Total sales for September 2006 were on a par with the same month a year earlier at 117,883 million yen. Existing store sales declined 3.3% and average daily sales per store were 475,000 yen. The average amount spent per customer was 571 yen, down 0.9%, and the average number of customers per store per day declined 2.4% to 830.

The discontinuation of Highway Card sales had the effect of bringing down existing store sales by more than 1%.

By area, sales were strong in large urban areas, but continued to struggle in the Chugoku and Shikoku regions.

The soft drink, ice cream, beer and some other categories recorded lackluster sales, affected by lower temperatures during the middle of the month.

In the rice dishes category, LAWSON launched new products, including Gokoku Hayashi and Grilled Vegetables lunch box. Priced at 480 yen, this product was developed in conjunction with NATURAL LAWSON as part of the Gohantei Yasai to Issho ni series. Notwithstanding these new product launches, sales in this category were down year on year.

On September 26, LAWSON began a promotion for all products in the original Totte Oki Sengen bakery range. Due in part to the boost from this promotion, bakery category sales were strong in September.

The cooked noodles category performed well, centered on pasta, where most new product launches were concentrated.

Fast food category sales were strong, continuing to grow at a double-digit pace on the back of oden (a Japanese hotpot dish) promotions and the launch of Chinese steamed buns.

As of September 30, 2006, we had 69 NATURAL LAWSON and 66 LAWSON STORE100 stores, in addition to our nationwide network of regular LAWSON stores.

LAWSON is scheduled to announce its interim results for the fiscal year ending February 28, 2007 on October 11. The earnings release and supplementary materials will be posted on this web site as soon as they become available.