Notes:

1. The percentage figure accompanying revenues represents the year-on-year change.
2. Net income per shares (diluted) is not presented as ITX recorded a consolidated net loss in the Third quarter of fiscal 2005.
3. Average number of shares outstanding during the period (consolidated):
   Nine months ended December 31, 2004: 490,240 Shares
   Nine months ended December 31, 2003: 490,240 Shares
   Year ended March 31, 2004: 490,240 Shares

[Qualitative Data and Other Information Related to Consolidated Operating Results]

[1] Overview of Consolidated Operating Results for the first nine months of Fiscal 2005

For the first nine months of fiscal 2005, the period from April 1 to December 31, 2004, ITX reported consolidated revenues of ¥248,937 million, a drop of 7.7% as compared to the same period in the prior year. This decline was due to the exclusion of NISSHO ELECTRONICS CORPORATION (Nissho Electronics) from the scope of consolidation and other factors, despite healthy growth in equipment sales and services at ITX Corporation. The main source of the revenues were contributed by ITX Corporation, generating ¥80,825 million, major consolidated subsidiaries IT Telecom, Inc., ¥125,566 million, ITX E-Globaledge Corporation, ¥9,022 million, and Soliste Corporation, ¥5,418 million (All subsidiary revenues are consolidated figures). Revenues by business segment were as follows (figures in parentheses indicate share of consolidated revenues): ¥12,277 million (4.9%) in Life Sciences; ¥100,765 million (40.5%) in Networking & Technologies; ¥126,052 million (50.6%) in Mobile Communications; and ¥9,840 million (4.0%) in Business Innovations.

Gross profit declined 30.7% year on year, to ¥25,471 million, primarily due to lower sales of mobile phones and terminals included in equipment sales and services, and the exclusion of Nissho Electronics from the scope of consolidation. Selling, general and administrative (SG&A) expenses totaled ¥22,720 million, an improvement of ¥10,036 million compared to the same period a year earlier. SG&A expenses mainly included personnel expenses of ¥8,969 million, and non-personnel expenses of ¥13,751 million, which included ¥1,591 million for the amortization of goodwill. For the first nine months of fiscal year 2005, ITX posted operating income of ¥2,751 million, a 31.3% decline, ¥1,251 million, year on year.

After registering other income and other expenses, mainly from a broadband business-related loss and an impairment loss on swap transactions and other factors, ITX recorded a net loss of ¥3,284 million, a ¥3,786 million decline in the net income as compared to the same period in fiscal year 2004.

On January 18, 2005, ITX's consolidated subsidiary, TechMatrix Corporation received an approval from Jasdaq Securities Exchange, Inc. for stock listing on the JASDAQ market. The Tokyo District Court officially declared COLIN Corporation's bankrupcy on September 1, 2004. Subsequent bankruptcy proceedings will follow and the remainder of the company's assets will be distributed to the creditors accordingly. ITX believes there is a possibility that it will not be able to recover receivables owed by COLIN Corporation to the company, which total approximately ¥700 million after deducting an allowance for doubtful accounts.

[2] Operating Results by Business Segment

As of December 31, 2004, the ITX Group was made up of 59 companies, the parent company, 43 subsidiaries including 1 company not accounted for as a consolidated subsidiary and 15 affiliates.

The following table lists operating results by segment and by source of revenue (gain from sales of investment securities for business incubation and revenue from sales of equipment and provision of services) on a consolidated basis for the first nine months of fiscal 2004, 2005 and for fiscal 2004.

Note: Number of shares issued and outstanding as of (consolidated):

[Qualitative Data and Other Information Related to Consolidated Financial Position]

Total assets increased ¥9,452 million from March 31, 2004, primarily due to the consolidation of three companies, including, KS OLYMPUS CO., LTD., Cable Networks Akita Co., Ltd., and Kita Cable Network, Inc. under the ITX Group during the third quarter. Investment securities decreased by ¥9,501 million, mainly due to the sale of Nissho Electronics shares and Investment Securities for business incubation also decreased by ¥7,519 million resulting from the sale of U's Communications Corp shares and other companies. The repayment of debt also caused a decrease in assets. In the first nine months of fiscal year 2005, ITX Corporation and ITX INTERNATIONAL EQUITY CORPORATION made investments in Group companies and investees totaling ¥10,068 million. Those new investees added during this period include KS OLYMPUS, OLYMPUS SOGO SERVICE CO., LTD. (Now Nippon Outsourcing Corporation), AVS CO., LTD., Fox Hollow Technologies, Inc., and Quattro Media Corporation.

Shareholders' equity decreased by ¥3,222 million from March 31, 2004, reflecting the net loss reported in the third quarter of the fiscal year 2005. As a result, the shareholders' equity ratio declined by 3.0 percent.