Gulliver International Co., Ltd.

Non-consolidated Results

First Quarter of the Fiscal Year Ending February 28, 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 and beliefs made 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, 2006

Gulliver International Co., Ltd.
Stock Code: 7599
http://www.glv.co.jp/President: Kenichi Hatori

July 11, 2005
Listed exchanges:
Inquiries:
Telephone:stTokyo (1 Section)
Senior Executive Vice President: Ikuo Murata+81 3 5208-5503

1. Notes to preparation of these financial statements
i. Adoption of simplified accounting treatments: Partial use of the simple method
ii. Differences in accounting treatments applied compared to previous consolidated fiscal year: None

2. First quarter non-consolidated financial results (March 1, 2005 to May 31, 2005) for the fiscal year ending February 28,2006
1) Non-consolidated Operating Results

Millions of yen, rounded down

Three months ended May 31,2005
Sales....................................................................................
Operating income ................................................................
Ordinary income ..................................................................
Net income ..........................................................................
Earnings per share (¥) .........................................................
Fully diluted earnings per share (¥) .....................................

40,316
1,976
1,973
1,007
100.5899.25

FY endedFebruary 28, 2005-------%
28.2
33.9
32.5
36.1
---

147,486
9,601
9,584
5,259
510.03499.82

Note: 1. Percentage figures for sales, operating income, etc. represent changes compared to the comparable period of the previous fiscal year.
2. As first quarter results are being disclosed for the first time for the fiscal year ending February 2006, first quarter results for the previous
fiscal period are omitted.

2) Financial Position (non-consolidated)
Total assets ........................................................................
Shareholders’ equity ...........................................................
Equity ratio (%) ...................................................................
Shareholders’ equity per share (¥) .....................................

Millions of yen, rounded down

As of May 31, 2005

As of February 28, 2005

29,39415,30752.0%¥1,525.96

29,285
15,32752.3%¥1,522.30

Note: As first quarter results are being disclosed for the first time for the fiscal year ending February first quarter results for the previous fiscal period
are omitted.

3. Forecasts for the fiscal year ending February 28, 2006 (March 1, 2005 to February 28, 2006)
Millions of yen

InterimSales...................................................................................
Ordinary income .................................................................
Net Income .........................................................................
Earnings per share .............................................................

73,500
4,100
2,300
--

FY ending February 28, 2006
167,200
11,1006,100¥609.561

Non-consolidated Balance Sheets
As of May 31,
2005
ASSETS

Millions of yen, rounded down
As of February 28,
2005% of total% of total

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

2,796

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

4,768

2,378
7,358

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

4,545

3,842

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

471

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

1,268

505
1,277

Allowance for doubtful accounts...

(36)

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

13,812(68)
47.0

15,293

52.2

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

5,434

5,333

Tools, fixtures and equipment ......

1,186

1,090

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

327

327

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

518

256

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

7,466

25.4

7,007

23.9

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

2,384

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

100

Total intangible fixed assets......

2,485

2,177
101
8.5

2,279

7.8

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

257

373

Shares in affiliates .........................

485

475

Long term loans to affiliates...........

1,110

710

Leasehold and guarantee..............

2,232

1,848

Construction cooperation fund.......

1,226

960

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

143

135

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

517

Allowance for doubtful accounts....

497
(323)

Total investment and other .......

5,629

19.1(315)
4,705

16.1

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

15,581

53.0

13,991

47.8

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

29,394100.0

29,285100.0

2Non-consolidated Balance Sheets
Millions of yen, rounded down
As of May 31,
2005
LIABILITIESAs of February 28,
2005% of total% of total

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

3,101

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

4,000

2,000

Accrued Expenses..................................

2,296

2,014

Accrued Corporate taxes ........................

891

2,507

Advances by customers..........................

456

338

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

767

765

Reserve for Bonuses ..............................

788

508

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

1,140

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

13,443

4,203

997
45.7

13,336

45.6

Fixed liabilities
Guarantee deposits received..................

643

Total fixed liabilities ..............................

643

2.2

621

2.1

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

14,08647.9

13,958

47.7

4,157

14.1

4,139

14.1

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

4,032

13.7

4,014

13.7

Retained earnings .................................
Unrealized gains and losses in othersecurities ................................................
Treasury stock ........................................

12,69743.2

12,852

43.9

10.0

100.0

(5,580)(18.9)(5,689)(19.4)

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

15,30752.1

15,327

52.3

Total Liabilities, Minority Interests
and Shareholders’ Equity.......................

29,394100.0

29,285

100.0

621

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

3

Non-consolidated Statements of Income
Millions of yen, rounded down
March 1, 2005 toMay 31, 2005

March 1, 2004 toFebruary 28, 2005
Change%Change%Sales.............................................................

40,316100.0

147,486

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

30,40475.4

110,361

74.8

Gross profit on sales............................

9,912

24.6

37,125

25.2

Sales & general administrative expenses .....

7,936

19.7

27,523

18.7

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

1,976

4.9

9,601

6.5

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

110.0

250.0

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

140.0

420.0

100.0

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

1,973

4.99,584

6.5

Extraordinary income ....................................

390.1

70.0

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

780.2

249

0.2

Net income before tax..........................
Income tax, inhabitants tax and enterprise
tax .................................................................
Corporate tax adjustment ..............................

1,935

4.8

9,342

6.3

895

2.2

4,150

2.8

32

0.1(67)(0.0)

Net income for the period....................

1,007

2.5

5,259

3.5

Additional Information
From the first quarter of the current fiscal year the proportionate amounts of corporation tax on value addedand capital have been included in Selling, General and Administration expenses. This follows the1promulgation from March 31, 2004 of the Partial Revisions to the Law Concerning Regional Tax. As a result
Selling, General and Administration increased by ¥27 million and operating income, ordinary income andincome before taxes decreased by ¥27 million.

1(2003 Article 9) for fiscal years commencing on or after April 1, 2004 along with the introduction of the tax system
based on business size ‘Treatment of the tax based on business size portion of corporate taxes in the Statements ofIncome’ (February 13, 2004, Corporate Accounting Standards Committee Practice Report 12)4