News Release:20040105

In the recent years in Japan, industrial and corporate reorganization, accompanied by structural reform are progressing steadily, led by the private sector. Corporations are more and more acknowledging both their strengths and weaknesses and are clearly seen to be taking the necessary steps to survive in this reform. As a result, corporate performance is trending toward recovery, and we can expect to witness real GDP growth for fiscal 2004 reaching 2.2%. Amid these signs of recovery in the Japanese economy, however, it will remain necessary for all industries to promote continuing reform and build strong business structures, and to achieve satisfactory growth levels under their own steam.

The NRI Group is fully committed to looking deeply into the paradigm of the new society and, as a company to support its realization by backing our clients in carrying out reforms and providing them with optimal solutions.

As the IT market in Japan shifts to a single digit, but stable growth level, NRI will continue to concentrate on strengthening our areas of strategic advantage, while making significant investments in areas with potential for growth. We also intend to fully demonstrate our comprehensive abilities, which are a major aspect of our strength, as well as emphasizing the outsourcing market based on the business and operation know-how we have nurtured over the years through consulting and systems integration.

Furthermore, amid the accelerating shift to open systems, we will implement full-fledged provision of systems infrastructure solutions where we have an advantage. Measures for strengthening our marketing capabilities will continue apace, and we will capitalize on our dual axes of product power and marketing ability. Although the environment surrounding our activities remains severe, we fully intend to be able to look back on 2004 as a year in which we demonstrated a power that could not be defeated by the difficulties we faced.

In the last year, we successfully consolidated the systems development business in China. In 2004, the third year of expansion in the Asian business field, we intend to continue to strive for improved productivity, while at the same time making further inroads into the rapidly growing Asian information services market.

I am certain that all employees of NRI Group have made new year's resolutions to constantly work to improve themselves. In fact, by constantly honing our capabilities, we at NRI Group will undoubtedly maintain our high level of professionalism, continue to emphasize quality, and never fail to provide optimal solutions to all our clients. We will make every effort to create a new paradigm of the society and new business. I am fully committed to leading from the front in these initiatives.