Total sales for January 2008 were 115,181 million yen, up 2.5% year on year. Existing store sales increased 0.1% and average daily sales per store were 442,000 yen. The average amount spent per customer was 604 yen, up 1.3%, and the average number of customers per store per day was 727, down 1.2%.

By area, the trend through last month continued, with strong sales in major metropolitan areas contrasting with persistent weakness in regional areas.

Ticket sales were strong, particularly for concerts by Japanese artists such as Koda Kumi and Ayumi Hamasaki.

In the rice dishes category, the introduction of new products such as Tender Beef Niigata Koshihikari Rice Balls (168) along with established products supported continued robust rice ball sales. Furthermore, boxed lunch sales are improving.

Sales in the fast food category were down as a result of slow sales of oden (a Japanese hotpot dish), continuing the trend started in December.

In both the bakery and dessert categories, the successful Miffy campaign supported strong sales.

Since February 1, we have been running the One Piece Otakara Present campaign featuring an instant-prize draw. As part of a tie-up for the March launch of the One Piece movie, LAWSON is selling exclusive pre-release tickets and limited-edition original goods. The campaign will continue through March 3. (About the instant-prize draw, it depend on how many instant prizes are left.)

LAWSON repurchased 5,297,600 shares (5.06% of the total number of shares issued) in the period from October 11, 2007 through January 22, 2008. This was close to the maximum number approved by the Board of Directors on October 10, 2007.

As of January 31, 2008, in addition to our nationwide network of regular LAWSON stores, we had 91 NATURAL LAWSON and 73 LAWSON STORE100 stores.