2009

1. Qualitative Information on Consolidated Operating Results
As the Japanese economy in the current second quarter period (from 1 October 2008 to
31 March 2009) was affected by the “once-in-100 years” global economic downturn, theeconomy is deteriorating as characterized by employment insecurity and other related
factors against the backdrop of rapid decline of corporate sector’s performance.

Even

under such circumstances, the CRO (Contract Research Organization) industry and theSMO (Site Management Organizations) industry, in which one of our consolidated
subsidiaries EP-Mint Co., Ltd., operates, are continuing to grow in the process ofreorganization as the impact of economic downturn has remained minimal.

The

pre-clinical study industry, in which our LSG. Co., Ltd. Group operates, is also
performing steadily.

However, in the software development industry, in which our All

Right Software Inc. Group operates, the significant impact of economic downturn has
softened the demand.
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-marketingstages, centering on implementation of existing projects, acquisition of new projects andtesting for anti-cancer, diabetes, high blood pressure and CNS (Central Nerves System)
drugs. The sales has steadily increased compared with the same period in previous year.
As for the data management service, statistical analysis service and pharmacovigilanceservice, the Biometrics Division is vigorously pushing forward with both
implementation of existing projects and acquisition of new projects.

For each service,

the sales have increased compared with the same period in previous year.
In registration and project management service, acquisition of new projects has been
vigorously pursued, however, sales have become minor decrease compared with thesame period in previous year.

Also, the data center service that had been mainly working on post-marketingsurveillanceand other contracts reviewed its structure in the first quarter, leading to

the flexible structure where contracted projects can be accepted according to their size.
The sales for this service have achieved a large increase compared with the same period
in previous year with the great contribution from the Special Drug Use Survey
contracted during the last consolidated fiscal year.
The Clinical Coordination Center, which provides new business planning andassociated services, now incorporates medical device development service as a result of
the structural review and will continue to vigorously push forward with new businessacquisition.
On the non-consolidated basis, sales have steadily developed in almost all departments
and sales increase due to steady development of contracted projects, costs saving efforts
and other factors has led to a significant increase in income as well as profit comparedto the same period in previous year.
As regards our consolidated subsidiaries in Japan, E-trial Co., Ltd., which wasestablished for the purpose of acquiring clinical trial contracts using the EDC system, is
continuously striving to acquire new contract orders.

Although sales have increased,

costs of forward investment, such as labor costs have also increased.

EP-Mate Co.,

Ltd., engaged in the staff dispatching service (dispatched CRO business) for
pharmaceutical companies, saw an unchanged turn-over, however, the costs of new staff
recruitment have increased.
Moreover, EP-Medical Co., Ltd., providing a MR(Medical Representatives) dispatching
service (CSO business), has been improving its performance through executing big
projects contracted during the previous consolidated fiscal year and also winning newcontracts which has led to a large increase in sales and profit.
On the other hand, as for our overseas CRO business, EPS International Co., Ltd.,
together with its group companies, is continuing to improve a structure to deal with theincreased demand for CRO services relating to clinical trials across borders (especiallythose in Asia).
Individually, EPS International Co., Ltd., is progressing in execution of contracted

projects which has led to increase in sales and profit compared with the same period in
previous year.

EPS International (China) Co., Ltd., is making efforts to acquire neworders while conducting operations in the finishing stage of a big project carried on since
the previous consolidated fiscal year, however, is also facing difficulties and as a result,sales and profit have decreased compared with the same period in previous year. EPSSingapore has been smoothly performing contracts acquired in the previous
consolidated fiscal year while promoting new customer acquisition activities on its own
and achieved a large increase in sales and profit.

