Detailed Presentation of Performance for the First Halfand Forecasts for the Fiscal Year
Fiscal Year Ending March 31, 2007

November 21, 2006

Yoshihiro Mimata
Director, General Manager of Corporate Planning Department,and General Manager of Finance & Accounting Department

— Contents —1. Interim Consolidated Statements of Income (Comparisons with the First Half of the Previous Fiscal Year)3

2. Interim Consolidated Statements of Income by Company (Comparisons with the First Half of the Previous Fiscal Year)

4

3. Interim Consolidated Statements of Income (Comparisons with Initial Plans)

5

4. Interim Consolidated Statements of Income by Company (Comparisons with Initial Plans)

6

5. Interim Consolidated Balance Sheets

7

6. Interim Consolidated Cash Flows8

7. Cost Reductions from Management Improvement Measures including Management Integration (Interim)

9

8. Trends in Important Financial Indicators (COMSYS HD and COMSYS Non-Consolidated)

10

9. Revised Consolidated Performance Plans for the Fiscal Year (Comparisons with Initial Plans)

11

10. Revised Consolidated Performance Plans for the Fiscal Year (Comparisons with the Previous Fiscal Year)12

1. Interim Consolidated Statements of Income(Comparisons with the First Half of the Previous Fiscal Year)(Unit: ¥100 million)

ItemPerformance in Performance
this year
previous year

Difference

Percentage
difference

Main reasons for increase/decrease

1,191

1,433

242

20.3%

• NTT (2: Access 27, Network -25), DoCoMo (127), NCC (46)IT solutions (21), Construction (48), Other (-3)

1,042

1,253

211

20.2%

• Cost of sales ratio (From 87.5% to 87.4%; down 0.1 percentage point)

148

179

3120.9%• Gross profit margin (From 12.5% to 12.6%; up 0.1 percentage point)

Selling, General and Administrative Expenses

99101

22.0%

Operating Income

4978

2959.2%• Operating margin (From 4.2% to 5.5%; up 1.3 percentage point)

Other Income

1110-1-9.1%• Previous year: Amortization of other consolidation adjustments (8.0)• Previous year: Interest and dividend income (1.4), Other (1.6)• This year: Negative amortization of goodwill (7.0), Interest and dividend income(1.5), Other (1.5)

Other Expenses

000—

60872745.0%

Net Sales
Cost of Sales
Gross Profits

Recurring Profit• Consolidation of Kokusai Densetsu Co., Ltd. (1.1)
Transfers to the reserve for directors’ bonuses (1)—• Recurring profit margin (From 5.1% to 6.1%; up 1.0 percentage point)

Extraordinary Profit41814350.0%• Previous year: Gain on sale of investment in securities (0.2), Reversal of allowance for doubtful receivables (1.1)• Previous year: Reversal of accrued severance indemnities (Sanwa Denshi Inc., 2.2), Other (0.5)• This year: Gain on sales of fixed assets (Land for SANCOM headquarters, 7.9)
• This year: Gain on sale of investment in securities (Daido, Ishimatsu, etc., 6.0)
• This year: Reversal of allowance for doubtful receivables (0.8)• This year: Unrealized gain on investment association (2.0), Other (1.3)

Extraordinary Loss76-1-14.3%• Previous year: Loss on disposal of fixed assets (0.2), Write-down of investments in securities (0.4)• Previous year: Special payments on employees’ retirement (2), Allowance for doubtful receivables (3.6), Other (0.8)• This year: Loss on disposal of fixed assets (1.2), Write-down of investments in securities (2.5)• This year: Special payments on employees’ retirement (1.6), Allowance for doubtful receivables (0.4), Other (0.3)

34632985.3%• Net profit margin (From 2.9% to 4.4%; up 1.5 percentage point)

Net Income3

2. Interim Consolidated Statements of Income by Company(Comparisons with the First Half of the Previous Fiscal Year)(Unit: ¥100 million)

