SOFTBANK CORP.
CONSOLIDATED Financial Report
For six months ended September 30, 1999 and 1998

FINANCIAL HIGHLIGHTS(1) FINANCIAL PERFORMANCE RESULTS(UNIT : YEN : millions, rounded down)

1999/9/30
201,579
3,685(11,298)(3,517)

1998/9/30
246,187
6,255(2,359)3,288¥-32.93¥32.16

Total Assets
Total Shareholders' Equity

1999/9/30
1,065,342
330,762

1998/9/30
1,187,242
232,008

Equity/Assets
Total Shareholders' Equity per Share

1999/9/30
31.0%¥3,035.43

1998/9/30
19.5%¥2,268.01

Net Sales
Operating IncomeOrdinary Income (Loss)Net Income
Earnings per Share(2) FINANCIAL CONDITION(UNIT : YEN : millions, rounded down)

CONSOLIDATED BALANCE SHEETS*Note 1Accounts

Thousands of
U.S. dollars
Millions of yen, rounded down
As of
As of
As of
September 30, 1999 September 30, 1998 September 30, 1999ASSETS
Current Assets:
Cash and cash equivalents
Notes and accounts receivable
Marketable securities
Inventories
Deferred tax assets
Other current assets
Allowance for bad debts(short-term)
Total current assets
Fixed Assets:
Property, plant and equipment(net)
Intangible fixed assets:
Goodwill
Consolidation adjustment
Other intangible assets

Investments and Advances:
Investments in securities
Long-term loans
Deferred tax assets
Other investments
Allowance for bad debts(long-term)

Deferred charges:
Stock issuance costs
Bond issuance costs
Other deferred charges

174,188
102,449
65,635
18,4997,375
69,691(7,276)
430,562

49,834
116,625
27,121
28,25046,442(2,395)
265,879

1,628,686
957,915
613,698
172,969
68,957
651,622(68,032)
4,025,825

16,166

15,631

151,155
1,583,590

196,027
365,393

199,648189
396,420596,259

1,832,885
3,416,484

203,145
4,978
27,71917,770(1,097)
252,517

158,606
135,816874
13,880(2,292)306,885

1,899,439
46,545259,177
166,152(10,257)
2,361,075

-

54
2,533
2,587

3,721
2,833
6,564

-

-

-

169,365
-

398
303
702

Consolidation adjustment

TOTAL ASSETS

1,065,342

1,187,242-

9,961,122Note 1: Yen figures have been translated into U.S. dollars, for convenience only at ¥106.95 = $1.00, the approximate exchange rate
prevailing on September 30, 1999.

CONSOLIDATED BALANCE SHEETS*Note 1

Accounts

Thousands of
U.S. dollars
Millions of yen, ronded down
As ofAs of
As of
September 30, 1999 September 30, 1998 September 30, 1999

LIABILITIESCurrent Liabilities:
Accounts payable - trade
Short-term loan payable
Straight bonds payable within a year
Convertible bonds payable within a year
Income taxes payable
Accrued expenses
Deferred tax liabilities
Allowance for sales return and rebates
Other current liabilities
Total current liabilities
Long-term Debt:
Bonds payable
Convertible bonds payable
Long-term notes payable
Long-term deferred tax liabilities
Consolidation adjustment
Other non-current liabilities

39,28950,26815,90033
14,82523,466
11,836
6,557
51,065
213,242

45,45930,54019,600367,359
470,014148,668-9,30920,299138,616
219,411
110,669
61,309477,466
1,993,848

13,04439,454
177,707

199,984
17,464
158,048
23,751291
27,146426,686

25,777657,387

1,869,883
163,291
1,477,775
222,076
2,721
253,820
3,989,584

7,503

49,81070,154TOTAL LIABILITIES

647,432

884,906

6,053,595

MINORITY INTEREST

87,14670,328814,829

120,216
144,386
46,887
19,427(154)
330,762

102,083
122,421
10,185(1,513)(1,167)232,008

1,124,039
1,350,033
438,401
181,646(1,440)3,092,679

1,065,342

1,187,242

9,961,122

Cumulative translation adjustments

SHAREHOLDERS' EQUITY
Shareholders' Equity:
Common stock
Additional paid-in capital
Retained earnings
Unrealized loss on marketable equity securities
Treasury StockTOTAL SHAREHOLDERS' EQUITYTOTAL LIABILITIES, MINORITY INTEREST
AND SHAREHOLDERS' EQUITY

168,41553,281
390,706
19,207-Note 1: Yen figures have been translated into U.S. dollars, for convenience only at ¥106.95 = $1.00, the approximate exchange rate
prevailing on September 30, 1999.

