Gulliver International Co., Ltd.

Non-Consolidated Results
First Quarter of the Fiscal Year Ending February 29, 2008
(Three-month period ended May 31, 2007)

This document has been translated from the original Japanese as a guide for non-Japanese investors. It
contains forward-looking statements based on a number of assumptions made and beliefs held bymanagement in light of information currently available. Actual financial results may differ materiallydepending on a number of factors, including changing economic conditions and the pricing and productinitiatives of new and existing competitors.

SUMMARY OF FINANCIAL STATEMENTS (Non-Consolidated)
First quarter results for the fiscal year ending February 29, 2008

Gulliver International Co., Ltd.

July 6, 2007

Stock Code: 7599
http://www.glv.co.jp/
President: Kenichi Hatori
1. Notes to preparation of these financial statements
Adoption of simplified accounting treatments:st

Listed exchanges: Tokyo (1 Section)
Inquiries: Senior Managing Director: Ikuo Murata
Telephone: +81 3 5208-5503

Yes (partial use of the simple method)

Differences in accounting treatments applied compared to previous fiscal year:

None

2. Non-Consolidated financial results for the three-month period ended May 31, 2007
1) Non-Consolidated operating results

Millions of yen, rounded down

Three months ended
May 31, 2007

Three months ended
May 31, 2006(% change)

Sales ..........................................................
Operating income.......................................
Ordinary income.........................................
Net income .................................................
Earnings per share (¥)................................
Fully diluted earnings per share (¥) ............

37,663
2,206
2,257
1,370
¥140.11¥139.97

(7.3)
10.7
12.4
35.7
---Fiscal year ended
February 28, 2007(% change)

40,6651,992
2,008
1,009
¥102.81¥102.06

0.8
0.8
1.7
0.1
---

(% change)

166,466
10,715
10,5095,645¥577.92¥575.76

(1.9)
5.6
3.6
6.1
---

Note: Percentage figures for sales, operating income, etc. represent changes compared to the comparable period of the previous fiscal year.

2) Non-Consolidated financial position

Total assets................................................
Shareholders’ equity ..................................
Equity ratio (%)...........................................
Shareholders’ equity per share (¥) .............

Millions of yen, rounded down

As of May 31,
2007
36,241
17,28347.7
1,801.80

As of May 31,
2006
33,983
14,17341.7
1,455.82

3. Forecasts for the fiscal year ending February 29, 2008 (March 1, 2007 to February 29, 2008)
Interim period ending
August 31, 2007
Sales ......................................................................................
81,200Ordinary income.....................................................................
4,500
Net Income.............................................................................
2,400
Note: Forecast net income per share for the fiscal year ending February 29, 2008: ¥635.92

As of February 28,
2007
40,414
18,10144.8
1,850.96
Millions of yen

FY ending
February 29, 2008
176,200
11,4006,100

Forecasts and forward-looking statements in this document are based on a number of assumptions made and beliefs held bymanagement in light of information currently available. Actual financial results may differ materially depending on a number offactors, including economic conditions, legislative and regulatory developments, delay in new product or service launches, andpricing and product initiatives of competitors.

1Non-Consolidated Balance Sheets
As ofMay 31, 2007ASSETS

Millions of yen
As ofFebruary 28, 2007

As ofMay 31, 2006

% of total% of total% of total

Current assets
Cash and deposits .....................................

1,440

1,703

3,337

Accounts receivable...................................

3,424

4,221

5,854

Inventory....................................................

2,606

3,772

3,065

Short-term loans to related companies ......

6,497

2,314

5,373

Deferred tax assets...................................

477

276

447

Others.......................................................

1,556

1,931

2,084

Allowance for doubtful accounts ...............

(188)

Total current assets ............................

15,814(79)
43.6

14,140(229)
41.6

19,933

49.3

Fixed assets
Tangible fixed assets
Buildings and structures ...........................

7,883

7,141

7,807

Tools, fixtures and equipment...................

1,271

1,583

1,316

Land..........................................................

327

327

327

Other.........................................................

90

264

109

Total tangible fixed assets

9,573

26.4

9,316

27.4

9,561

23.7

Intangible fixed assets
Software ...................................................

1,988

Other.........................................................