ADM Korea Inc., providing a clinical

trials contract service in Korea, is improving a structure for joint contracts in Korea andis seeing an increases in sales compared with the same period in previous year.
However, profit has decreased despite the increase in sales due to rise incosts offorward investment including facility costs and labor costs.
Furthermore, the Taiwan Branch of EPS International Co., Ltd.has started executing
contracts and its performance is improving.
Additionally, the Company established EPS China Co., Ltd. in December 2008, awholly- owned subsidiary of the Company in Suzhou, Jiangsu Province of China withthe purpose of supervising various businesses of Group companies in China as well as
expanding the CRO, IT and drug discovery businesses.
Consequently, our consolidated net sales for the CRO business amounted to ¥8,553
million, up 17.5% compared with the same period in previous year, and consolidated
operating income was ¥1,709 million, up 39.5% on the same basis.
The SMO business is operated by EP-Mint Co., Ltd.
EP-Mint Co., Ltd. has been continuously working towards enhancing 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,
however, there has been some delay in the progress of contracted projects.
Consequently, in our SMO business, consolidated net sales amounted to ¥1,633
million ,down 9.3% compared with the same period in previous year and theconsolidated operating income of ¥207 million ,down 46.3% on the same basis.
The pre-clinical study business is operated by LSG Corporation Group.
Within the LSG Group, Simian Conservation Breeding & Research Center, Inc., asubsidiary, is engaged in sales of laboratory animals to new customers and the wholeGroup is making cost saving efforts.
Consequently, our pre-clinical study businesses posted the consolidated net sales of¥532million ,down 13.3% compared with the same period in previous year andconsolidated operating income of ¥37million ,up 590.5% on the same basis.
The software development business is operated by All Right Software Inc Group.
All Right Software Inc. acquired through business transfer from Digital Technology Co.,
Ltd. on October 2008, the software development business and visual communication
business mainly marchandising TV conference system.

Although the company isvigorously pushing forward with winning new contracts while streamlining thecompany structure after acquisition and pursuing synergy effect with existing
businesses, it is facing difficulties with impact of economic downturn, together with All
Right Software Beijing Co., Ltd. and Qingdao Tidever Software Co., Ltd.
Consequently, in our software development business, the consolidated net sales
amounted to ¥1,013 million ,up 19.9% compared with the same period in previous year
and the consolidated operating income was ¥5 million ,down 95.0% on the same basis.
After deducting inter-segmental transactions from the segmental figures shown above,the consolidated net sales amounted to ¥11,687 million ,up 11.6% compared with thesame period in previous year, the consolidated operating income was ¥1,966 million ,up
12.9% on the same basis and the consolidated ordinary income was ¥1,980 million ,up
11.4% on the same basis, showing an increase in sales and profit.

When posting thereversal of deferred tax assets to deferred income tax, in addition to posting theimpairment loss on goodwill and devaluation loss on investment securities to theextraordinary loss by the Company, the quarterly net income has reached ¥561
million ,down 37.4% on the same basis.
The percentage changes compared with the same period during the previous year arestated for reference, as quarterly accounting standards are defined and published by
Accounting Standards Boards of Japan are applied for the first time from this fiscal
year.
2. Qualitative Information on the Consolidated Financial Status

Total assets at the end of the current quarter amount to ¥15,598 million, down by ¥582
million from the end of the previous consolidated fiscal year.
Current assets total ¥12,044 million, a decrease by ¥263 million.

While cash and cash

equivalents increased by ¥303 million, investment securities decreased by ¥400 million
due to redemption and other current assets also decreased by ¥100 million.

Fixed

assets total ¥3,553 million, a decrease by ¥319 million. While deposits increased by¥115 million, investment securities decreased by ¥243 million due to posting ofdevaluation loss and unrealised loss in market value evaluation as well as other assets
also decreased by ¥206 million.
In liabilities, total liabilities at the end of current quarter amounted to ¥4, 590 million,a decrease by ¥642 million mainly due to decrease in income taxes payable andprovision for bonuses by ¥355 million and ¥260 million respectively.
Net assets at the end of current quarter totaled ¥11,008 million, an increase by ¥59
million.

