Risk factor
Raw materials – The company’s business concentrates on publishing, in which newsprint is the most essential raw material. Newsprint price varies depending on demand and supply, and the company keeps track of price fluctuation as well as a careful purchasing plan ahead of time, aside from keeping a reasonable stock. To avoid consequences resulting from importing paper due to the fluctuation of foreign exchange rates, the company buys forward contracts periodically as deemed appropriate.

Trade accounts receivable and fair value
Reserves for bad debts and investments are sufficiently provided as of 31st December 2003.

Legal disputes (with claim value of 5% of equity or higher)
None

Obligation in issuing new shares
None

Outstanding debenture or Bill of Exchange
None