Total sales for May 2007 were 119,679 million yen, up 2.0% year on year. Existing store sales declined 1.1% and average daily sales per store were 461,000 yen. The average amount spent per customer was 577 yen, up 0.1%, and the average number of customers per store per day was 797, down 1.2%.

By area, sales remained strong in major metropolitan areas, but again struggled in Tohoku, Shikoku, Chugoku and other regions.

In the rice dishes category, LAWSON launched Hitokuchi Hirekatsu Bento (580 yen) and boxed lunches and rice balls in a second series of products under the jichokacho banner, but this failed to translate into a noticeable change in sales trends.

Between May 15 and June 4, LAWSON ran a Hokkaido-themed sales fair in various categories, including boxed lunches, rice balls, confectionery and drinks. Also, on May 22 LAWSON rolled out its fourth promotion under the Energetic Body Declaration banner, featuring an assortment of products in different categories such as boxed lunches, cooked noodles and delicatessen items that all use ingredients high in fiber. LAWSON will continue to run themed campaigns across its product lines that appeal to customers.

The fast food category saw sales drop compared to a year earlier when sales were boosted by a promotion run that month.

In June, LAWSON will continue efforts to increase customer numbers and expand the customer base such as with a sales fair called Toku-uma. Another initiative will see it begin taking orders for Unagi Kabayaki Bowl (grilled eel basted with a sweet sauce on rice).

As of May 31, 2007, in addition to our nationwide network of regular LAWSON stores, we had 107 NATURAL LAWSON and 70 LAWSON STORE100 stores.

LAWSON held its 32nd Ordinary Annual General Meeting of Shareholders on May 25. A streamed video of the meeting is available on our web site (Japanese language only) along with details of the resolutions approved by shareholders.

LAWSON plans to announce its business results for the first quarter of the current fiscal year on Wednesday, July 4. The flash report and other related information will be posted on this web site.