Revisions to Forecasts of Financial Results and Dividends for the Fiscal Year Ended March 31, 2008

Revisions to Forecasts of Financial Results and Dividends
for the Fiscal Year Ended March 31, 2008

July 25, 2007
Nomura Research Institute, Ltd.

Nomura Research Institute, Ltd., (NRI) has announced revisions to its financial results forecasts and dividends for the fiscal year ended March 31, 2008 (April 1, 2007 to March 31, 2008), which were originally released on April 26, 2007.

Revisions to financial results forecasts
(1) Reasons for revisions Demand was strong during the first quarter (April 1, 2007 to June 30, 2007), particularly from clients in the financial sector. The NRI Group has been working to intensify its project management and reduce system faults in order to increase productivity and improve quality. The NRI Group’s appropriate approach to this demand generated business results that exceeded forecast levels. These conditions will persist in the second quarter and onward, and are expected to result in net sales and profits that exceed initial forecasts, requiring that these forecasts be revised as follows.

(2) Revised forecasts of consolidated financial results for the fiscal year ended March 31, 2008 (April 1, 2007 to March 31, 2008)

(a) Fiscal year

(Unit: million yen)

		Sales	Operating profit	Net income
Previous forecasts	(A)	335,000	46,000	28,500
Current forecasts	(B)	350,000	52,000	33,500
Increase	(B - A)	15,000	6,000	5,000
Change	(%)	4.5	13.0	17.5
Reference: Results for the fiscal year ended March 31, 2007		322,531	43,897	27,019

(b) First half

(Unit: million yen)

		Sales	Operating profit	Interim net income
Previous forecasts	(A)	150,000	21,000	13,000
Current forecasts	(B)	160,000	25,000	17,000
Increase	(B - A)	10,000	4,000	4,000
Change	(%)	6.7	19.0	30.8
Reference: Financial results for the half ended September 30, 2007		146,452	20,840	13,486

(3) Revised forecasts of non-consolidated financial results for the fiscal year ended March 31, 2008 (April 1, 2007 to March 31, 2008)

(a) Fiscal year

(Unit: million yen)

		Sales	Operating profit	Net income
Previous forecasts	(A)	320,000	42,000	25,600
Current forecasts	(B)	335,000	48,000	30,600
Increase	(B - A)	15,000	6,000	5,000
Change	(%)	4.7	14.3	19.5
Reference: Financial results for the fiscal year ended March 31, 2007		310,280	39,847	51,697

(b) First half

(Unit: million yen)

		Sales	Operating profit	Interim net income
Previous forecasts	(A)	144,000	19,000	11,800
Current forecasts	(B)	154,000	23,000	15,800
Increase	(B - A)	10,000	4,000	4,000
Change	(%)	6.9	21.1	33.9
Reference: Financial results for the half ended September 30, 2007		140,695	18,765	37,562

Revisions to dividend forecasts
(1) Reasons for revisions
NRI’s basic policy on profit distribution is to provide appropriate and stable dividends, taking into consideration the enhancement of internal reserves to ensure long-term business growth. The target dividend payout ratio is 30%, taking into account the business profit levels and the status of cash flow.
Taking forecasts of financial results for the fiscal year and the status of cash flows into account, NRI now expects an increase over the initial forecasts in dividends of \4 per share at the end of the first half and another \4 increase at the end of the fiscal year. This brings the forecast of total dividends for the fiscal year to ¥48 per share.

(2) Dividends per share for the fiscal year ending March 31, 2008

	Dividends per share
Dividend period	First half	Fiscal year	Annual total
Previous forecasts	¥20	¥20	¥40
Current forecasts	¥24	¥24	¥48
Current year result
Reference: Dividends for the fiscal year ended March 31, 2007	¥14	¥22	¥36

(Note)

1.	Dividends per share assume the business environment and business results forecast at the present time.
2.	Based on forecasts of financial results, a consolidated dividend payout ratio of 29.2% is expected for the fiscal year ending March 31, 2008.
3.	Figures for dividends per share for the fiscal year ended March 31, 2007 are based on the number of shares prior to the April 1, 2007 five-to-one share split.

Notice: Sales and profit figures forecast in this release are based on information available to management at the present time. As such, this forecast contains risk and uncertainty. Readers should be aware that actual sales and profits may differ from this forecast.

[For general inquiries, please contact:]
Shin Ueoka, Investor Relations Department
Tel: +81-3-5533-3910
E-mail:

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