SOFTBANK CORP. and Subsidiaries
Consolidated Statements of Income*Note 1Millions of yen, rounded down

Accounts

Thousands ofU.S. dollars

For six months ended For six months ended For six months ended
September 30, 1999
September 30, 1998
September 30, 1998

Net Sales
Cost of Sales
Gross Profit

201,579
130,863
70,715

246,187
164,353
81,834

1,884,7971,223,590
661,197

Selling, General and Administrative Expenses
Operating Income

67,0293,685

75,5786,255

626,732
34,455

Non-Operating Income:Non-Operating Expenses:
Ordinary Income

6,105
21,089(11,298)

16,005
24,620(2,359)57,083
197,186(105,638)

Extraordinary Income
Extraordinary Loss
Income Before Income Taxes

90,79386,732(7,237)

14,133
4,761
7,011

848,929
810,958(67,667)

Provision for Income Taxes
Cumulative effect of an accounting change
Minority Interest
Net Income

13,370(14,686)(2,404)(3,517)

5,179

125,012(1,456)
3,288(22,478)(32,885)

Retained Earnings :Beginning Balance (as of 3/31/99)

52,55623,266

491,407

Increase of retained earnings due to changes in the companies
accounted for on a consolidated basis.

Cash Dividends
Directors' Bonus

5

1,104

47

(2,095)(61)(4,088)(53)(19,589)(570)-(13,332)

438,401

Cumulative effect of accounting for the purchase of MAC assets
by the pooling of interests method.

Ending Balance (as of 9/30/99)

46,887

10,185Note 1: Yen figures have been translated into U.S. dollars, for convenience only at ¥106.95 = $1.00, the approximate exchange rate
prevailing on September 30, 1999.

Segment Information
A. Business Segment(Unit: YEN : millions, rounded down)
Software andNetwork

Net Sales and Operating
Income :Net Sales(1)Net Sales to1
outside customers(2) Inter-Segment
net sales
Total
Operating Expense
Operating Income
Assets, Depreciation
and Capital Expenditures :2Assets
Depreciation
Capital Expenditures

Finance

For six months ended September 30, 1999
TechnologyInternet
Other
EventsMedia

Total

Elimination or
Unallocable
Amounts

Consolidated
Total

201,579

115,193

6,900

47,18012,480

8,042

11,782201,579

-

1,770

877

65

25

316

1,113

4,168

(4,168)116,964
113,762
3,201

7,777
2,916
4,860

47,24550,166(2,921)

12,505
11,941
564

8,358
7,680
677

12,896
12,806
90

205,748
199,274
6,473(4,168)(1,381)(2,787)

201,579
197,893
3,685

141,911567
544

96,06088
638

276,537
6,968
2,852

145,304
2,246
71

157,962645
590

93,2001,274
771

910,978
11,790
5,469

154,3647
311,065,342
11,797
5,500(Unit: YEN : millions, rounded down)
Software andNetwork
Net Sales and OperatingIncome :Net Sales(1)Net Sales to1
outside customers(2) Inter-Segment
net sales
Total
Operating Expense
Operating Income
Assets, Depreciation
and Capital Expenditures :2Assets
Depreciation
Capital Expenditures

