Gulliver International Co., Ltd.

Non-consolidated Results
First Quarter of the Fiscal Year Ending February 28, 2007
(Three-month period ended May 31, 2006)

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 28, 2007

Gulliver International Co., Ltd.

July 11, 2006

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, 2006
1) Non-consolidated Operating Results

Millions of yen, rounded down

Three months ended May
31, 2006

Three months ended May31, 2005(% change)

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

40,665
1,992
2,008
1,009
¥102.81¥102.06

0.8
0.8
1.7
0.1
---

Fiscal year ended
February 28, 2006(% change)

40,316
1,976
1,973
1,007
¥100.58¥99.25-------(% change)

169,735
10,143
10,1355,320¥525.75¥520.30

15.0
5.6
5.7
1.1
---

Notes to the preparation of these financial statements:
1. Percentage figures for sales, operating income, etc. represent changes compared to the comparable period of the previous fiscal year.

2) Financial Position (non-consolidated)
Millions of yen, rounded down

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

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

As of May 31,
2005
29,39415,30752.1
1,525.96

As of February 28,
2006
35,697
16,09445.0
1,631.46

3. Forecasts for the fiscal year ending February 28, 2007 (March 1, 2006 to February 28, 2007)
Millions of yen

Sales ......................................................................................
Ordinary income.....................................................................
Net Income.............................................................................
Forecast earnings per share (¥) .............................................

Interim period ending
August 31, 2006
87,1004,200
2,400--FY ending
February 28, 2007
190,000
11,7006,700688.18

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 of May 31,
2006
ASSETS

Millions of yen
As of May 31,
2005

As of February 28,
2006% of total% of total% of total

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

1,703

2,107

2,796

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

4,221

7,235

4,768

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

3,772

3,308

4,545

Short-term loans to related companies ...

2,314

2,769

--

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

276

448

471

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

1,931

1,478

1,268

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

(79)

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

14,140(98)
41.6

17,249(36)
48.3

13,812

47.0

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

7,141

6,805

5,434

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

1,583

1,679

1,186

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

327

327

327

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

264

409
9,221

518

Total tangible fixed assets

9,316

27.4

25.8

7,466

25.4

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

2,562

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

93

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

2,655

2,694

2,384

95
7.8

2,789

100
7.8

2,485

8.5

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

191

199

257

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

2,299

494

485

Long term loans to related companies ...

--

500

1,110

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

3,132

3,011

2,232

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

1,962

1,890

1,226

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

101

105

143

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

515

588

497

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

(333)

Total investment and other assets........

7,870

23.2

6,436(352)
18.1

5,629(323)19.1

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

19,842

58.4

18,44751.7

15,581

53.0

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

33,983100.0

35,697100.0

29,394100.0

2

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

As of February 28,

As of May 31,

2006

2006

2005

% of total

LIABILITIES% of total% of total

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

2,695

3,386

3,101

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

11,100

8,000

4,000

Accrued expenses ..........................................

1,841

3,241

2,296

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

702

1,815

891

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

464

335

456

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

870

451

767

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

349

513

788

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

1,195

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

19,2191,263
56.6

19,0071,140
53.3

13,443

45.7

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

589

594

643Total long-term liabilities ..............................

589

1.7

594

1.7

643

2.2

Total liabilities ............................................

19,80958.3

19,60255.0

14,086

47.9

Paid-in capital .................................................

--

--

4,157

11.6

4,157

14.1

Capital surplus................................................

--

--

4,032

11.3

4,032

13.7

Retained earnings ..........................................

----

15,90544.5

12,69743.2

securities.........................................................

--

--

67

0.2

10.0

Treasury stock ................................................

----(8,067)(22.6)(5,580)(18.9)

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

----

16,09445.0

15,307

52.1

Total Liabilities and Shareholders’ Equity....

----35,697100.0

29,394

100.0

CAPITAL

Unrealized gains and losses in other

NET ASSETS
Shareholders’ equity
Paid-in capital .................................................

4,157

--

--

Capital surplus ................................................

4,032

--

--

Retained earnings...........................................

15,919----Treasury shares..............................................

(9,998)----

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

14,110

--

--

--

--

41.5

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

62
62

0.2

--

--

--

--

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

14,173

41.7

--

--

--

--

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

33,983

100.0

--

--

--

--

differences .................................................

3

Non-consolidated Statements of Income
Millions of yen
March 1, 2006 to

March 1, 2005 to

March 1, 2005 to

May 31, 2006

May 31, 2005

February 28, 2006%%%

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

40,665100.0

40,316100.0

169,735

100.0

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

31,09076.5

30,40475.4

126,850

74.7

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

9,575

23.5

9,912

24.6

42,884

25.3

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

7,582

18.6

7,936

19.7

32,74019.3

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

1,992

4.9

1,976

4.9

10,1436.0

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

320.0

110.0

680.0

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

160.0

140.0

77

0.0

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

2,008

4.9

1,973

4.9

10,135

6.0

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

470.1

390.1

540.0

Extraordinary losses ..........................................

169

0.4

78

0.2

1,000

0.6

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

1,885

4.6

1,935

4.8

9,189

5.4

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

697

1.7

895

2.2

3,820

2.3

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

179

0.4

320.1

470.0

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

1,009

2.5

1,007

2.5

5,320

3.1

Corporate income tax, inhabitants tax and4

Changes to Accounting Treatment
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 for
Impairment of Fixed Assets’ (issued by
the Accounting Standards Board of Japanon August 9, 2002) and the Financial
Accounting Standards Implementation
Guidance No. 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.

March 1, 2005 – May 31, 2005

March 1, 2005 – February 28, 20065