Kuwazawa Trading Co., Ltd. Expects Extraordinary Profits and Raises Mid-year Consolidated Outlook for FY 2012

Kuwazawa Trading Co., Ltd. announced that it expects the extraordinary profit of JPY 323 million caused by gain on negative goodwill, for the second quarter of the fiscal year ending March 2012. The Company also expects the extraordinary profit of JPY 181 million, also caused by gain on negative goodwill, for the fiscal year ending March 2012. The Company also has raised its mid-year consolidated outlook for revenue from JPY 32,000 million to JPY 37,870 million, operating profit (loss) from JPY (200 million) to JPY 320 million, ordinary profit (loss) from JPY (200 million) to JPY 363 million, net profit (loss) from JPY (5 million) to JPY 677 million, and earning (loss) per share from JPY (0.60) to JPY 81.51, for the fiscal year ended August 31, 2011. The Company raised its mid-year consolidated outlook mainly due to the increasing demands for housing after the earthquake.