While retained earnings increased by ¥292 million, unrealized gain on

available-for-sale securities, foreign currency translation adjustments and minority
interests decreased by ¥144 million, ¥55 million and ¥33 million respectively.
As regards the status of cash flow, the cash flow in operating activities, inflow
amounted to ¥911 million, consisting ¥1,733 million of net income before income taxes,¥262 million gain by adjustments of mainly depreciation expenses, amortization andimpairment loss, ¥107 million gain by adjustment of devaluation on investment
securities, ¥257 million gain by decrease in bonus provisions and ¥1,045 million
payment for income taxes.
As regards the cash flow in investing activities, the outflow of ¥162 million wasrecorded. While inflow of ¥411 million was received due to sales and redemption of
investment securities, disbursements were made in acquisition of tangible andintangible assets, purchase of investment securities, payment for deposits andacquisition of business in amounts of ¥102 million, ¥113 million, ¥114 million and ¥213
million respectively.
As regards the cash flow in financial activities, the outflow was made for ¥406 million

consisting of disbursement of ¥105 million for repayment of long-term debts and ¥300
million for payment of dividends to shareholders as well as minority shareholders.
As a result of the above status, after adding the decrease of ¥38 million for effect of
exchange difference on cash and cash equivalents, the cash and cash equivalents at theend of current quarter increased by ¥303 million to ¥5,942 million.
3. Qualitative Information on outlook of Consolidated Performance in current fiscal year
The Japanese economy is expected to experience continuing uncertain situations due toglobal recessions stemming from sub-prime loan crisis in the United States, fluctuationin currency exchange rates and other factors.
Our CRO business is mainly composed of the Clinical Development Division responsible
for monitoring and Biometrics Division responsible for services such as data
management, Data center for post-marketing surveillance , statistical analysis,
registration & project management, off-shore businesses, medical writing,pharmacovigilance, supplemented by the Clinical Coordination Center, in charge of new
business planning and associated services as well as clinical development in the area of
medical devices and the Business Development Division, which engages in informationcollection and order receiving activities.
In addition to acquisition of new contracts, we will further focus on monitoring, data
management services and Data center to achieve our full-year profit plan by further
enhancing the operating rate, reducing expenses and collaborating with subsidiaries in
China through our newly set-up off-shore data management office.
As regards our consolidated subsidiaries, E-Trial Co., Ltd. will continuously strive toacquire new orders centering on EDC based contracts from pharmaceutical companies
and medical research facilities.
EP-Mate Co., Ltd., a dispatched CRO service provider, will continue to expand its
business with focus on the Company and pharmaceutical companies. EP-Medical Co.,
Ltd., providing CSO services including MR dispatching, will aim to improve
performance by executing projects contracted during the previous consolidated fiscal
year and continuously pursuing to acquire new projects.

As for our overseas businesses, EPS International Co., Ltd., will play the main role incontinuing the development of the structure for acquiring contracts of multinational
clinical trials, and together with its group companies, EPS China Co., Ltd., EPS
Singapore and ADM Korea Inc., as well as EPS International Taiwan Branch, will
pursue the synergy effect of its collaboration , aim to enhance overseas clinical trial
services, endeavor to execute contracted projects and acquire new contracts mainly in
Asia.
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 branch-based management system.
LSG Co., Ltd., engaged in pre-clinical studies, intends to expand its operation bycontinuing to increase its agency revenue through greater number of contracts with thenew partners, overseas pre-clinical trial institutions and adding a new growing field,
such as laboratory animal supply and special feed.
All Right Software Inc., a software developer, will continue to proceed with streamlining
the company structure, integrate existing and newly acquired businesses and pursue
the synergy effect of software development business and visual communication businesswhile making use of Chinese IT engineers . Together with the group companies, All
Right Software (Beijing) Co, Ltd. and Qingdao Tidever Software Co., Ltd., it will
promote SE service contracts and off-shore software development in communication-,
finance-, and network-related fields, as well as vigorously push forward with winning
new contracts for TV conference system.
Accordingly, the Company does not revise its full consolidated forecast for the fiscal
year ending September 2009 announced on November 7, 2008.

