Financial Results for Fiscal Year Ended March 31, 2005

May 25, 2005

Hirofumi Shimada
President and Representative Director

CONTENTS
I. Summary of Financial Results for Fiscal Year Ended March 31, 2005
1. Compared to Previous Year (12 Months)

4

2. Compared to Plan (15 Months)

5II. Medium-term Management Plan
1. Three Pillars of Management Plan

7

2. Management Targets

8

III. Business Plan for Fiscal Year Ending March 31, 2006
1. Plan

11

2. Strategy by Business

12 ~ 14

3. Business Integration Measures

15

4. Investment in Business Expansion

16

5. Response to Challenges in Business Environment17

I. Summary of Financial Results for Fiscal Year Ended March 31, 2005

1. Compared to Previous Year (12 Months)

2. Compared to Plan (15 Months)3I-1. Compared to Previous Year (12 Months)— Net Sales Up 6.9%, Profit Up 40.6% —(Unit: ¥100 million)

Financial results for year ended March 31, 2004

Financial results for year ended March 31, 2005

Simple totals

Simple totals (12 months)

Orders Received

2,702

2,918+216+8.0%

Net Sales

2,762

2,953+191+6.9%

ChangePercentchange

Operating Income (Operating Margin)

98(3.6%)

138(4.7%)+40+40.6%

Recurring Profit (Recurring Profit Margin)

104(3.8%)160(5.4%)+56+53.2%Net Income (Net Profit Margin)

47(1.7%)88(3.0%)+41+85.3%

Note: For purposes of comparison, the figures above are simple total figures for the three group companies on a full-year base (fiscal year ended March 31, 2004 is for 12 months for SANWA group and TOSYS group, including first half).
For purposes of comparison, actual results for the fiscal year ended March 31, 2005 are for the 12 months excluding the three months accompanying the change in the settlement period for the consolidated subsidiaries
of Nippon COMSYS.

Net Sales Up ¥19.1 Billion Year-on-year

Operating Income Up ¥4 Billion Year-on-year

q NTT and DoCoMo business both strong (up ¥15.7 billion)q Synergy effects due to business reorganization (up ¥1.9 billion)

w Non-NTT business overall emerged from slump (up ¥3.4 billion)

w Effects from management improvements (up ¥2.9 billion)• NCC business strong (particularly mobile construction)• Enterprise-related operations up slightly

e Profit growth due to increased net sales (up ¥1 billion)r Investment in business expansion (¥1.9 billion)

NB: A radical review of the overseas business was accompanied by an extraordinary loss of about ¥1.1 billion.
4I-2. Compared to Plan (15 Months)— Substantial Increase in Both Income and Profit —(Unit: ¥100 million)

Plan (15 months)

Actual (15 months)(Announced January 27, 2005)(Fiscal year ended March 31, 2005) (Note)

Orders Received

2,830

2,873+43+1.5%

Net Sales

2,840

2,936+96+3.4%

ChangePercentchangeOperating Income (Operating Margin)

125(4.4%)

150(5.1%)+25+20.5%

Recurring Profit (Recurring Profit Margin)

145(5.1%)

171(5.8%)+26+18.2%

Net Income (Net Profit Margin)

70(2.5%)83(2.8%)+13+19.3%

Note: Amount of impact from three months (January – March) of results at consolidated subsidiaries of Nippon COMSYS(Orders received +¥2.9 billion) (Net sales +¥4 billion) (Operating income +¥1.1 billion) (Recurring profit +¥1 billion) (Net income +¥0.6 billion)—Positive Factors for Financial Results—

q Sharp increase in completed NCC construction (mobile and IP-related) at end of fiscal year
Early completion of construction
w Sharp increase in completed FOMA construction at end of fiscal year

andefforts to reduce costse Increase in net sales and gross profit due to additional construction

5II. Medium-term Management Plan

1. Three Pillars of Management Plan

2. Management Targets— A Separate Briefing on the Details ofthe Medium-term Management Plan, Scheduled for Thursday, July 21 —6

II-1. Three Pillars of Management Plan
No. 1 Company in Infrastructure Construction

We will strengthen our on-site capabilities as well as further expand our business through thedevelopment of a COMSYS-style kaizen (continuous improvement).

