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Consolidated results

【Summary】　Profits continue to rise significantly during 3 months to May

FAST RETAILING generated another significant rise in both revenue and profit in the third quarter from March to May 2008 following on from the strong first half performance. Sales promotions at our mainstay UNIQLO Japan operation met with considerable success helping to boost existing store sales by 4.2% year on year. In addition, UNIQLO Japan was able to improve our gross profit margins and cost ratios, generating a higher than expected level of operating income.

UNIQLO International posted a cumulative profit in the first nine months to May 2008. UNIQLO operations in China, Hong Kong and South Korea continued to expand favorably, and performance at our New York global flagship store was also favorable. Our Japan Apparel segment posted a small profit in the March to May period thanks to improved profitability at both our women’s fashion retailer CABIN and footwear retailer ONEZONE CORPORATION subsidiaries. On the other hand, profits from our Global Brands segment were flat in the third quarter due to the deterioration in the European consumption environment.

Our consolidated business forecasts for the full year to August 2008 remain unchanged from the estimates announced along with our interim results on April 10. We estimate overall net sales will rise 11.5% year on year to ¥ 585.5bln and operating income will rise 23.4% to ¥ 80.1bln, generating a profit per share of 403.33 yen. We are forecasting an annual dividend per share of 130 yen, including the interim dividend payment of 65 yen already distributed.  

Finally, we took the decision today to go ahead with a business merger between three of our Japan Apparel subsidiaries (low cost casual wear brand developer G.U. CO., LTD., and footwear retailers ONEZONE CORPORATION and VIEWCOMPANY CO., LTD.) effective September 1, 2008. The newly merged company will strive to create a new style of shoe business within the footwear industry, and the cheapest quality clothes in the low-cost clothing market. We are expecting to account a special loss of ¥ 1.8bln in the year to August 31, 2008 in relation to this three-company merger.

■　UNIQLO Japan

Our UNIQLO Japan operation accounts for roughly 80% of FAST RETAILING consolidated net sales. In the three months to May, UNIQLO Japan enjoyed an increase in revenue, and, thanks to improvements in both our gross profit to net sales and cost to net sales ratios, UNIQLO Japan operating income exceeded target. Existing store net sales increased a favorable 4.2% year on year in the third quarter from March to May. Factors underlying this strong performance include: a) the stronger appreciation of UNIQLO’s high quality, functional material garments, b) our success in creating clearer standout displays for easy purchase by increasing store inventory of mainstay garments such as our cotton T-shirts, denim, etc., and, c) our successful promotion campaigns. The campaigns conducted in the third quarter were designed to boost the image of our women’s wear such as our New Shapely Leg Bottoms Campaign by Japanese beauty queen Norika Fujiwara and our Bra Top Campaign by Japanese actress Kazue Fukiishi. These were the first for UNIQLO to appeal only to female customers through TV commercials and helped attract customers. Our store openings & closures were conducted roughly to plan with a net increase of 11 stores boosting our total number to 741 direct-run stores at end May 2008 (759 including franchise stores).

Our gross profit to net sales ratio outstripped target in the third quarter from March to May, improving by 2.4 points compared to the previous year as we exercised stronger control over discounting. Our SG&A cost ratio improved 1.4 points year on year as the advent of our regional employee system helped reduce time spent hiring and training new personnel, and our efforts to improve operational store efficiency led to a rise in productivity.

Our forecasts for the full year to August 2008 for UNIQLO Japan remain unchanged with net sales expected to rise 8.1% year on year to ¥ 459.2bln, and operating income expected to rise 23.9% to ¥ 79.2bln.

■　UNIQLO International

UNIQLO International again managed to turn a slight profit in the third quarter from March to May with net sales rising 71.8% year on year. Within the segment, business in the Asian region of China, Hong Kong and South Korea continues to expand favorably, and the financial balance at our US operation has also improved since the opening of our global flagship store in New York in November 2006. Our full-year forecasts through end August 2008 for UNIQLO International remain unchanged with net sales predicted to rise 76.5% to ¥ 30.0bln and the operating loss expected to shrink from the previous year’s ¥ 1.1bln to ¥ 0.4bln.

■　Japan Apparel

Our Japan Apparel segment posted a slight profit in the third quarter (March to May). The impact of cost cuts at CABIN generated a higher than expected profit there, and profitability at ONEZONE improved during this quarter of traditionally buoyant demand. Our forecasts for the Japan Apparel operation for the full year through August 2008 remain unchanged with net sales expected to rise 10.4% year on year to ¥ 50.8bln, and the operating loss to shrink from the previous year’s ¥ 3.5bln to ¥ 2.7bln. Profit and loss figures for women’s footwear subsidiary VIEWCOMPANY CO. LTD are included in the consolidated profit and loss statement from this third quarter.

Having considered the matter since April this year, we have now taken the decision to merge three of our Japan Apparel subsidiaries (low-cost casual wear brand developer G.U. CO., LTD., and footwear retailers ONEZONE CORPORATION, and VIEWCOMPANY CO., LTD.) effective September 1, 2008. The newly merged company will strive to create a new style of shoe business within the footwear industry, and the cheapest quality clothes in the low-cost clothing market. We are looking to further improve profitability by boosting the new company’s operational efficiency through the merger of production, product, marketing, supervision and management planning functions. We are expecting to account a special loss of ¥ 1.8bln in the year to August 31, 2008 as the three-company merger results in inevitable store closures and office transfers. 

■　Global Brands

Our Global Brands operation did not meet its targets for the third quarter from March to May. When the data are viewed on a real basis adjusted for differing business periods, revenue actually rose 8% year on year and operating income was roughly flat. The developer of the casual wear Comptoir des Cotonniers brand in France and other parts of Europe failed to reach its sales target owing to the deteriorating consumption environment in Europe. However, it still managed to generate a rise in both revenue and profit. Our full year business forecasts for the Global Brands segment remain unchanged with net sales expected to rise 17.0% year on year to ¥ 43.0bln and operating income expected to rise ¥ 3.2% year on year to ¥ 7.4bln.  

■　Business forecasts for the full year to August 2008

 While our UNIQLO Japan operation outperformed on the profit front in the third quarter, forecasts for the full year remain unchanged. As a result, our consolidated business estimates for the year to end August 2008 indicate an 11.5% year-on-year increase in overall net sales to ¥ 585.5bln and a 23.4% rise in operating income to ¥ 80.1bln generating a profit per share of 403.33 yen. We are forecasting an annual dividend per share of 130 yen, including the interim dividend payment of 65 yen already distributed.  

