Gulliver International Co., Ltd.

Non-consolidated Results
Third Quarter of the Fiscal Year Ending February 28, 2007
(Nine-month period ended November 30, 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)
Third quarter results for the fiscal year ending February 28, 2007

Gulliver International Co., Ltd.

January 9, 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:

stListed 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 nine month period ended November 30, 2006
1) Non-consolidated Operating Results

Millions of yen, rounded downNine months endedNovember 30, 2006

Nine months ended
November 30, 2005(% change)

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

123,456
7,408
7,423
3,823
¥391.35¥389.26

(0.1)
17.3
17.2
13.3
---Fiscal year ended
February 28, 2006(% change)

123,665
6,311
6,330
3,372
¥337.45¥333.68(% change)

17.9
(9.9)
(9.6)
(10.7)---

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

As of November 30,2005
31,51915,53449.3
1,559.09

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

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

As of November 30,
2006
33,344
16,21048.6
1,661.39

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

FY ending
February 28, 2007
190,000
11,7006,700686.69

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 November 30,2006
ASSETSAs of November 30,
2005% of total

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

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

1,542

3,009

2,107

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

3,206

2,663

7,235

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

2,765

4,319

3,309

Short-term loans to related companies ...

3,768

--

2,769

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

281

514

448

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

1,475

3,694

1,478

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

(89)

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

12,949(77)38.8

14,123(98)44.8

17,24948.3

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

7,542

5,904

6,805

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

1,386

1,250

1,679

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

327

327

327

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

60

312

409
9,221

Total tangible fixed assets

9,315

27.9

7,794

24.7

25.8

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

2, 357

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

89

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

2,447

2,962

2,694

967.43,059

95
9.7

2,789

7.8

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

99

319

199

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

2,321

494

494

Long term loans to related companies ...

--

500

500

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

3,366

3,250

3,011

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

2,470

1,636

1,890

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

148

94

105

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

574

592

588

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

(349)

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

8,631

25.9

6,542

(345)
20.8

6,436

(352)
18.1

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

20,39461.2

17,39555.2

18,447

51.7

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

33,344100.0

31,519100.0

35,697100.0

2

Non-consolidated Balance Sheets
Millions of yen, rounded down
As of November 30,
2006

As of November 30,
2005% of total

LIABILITIESAs of February 28,
2006% of total% of total

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

1,944

2,600

3,386

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

9,700

7,000

8,000

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

1,551

1,657

3,241

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

963

616

1,815

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

306

667

335

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

593

675

451

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

310

940

513

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

893

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

16,263

1,198
48.8

15,356

1,263
48.7

19,007

53.3

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

870

628

594

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

870

2.6

628

2.0

594

1.7Total liabilities.....................................

17,13451.4

15,98550.7

19,60255.0

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

--

--

4,157

13.2

4,157

11.6

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

--

--

4,032

12.8

4,032

11.3

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

----

14,06544.6

15,905

44.5

--

--

79

0.3

67

0.2

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

----(6,799)(21.6)(8,067)(22.6)

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

----

15,53449.3

16,09445.0

Equity.......................................................

----

31,519100.0

35,697100.0

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

4,157
4,032
17,787(9,775)

12.5
12.1
53.3
(29.3)

-----

-----

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

16,201

48.6

--

--

80.0--

--

80.0

--

--

--

--

Total net assets.......................................

16,210

48.6

--

--

--

--

Total liabilities and net assets ...............

33,344100.0--------CAPITAL

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

3

Non-consolidated Statements of Income
Millions of yen
March 1, 2006 to
November 30, 2006

March 1, 2005 toNovember 30, 2005%

March 1, 2005 to
February 28, 2006%%

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

123,456

100.0

123,665

100.0

169,735

100.0

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

93,99076.1

92,80875.0

126,850

74.7

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

29,46523.9

30,85725.0

42,884

25.3

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

22,056

17.9

24,54519.9

32,74019.3

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

7,408

6.0

6,311

5.1

10,1436.0

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

880.1

56

0.0

68

0.0

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

730.1

370.0

77

0.0

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

7,423

6.0

6,330

5.1

10,1356.0

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

120.0

470.1

540.0

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

578

0.5

365

0.3

1,000

0.6

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

6,857

5.5

6,013

4.9

9,189

5.4

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

2,868

2.3

2,656

2.2

3,820

2.3

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

165

0.1

(15)

(0)

47

0.0

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

3,823

3.1

3,372

2.7

5,320

3.1

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

Third quarter (March 1, 2006 to November 30, 2006)
Shareholders’ equity
Capital surplus
Capital

Other

Capitalreserves

Balance as of February 28, 2006

4,157

Accumulated earnings
Other accumulated

Total

capitalcapitalsurplussurplus

--

4,032

4,032

Profitearnings

reserve

Deferred profit
reserve

39

Total

Treasury

accumulated

stock

earnings(8,067)

Total
shareholders’equity15,866

15,90516,027(1,608)(1,608)(1,608)

(73)

(73)

(73)

3,823

3,823

3,823
(2,079)(2,079)

(258)

(258)

371

112

--

--

--

--

Change during the period
Surplus dividend
Bonuses to directors through profit
appropriation
Net income
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 November 30, 2006

--

--

--

--

--

--

--

--

--

--

1,882

1,882

(1,707)

174

4,157

4,032

--

4,032

39

17,74817,787(9,775)

16,201Millions of yen
Valuation and translation differences
Valuation differences onother marketablesecuritiesBalance as of February 28, 2006

Total net assets

Total valuation andtranslation differences

67

67

16,094

Change during the period
Surplus dividend(1,608)Bonuses to directors through profit(73)

appropriation
Net income

3,823

Acquisition of treasury stock(2,079)

Disposal of treasury stock

112

Changes to items other than(59)

(59)

(59)

Total change during the period

(59)

(59)

115

Balance as of November 30, 2006

88

16,210shareholders’ equity during the period

5Changes to Accounting Treatment
March 1, 2006 – November 30, 2006

March 1, 2005 – November 30, 2005

March 1, 2005 – February 28, 2006

Accounting standards relating to impairment offixed assets
From this period we have applied the ‘AccountingStandards for Impairment of Fixed Assets’ (issuedby the Accounting Standards Board of Japan on
August 9, 2002) and the Financial AccountingStandards Implementation Guidance No. 6,‘Implementation Guidance for AccountingStandards for Impairment of Fixed Assets’ (issuedby the Accounting Standards Board of Japan on
October 31, 2003). This change has had nomaterial effect on profit and loss.

Accounting standards relating to presentationof net assets on balance sheets
From this period 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 ofAccounting Policies for the Presentation of Net
Assets on the Balance Sheet’ (Guidelines for theApplication of Business Accounting Polices, Article8; Business Accounting Council, December 9,2005) have been applied.
The equivalent amount previously recorded as‘Capital’ is ¥16,210 million.
Following changes to the regulations on the interim
financial statements, net assets on the thirdquarter balance sheet have been recorded inaccordance with the revised regulations.

Changes to Presentation Method
March 1, 2006 – November 30, 2006
Presentation of third quarter balance sheet‘Short term loans to related companies’, which was included in

March 1, 2005 – November 30, 2005――――――‘Others’ within current assets in the previous quarter exceeded 5%of total assets in the current period and so has been separatelyrecorded.
At the end of the previous quarter, ‘Short-term loans to relatedcompanies’ was ¥1,408 million.

6