Aiming to be a Construction-related System Integrator

We will endeavor to transform the company from a construction business to a solutions businessbased on advanced network technology.
(i) Product capabilities(ii) Proposal capabilities(iii) Technical capabilities

Maximizing Effects of Business Integration

We will take utmost advantage of the pure holding company framework.
(i) Selection and concentration (Reorganization of operating companies)(ii) M&A, alliances7II-2. Management Targets
Fiscal year ended March 31, 2005
In three years

Actual (12 months) (Note)
S Net Sales

Fiscal year ending March 31, 2008
Targets¥289.6 billion

Percent change¥320 billion+10.5%

50%+7 percentage points

q Share of non-NTT business43%

w Share of solution business

9%

20%

+11 percentage points

S Operating Margin

4.8%

5.5%

+0.7 percentage points

S Recurring Profit Margin

5.5%

6.0%

+0.5 percentage points

S ROE

6.2%

8.7%

+2.5 percentage points

S Net Sales per Employee¥42 million¥46 million+9.5%

S Interest-Bearing Debt

¥4.6 billion¥0.2 billion-¥4.4 billionDividend

Annual ¥15/share(Reference material)

Stable dividend (¥12) + taking business performance into consideration(Includes ¥3 special dividend)

S Shareholder Returns

Purchase and retirement of treasury stock

About 4.8 million shares acquired

Promoting purchase and retirement of treasury stock

Note: For purposes of comparison, actual results for the fiscal year ended March 31, 2005 are for the 12 months excluding the three months accompanying the change in the settlement period
for the consolidated subsidiaries of Nippon COMSYS.

8(Reference) Non-NTT Business Market Trends and Sales Plan
In Three Years

Fiscal Year Ended March 31, 2005 (Actual)

Fiscal Year Ending March 31, 2008 (Plan)

Net Sales (12 months)

NTT business160.0 (50%)

NTT business165.2 (57%)(¥ billion)

320.0(¥ billion)

289.6(100%)(100%)

Share of Net Sales
50%

Non-NTT business160.0 (50%)

Non-NTT business124.4 (43%)

Of which, Non-NTT Business Net Sales

IT solutions
27.3 (22%)

IT Solution Business
DoubleIT solutions
64.0 (40%)(¥ billion)

160.0(¥ billion)(100%)

124.4(100%)

Construction
96.0 (60%)

Construction
97.1 (78%)
Information
20.0IP Telephone Maintenance Network Integration10.0
10.0
24.0

Note: The IT solutions business also generates construction business.

9III. Business Plan for Fiscal Year Ending March 31, 2006

1. Plan
2. Strategy by Business
2-1. NTT Business
2-2. DoCoMo Business
2-3. Non-NTT Business

3. Business Integration Measures
4. Investment in Business Expansion
5. Response to Challenges in Business Environment10

III-1. Plan— Maintaining Sales and Profit Growth —(Unit: ¥100 million)

Fiscal year ended March 31, 2005

Fiscal year ending March 31, 2006

Actual (12 months) (Note)

PlanChangeOrders Received

2,843

2,950+107+3.7%

Net Sales

2,896

2,930

+34+1.2%

PercentchangeOperating Income (Operating Margin)

138(4.8%)

145(4.9%)+7+4.0%Recurring Profit (Recurring Profit Margin)

160(5.5%)

163(5.6%)+3+1.6%Net Income (Net Profit Margin)

77(2.7%)

85(2.9%)+8+10.3%

Management indicators

6.2%

6.8%

Net sales per Employee¥42 million¥44 million+2+4.7%

Interest-Bearing Debt

¥4.6 billion¥3.0 billion-16-34.8%

ROE+0.6 percentage points

Note: For purposes of comparison, actual results for the fiscal year ended March 31, 2005 are for the 12 months excluding the three months accompanying the change in the settlement period
for the consolidated subsidiaries of Nippon COMSYS.

11III-2-1. Strategy by Business (NTT Business)— Market Growing Slightly —(1) Sharp Growth in Fiber Optic-related Construction— Investment flat but construction volume rising —S We will develop a COMSYS-style kaizen modeled on Toyota’s kaizen.