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As stated in our press release dated April 1, 2008 entitled “Basic agreement on business integration among FR Japan Apparel firms”, FAST RETAILING CO., LTD. has been studying a possible operational merger between three of its consolidated subsidiaries; low-cost casual wear brand G.U. CO., LTD., and footwear retailers ONEZONE CORPORATION, and VIEWCOMPANY CO., LTD., FAST RETAILING finalized the overall content and schedule of such a merger at our board meeting held today.

The fundamental objective of this move is for FAST RETAILING to take a leading role in fully utilizing the management resources of the Group including the UNIQLO operation, and to advance the establishment of a footwear operation and a low price casual clothing operation that can offer the customer fresh value.

1.　Management merger implementation - the timing & method

We considered the best way to realize the establishment of a footwear operation and a low price casual clothing operation with FAST RETAILING as the main driving force. We also studied the possibility of merging operations of our three group subsidiaries currently involved in developing our footwear and low price casual clothing operation. As a result, we decided the optimum way forward was to merge the three companies operations into one.

The business integration will be achieved by the current G.U. and VIEWCOMPANY operations being devolved to ONEZONE CORPORATION.

The scheduled transfer of operations currently performed by VIEWCOMPANY will take place on August 20, 2008, while the operations currently performed by G.U. will be assigned on August 31, 2008. The new company is thus expected to begin operations from September 1, 2008. The schedule business merger is however subject to completion of the incorporation of VIEWCOMPANY as a fully owned FR subsidiary.

2.　Business forecasts

We forecast this planned business merger may generate a special loss of approximately ¥ 1.8bln for the year ending August 2008.

3.　The three group companies

G.U. CO., LTD. began operations in October 2006 to develop the g.u. casual wear brand. With 50 stores in operation by end August 2007, we are currently working to expand the store network.
ONEZONE CORPORATION operates specialty footwear stores nationwide such as the FOOTPARK chain. FAST RETAILING purchased ONEZONE outright in March 2005 as part of our strategy to break into the footwear retail market.

VIEWCOMPANY CO., LTD. operates chain stores specializing in women’s footwear such as vju: As announced on March 19, 2008, FAST RETAILING is currently in the process of making VIEWCOMPANY a fully owned subsidiary.

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FAST RETAILING CO., LTD. has transferred its entire stock holding in FR consolidated subsidiary ASPESI JAPAN CO., LTD. to Alberto Aspesi & C S.p.A.

1.　Details of stock sale

(1)　Stock for delivery

FR holding of ASPESI JAPAN stock (approximately 60% of ASPESI JAPAN total outstanding shares)

(2)　Stock recipient

Company Name ：   Alberto Aspesi & C S.p.A.
Representative ：   Alberto Aspesi
HQ Location ：   Legnano, Italy
Business Type ：   Design, manufacture and sale of Aspesi brand clothing

2.　Impact on FR consolidated results

We envisage any impact on FR results for the year ending August 2008 will be minimal. As a result of this decision however, ASPESI JAPAN will no longer be treated as an FR consolidated subsidiary.

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Please see below the current list of entrusted operating officers for the FAST RETAILING group as of May 16, 2008.

Entrusted operating officer appointments across the FAST RETAILING group (as of May 16, 2008)

■　FAST RETAILING CO., LTD. 　

■　UNIQLO CO., LTD.　

■　FR FRANCE S.A.S. ［France］

■　CABIN CO., LTD.　

■　G.U. CO., LTD.

■　ONEZONE CORPORATION

■　FAST RETAILING(CHINA)TRADING CO., LTD.［CHINA］, UNIQLO HONG KONG, LIMITED［Hong Kong］

【REFERENCE MATERIALS】
Top personnel at major FAST RETAILING group companies

■　【Board of Directors and Statutory Auditors of FAST RETAILING CO., LTD.】
(as of May 16, 2008)

Note:
Mr. Hambayashi, Mr. Hattori and Mr. Murayama are external directors as stipulated under Article 2, Section 15 of Japanese company law. Furthermore, Messrs Yasumoto, Shimizu, Watanabe, and Ota have been appointed external auditors as stipulated under Article 2, Section 16 of the Japanese corporate law.

■　【Board of Directors and Statutory Auditors of UNIQLO CO., LTD.】
(as of May 16, 2008)

Note:
Mr. Matsushita is an external director as stipulated under Article 2, Section 15 of Japanese company law. Furthermore, Mr. Yasumoto and Mr. Shimizu have been appointed external auditors as stipulated under Article 2, Section 16 of the Japanese corporate law.

■　【Top personnel at non-Japan UNIQLO businesses】(as of May 16, 2008)

■　【Top personnel at non UNIQLO businesses】(as of May 16, 2008)

■　【Equity method affiliated company】(as of May 16, 2008)

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Consolidated results

【Summary】　Profits leap in first half to February 08

FAST RETAILING achieved a significant increase in profit in its interim results for the six months from September 2007 through February 2008. Net sales increased 11.3% year on year to¥ 316.4bln, operating income increased 25.8% to¥ 54.2bln and net income increased 26.3% to¥ 28.6bln.

We enjoyed an increase in both income and profit at our mainstay UNIQLO Japan operation with net sales and operating income both exceeding forecasts. The strong performance by core winter products such as HEAT TECH inner wear, cashmere sweaters and down jackets greatly reduced the need for later discounting. UNIQLO International posted its first interim profit thanks to firm results from our UNIQLO New York global flagship store, and our continued favorable business expansion in China, Hong Kong and South Korea. While our Japan Apparel operation slightly under performed versus target, our Global Brands operation continues to fulfill expectations.

We have decided to revise up our consolidated forecasts for the full business year to end August 2008 to reflect the significant out performance by UNIQLO Japan in the first half coupled with the revised forecasts for our Japan Apparel segment. Our revised consolidated full year forecasts are for net sales to increase 11.5% year on year to¥ 585.5bln and operating income to increase 23.4% year on year to¥ 80.1bln. We are predicting a profit per share of¥ 403.33. We expect to pay an interim dividend per share of 65 yen with the full year dividend in line with last year at 130 yen.
 
■　UNIQLO Japan

UNIQLO Japan constitutes 80% of total consolidated interim net sales. Net sales at UNIQLO Japan rose 8.1% year on year during the six months to February 2008 while operating income enjoyed a 24.1% increase. Interim results at UNIQLO Japan outperformed thanks to strong sales and an improvement in gross margins.