CONSOLIDATED BALANCE SHEETSMarch 31 2009 and September 30, 2008
(UNAUDITED)(IN THOUSANDS,JPY)ASSETS
CURRENT ASSETS
Cash and cash equivalents
Notes and accounts receivable
Investment securities
Inventories and products
Work in progress
OthersAllowance for doubtful accounts
Total current assets

March 31.2009

September 30.2008

5,942,388
4,543,022
100,269
244,452
309,901
907,690
ٌ 2,851
12,044,872

5,638,984
4,601,623
500,492
234,108
327,948
1,008,032
ٌ 3,288
12,307,901

FIXED ASSETS
Tangible䇭Assets
Intangible Assets
Investments and other assets ;Investment securities
Deposits
OthersTotal investments and other assets

435,002381,092

419,193
381,451

588,885
946,583
1,202,147
2,737,617

832,702
831,360
1,408,628
3,072,691

Total fixed assets

3,553,712

3,873,335

TOTAL ASSETS

15,598,585

16,181,236

LIABILITIESCURRENT LIABILITIES
Accounts payable
Short-term debt
Current portion of long-term debt
Income䇭taxes䇭payable
Provision for bonuses
Provision for loss on order received
OthersTotal current liabilities

259,875
150,000
200,000
715,805
828,056
98,0501,714,151
3,965,938

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

100,000
288,752
223,284
12,041
624,078

200,000
282,215
209,060
12,840704,115TOTAL LIABILITIES

4,590,017

5,232,092

Common stock
Additional paid-in capital
Retained earnings
Common stock for treasury
Unrealized gain (or 䂦loss) on
available-for-sale securities
Deferred gain (or 䂦loss) on hedges
Foreign currency translation adjustments
TOTAL SHAREHOLDERS' EQUITYMinority interests
TOTAL NET ASSETS

1,875,251
1,825,431
6,756,066
ٌ 321,437

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

ٌ 180,908

ٌ 36,111

157
ٌ 22,065
9,932,496
1,076,072
11,008,568

3
33,6619,840,032
1,109,111
10,949,144

TOTAL LIABILITIES AND NET ASSETS

15,598,585

16,181,236

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

NET ASSETSCONSOLIDATED STATEMENTS OF INCOME
For the Second quarter ended March 31 2009 and 2008
(UNAUDITED)(IN THOUSANDS,JPY)
NET SALESCOST OF SALES
Gross profit
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating income
OTHER INCOME (EXPENSES)Interest income
Interest expenses
Foreign exchange gain ( or 䂦loss)
Gain on sale of investments in securities
Loss on sales and disposal of property and equipment
Loss on devaluation of investment in securities
Impairment loss on goodwill
Others- net
Other income (䂦expenses)-net
Income before income taxes and minority interests
INCOME TAXES
Current
Deferred
Total
MINORITY INTERESTSNET INCOME

Second quarter
ended
March 31.2009

Second quarter ended
March 31.2008

11,687,577
7,966,361
3,721,215
1,754,850
1,966,364

10,472,704
7,099,353
3,373,351
1,632,157
1,741,193

15,841
ٌ 5,519
ٌ 7,0638,320
ٌ 8,078
ٌ 107,548
ٌ 125,666
ٌ 3,027
ٌ 232,741
1,733,623

20,122
ٌ 5,733
5,069
26,500ٌ 20,288
ٌ 113,145
䋭
45,698
ٌ 41,776
1,699,417

698,104
427,127
1,125,232
47,356
561,034

834,138
ٌ 125,836
708,302
95,404
895,710

CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Second quarter ended March 31 2009 and 2008
(UNAUDITED)(IN THOUSANDS,JPY)
Second quarter ended
March 31.2009
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
Impairment loss on goodwill
Increase (䂦Decrease) 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
Loss on devaluation of investment in securities
Gain (or loss) on sales and disposal of property and equipment (net)
Changes in operating assets and liabilities:
Decrease (䂦Increase) in accounts receivable-trade
Decrease (䂦Increase) in inventories
Increase (䂦Decrease) in accounts payable -trade
Increase (䂦Decrease) in other current liabilities
Others , Net
SubtotalInterest and dividends received
Interest paid
Compensation for office removal
Income taxes paid
Net cash provided by (䂦used in) operating activities

Second quarter ended
March 31.2008

1,733,623

1,699,417

136,690
125,666
ٌ 257,621
6,536
14,224
ٌ 17,191
5,519
ٌ 8,320
107,548
7,347

105,609䋭
186,1446,536
39,285
ٌ 21,472
5,733
ٌ 26,500
113,145
18,64544,320ٌ 11,970
29,777
ٌ 30,125
55,484
1,941,509
21,542
ٌ 5,519䋭ٌ 1,045,628
911,904