SANCOM-G

COMSYS-G
Item

TOSYS-G

Performance inprevious year

Performance
this year

Difference

Performance inprevious year

Performance
this year

Difference

Performance inprevious year

Performance
this year

Difference

940

1,146

206

179

227

48

122

122

0817

999

182

165

206

41

108

110

2122

147

25

13218

1411-3(13.0%)(12.9%)—(7.7%)(9.6%)—(11.6%)(9.7%)—

Selling, General and Administrative Expenses

7175

4161601310-3

Operating Income

50

71

21-246110(5.4%)(6.3%)—(-1.4%)(2.1%)—(1.0%)(1.0%)—

Other Income

1110-1000000

Other Expenses

00000000062

81

19-2461

10(6.6%)(7.1%)—(-1.3%)(2.1%)—(1.2%)(1.5%)—

Extraordinary Profit

187088000

Extraordinary Loss

75-20000003452

18-18

9011(3.6%)(4.6%)—(-1.0%)(3.9%)—(0.3%)(0.9%)—Net Sales
Cost of Sales
Gross Profits(Gross Profit Margin)(Operating Margin)

Recurring Profit(Recurring Profit Margin)

Net Income(Net Profit Margin)43. Interim Consolidated Statements of Income(Comparisons with Initial Plans)(Unit: ¥100 million)

Initial plans

Performance
this year

Difference

Percentage
difference

1,340

1,433

93

6.9%

• NTT (-1: Access 8, Network -9), DoCoMo (46), NCC (22)IT solutions (-2), Construction (12), Other (16)1,167

1,253867.4%• Cost of sales ratio (From 87.1% to 87.4%; up 0.3 percentage point)

Gross Profits

17317963.5%• Gross profit margin (From 12.9% to 12.6%; down 0.3 percentage point)

Selling, General and Administrative Expenses

105101-4-3.8%• Delay in reduction of operating costs and special measures

Operating Income

6878

1014.7%• Operating margin (From 5.1% to 5.5%; up 0.4 percentage point)

Other Income

1110-1-9.1%—

Other Expenses

10-1-100%—

78

87911.5%• Recurring profit margin (From 5.8% to 6.1%; up 0.3 percentage point)

ItemNet Sales

Cost of Sales

Recurring Profit

Extraordinary Profit

81810 125.0%

Extraordinary Loss

660—50631326.0%

Net IncomeMain reasons for increase/decrease• Gain on sale of investment in securities (Daido, Ishimatsu, etc., 6)• Unrealized gain on investment association (2)• Reversal of allowance for doubtful receivables (0.8)• Other (1.2)—• Net profit margin (From 3.7% to 4.4%; up 0.7 percentage point)54. Interim Consolidated Statements of Income by Company(Comparisons with Initial Plans)(Unit: ¥100 million)

SANCOM-GCOMSYS-G
Item

Performance
this year

Difference

1,087

1,146

59947

999

140

TOSYS-G

Performance
this year

Difference

Initial plans

Performance
this year

Difference

198

227

29127

122-552

179

206

27

112

110-2

147

7

18

21

3

14

11-3

(12.9%)(12.9%)—(9.3%)(9.6%)—(11.4%)(9.7%)—

Selling, General and Administrative Expenses

74

75

11716-1

13

10-3

Operating Income

66

71

5

14

3

1

10

(6.1%)(6.3%)—(0.5%)(2.1%)—(0.8%)(1.0%)—

Other Income

10100000000

Other Expenses

00000000076815044110(7.0%)(7.1%)—(0.4%)(2.1%)—(1.0%)(1.5%)—

Extraordinary Profit

088880000

Extraordinary Loss

5500000004352

9682011(4.0%)(4.6%)—(3.3%)(3.9%)—(0.4%)(0.9%)—

Initial plans

Net Sales
Cost of Sales
Gross Profits(Gross Profit Margin)(Operating Margin)

Recurring Profit(Recurring Profit Margin)

Net Income(Net Profit Margin)

Initial plans

65. Interim Consolidated Balance Sheets
ASSETSLIABILITIES AND NET ASSETS(Unit: ¥100 million)

2,207(Unit: ¥100 million)

2,207

-65

2,142

Current Assets

1,513• Cash and cash equivalents+70• Accounts receivable—trade• Accumulated cost of
construction in progress-250

