ITX Corporation announced today that in light of recent business performance it has revised its full-year projections for the year ended March 31, 2007, which were previously released on February 5. Details are as follows.

1. Consolidated

2. Non-consolidated

Reasons for Revisions

ITX expects to report consolidated and non-consolidated sales, ordinary income and net income below previous projections. The main reason for this is the failure to dispose of some parent-company investment securities for business incubation.

Looking at the details of earnings, on a consolidated basis, equipment sales and services are growing steadily, mainly in the mobile phone retailing, medical-related operations, and automotive aftermarket services businesses. Operating income from equipment sales and services is expected to be ¥140 million higher than forecast at ¥1,840 million, a year-on-year increase of ¥1,820 million. However, operating income from investment securities for business incubation is expected to be ¥3,357 million lower than forecast at ¥943 million, a decrease of ¥1,941 million compared to a year earlier. ITX expects overall operating income to fall ¥3,216 million compared to its forecast to ¥2,784 million, a year-on-year decrease of ¥121 million. As a result, ITX expects to post ordinary income of ¥1,994 million and a net loss of ¥1,750 million.

On a non-consolidated basis, sales are expected to fall ¥7,940 million below projection to ¥4,760 million, while operating income is expected to fall ¥4,387 million, resulting in an operating loss of ¥987 million. These are the result of our failure to dispose of some investment securities for business incubation. Ordinary income is projected to drop ¥1,714 million compared to the projection to ¥1,786 million, in spite of an increase in dividends received. In addition, despite shrinking extraordinary losses, net income is expected to fall ¥1,218 million lower than initially projected to ¥1,782 million.

Note:
The above full-year earnings projections are based on judgments and assumptions made using information currently available to management and may differ from actual results due to risk and fluctuation in a range of other factors. Please be advised that actual performance may vary from the outlook expressed in this document.

3. Clarification of Management Responsibility

In order to clarify management's responsibility for the poor performance, the compensation of corporate officers will be cut as indicated below.

(1) Term of compensation cut: 6 months

(2) Rate of compensation cuts:

President: 30%
Standing board members: 10% to 25%

4. Future Measures

In the 2006 Corporate Strategic Plan, the 3-year medium-term business plan the Company has been implementing since the fiscal year ended March 2007, our management objective is to establish an ITX brand synonymous with professional business acceleration. To that end, we have endeavored to achieve the following goals: (1) the stock market listing of several subsidiaries, (2) achievement of business performance targets, and (3) listing ITX on the Tokyo Stock Exchange.

The Groupwide strategy of building an operating base capable of generating consistent consolidated earnings is progressing steadily, centered on the Company's three core business areas: medical-related operations, mobile phone retailing, and automotive aftermarket services. However, as a result of the downward revision in results, the Company is in the process of adding to and revising some of the policies in the 2006 Corporate Strategic Plan as well as considering a revision of its numerical targets. We will announce the details of these measures on May 8, 2007 at the same time that we release our earnings report for the year ended March 31, 2007.

Going forward, we plan to recover the trust of our shareholders and other stakeholders by positively achieving the aims of the revised plan.

Main Points to be Revised in the 2006 Corporate Strategic Plan

(1) Further enhancement of the strategy to build an operating base capable of generating consistent consolidated earnings

1. Activities from the selection and concentration of business areas to portfolio reallocation
2. Making investments to accelerate the growth of existing businesses
3. Stronger consolidated business management

(2) Acceleration of the non-consolidated investment cycle

1. Strengthening the recovery of existing investments
2. Aggressive investment in new prime projects as a result of a review of our investment rules (shortening the recovery period)
3. Strengthening the function of our corporate venture capital (CVC) investments