145

Total intangible fixed assets................

2,133

2,562

1,910

935.92,655

88
7.8

1,998

4.9

Investments and other assets
Investment securities .................................

97

191

96

Shares held in related companies..............

2,191

2,299

2,191

Deposits and guarantee money .................

3,654

3,132

3,651

Construction cooperation fund ...................

2,540

1,962

2,508

Deferred tax assets....................................

37

101

270

Other..........................................................

231

515

236

Allowance for doubtful accounts ................

(33)

(333)

(33)

Total investment and other assets .....

8,719

24.1

7,870

23.2

8,921

22.1

Total fixed assets .................................

20,42656.4

19,842

58.4

20,48050.7

Total Assets..........................................

36,241

100.0

33,983100.0

40,414100.0

2

Non-Consolidated Balance Sheets
Millions of yen, rounded down
As of May 31,
2007

As of May 31,
2006

As of February 28,
2007% of total

LIABILITIES% of total

Current liabilities
Accounts payable ...................................

1,915

2,695

2,953

Short-term borrowing ..............................

11,000

11,10011,600Accrued expenses ..................................

2,164

1,841

1,696

Accrued corporate taxes.........................

714

702

2,590

Advances received .................................

302

464

178

Deposits received ...................................

670

870

721

Reserve for bonuses ..............................

272

349

415

Other.......................................................

1,041

1,195

Total current liabilities...........................

18,081

1,288

49.9

19,219

56.6

1.7

869

2.1

58.3

22,31355.2

21,443

53.1

Long-term liabilities
Guarantee deposits received..................

876

Total long-term liabilities.......................

876

2.4

589
589

Total liabilities.....................................
NET ASSETS
Shareholders’ equity
Paid-in capital .........................................
Capital surplus ........................................
Retained earnings...................................
Treasury shares......................................

18,95752.3

19,8094,157
4,032
19,811(10,724)

Total shareholders’ equity ..................

17,276

869

4,157
4,032
15,919(9,998)47.7

14,110

4,157
4,032
19,445(9,540)41.5

18,094

44.8

Appraisal and translation differences
Unrealized gains and losses in othersecurities ................................................
Total appraisal and translationdifferences .........................................

662660.0

620.2

60.0

Total capital.............................................

17,28347.7

14,17341.7

18,101

44.8

Total liabilities and capital .....................

36,241

100.0

33,983100.0

40,414100.0

3

Non-Consolidated Statements of Income
Millions of yen
March 1, 2007 to
May 31, 2007

March 1, 2006 to
May 31, 2006%

March 1, 2006 to
February 28, 2007%%

Sales .................................................................

37,663100.0

40,665100.0

166,466

100.0

Cost of goods sold .............................................

28,452

75.5

31,09076.5

126,526

76.0

Gross profit ...............................................

9,211

24.5

9,575

23.5

39,940

24.0

Sales, general & administrative expenses .........

7,005

18.6

7,582

18.6

29,224

17.6

Operating income ............................................

2,206

5.9

1,992

4.9

10,715

6.4

Non-operating income .......................................

720.2

320.0

61

0.1

Non-operating expenses....................................

210.1

160.0

268

0.2

Ordinary income ..............................................

2,257

6.0

2,008

4.9

10,509

6.3

Extraordinary profit ............................................

520.1

470.1

5200.3Extraordinary losses ..........................................

38

0.1

169

0.4

1,018

0.6

Net income before taxes, etc. .........................

2,271

6.0

1,885

4.6

10,010

6.0

enterprise tax ....................................................

698

1.9

697

1.7

4,486

2.7

Corporate tax adjustments.................................

203

0.5

179

0.4

(121)

(0.1)

Net income .......................................................