Firstly, a 1.5% year-on-year increase in existing store sales helped UNIQLO Japan achieve a higher than expected level of net sales in the first half. The warm weather back in September delayed the launch of our autumn garments dampening customer numbers and income during that month. However, sales of winter garments such as cashmere and fleece products picked up from mid October onwards once the cold weather set in. Our extremely successful promotion of HEAT TECH inner wear and down jackets during the peak winter season of November and December drew in a large number of customers and helped boost income significantly. Our HEAT TECH inner wear products proved a huge hit. Our HEAT TECH inner wear campaign promoting UNIQLO’s strengths in the use of “functional materials” was a great success with 20 million HEAT TECH items sold during the winter season.
New store openings proceeded roughly to plan in the first half with an additional 10 large-scale with about 1,600 square meters of sales space stores opening for business during the period. Total store numbers at end February reached 738 stores (757 including franchises). That represents an increase of 25 stores compared to the previous year.

On the income side, the strong performance by our core products reduced the need for discounting during the season. This in turn helped boost gross profit margins beyond expectations, with an improvement of 3.1 points over the previous year. From a cost perspective, our SG&A expense to net sales ratio rose 0.6 point year on year. Personnel costs increased on the back of expanded hires and recruitment of regional employees. Store rents rose as the number of new stores opening in more prestigious shopping centers increased. 

We have already revised forecasts for UNIQLO Japan new store openings in the second half to August 2008 due to the delay in the opening of new shopping centers affected by revisions to the Japanese building code. However, we have revised up our expectations for second half existing store sales from an initial increase of 0.2% year on year to a 1.9% increase year on year. This reflects the favorable launch of spring garments and the 8.1% increase in existing store sales already recorded for March. As a result, we have revised up our full year forecasts for UNIQLO Japan to net sales of¥ 459.2bln (up 8.1% year on year), and operating income of¥ 79.2bln (up 23.9% year on year).

■　UNIQLO International

Our UNIQLO International operation turned last year’s interim loss into its first interim profit this time. This was due to improved finances at UNIQLO USA where we opened our global flagship store in November 2006, and our continued favorable business expansion in China, Hong Kong and South Korea.

Following the opening of our New York global flagship store, we then opened a global flagship store on London’s Oxford Street in November 2007. We are currently planning the opening of our third global flagship store in Paris’s Opera in Autumn 2009. We are already enjoying enthusiastic support from Parisian customers at our first French UNIQLO store opened in the Parisian suburb of La Defense in December 2007.

We are predicting overall net sales for UNIQLO International for the full year to end August to increase 76.5% year on year to¥ 30.0bln, and the operating loss to shrink to¥ 0.4bln.

■　Japan Apparel

CABIN CO., LTD. and G.U. CO., LTD. performed in line with expectations during the first half, but the competitive environment for footwear developer ONEZONE CORPORATION was  tough and the subsidiary under performed as a result.

Focuses here for the second half include achieving a full year profit at CABIN by boosting efficiency and concentrating on core brands. In addition, we are looking to strengthen the women’s fashion component at our low-cost casual G.U. brand and to expand sales per store and boost overall profitability. Consolidated subsidiary VIEWCOMPANY will be incorporated into the FR accounts from the second half following the tender offer completed in February 2008. As a result, we have revised the full-year net sales estimate for our Japan Apparel segment to¥ 50.8bln. Given the slight delay on our initial plan to reduce operating losses and improving performance at ONEZONE and G.U., we have revised our full-year operating loss forecast for the Japan Apparel operation to¥ 2.7bln (The actual operating loss for the previous year to August 2007 was¥ 3.5bln). G.U., ONEZONE and VIEWCOMPANY signed an agreement dated April 1 to begin discussions for a possible reorganization of operations and merger of management functions. 

■　Global Brands

Our Global Brands segment performed as expected over the six months to February 2008. Customer visits to our French casual brand developer Comptoir Des Contonniers were adversely impacted by the strikes in Paris, but sales of the brand in other parts of Europe such as Spain and Italy proved strong. French lingerie brand developer PRINCESSE TAM.TAM also continues to perform favorably.

Going forward in the second half, we will continue our aggressive opening of new Comptoir Des Cotonniers stores in other parts of Europe outside France while also looking to consolidate the French market base for our PRINCESSE TAM.TAM operation. We are predicting full year net sales for our Global Brands operation of¥ 43.0bln and operating income of¥ 7.4bln.

■　Business forecasts for the year to August 2008

We have revised up our full year consolidated business forecasts for the FAST RETAILING group given the significant out performance at UNIQLO Japan in the first half, coupled with revised performance expectations at our Japan Apparel operation. We are now forecasting full year overall net sales to increase 11.5% year on year to¥ 585.5bln, and operating income to rise 23.4% year on year to¥ 80.1bln. We predict profit per share to total ¥ 403.33. We are planning an interim dividend of 65 yen and an annual dividend in line with last year at 130 yen.

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FAST RETAILING is to establish a joint venture company with Wing Tai Retail Pte. Ltd. of Singapore to facilitate the entry of its casual wear UNIQLO brand into the Singapore market. A basic agreement on the framework for the joint venture has been reached

１．UNIQLO to enter the Singapore market

FAST RETAILING has been exploring the possibility of entering the Singapore market for some time and we are now pleased to announce that we have agreed a basic framework for establishing a joint venture company with our new partner Wing Tai Retail Pte. Ltd.. Wing Tai Retail Pte. Ltd. is a wholly owned subsidiary of the Singapore-listed property developer and lifestyle company Wing Tai Holdings Limited Singapore.
Based upon this agreement, the new joint venture company would be established in Singapore in the business year to end August 2008, with the first UNIQLO store set to open in Singapore sometime during the following business year ending August 2009. UNIQLO is well known for its high quality, fashionable basic casual clothes that can be worn by anyone, anywhere, anytime. UNIQLO will be looking to establish a store network in Singapore and spread its appeal as a Japanese brand that offers a truly unique, fresh value through its clothes. Singapore would be UNIQLO’s fourth base in Asia following the brand’s success in China, Hong Kong and South Korea.

２．About Wing Tai Asia

Wing Tai Holdings Limited is Singapore's leading property developer and lifestyle company reputed for quality and design. The principal activity of the company is that of an investment holding company, focused on key markets in Asia. The core businesses of the Wing Tai Asia Group – which includes also USI Holdings Limited in Hong Kong and DNP Holdings Berhad in Malaysia – comprise property investment, development and management, as well as fashion retail, hospitality management and F&B franchise operations.  www.wingtaiasia.com.sg
 

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FAST RETAILING CO., LTD. decided at its board of directors meeting held today to consider a business merger between three of its consolidated subsidiaries G.U. CO., LTD., ONEZONE CORPORATION, and VIEWCOMPANY CO., LTD (JASDAQ: Code 3033). These three companies signed a basic agreement today, the aim of which is to start discussion to integrate business and merge management operations.