2,142(-89)

Current
Liabilities

(-68)

-65

681
1,444

• Accounts payable—Trade-112• Repayment of short-term debt

-21

• Income taxes payable• Advances received on
construction in progress+12592+31+132(-23)

Long-Term
Liabilities

141• Long-term debt

-2

• Negative goodwill-9• Deferred income taxes

-8118

(+3)

Fixed Assets• Property and equipment+4694• Prepaid pension expenses+7• Investment securities-6

As of March 31, 2006

(+47)

697

As of September 30, 2006

Net Assets• Retained earnings

+50

1,431

1,384

As of March 31, 2006

As of September 30, 2006

7

6. Interim Consolidated Cash Flows(Unit: ¥100 million)

+119

-20
Cash Flows from
Investing Activities

Cash Flows fromOperating Activities• Proceeds from sale of property

13• Acquisitions of fixed assets-28• Expenses for business acquisitions -4358

Cash andCash Equivalentsat Beginning of Year-35• Income before income taxesand other adjustments
to net income100• Depreciation and amortization

18422

Cash Flows fromFinancing Activities• Cash dividends paid

-11

• Repayment of long-term debt

-23

Cash andCash Equivalents
at End of Year+64(As of September 31, 2006)(As of March 31, 2006)• Free cash flows: 9.9 billion

Cash flow indicators • Years to redemption of liabilities (years): 0.1• Interest coverage ratio (times): 299.1

8

7. Cost Reductions from Management Improvement Measures
including Management Integration (Interim)(Unit: ¥ billion)(Reference)

Amount of reduction and progress ratio
Item(Progress ratio)

50%

Annual target

Principal measures

100%

Cumulative total value
three years after
management integration

(50%)

-0.2
[-0.1]

Promotion of early retirement through a transition-support system-4.0[-0.6]-¥0.1 billion[-¥0.1 billion]

(33%)

-0.3
[-0.3]

Reduction of materials costs through expanding the purview ofcentralized purchasing
Enhancement of price negotiation supervisors’ capacity, strict standards
for selection of suppliers-2.3[-2.3]

Subcontracting
costs-¥0.2 billion[-¥0.1 billion]

(50%)

-0.4
[-0.2]

Re-examination of division of business responsibilities with subcontractors-4.0[-0.6]

Operatingcosts, etc.

-¥0.2 billion[-¥0.1 billion]

(66%)

-0.3
[-0.2]

Total-¥0.6 billion[-¥0.3 billion](50%)

Personnel
costs-¥0.1 billion[-¥0 billion]

Materials
costs

-1.2
[-0.8]

Reduction of operating costs through expanded outsourcing of joint operations
Reduction of interest-bearing liabilities through CMS—-3.1[-1.4]-13.4[-4.9]*Figures in brackets represent the reposting of the monetary effects of operational integration through management integration and other measures
Figures in parentheses represent progress in terms of the percentage of targets already achieved

98. Trends in Important Financial Indicators(COMSYS HD and COMSYS Non-Consolidated)
STABILITY
Equity Ratio(COMSYS Non-Consolidated)(%)

Interest-Bearing Debt

(%)

100

Share of Various Costs within Total Cost of Sales(Unit: ¥100 million)

7050

3965

COST EFFICIENCY(COMSYS HD)

66.5

(-4)

66.2

(-4.4 percentage points)

70.3

Subcontracting costs ratio+2.4 percentage points

72.7(+4.1 percentage points)

62.1

6075

3550(-24)

25

1155

2500
2005/92006/3

2006/92005/92006/3

2006/90

10.2

Materials costs ratio -0.4

9.8

11.6

Personnel costs ratio -0.9

7.9

Operating costs ratio -1.1

10.7
6.8

2005/92006/9(*Including costs of subsidiary businesses)

STOCK-RELATED INDICATORS(COMSYS HD)(%)

Ratios of Net Sales to Various Costs

100

PERX

ESP=PBR

X BSP

CommonStock Price

Ratio ofForeign
Shareholders

75
Costof salesratio(Price/Earnings Ratio) (Primary Earnings per Share) (Price/Book Value Ratio) (Book Value per Share)

2007/3First Half
2006/3<Forecasts for this period><Forecasts for this period>

15.3 times

24.1 times¥85(¥74)¥70(¥58)

1.3 times

1.7 times

¥999

¥965

Note: Figures in parentheses are exclusive of negative goodwill (consolidation adjustment).

