1. Business Alliance Details The two companies have agreed to forge a mutually beneficial business alliance that will draw on their respective strengths in certain areas to meet customer needs in Okinawa Prefecture. LAWSON is developing a nationwide chain of convenience stores (CVS) throughout Japan, while SAN-A operates supermarkets and other businesses, mainly in Okinawa Prefecture. The two companies will explore the possibilities of working together across various fields, including jointly developing boxed lunches and delicatessen items using local ingredients, proposing new products and other offerings, sharing sales information, and conducting joint sales promotions and store development. LAWSON and SAN-A will form a special committee to discuss specific details. The two companies will also look at the possibility of joint venture CVS operations under the LAWSON brand in Okinawa Prefecture or the possibility of SAN-A operating as an area franchisee ,so as to more effectively implement the aforementioned initiatives. 2. Outline of Both Companies (As of August 31, 2008) (SAN-A CO., LTD.) Company: SAN-A CO., LTD. Head Office: 7-2-10, Oyama, Ginowan-shi, Okinawa President and CEO: Tessei Uechi Established: May 28, 1970 Capital: 3,723 million yen No. of Employees: 1,043 Main Businesses: Operation of supermarkets as well as restaurants, hotels, etc. No. of Establishments: Supermarkets (60), restaurants and hotels (18) (LAWSON, INC.) Company: LAWSON, INC. Head Office: 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo President and CEO: Takeshi Niinami Established: April 15, 1975 Capital: 58,506 million yen No. of Employees: 3,448 Main Businesses: Operation of franchised chain of LAWSON convenience stores No. of Stores: 8,614 3. Effect on Operating Results The business alliance announced today will have no effect on both companies' operating results for the fiscal year ending February 28, 2009. The alliance is also expected to have only a negligible effect on operating results for the fiscal year ending February 28, 2010. |