１． Overview and aim of business integration and merger

FAST RETAILING CO., LTD. has infused the operational knowledge and experience derived from its UNIQLO clothing business in an effort to boost profitability at the three subsidiary firms. However, we judged that it would be difficult to deal with the deterioration in performance at each firm individually, and we are now of the opinion that a more fundamental restructuring of operations is required.

The fundamental objective here is for FAST RETAILING to take a leading role in fully utilizing the management resources of the Group including the UNIQLO operation, and to advance the establishment of a footwear operation and a low price casual clothing operation that can offer the customer fresh value. To that aim, we have decided to open discussion on the possibilities for realizing such operations with FAST RETAILING as the driving force. At the same time, we will also consider the integration of business and merger of management functions among the Group’s three subsidiaries that are currently developing footwear and low-cost casual clothing. In accordance with this decision, those three companies signed a basic agreement dated today to start discussion to integrate their businesses and merge their management functions.

We expect future business cooperation between the three companies to involve positive inter-company personnel exchange between the three firms and FR with its mainstay UNIQLO operation. Cooperation will also include the setting and holding of joint meetings, etc.

２． Management merger implementation –the timing and method

At this point in time, the exact timing and details for implementing the merger of management functions are undetermined. We will disclose these details as soon as they are decided following careful consideration by FAST RETAILING and the three subsidiary companies.

Any management merger among the three subsidiaries will be subject to the successful transformation of VIEWCOMPANY into a wholly owned subsidiary of the FAST RETAILING Group. The details of this transition are described in the document released on March 19, 2008 entitled “VIEWCOMPANY to become a wholly owned subsidiary of FAST RETAILING.”

The remuneration to be delivered to remaining shareholders when VIEWCOMPANY becomes a wholly owned FR subsidiary will not be affected by the decision to merge the three subsidiary firms. Instead, this remuneration will be calculated to equal the purchase price in the tender offer on VIEWCOMPANY joint stock carried out between January 11 and February 27, 2008.

３． Outline of the three subsidiaries

G.U. CO., LTD. began operating in October 2006 as developer of the casual wear g.u. brand. G.U. had a total of 50 stores at end August 2007 and we are working to expand the scale of operations.

ONEZONE CORPORATION boasts a nationwide network of footwear retailing stores such as the FOOT PARK chain. FAST RETAILING acquired ONEZONE CORPORATION outright in March 2005 as part of its new business drive in footwear retailing. 

VIEWCOMPANY mainly operates footwear retailing specialty stores such as the “vju:” network of women’s shoe stores. FAST RETAILING entered into business cooperation with VIEWCOMPANY when it accepted the firm’s allocation of news shares to a third party in November 2006. Following the recent tender offer mentioned above, FAST RETAILING currently holds 98.96% of VIEWCOMPANY total outstanding stock leading to the subsequent decision announced on March 19, 2008 to make VIEWCOMPANY a wholly owned subsidiary of the FAST RETAILING Group.

〔Overview of the three companies〕

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FAST RETAILING CO., LTD. decided at its board of directors meeting held on March 19, 2008 to make VIEWCOMPANY CO., LTD. (JASDAQ: 3033, “Target” or “VIEWCOMPANY”) a wholly owned subsidiary of the FR Group. The procedures and reasons behind this decision are detailed below.

１．The reason behind the decision to make VIEWCOMPANY a wholly owned subsidiary

As a result of the tender offer conducted on the Target’s common stock between January 11 and February 27, 2008, FAST RETAILING CO., LTD. (“Company”) currently owns 98.96% of all VIEWCOMPANY’s outstanding shares. As conveyed in our news release dated February 28, 2008 detailing the results of the tender offer for VIEWCOMPANY and the Target’s subsequent transformation into an FR subsidiary, the intention is to change VIEWCOMPANY’s systems to more clearly reflect the Target’s commitment to the FR Group. The intention is also to further accelerate the current vigorous pursuit of group synergies through the mutual exchange of experience, information and personnel to strengthen the Target’s business processes, and to realize more efficient and extensive sharing of operational infrastructure. Now, in light of the tender offer results, the Company has decided to make the Target a wholly owned subsidiary in order to further enhance the effectiveness of these synergy-seeking measures.

By sharing FR group expertise and promoting communication among personnel as well as transferring personnel between FR group companies, FAST RETAILING and VIEWCOMPANY are looking to 1) enhance the precision of procurement and orders by strengthening the product planning function, 2) improve gross profit by reviewing the ratio of original products, 3) make better use of store opening expertise and conduct joint store openings, and 4) implement joint purchasing structures. We believe this will allow us to create a new type of shoe business, and ensure a strong, stable operational base to boost VIEWCOMPANY’S competitiveness and profitability.

２．Overview of VIEWCOMPANY

３．The method used to make VIEWCOMPANY a wholly owned FR subsidiary

As regards the Target shares which the Company was not able to acquire through the tender offer, the Target plans to acquire all of those remaining shares by offering Target shareholders the opportunity to cash in their shares according to the method set out below.

In concrete terms, the Company plans to request that the Target hold a General Shareholders’ Meeting with an agenda pursuant to which the Target will (i)1) amend the Articles of Incorporation to change the Target into a Corporation with Class Shares (Shurui-Kabusiki Hakkou Gaisha) stipulated by the Corporate Law, 2) amend the Articles of Incorporation to grant rights to acquire all the common stock (Zenbu shutoku Joko) issued by the Target, and 3) deliver to shareholders a separate class of shares of Target in exchange for the acquisition of all the shares of common stock as mentioned in (i) 2) above, and also that (ii) the Target Company hold a General Class Shareholders (the same as the Target Company’s common shareholders) Meeting with an agenda included a change to the Articles of Incorporation as mentioned in (i) 2) above. The Company plans to approve all of the above-mentioned measures at the General Shareholders’ Meeting and the General Class Shareholders’ Meeting. If each of the aforementioned procedures is executed, then all of the common stock issued by the Target will change into Class Shares with the right to acquire all common stock, which in effect means that the Target will then acquire all such stock. Target shareholders’ will receive separate Target shares as remuneration for the afore-mentioned acquisition. However, there will be no listing application for these shares. Those shareholders whose separate Target shares to be delivered are fractions less than one share will receive cash that is obtained from the sale of the equivalent fraction of a share as stipulated by procedures under Japanese laws and ordinances. The price of such fractions will be calculated based upon the offer price of the tender offer.

The number of Target shares to be delivered as remuneration for the acquisition of shares has not yet been determined. However, to ensure that the Company can acquire all of the Target shares, the number of Target shares required for delivery to Target shareholders other than FAST RETAILING who did not apply for the tender offer shall be set as fractions less than one share.