ٌ 219,809
ٌ 99,996
87,562
ٌ 244,963
ٌ 1,654
1,647,683
22,476
ٌ 5,800
85,000ٌ 1,058,633
690,726

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 and maturity of investments securities
Payment for deposit for rent office and others
Payments for acquisition of business
Others , Net
Net cash provided by (䂦used in) investing activitiesٌ 87,018
ٌ 15,290
ٌ 113,519
411,770
ٌ 114,841
ٌ 213,753
ٌ 30,138
ٌ 162,792

ٌ 113,511
ٌ 21,181ٌ 300,614
148,000ٌ 49,407
䋭
35,983
ٌ 300,731

FINANCING ACTIVITIES:
Disbursements for repayment of long-term debt
Dividends paid
Dividends paid for minority stock holders
Others , Net
Net cash provided by (䂦used in) financing activities
EFFECT OF EXCHANGE DIFFERENCE ON CASH & CASH EQUIVALENTS
NET INCREASE (䂦DECREASE) IN CASH AND CASH EQUIVALENTS
BEGINNING OF BALANCE,CASH AND CASH EQUIVALENTS
ENDING OF BALANCE,CASH AND CASH EQUIVALENTS

ٌ 105,700
ٌ 268,851
ٌ 31,661
ٌ 776
ٌ 406,989
ٌ 38,718
303,4035,638,984
5,942,388

ٌ 107,700
ٌ 231,480
ٌ 30,508
49,223
ٌ 320,465
ٌ 37,504
32,0255,260,080
5,292,105

STATEMENT OF ORDER ENTRY AND SALES BY ITEMS(UNAUDITED)(1) RESULT OF ORDER ENTRY

DIVISION

2009.3<2008.10.1-2009.3.31>(IN THOUSANDS, JPY )AMOUNT OF
ORDER ENTRY

ORDER
BACKLOG

CRO
Monitoring
Data Management

3,471,476 12,074,687
3,767,245 12,891,104
CRO others
1,126,933
664,423
TOTAL OF CRO
8,365,655 25,630,215
SMO
1,910,390
3,733,980
Preclinical Service
518,418
102,613814,439
186,602
System Development
TOTAL
11,608,903 29,653,412* These figures are expressed by sales price.
* These above figures do not include the consumption tax.

(2) RESULT OF SALESDIVISION

2009.3<2008.10.1-2009.3.31>(IN THOUSANDS, JPY )CRO
Monitoring
Data Management

3,869,839
3,528,540
CRO others
1,145,252
TOTAL OF CRO
8,543,631
SMO
1,633,133
530,806
Preclinical Service
980,005
System Development
TOTAL
11,687,577* These above figures do not include the consumption tax.

INDUSTRY SEGMENT INFORMATION(UNAUDITED)2009 (2008.10.1-2009.3.31)

SALES
Sales to customers
Intersegment sales
Total
Operating income

CRO

SMO

8,543,631
10,2908,553,922
1,709,323

1,633,133
䋭
1,633,133
207,910Preclinical
Service

SystemDevelopment

Total

530,806
2,070
532,876
37,195980,005
33,8301,013,835
5,936

11,687,577
46,19011,733,767
1,960,366

Preclinical
Service

SystemDevelopment

612,5102,070
614,580
5,386

793,373
52,306845,679
117,769

2008 (2007.10.1-2008.3.31)

SALES
Sales to customers
Intersegment sales
Total
Operating income

CRO

SMO

7,273,037
9,885
7,282,923
1,225,564

1,793,782
7,637
1,801,420
386,970

Total
10,472,704
71,89910,544,603
1,735,691(IN THOUSANDS, JPY)
Eliminations/
Consolidation
Corporate䋭 11,687,577(46,190)䋭
(46,190) 11,687,577
5,998
1,966,364(IN THOUSANDS, JPY)
Eliminations/
Consolidation
Corporate䋭 10,472,704(71,899)
䋭
(71,899) 10,472,704
5,502
1,741,193