For six months ended September 30, 1998
TechnologyServices
Other
Events

Media

Total

Elimination or
Unallocable
Amounts

Consolidated
Total

246,187

99,86264,017

14,18164,492

3,633

246,187

-19

19

2

2,929

208

3,180

(3,180)99,882
96,901
2,981

64,036
63,644392

14,184
13,744440

67,422
65,661
1,761

3,841
3,162
679

249,368
243,113
6,255(3,180)(3,181)0246,187
239,9316,255

122,534690
458

371,7837,606
843

158,4412,569
548

297,370
4,631
1,172

202,225966
94

1,152,355
16,463
3,116

34,88674
43

1,187,241
16,5373,160

Note 1:
1 : The classification of business segments to be adopted is based on the one which has been used for management purposes.
2 : The Company operates principally in the following business segments:
1) Software and network
Distribution of PC software, PC hardware and network related products and Internet-related business.
2) FinanceOperate an online brokerage and other financial services as well as manage various venture funds.
3) Media
Publishing of PC-related books and magazines, game multimedia titles, Magazines used as medium for advertising business,
Manuals and catalogues produced on consignment, and Digital satellite broadcasting business.
4) Technology Events
Computer trade show operations.
5) Internet
Investment in internet-related business, Internet directory services.
5) OtherE-commerce related technology and service related businesses.

Note 2:
The amounts of operating expeneses included in the column "Elimination or Unallocable Amounts" is 3,282 million yen,which primarily consists of Sales, General & Administrative expenses incurred by newly established ventures.

Note 3:
The amounts of assets included in the column "Elimination or Unallocable Amounts" is 163,670 million yen, which
includes surplus assets (cash and securities), long-term investment in securities and assets by newly established ventures.
Note 4:
Depreciation and capital expenditure include long-term prepayments and deferred charges and their amortization.

Note 5:
Following the sale of Kingston Technology Company and pursant to consolidated financial accounting standard 39-3, the technology
segment will be included in the other segment due to the decline in the importance of the business segment.

--B. Geographic Areas(Unit: YEN : millions, rounded down)
For six months ended September 30, 1999
North
Other
Total
Elimination or Consolidated
America
Unallocable
Total
AmountsJapan

Net Sales and Operating
Income (Loss) :Net Sales(1)Net Sales to1
outside customers(2) Inter-Segment
net sales
Total
Operating Expense
Operating Income
2 Assets

132,781

52,67013

139132,795
122,224
10,570181,22252,80957,116(4,306)652,083

16,127

201,579--153(153)

16,127
16,270(142)
68,470201,732
195,6116,120
901,777

(153)
2,281
(2,434)
163,565

201,579
201,579
197,893
3,685
1,065,342(Unit: YEN : millions, rounded down)
For six months ended September 30, 1998
NorthEurope
OtherAmerica

Japan

Net Sales and Operating
Income (Loss) :Net Sales(1)Net Sales to1
outside customers(2) Inter-Segment
net sales
Total
Operating Expense
Operating Income
2 Assets

103,049

112,018

29

1,494

-

103,079
98,364
4,715
275,966

113,513
113,888(375)
856,958

18,372
20,248(1,876)
22,618Note 1Geographic classifications
1: Methodology for classification
2: Geographic areas

18,372

Total

12,747

Elimination or Consolidated
Unallocable
Total
Amounts

246,187-

246,187-

1,523(1,523)-

12,747
10,272
2,475
38,804

247,711242,773
4,937
1,194,347(1,523)(2,842)
1,319(7,105)

246,187
239,9316,255
1,187,242

Degree of relative distance to geographic areas
North America:United States, Canada
Other:Engliand, Germany, France, China, Hong Kong, Singapore(Note: Comparative period was comprised mainly of England, Germany and France.)

Note 2:
The amounts of operating expeneses included in the column "Elimination or Unallocable Amounts" is 3,282 million yen,which primarily consists of Sales, General & Administrative expenses incurred by newly established ventures.

Note 3:
The amounts of assets included in the column "Elimination or Unallocable Amounts" is 163,670 million yen, which
includes surplus assets (cash and securities), long-term investment in securities and assets by newly established ventures.

C. Net Sales in Overseas Countries

Net Sales in overseas
countries (A)Consolidated
Net Sales (B)Ratio (A) / (B)For six months ended September 30, 1999
North
Other
Total
America
69,01852,414
16,604Note 1
Geographic classifications
1: Methodology for classification
2: Geographic areas(Unit: YEN : millions, rounded down)
For six months ended September 30, 1998
NorthEurope
Other
Total
America
147,207108,038
21,77817,389--201,579---

246,187

26%

8%

34%

44%

9%

7%

60%

Degree of relative distance to geographic areas
North America:United States, Canada
Other:Engliand, Germany, France, China, Hong Kong, Singapore(Note: Comparative period was comprised mainly of England, Germany and France.)