With the aim of protecting minority shareholders’ rights when the Articles of Incorporation are amended, the Corporate Law provides that shareholders have the right to request the company to purchase their shares upon amendment to the Articles of Incorporation granting the rights to acquire all the common stock (Zenbu shutoku Joko) under Article 116 and Article 117 of the Corporate Law. Shareholders may also file a request determination of the fair price for acquisition under Article 172 of the Corporate Law in the case that acquisition of whole shares regarding such acquisition rights is resolved by a shareholders’ meeting. Furthermore, given that the purchase price and the acquisition price will be finally determined by the court, the price received by the shareholders may be different from the offer price in the tender offer. Shareholders must consider and determine their own course of action in the case of such a request and filing.

The Target is currently listed on the JASDAQ Exchange. However, given the decision to make the Target a wholly owned subsidiary of the Company, the Target is expected to cease listing late June 2008. Once the Target has been removed from the exchange, it will no longer be possible to trade Target shares on the JASDAQ Exchange.

４．Scheduled outline for change to articles of incorporation, etc.

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Tender Offeror :

FAST RETAILING CO., LTD.（TSE First section：9983）

TOB Target :

VIEWCOMPANY CO., LTD.（Jasdaq：3033）

At its board meeting held on January 10, 2008, FAST RETAILING CO. LTD. decided to tender an offer of 585 yen per share with the aim of making women’s footwear store developer VIEWCOMPANY an FR subsidiary. The TOB commenced on January 11, 2008 and ran through February 27, 2008. The TOB was successful and so VIEWCOMPANY is now expected to become a consolidated subsidiary of FAST RETAILING. The details of this change are explained below.

Conditions of tender offer :

Purchase price：　585 yen per ordinary share
Purchase period：　Friday, January 11～Wednesday, February 27, 2008
Number of shares targeted for purchase: A minimum of 2,523,000 shares (33.27% total outstanding shares); no upper limit.

Result of tender offer  :

Total shares offered for sale：　4,971,000 shares
Total shares purchased：　4,971,000 shares
-　The total number of shares offered for sale exceeded the minimum number of shares targeted for purchase. Therefore, we are purchasing all of the shares tendered for sale.

FR shareholder stake in VIEWCOMPANY post TOB:　98.97％（7,504,000 share）
-　As a result, VIEWCOMPANY is scheduled to become a consolidated subsidiary of FR effective March 5, 2008.

Post TOB strategy :

-　Once VIEWCOMPANY becomes an FR consolidated subsidiary, we plan to transform the VIEWCOMPANY’s operational structure and further clarify FR Group’s commitment to the company. We intend to pursue synergy benefits even more aggressively than we have in the past. These efforts will include strengthening VIEWCOMPANY’s business processes by promoting better communication of experience, information and personnel, and through a greater sharing of operational infrastructure.

-　By sharing FR group expertise and promoting communication among personnel as well as transferring personnel with FR group companies, FAST RETAILING and VIEWCOMPANY are looking to ① enhance the precision of procurement and orders by strengthening the product planning function, ② improve gross profit by reviewing the ratio of original products, ③ make better use of store opening expertise and conduct joint store openings, and ④ implement joint purchasing structures. We believe this will allow us to create a new type of shoe business, and ensure a strong, stable operational base to boost VIEWCOMPANY’S competitiveness and profitability.

Could VIEWCOMPANY become a fully owned FR subsidiary?  :

FAST RETAILING and VIEWCOMPANY will consider various factors such as whether VIEWCOMPANY infringes the listing criteria of the JASDAQ exchange, FR’s total shareholders stake following the TOB, and VIEWCOMPANY’s market liquidity. If on such consideration both firms judge it appropriate, FAST RETAILING would plan to make VIEWCOMPANY a fully owned subsidiary through the use of class shares with an option to call all shares.

Future outlook :

-　We envisage that any impact resulting from this TOB on FAST RETAILING’s business performance for the year to August 2008 on both a consolidated and parent only basis will be minimal.  

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Consolidated Results

【Summary】　Both revenue and profit up in three months to November 07

FAST RETAILING CO., LTD. enjoyed a rise in both revenue and profit during the first quarter, or the three months from September to November 2007. Net sales rose 10.6% year on year to ¥ 160.4bln, operating income rose 12.1% to ¥ 28.1bln, and net income rose 8.7% year on year to ¥ 15.4bln.

We generated in increase in both revenue and profit at our mainstay UNIQLO Japan operation with both net sales and operating income coming in above expectations. Factors at play here were the strong sales performance of core winter products such as HEAT TECH INNER wear, cashmere sweaters and down jackets. The need to discount surplus stock was also reduced. We turned our first profit at our UNIQLO International operation during the quarter thanks to a strong performance at our New York global flagship store, and continued favorable results in China, Hong Kong and South Korea. Performance at our Japan Apparel and Global Brands sections was within expectations.
　
Capturing strong sales at UNIQLO Japan over the peak demand month of December has meant that the overall business is performing well. However, we do not intend to revise our half-year or full business year forecasts given our cautious outlook for sales in January and February with shortages in some winter goods already emerging. For that reason, our consolidated business forecasts for the full year to August 2008 remain unchanged with net sales expected to rise 8.5% year on year to ¥ 570.0bln, operating income seen rising 12.1% to ¥ 72.8bln, and a predicted profit per share of 380.95 yen. Our annual dividend per share remains as initially predicted at 130 yen.

■　UNIQLO Japan

Our mainstay UNIQLO Japan operation accounts for 81% of consolidated net sales. In the three months to November 2007, UNIQLO Japan generated a 6.4% year-on-year increase in net sales, and a 10.3% rise in operating income. First quarter results exceeded our expectations thanks to this strong sales performance and also an improvement in gross margin.

Net sales were flat on an existing store basis, but an increase of 25 direct-run stores compared to August 2007 helped generate the greater revenue. Total direct-run stores as of end November 2007 stood at 739 stores, or 758 including franchises. Looking back on monthly performance, revenue fell in September as the warm weather delayed sales of autumn garments. However, when the cold spell set in mid October, sales of winter cashmere sweaters, fleeces, and HEAT TECH INNER wear perked up. Our HEAT TECH INNER wear and down jacket campaign products attracted more customers and boosted revenue in November. Thus we were more than able to regain the slip in sales suffered in September, and sales for the September to November quarter overall ended up exceeding our initial forecast. We believe this proves that UNIQLO’s unique “functional materials” such as HEAT TECH INNER wear for the autumn/winter season matched customer needs well, further boosted by our timely promotion campaigns.   