¥1,29650

62.2

Subcontracting costs ratio+2.4 percentage points

64.6

88.6%

Costof sales
ratio
88.8%

26.1%

25

¥1,681

28.9%(March 31)(March 31)

09.1

Materials costs ratio -0.4

8.7

10.2
7.0
7.1
4.4

Personnel costs ratio -0.7

9.5
6.0
6.1
5.1

2005/9Operating costs ratio -1.0
SG&A expenses ratio -1.0
Operating margin +0.7

2006/910

9. Revised Consolidated Performance Plans for the Fiscal Year
(Comparisons with Initial Plans)(Unit: ¥100 million)

Initial plans

Current plan

Difference

Percentage
difference

3,150

3,250

1003.2%• Increase in NTT business as a result of a slight increase in work for NTT anda major increase in DoCoMo business (including engineering) +50
NCC +20, FTTH +20, Other +10

2,760

2,85090

3.3%• Cost of sales ratio (From 87.6% to 87.7%; up 0.1 percentage point)

Gross Profits

390

400

102.6%• Reflection of net sales increase +10Selling, General and Administrative Expenses

220

2200—

Operating Income

170

180

105.9%• Reflection of net sales increase +10

Other Income

2221-1-4.5%• Land rent, etc. -1

Other Expenses

21-1-50.0%• Decrease in interest expenses, etc. -1

190

200

105.3%• Reflection of net sales increase +10

Extraordinary Profit

8179 112.5%• Gain on sale of investment in securities (Daido, Ishimatsu, etc.) +6• Unrealized gain on investment association +3

Extraordinary Loss

1019990.0%• Withdrawal from Densetsu Welfare Pension Fund +7.5
• Write-down of investments in securities +1.5110120109.1%

Item

Net Sales

Cost of Sales

Recurring Profit

Net Income

Main reasons for increase/decrease• In line with targets set at the beginning of the fiscal year

*Gain on sales of investment in securities of Daido and Ishimatsu,
applied to taxation on deemed dividend

1110. Revised Consolidated Performance Plans for the Fiscal Year
(Comparisons with the Previous Fiscal Year)(Unit: ¥100 million)
Performance inCurrent plan
previous year

Difference

Percentage
difference

3,074

3,250

176

5.7%

2,706

2,850

144

5.3%

Gross Profits

368400328.7%• Net sales growth +20, Effects of selective contracting and kaizen +12

Selling, General and Administrative Expenses

205

220

157.3%• Special investments +9 (CM and systems investment)
Increase in sales force upon expansion of scope of operations +5
Growth due to consolidation of Kokusai Densetsu + 1 (for half the fiscal year)

Operating Income

163

180

1710.4%

Other Income2521-4 -16.0%

Other Expenses

110—187200

137.0%

ItemNet Sales

Cost of Sales

Recurring Profit

Main reasons for increase/decrease• NTT business +59[Access +60, Network -47, DoCoMo business (including engineering) +46]
Non-NTT business +117[Of which, NCC +50, FTTH +20, IT solutions, etc. +47]

• Consolidation adjustment (Kokusai Densetsu) -2
Other exchange gains on foreign currency transactions -2

Extraordinary Profit

8179 112.5%• Gain on sales of fixed assets of SANCOM +8• Gain on sales of investment in securities +4 (Daido and Ishimatsu +6, value for last fiscal year -2)• Unrealized gain on investment association +3, Insurance repayment -2• Reversal of the accrued severance indemnities, etc. -4

Extraordinary Loss3119-12 -38.7%• Special payments on employees’ retirement -6, Heisei Denden -10• Loss on disposal of fixed assets -3.5, Withdrawal from Densetsu Welfare Pension Fund +7.5

10012020Net Income

20.0%12