According to the summary report released by the Cabinet Office on the national income statistics for October to December in 2002, the national domestic product (GDP) for the corresponding quarter tolerably increased by 0.5% on a year-on-year basis, although its nominal growth rate calculated with fluctuation of prices taken into consideration declined by 0.1% on a year-on-year basis, suggesting that the deflationary trend in the country become further serious. Private consumer spending which had remained firm, was no exception, showing a decline due to decreases in bonuses and other income sources. This declining economical situation, combined with deterioration in the international situation due to major problems such as the threatened US-led war against Iraq and the North Korea's re-launched nuclear development program, has resulted in increased uncertainty in the future business climate in the nation. In the meantime, the stock prices have remained sluggish with a continued decline in the land prices, requiring urgent action to cope with assets deflation.
　
　Under these circumstances, our corporation has worked together in an effort to survive in this industry, which has also suffered due to a fall in the land prices, causing a downturn in parking fees. In addition, competition for leasing of land for parking has begun, focusing on the midtown areas. Such competition has caused a demand for a high in land lease fees, which has offset the benefit from the land price drop, causing our company to begin suffering profit deterioration.
　
　Our corporation's mainstay business "CP system sale" has experienced a decline in the year-on-year sales growth, especially because of uncertainty over the future of the business climate in the nation, causing individual investors to refrain from investment and financial institutions to hesitate over providing funds. The sales in this business section grew 120% in the first quarter of the present term on a year-on-year basis, while its sales growth for the second quarter of the same term declined to the 100% level. Notwithstanding the above, however, the corporation has enjoyed good sales performance in its "CP System" and "Maintenance" divisions (offering service throughout the year, 24 hours a day, 365 days a year), which registered large increases in sales for the present quarter on a year-on-year basis.
　
　The business performance of the corporation for the second quarter of its 7th term is as summarized in the following table:

　The corporation's major investments made during the second quarter of its 7th term are as shown in the following table, all of which are expected to generate high rates of return.

　The corporation's future prospect is considered severe, although unpredictable, not permitting us to stick to its optimistic forecast. Especially, the corporation's key division "CP System Sale" has required us to revise its initial sale projection downward in order to make all our efforts to maintain its sales performance at the level attained in the previous quarters. On the other hand, we will work hard in an effort to allow the corporation's "CP System", "Maintenance" and other divisions (which are expected to continue to perform favorably in their sales) to make up for the decline in the sales of the "CP System Sale" division as revised downward. Notwithstanding such efforts, our present sales forecast for the present term is far below the target of 2800 million yen in sales with ordinary profits of 200 million yen.

　Notwithstanding the above, we have determined to work together to improve sales performance for the third quarter of the present term in order to achieve its goal. We would appreciate it if each of you as our corporation's stockholders could understand the present situation surrounding the corporation as described above and extend your special support and encouragement to us all.