1,370

3.6

1,009

2.5

5,645

3.4

Corporate income tax, inhabitants tax and4(3) Changes to Non-Consolidated first quarter shareholders’ equity
Millions of yen

First quarter (March 1, 2007 to May 31, 2007)
Shareholders’ equity
Capital surplus
CapitalCapitalreserves

Balance as of February 28, 2007

4,157

Other

Accumulated earnings

capitalcapitalsurplussurplus

--

4,032

4,032

Other accumulated

Total

Profitearnings

reserve

Deferred profit
reserve

39

19,406

Total

Treasury

accumulate

stockd earnings

19,445(9,540)Total
shareholders’ equity

18,094

Change during the period
Surplus dividend

(909)

(909)

(909)

Net income

1,370

1,370

1,370
(1,320)(1,320)

(95)

(95)

136

41

--

--

--

--

Acquisition of treasury stock
Disposal of treasury stock
Changes to items other thanshareholders’ equity during the period
Total change during the period
Balance as of May 31, 2007

--

--

--

--

--

--

--

--

--

--

365

365

(1,184)

(818)

4,157

4,032

--

4,032

39

19,771

19,811(10,724)

17,276

Millions of yen
Valuation and translation differences
Valuation differences onother marketablesecurities
Balance as of February 28, 2007

Total valuation andTotal net assets

translation differences

6618,101

Change during the period(909)

Surplus dividend
Net income

1,370

Acquisition of treasury stock(1,320)41

Disposal of treasury stock
Changes to items other than000

Total change during the period00(817)

Balance as of May 31, 2007

6617,283

shareholders’ equity during the period

5Changes to Accounting Treatment
March 1, 2007 – May 31, 2007

March 1, 2006 – May 31, 2006
Accounting----------------------------------------------

standards

relating

toimpairment of fixed assets
From the first quarter of the fiscal year
ending February 28, 2007, we haveapplied the ‘Accounting Standards forImpairment of Fixed Assets’ (issued by
the Accounting Standards Board of Japanon August 9, 2002) and the Financial
Accounting Standards Implementation
GuidanceNo.
6,‘Implementation
Guidance for Accounting Standards for
Impairment of Fixed Assets’ (issued by
the Accounting Standards Board of Japanon October 31, 2003). This change has
had no material effect on profit and loss.

Accounting standards relating topresentation of net assets on balance
sheetsFrom the first quarter of the fiscal year
ending February 28, 2007, the ‘Statement
Regarding the Presentation of Net Assets
on the Balance Sheet’ (BusinessAccounting Council, December 9, 2005,
Article No. 5) and ‘’Guidelines for theApplication of Accounting Policies for thePresentation of Net Assets on the Balance
Sheet’ (Guidelines for the Application ofBusiness Accounting Polices, Article 8;
Business Accounting Council, December
9, 2005) have been applied. The
equivalent amount previously recorded as‘Capital’ is ¥14,173 million. Followingchanges to the regulations on financial
statements, net assets on the balance
sheet have been recorded in accordancewith the revised regulations.

March 1, 2006 – February 28, 2007
Accounting standards relating toimpairment losses on fixed assets
From the fiscal year ending February 28,
2007 the ‘Statement Regarding theEstablishment of Accounting Policies for
Impairment Losses on Fixed Assets’(Business Accounting Council, August 9,2002) and ‘Guidelines for the Applicationof Accounting Policies for Impairment
Losses on Fixed Assets (Guideline forApplication of Business Accounting
Policies, Article 6; Business Accounting
Council, October 31, 2003) have been
applied as accounting standards relating
to impairment losses.
The effect of this change, compared tothe previous accounting method, was toreduce net income before taxes, etc. by¥278 million.
Accounting standards relating topresentation of net assets on balancesheets
From the fiscal year ending February 28,
2007, the ‘Statement Regarding thePresentation of Net Assets on the Balance
Sheet’ (Business Accounting Council,December 9, 2005, Article No. 5) and‘’Guidelines for the Application of
Accounting Policies for the Presentation ofNet Assets on the Balance Sheet’(Guidelines for the Application of BusinessAccounting Polices, Article 8; BusinessAccounting Council, December 9, 2005)
have been applied. The equivalentamount previously recorded, as ‘Capital’ is¥18,101 million. Following changes to theregulations on financial statements, net
assets on the balance sheet have beenrecorded in accordance with the revised
regulations.
Accounting----------------------------------------------

standards

relating

todirectors’ bonuses
From the fiscal year ending February 28,
2007, the ‘Accounting Standard Regarding
Directors’ Bonuses’ (Business Accounting
Council, November 29, 2005, Article No. 4)
has been applied. As a result, ordinary
income and net income before adjustment
for income taxes have each decreased ¥73
million.

6