We also performed well on the profit front boosting the gross margin on sales ratio by 2.4 points. This reflected the strong sales of core winter garments, and our resulting ability to reduce discounting, and keep limited-period promotional sales to a minimum, etc. On the cost front, the SG&A to sales ratio increased 1.7 points. This was due to higher personnel costs on the back of increased hires, higher advertising and promotional costs, and rise in store rents as we aggressively moved ahead on store openings in shopping centers and prominent city center retail facilities.

We are moving ahead with our scrap and build policy for the full business year at UNIQLO Japan as part of our decision to position large scale 1600sqm stores as the key growth driver. We opened 9 large-scale stores in the first quarter as planned. However, we have revised our initial forecast for 40 large-scale store openings down to 25 for the full year to August 2008 following the delay in opening of new shopping centers scheduled to open in Spring 2008, but now pushed back due to revisions to the building standards law.

The business trend continues to be favorable for UNIQLO Japan. The operation managed to boost existing store revenue by 6.4% year on year even in the peak year-end period of December. However, we are already noting some shortages in certain winter garments in early January and therefore we are viewing January and February sales cautiously and do not intend to revise up our half-year or full business year forecasts. We are predicting net sales for the year to August 2008 of ¥ 448.0bln (up 5.5% year on year), and operating income of ¥ 71.0bln (up 10.9% year on year).

■　UNIQLO International

Performance at our UNIQLO International operation roughly doubled in the first quarter compared to the previous year. And we achieved our first profit in this business operation. Several factors contributed to this positive result including a strong performance at our New York global flagship store that was opened in November 2006, and continued favorable expansion in our operations in China, Hong Kong and South Korea.

Our business strategy at UNIQLO International is to increasingly use flagship stores to boost our brand visibility and strength around the world. To that aim, following on from the opening of our New York global flagship store, we opened another global flagship store in London’s Oxford Street in November 2007. In addition, we opened our first store in La Defense in suburban Paris, France in December, and we have begun preparations to open a global flagship store in Paris. For the full business year to August 2008, we are predicting net sales of ¥ 30.0bln at UNIQLO International and a reduction in operating losses to ¥ 0.4bln.

■　Japan Apparel

Performance at our Japan Apparel operation was in line with expectations in the three months to November 2007. Although women’s fashion retailer CABIN was weak on its September sales push, the elegance-style “ZAZIE”line performed well boosting overall sales and operating income back up to forecast for the full quarter. Our low-cost brand developer G.U. CO., LTD. also performed roughly as expected. Here, sales of women’s fashion items were favorable and we are making progress in our efforts to boost profitability. Footwear retailer ONEZONE CORPORATION also performed as expected in a very competitive retail environment, and we continue our efforts to standardize store operations and strengthen original product lines.

We estimate net sales of ¥ 47.0bln and a reduced operating loss for our Japan Apparel operation for the full year to August 2008. We are aiming to turn a profit at CABIN this business year as we complete our transformation of the business to focus on four main brands. We plan to halve operating losses at G.U. and ONEZONE by improving sales per store, and reducing costs by streamlining head office operations.

■　Global Brands

Performance at our Global Brands operation was in line with expectations over the three months to November 2007. Customer numbers for the French-based casual wear fashion brand COMPTOIR DES COTONNIERS were dampened by the strikes in Paris. However sales of the brand in other European countries such as Spain and Italy were strong. Another favorable performance was also registered by our French lingerie brand PRINCESSE TAM.TAM.

Over the full business year to August 2008, we are planning to aggressively open new COMPTOIR DES COTONNIERS stores across Europe, while we consolidate a firmer base for PRINCESSE TAM.TAM in the French market. Our full-year forecasts for the Global Brands operation are for net sales of ¥ 43.0bln, and operating income of ¥ 7.4bln.

■　Forecasts for Year to August 2008

There is no change in our consolidated forecasts for the full business year to August 2008. We are forecasting net sales to rise 8.5% year on year to ¥ 570.0bln, operating income to increase 12.1% to ¥ 72.8bln, and a predicted profit per share of 380.95 yen. Our annual dividend per share remains as initially predicted at 130 yen.

Note: FAST RETAILING CO., LTD. discloses data on its business results and offers a variety of press releases on its IR website http://www.fastretailing.com/eng/ir/.

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Tender Offeror :

FAST RETAILING CO., LTD.（TSE First section：9983)

TOB Target :

VIEWCOMPANY CO., LTD.（Jasdaq：3033）

 
At its board meeting held on January 10, 2008, FAST RETAILING CO. LTD. decided to tender an offer of 585 yen per share with the aim of making women’s footwear store developer VIEWCOMPANY an FR subsidiary.
 

TOB background :

-　FAST RETAILING positions its footwear operation a close second behind its apparel business. In order to further strengthen and expand our footwear business, we formed a capital and business alliance with VIEWCOMPANY in October 2006 when FAST RETAILING became a major shareholder owning 33.40% of total outstanding shares.

-　Since then we have made various efforts to improve business operations at VIEWCOMPANY through capital support and cultivating and educating staff through personnel exchanges. However, to date, this has not proved sufficiently successful. 

Reason for making VIEWCOMPANY a subsidiary :

-　VIEWCOMPANY is operating in an increasingly difficult business environment. In order to revitalize the company, FAST RETAILING decided to make VIEWCOMPANY an FR subsidiary having judged it necessary to radically revolutionize the business and accelerate its growth potential. FAST RETAILING is aiming to transform VIEWCOMPANY’S operational structure and further clarify FR group’s commitment to the company.

Strategy once VIEWCOMPANY becomes an FR subsidiary :

-　FAST RETAILING intends to implement a variety of measures following the TOB, sharing FR group expertise and promoting communication among personnel as well as transferring personnel with FR group companies in order to ① enhance the precision of procurement and orders by strengthening the product planning function, ② improve gross profit by reviewing the ratio of original products, ③ make better use of store opening expertise and conduct joint store openings, and ④ implement joint purchasing structures. We believe this will allow us to create a new type of shoe business, and ensure a strong, stable operational base to boost VIEWCOMPANY’S competitiveness and profitability.  

-　We expect the development of VIEWCOMPANY into a more profitable operation will strengthen and expand the FR group’s shoe business, and, by extension, we feel that this will also contribute greatly to further boost the corporate value of the FR group.

TOB price :

585 yen per share【Premiums of 73.08% on the January 9, 2008 closing price (the day preceding the board decision on this TOB), 109.68% on the 279 yen simple average for the month ending January 9, 2008, and 98.31% on the 295 yen simple average over the past three months. (The simple averages are calculated to the nearest yen, the premiums are rounded off to the third decimal place.)】

-　FAST RETAILING has obtained the Valuation Report from financial advisor Nikko Citigroup Limited. In addition, we also obtained a written Fairness Opinion from financial advisor Nikko Citigroup Limited confirming the appropriateness of the current bid price for FR.

