IR News

【PARK24 Co., Ltd. 】PARK24 Announces Revision of Performance Forecast and Dividend Increase for the Fiscal Year Ending October 31, 2006

TOKYO, Japan, September 28, 2006 -- PARK24 (The Company) announced the revision of the forecast on its business performance and increase in proposed dividend payment for the fiscal year ending October 31, 2006.

1. Revision of the forecast on consolidated results for FY2006
[for the term ending October 31, 2006]

  Sales Recurring profit Net income
Previous forecast (A) 63,000 10,350 6,000
Revised forecast (B) 65,000 11,750 7,100
YoY 117.4% 136.2% 136.7%
Change (B)-(A) 2,000 1,400 1,100
Change % 3.2% 13.5% 18.3%
Actual results of FY2005 55,360 8,626 5,192

Note) Forecast EPS: 100.59 yen

2. Revision of the forecast on unconsolidated results for FY2006
[for the term ending October 31, 2006]

  Sales Recurring profit Net income
Previous forecast (A) 61,700 10,000 5,800
Revised forecast (B) 63,500 11,500 7,000
YoY 117.7% 138.4% 140.1%
Change (B)-(A) 1,800 1,500 1,200
Change % 2.9% 15.0% 20.7%
Actual results of FY2005 53,949 8,309 4,996

Note) Forecast EPS: 99.17 yen

3. Reasons for the revision of performance forecast
The forecast for the fiscal year ending October 31, 2006 is going to surpass the previously announced forecast in sales, recurring profit, and net income. There are three main factors for this revision:
(1) Increase in the number of parking spaces under operation
The development of new parking spaces has been steadily growing in very favorable circumstances, and especially in ST, the Companys most profitable business segment, the growth has been outpacing the forecast number of spaces under operation.
(2) Improvement in profitability through the TONIC system
The Company has been successfully attracting customers by providing convenient, added-value services, such as the Times Club point program, enabled by the introduction of TONIC system. Also, the Company has been gathering detailed operational data through the system. The accumulation of such data is useful in precise demand estimation and adjusting parking fee structures.
(3) Increase in demand for parking due to external factors
The demand for parking became apparently strong after the revised Road Traffic law went into effect on June 1, 2006 and the crackdown against illegal parking became more stringent.

4. Dividend increase [for the term ending October 31, 2006]

  Interim Year-end Annual dividend
Previously announced dividend - 20.00 yen 20.00 yen
Adjusted dividend - 25.00 yen 25.00 yen
Actual dividend paid in FY2005 - 15.00 yen 15.00 yen

5. Reason for the dividend increase
The projected year-end dividend was raised in order to adjust for the upward revision of the forecast on business performance for the term, described above. The Companys policy is to enhance shareholders value, in forms of dividend payments and stock splits, in accordance with its growth.

*TONIC (Times Online Network & Information Center): The system infrastructure which connects each Times facility with the data center. TONIC enables various added-value services, such as the provision of vacancy information, cashless settlement services, and Times Clubs point incentive program.

Cautionary note regarding forward-looking statements:
Certain statements in this news release are forward-looking and involve risks and uncertainties; actual results may differ from the forward-looking statements.