Top Management Message March 3, 2003

I am pleased to announce that at an extraordinary meeting on March 3 the Board of Directors of Lawson decided to forge an alliance with Culture Convenience Club Co., Ltd. (CCC). CCC operates a chain of franchise stores in Japan called TSUTAYA, which rent and sell videos and other entertainment products. Please read the associated News Releasefor further information.

We see CCC as a good suitor for two main reasons. Both Lawson and CCC share a common vision of enhancing customers' lifestyles. And, by allowing TSUTAYA's 18 million active members to use their membership cards at our stores and receive shopping points in the process, we hope to attract more customers to Lawson. Moreover, with the benefits accruing from the alliance, we aim to impress on all customers that Lawson really is very different from other convenience stores by strengthening both our entertainment businesses and our marketing activities. Our focus in respect of the latter will be on developing more appealing sales areas and products. In the future, we plan to enable shopping points to be exchanged for products at Lawson stores - details will announced in due course.

On March 1, 2003, Lawson introduced a new organization framework centered on seven regional headquarters which is aimed at transforming Lawson into "the 'hot' station in the neighborhood." Working toward the same aim, Lawson is stepping up the pace of measures outlined in its three-year medium-term management plan, "Lawson Challenge 2004," which targets revitalization and renewed growth. By advancing the "three imperatives" contained therein (outlined in our January 15, 2003 news release) we will ensure that customers visit our stores more frequently and in much greater numbers.

The new alliance with CCC is a timely move. Lawson is steadily starting to blossom again and this alliance should help us gain further momentum. Lawson is, and will always be, a company that aggressively tries new things to deliver new value to customers.

March 3, 2003

Takeshi Niinami
President and CEO

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