Total sales for July 2008 were 147,516 million yen, up 4.7% year on year. Existing store sales increased 13.1% and average daily sales per store were 567,000 yen. The average amount spent per customer was 591 yen, up 0.8%, and the average number of customers per store per day was 948, up 12.2%.

In addition to the beneficial effect on in-store cigarette sales of the introduction of the taspo ID card in Japan, sales of products that traditionally perform well in summer were much higher overall at existing stores year on year. Products such as soft drinks, ice cream, beer and happoshu (low-malt beer) and energy drinks sold well as the mercury soared in Japan.

Sales were brisk and up markedly year on year across the country, with little disparity between regions.

The rice dishes category recorded its third straight month of year-on-year growth in existing store sales. Besides continuing robust sales of rice balls, this growth reflected such factors as strong sales of the Hamburger and Chicken Namban Bento Box (530 yen) made from a selection of basic ingredients.

The fast food category recorded higher year on year sales, which were driven in part by a promotional campaign launched on July 25, whereby customers purchasing two servings of Karaage-kun crispy Japanese-style fried chicken received a tote bag related to the movie Ponyo on the Cliff by the Sea. The first 50 people at each store to purchase two serving of Karaage-kun were eligible for this giveaway.

In August, when customer numbers traditionally increase of customers at stores in August, LAWSON will continue efforts to strengthen its merchandise assortment, centered on ready-made meals. As part of these efforts, LAWSON will increase the Karaage-kun serving by one nugget and also run a Honoo no Chuka fair.

As of July 31, 2008, in addition to our nationwide network of regular LAWSON stores, we had 91 NATURAL LAWSON and 72 LAWSON STORE100 stores.