(VIEWCOMPANY decisions)

-　The VIEWCOMPANY board of directors decided to approve this TOB.

-　VIEWCOMPANY set up a special committee comprising three members chosen from among the firm’s independent external directors and outsider auditors (Hiroshi Kitano, Masaya Manabe, Masahiro Nakatsukasa).

-　Elected Nomura Securities as financial advisor and obtained a written Fairness Opinion on the appropriateness of the bid price for VIEWCOMPANY.
The board of directors approved the offer on receiving a report from the special committee and written opinion from Nomura Securities on the appropriateness of the bid price. 【FAST RETAILING Chairman & President, Tadashi Yanai, and Yosuke Matsumura (who had already agreed to tender his shares) are both special interested parties. Therefore, they did not participate in the respective board decisions.】

Tender period :

Friday, January 11, 2008～Wednesday, February 27, 2008

Number of Shares targeted for purchase :

A minimum of 2,523,000 shares (33.27% total outstanding shares); no upper limit.

Agreement to tender shares:

Major shareholders Yosuke Matsumura (27.55% of total outstanding shares), Yukuo Fujii (3.14%), Noboru Matsumura (1.06%), and Daisuke Matsumura (0.92%) have agreed to tender their shares.

Policy on organizational restructuring, etc. post TOB :

-　If as a result of this TOB, VIEWCOMPANY infringes the listing criteria of the JASDAQ exchange, FR plans to make VIEWCOMPANY a fully owned subsidiary through the use of class shares with an option to call all shares. Furthermore, even in the absence of any infringement of de-listing standards, taking into overall consideration such factors as FR’s total shareholders stake following the TOB and VIEWCOMPANY’s market liquidity, FAST RETAILING may still make VIEWCOMPANY a fully owned subsidiary using a similar method if both companies judge it appropriate. 

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FAST RETAILING believes that the reduction in stock investment units is a useful measure that will encourage the participation of individual investors and increase overall liquidity in the share market. Looking at our own share price, trading volume, number of shareholders and shareholder structure from this perspective, we believe that current conditions are sufficient to ensure necessary liquidity, and so we judge our investment units to be appropriate at this current point in time.

We shall revisit the issue of reducing investment units at timely intervals in the future based on an overall consideration of current trends in the stock market and the market indicators mentioned above.

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At its executive board meeting held on November 5, 2007, FAST RETAILING CO., LTD. decided to conduct its retained earnings dividend base date August 31, 2007. The details of this dividend payout are laid out below.
This decision is based on the news release issued on October 11, 2007 in which we announced a revision to our scheduled year-end dividend for the 46th business year ending August 31, 2007. (Entitled, FR announces revision to dividend estimate for year to August 31, 2007.)

Dividend breakdown

（Reference）Breakdown of annual dividend

* This document is an English version of a statement written in Japanese. The Japanese original should be considered as the primary version.

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Entrusted operating officer appointments across the FAST RETAILING group (as of November 5, 2007)

■　FAST RETAILING CO., LTD. 　

■　UNIQLO CO., LTD.　

■　FR FRANCE S.A.S. ［France］

■　G.U. CO., LTD.

■　CABIN CO., LTD.　※

※ Mr. Tetsuro Nakashima’s appointment (as the president of CABIN CO., LTD.) is subject to selection at the CABIN general shareholder’s meeting scheduled for November 27, 2007.

■　FAST RETAILING(CHINA)TRADING CO., LTD.［CHINA］, UNIQLO HONG KONG, LIMITED［Hong Kong］

【REFERENCE MATERIALS】
Top personnel at major FAST RETAILING group companies

■　【Board of Directors and Statutory Auditors of FAST RETAILING CO., LTD.】
(as of November 22, 2007(tentative))

Note:
Hambayashi, Mr. Hattori and Mr. Murayama are external directors as stipulated under Article 2, Section 15 of Japanese company law. Furthermore, Messrs Yasumoto, Shimizu, Watanabe, and Ota have been appointed external auditors as stipulated under Article 2, Section 16 of the Japanese corporate law.
All of the above director appointments are subject to selection at the FAST RETAILING CO., LTD. general shareholder’s meeting scheduled for November 22, 2007.

■　【Board of Directors and Statutory Auditors of UNIQLO CO., LTD.】
(as of November 22, 2007(tentative))

Note:
Mr. Matsushita is an external director as stipulated under Article 2, Section 15 of Japanese company law. Furthermore, Mr. Yasumoto and Mr. Shimizu have been appointed external auditors as stipulated under Article 2, Section 16 of the Japanese corporate law.
All of the above director appointments are subject to selection at the UNIQLO CO., LTD. general shareholder’s meeting scheduled for November 22, 2007.

■　【Top personnel at non-Japan UNIQLO businesses】(as of November 5, 2007)

■　【Top personnel at non UNIQLO businesses】(as of November 5, 2007)

※ Note: Mr. Tetsuro Nakashima’s appointment (as the president of CABIN CO., LTD.) is subject to selection at the CABIN general shareholder’s meeting scheduled for November 27, 2007.

■　【Equity method affiliated company】(as of November 5, 2007)

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Consolidated Results

【Summary】　Revenue rises but profit slips in year to August 2007

For the year through end August 2007, FAST RETAILING experienced a rise in revenue but a fall in profit. Overall net sales rose 17.0% year on year to ¥ 525.2bln, while operating income fell 7.7% to \64.9bln, and net income fell 21.4% year on year to ¥ 31.7bln.

Our mainstay domestic UNIQLO operation experienced an increase in revenue on the back of an increase in total store numbers and existing store sales. However, gross margin fell year on year due the need to offload inventory in the first half following some unseasonable weather. And a rise in personnel costs and promotional expenses to fuel operational growth resulted in a fall in overall profits.
Taken as a whole, our international UNIQLO operation posted a reduced loss during the year thanks to the growing success of our large-format stores and flagship stores now open in New York and Shanghai. In fact, our Chinese, Hong Kong and South Korean operations all posted a profit.
Domestic apparel-related companies - women’s fashion retailer CABIN CO., LTD., our low-cost g.u. brand clothing, and footwear retailer ONEZONE CORPORATION - all posted a loss for the year.
 FR global brands COMPTOIR DES COTONNIERS and PRINCESSE TAM.TAM continued their strong performance.
We are predicting an annual dividend of 130 yen per share. This incorporates a year-end dividend of 60 yen per share.

For the coming year through end August 2008, we estimate overall net sales of ¥ 570.0bln (up 8.5% year on year), and operating income of ¥ 72.8bln (up 12.1% year on year). That represents a profit of 380.95 yen per share. We are predicting an annual dividend of 130 yen per share.

