January 11, 2005


Regarding Consolidation of Offices in Home Sanitation Division

It has been resolved at the Board of Directorsf meeting that 7 offices in the HS Division will be consolidated into other existing offices. Details of the resolution are as follows:


1.Reasons of Consolidation
With consideration of service area overlap, profitability of each office and various other factors, it has been decided that the HS Division should undergo consolidation to improve operational efficiency and maximize net profit.


2.Offices to be consolidated

Office to be closed
Office into which
closed office will
be consolidated
Scheduled consolidation date
Ozu
Matusyama
January 20
Kanonji
Marugame
Kawanoe
Niihama
Anan
Tokushima
Office to be closed
Office into which
closed office will
be consolidated
Scheduled
consolidation
date
Susaki
Kochi
January 20
Nakamura
Nichinan
Miyazaki
Kobayashi
Miyakonojo
(Note) Total number of offices in HS Division after consolidation will be 115.


3.Customer Service
Each office to be closed will be consolidated into its nearby office to ensure that business activities of closed offices, including market development and customer management (periodic maintenance etc.), will be smoothly taken over by successor offices. Staff of successor offices are determined to devote further efforts to achieve the highest level of customer satisfaction.


4.Influence on Business Results
This consolidation will not have so much influence on business results of this fiscal year (ending March 31, 2005).

For more information, please contact:
Kozo Inoue, Managing Director
E-mail: k-inoue@sanix.co.jp