Total sales rose 2.7% year-on-year, to 128,829 million yen, while existing store sales edged down 2.2%. Average daily sales per store were 514,000 yen and the average amount spent per customer was 588 yen, down 2.1%. The average number of customers per store per day fell 0.1%, to 872. Although existing store markups decreased year-on-year, the percentage decline was less than that of existing store sales, owing to such factors as strong fast food sales.

Sales of ice cream, chilled drinks and cold noodles were brisk, supported by weather. Owing to the absence of a major hit product, soft drink sales declined year-on-year, but exceeded July results.

In the rice dishes category, LAWSON entered a transitional period before its autumn product launches. Although sales of rolled sushi remained robust, sales of boxed lunches and onigiri (rice balls) weakened. In September, LAWSON will roll out Ichiju Sansai, a new Gohantei boxed lunch series, which offers customers a taste of traditional Japanese cuisine, and new dishes featuring saury, a fish traditionally eaten in autumn.

Fast food category sales remained strong, as LAWSON began sales of oden (a Japanese hotpot dish) and Chinese steamed buns.

As of August 31, 2005, in addition to our nationwide network of regular LAWSON stores, we had 32 NATURAL LAWSON stores and eight STORE100 stores. Data for August represents the results of 8,210 stores. This number does not include STORE100-format stores.

In addition to launching new Gohantei boxed lunches, LAWSON will seek to increase customer numbers in September by accepting orders for this year's Beaujolais Nouveau, as well as for DVDs and video cassettes of the popular film Howl's Moving Castle.

LAWSON will announce its interim earnings for the year ending February 28, 2006, on October 12, 2005.