The new system, based on an optical fiber network, will include upgraded POS registers, store computers, Loppi terminals and other operating systems and equipment at LAWSON stores. In addition, information-related product development and store development systems will be revamped, while core finance and accounting and integration master code systems (which manage products, business partners and other operational aspects) will be completely rebuilt.

LAWSON plans to bring forward the recognition of approximately 2.0 billion yen in lease cancellation and other expenses for its existing store system that will be incurred upon introduction of the next-generation system.

Furthermore, LAWSON estimates that special losses, such as loss on disposal of property and store equipment accompanying store closures, will increase by approximately 0.5 billion yen over initial expectations. Together with the aforementioned lease cancellation expenses for the existing system, therefore, LAWSON expects special losses to increase by about 2.5 billion yen.

2. Revised FY2006 Financial Results Forecasts (March 1, 2006 – February 28, 2007)
(Non-consolidated basis; \ million)

	Total Operating Revenues	Operating Income	Ordinary Profit	Net Income
Previous forecast (A)	258,000	44,900	44,600	23,300
Revised forecast (B)	258,000	44,900	44,600	21,800
Decrease (B-A)	-	-	-	1,500
Decrease (%)	-	-	-	6.4

(Consolidated basis; \ million)

	Total Operating Revenues	Operating Income	Ordinary Profit	Net Income
Previous forecast (A)	286,000	45,300	45,300	22,900
Revised forecast (B)	286,000	45,300	45,300	21,400
Decrease (B-A)	-	-	-	1,500
Decrease (%)	-	-	-	6.6

Attention regarding forward-looking statements
The reader is advised that this report contains forward-looking statements. As opposed to statements of historical fact, these constitute estimates or projections based on facts known to the Company's management as of the time of writing, and actual results may therefore differ substantially from such statements.