(2) Response to Era of Full-scale IP Network Construction in Two or Three Years— Development of CCIE engineers: 6 (March 31, 2005)

70 (March 31, 2008) —(3) Maintenance Problems will Arise with Existing Facilities in Two or Three Years— Securing analogue engineers and establishing maintenance system —12

III-2-2. Strategy by Business (DoCoMo Business)— Market Growing Slightly —(1) “Volume Consumption” of FOMA Base Station Construction is a Pressing Need
— Shift of personnel within COMSYS Holdings and reorganizationof cooperating companies —(2) Response to Decline in Capital Expenditures from Next Fiscal Year( i ) Expansion of business lines in DoCoMo business(ii) Securing IP engineers(iii) Response to new business directed by DoCoMo13

III-2-3. Strategy by Business (Non-NTT Business)— Market Expanding —(1) NCC Business Growing Substantially (Expansion into New Business Territory)— Establishment of nationwide construction system —(2) Construction Work— We will boost cost competitiveness (COMSYS-style kaizen) to secure orders. —(3) Solutions Business( i ) Product capabilities(ii) Proposal capabilities(iii) Technical capabilities

IP telephone, security, mobile
Establishment of system that combines network,system, and maintenance technologies
Strengthen training14

III-3. Business Integration Measures(Unit: ¥100 million)

Business Integration Measures
Phase 1 – Phase 2

Effect of management improvements

Phase 3 plan

Phase 1 – Phase 2 actual

Phase 3 plan

Cumulative total through year ended March 31, 2005

Cumulative total through year ending March 31, 2006

510183716617085 (23)123 (47)2070(1) Results of Selection and Concentration• Integration of NTT business in Tokyo metropolitan area
• Elimination and consolidation of construction companies:
Establishment of Alstar Co., Ltd., and Sun Net Com Co., Ltd.

• Integration of NCC business (April 1)• Promotion of outsourcing in information business(2) Results from Centralization of Shared Operations• Integration of in-house system• Enhancement of COMSYS Shared Services Corporation• Central purchasing • COMSYS-style kaizen• Integrated operations for real estate usage, etc.

(3) Results of M&A and Alliances• Alliances with IT vendors such as Nissho Electronics Corporation • Make Kokusai Densetsu, Ltd., into a subsidiary(Scheduled for October 1)• Tie-up with Unique Link with the aim of developing• Alliances to expand maintenance business
COMSYS brand products(4) Company Characteristic Management Improvement Measures• Reassignment of personnel due to clarification of division of responsibilities with subsidiaries• Rationalization of outsourcing expenses
Effect of management improvements(Of which, effect of synergies)

Total(Reference) Sales Growth Due to Expansion in Business Lines• Development of COMSYS brand products (comsip)• Expansion of IT-related orders• Expansion of COMSYS brand products• Entry into top ranking layer through improved human skills

15III-4. Investment in Business Expansion(Unit: ¥100 million)

Measures for Expansion of Business Lines
Phase 1 – Phase 2

Effect of management improvements

Phase 3 plan

Phase 1 – Phase 2 actual

Phase 3 target

Cumulative total through year ended March 31, 2005

Cumulative total through year ending March 31, 2006

19376211112233873(1) Investment Aimed at Expanding IT Business• Establishment of verification lab and enhancement of equipment• Investment in IT-related personnel• Other IT-related investment (consultants, etc.)(2) Investment Aimed at Expanding New Business Territory• Enhancement of NMC• Transfer and enhancement of NMC• COMSYS-style kaizen (Investment in introduction of IT)• Development of COMSYS brand products• M&A and alliances (small-scale)(3) Investment Aimed at Promoting Business Integration and Business Reorganization• IT-related capital expenditures (In-house IT deployment)
Introduction of sales and construction support system (COMFORCE)
Integration of in-house system• IT-related capital expenditures (In-house IT deployment)
Customizing COMFORCE
Customizing in-house system(4) Investment in Technical R&D

Investment in expanding lines of businessTotal16

III-5. Response to Challenges in Business Environment
Observance of Compliance— Observance of laws (Strengthening of preventative measures) —— Strengthening of internal operations audits and legal monitoring —Promotion of Corporate Social Responsibility (CSR)

Exhaustive Safety Measures— Global environment conservation work —— Raise awareness of safety —— Social contribution activities —— Meticulous basic action —Establishment of advisory board and management thattakes advantage of pure holding company framework(Note: Implemented at Nippon COMSYS)

M&A and Alliances to Expand Business Lines
and Change Business Type— Alliances with venture businesses that possess IT technology —— Use of treasury stock and cash —Strengthening of Risk Management— Establishment of risk management project —— Establishment of a project to examine anti-TOB measures —Increasing Productivity through Cost Reductions— Development of a COMSYS-style kaizen modeled on Toyota’s kaizen —— Integration of operations —— Rational allocation of management resources —17