■　Domestic UNIQLO operation

Revenue at UNIQLO CO., LTD., our domestic UNIQLO operation that constitutes roughly 81% of total consolidated sales, rose 7.9% in the year to August 2007. However, operating income slipped 7.1% year on year to \64.0bln. A 1.4% increase in existing store sales, and an additional 27 direct-run UNIQLO stores contributed to the rise in overall net sales. The total number of direct-run UNIQLO stores stood at 730 at end August 2007, or 748 stores including franchises. However, gross margin to net sales fell 2 points year on year in the six months to February 2007 as the warm winter forced us to offload more winter stock at discounted prices. Despite greater control implemented in the second half, gross margin for the six months to August 2007 remained in line with the previous year’s levels. That generated a 1.1 point fall in the gross margin for the full business year to August 31, 2007. On the income side, profits were squeezed by increased personnel costs on the back of expanded hiring for future growth, and increased advertising and promotion costs aimed at strengthening our branding.

We are expecting to add 37 new direct-run stores to our domestic UNIQLO store total during the year to August 2008 through scrap and build. This reflects our strategic positioning of 1,600sqm class large-format stores as a key growth driver, and our commitment to open 40 such stores during the year. At the same time, we will also be looking to improve our gross profit to net sales ratio through a further refinement of our operating plan, more flexible production adjustments to reflect predicted demand and immediate sales trends, and better control over discounts. We will also continue to promote cost-effective, low-cost management.
For the year to August 2008 we are predicting a rise in both revenue and income at UNIQLO CO., LTD. We estimate net sales of ¥ 448.0bln (up 5.5% year on year), and operating income of ¥ 71.0bln (up 10.9% year on year).

■　Overseas UNIQLO operation

Net sales at our overseas UNIQLO operation nearly doubled in the year to August 2007 to ¥ 16.9bln. While our US and UK operations are running at a loss due to the cost of opening global flagship stores in those markets, net sales have expanded favorably in Asia (China, Hong Kong, South Korea) taking that operation in the black.

At our overseas UNIQLO operation, we are implementing a “flagship store strategy” in order to increase the visibility of the UNIQLO brand and strengthen our branding power. Our global flagship New York store opened in November 2006 with its 3,300sqm floor space is proving successful. And we are now planning to open a global flagship store on London’s Oxford Street in November 2007. We are also scheduled to open our first antenna shop in La Defense, Paris in December this year, while at the same time beginning to prepare for the opening of a global flagship store in Paris as well. Net sales for our overseas UNIQLO operation for the year to August 2008 are expected to reach ¥ 30.0bln, and the operating loss is seen shrinking to ¥ 0.4bln.

■　　Domestic apparel-related operations

Net sales rose to ¥ 46.0bln following the addition of CABIN and G.U. to the domestic apparel-related operation during the year to August 2007. But we also experienced a larger loss. CABIN posted a small loss following tough competition on summer fashions. And, although we opened 50 stores at our new, low-cost g.u. clothing operation, customer numbers failed to rise sufficiently and the operation continues to post a loss. Amid a very tough competitive environment at our footwear retailer ONEZONE, we have continued to standardize store operation, and strengthen in-house design products. But we have still not managed to generate a recovery in sales and the operation continues to post a loss. In November 2006, we undertook an allocation of new shares to a third party at VIEWCOMPANY CO., LTD. (JASDAQ listed), a developer of women’s footwear specialty stores, and we have now made that company an equity-method affiliate of the FR group.   

For the year to August 2008, we expect net sales at our domestic apparel-related operation to total ¥ 47.0bln and the operating loss to shrink. We are aiming to bring CABIN CO., LTD. into the black from this business year, pressing ahead with drastic reform including a complete brand consolidation. We plan to improve sales per store at both g.u. and ONEZONE, and, at the same time, we are looking to cut the operating loss in half by downsizing the head office to cut costs.

■　Global brand operations

As for our global brand operations in the year to August 2007, the French casual brand COMPTOIR DES COTONNIERS in Europe, and the quintessentially French lingerie brand PRINCESSE TAM.TAM both continued to perform favorably, posting net sales of ¥ 36.7bln and an operating profit of ¥ 7.2bln.

For the year to August 2008, we expect to see a continued increase in both revenue and profit. We plan to continue our aggressive store opening plans for COMPTOIR DES COTONNIERS in other parts of Europe. And we will be looking to strengthen PRINCESSE TAM.TAM’s base in the French market.

■　FR consolidated estimates for year to August 2008

For the year to end August 2008, we estimate consolidated net sales will rise 8.5% year on year to ¥ 570.0bln and operating income will rise 12.1% year on year to ¥ 72.8bln, or a profit per share of 380.95 yen. We are predicting an annual dividend per share of 130 yen.

Note: FAST RETAILING CO., LTD. discloses data on its business results and offers a variety of press releases on its IR website http://www.fastretailing.com/eng/ir/.

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At the board meeting of directors held October 11, 2007, FAST RETAILING CO., LTD. decided to revise its dividend per share estimate for the full year ending August 31, 2007. The decision is detailed below.

1. Reason for the dividend forecast revision

Based on the consolidated results for the full year to August 31, 2007 (46th period), and a long-standing policy that dividend payments should reflect business performance, FAST RETAILING has revised its business year-end dividend per share estimate from 70 yen to 60 yen. Consequently, the estimate for the annual dividend per share is being revised from 140.00 yen to 130.00 yen.

This dividend is expected to be implemented following a final decision by the company’s executive board due to meet on November 5, 2007, and a report to the 46th annual shareholders meeting expected to be held on November 22, 2007. 

2. Dividend revision

【Reference】　Dividend forecast for year to end August 2008 (47th period) – announced October 11, 2007

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FAST RETAILING CO., LTD. (“FAST RETAILING” or “Tender Offeror”) resolved at the meeting of its Board of Directors held on July 20, 2007 that it will acquire the common stock of CABIN CO., LTD. (Ticker: 8164, the 1st Section of the Tokyo Stock Exchange; “Target”) through a tender offer. The tender offer was duly conducted from July 23 through August 20, 2007. The results of that tender offer are detailed below.

1.　Outline of the tender offer (announced on July 20, 2007)

(1)　Name and address of tender offeror
FAST RETAILING CO., LTD.
717-1 Sayama, Yamaguchi City, Yamaguchi
Note:　This is the location of the registered head office address, and the actual operations are conducted at the address below.13-12, Kudan-kita 1-chome, Chiyoda-ku, Tokyo (Tokyo Office)

(2)　Name of the Target
CABIN CO., LTD.

(3)　Type of shares to be acquired through the tender offer:
Common Stock

(4)　Number of Shares to be Purchased