LAWSON Announces Subscription to Capital Increase by Ninety-nine Plus via Third-party Allotment of Shares

2007/12/25

LAWSON, INC. has announced that a Board of Directors meeting held on December 25, 2007, resolved to subscribe to a capital increase by Ninety-nine Plus Inc. via a third-party allotment of shares. Details are as follows:

1. Background and Purpose of the Subscription
As announced in a February 28, 2007 news release, LAWSON, INC. has forged an equity-based business alliance with Ninety-nine Plus Inc., which operates the "SHOP99" chain of stores. This alliance has been producing results that are moving LAWSON closer to its goal of expanding its customer base. It has, for example, improved logistical efficiency and yielded joint product development trials. Going forward, however, LAWSON is aiming for further growth in the number of customers through the expansion of its customer base . To this end, LAWSON believes it is crucial to deepen its equity-based business alliance with Ninety-nine Plus for two reasons. First, Ninety-nine Plus has won strong acceptance especially from housewives, the middle-aged and elderly , and younger singles. Second, it will help LAWSON to develop attractive products for the elderly and female customers and sell these products at existing LAWSON stores.

LAWSON's subscription to Ninety-nine Plus' capital increase is aimed at reinforcing trust and the cooperative relationship between the two companies. By making LAWSON Ninety-nine Plus' largest shareholder, this move is also designed to accelerate the development and expansion of LAWSON's scope of operations.

2. Details of Capital Increase via Third-party Allotment of Shares
(1) Outline of share acquisition through third party share allotment
Purchase price : 65,000 yen per share
Number of shares to be acquired : 20,500 shares of common stock
Total purchase price : 1,332,500,000 yen

(2) Change in Number and Percentage of Shares of Ninety-nine Plus held by LAWSON
Number of shares held before the change : 39,988 shares
Percentage of shares held before the change : 25.6%
Number of shares to be acquired : 20,500 shares
Purchase price : 1,332,500,000 yen
Number of shares held after the change : 60,488 shares
Percentage of shares held after the change : 34.2%
Number of shares held before the change includes 7,500 shares (equity interest 4.8%) scheduled to be acquired from KYODEN CO., LTD. onDecember 28, 2007.

3. Outline of Ninety-nine Plus Inc.
(1) Company name : Ninety-nine Plus Inc.
(2) Main businesses : Direct operation and franchise chain development of SHOP99 single-price stores
(3) Established : October 16, 2000
(4) Head office location : 4-39, Gakuenhigashimachi 1-chome, Kodaira, Tokyo 187-0043, Japan
(5) Representative : Takahiro Fukahori, President
(6) Capital : 4,672 million yen
(7) Number of employees : 1,202 (as of September 30, 2007)

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