August 9, 2005


Sanixfs monthly consolidated sales volume for July 2005

Sanix Incorporated (Ticker: 4651, TSE/OSE/FSE, President & CEO: Shin-ichi Munemasa) is to disclose month-on-month consolidated sales volume for July 2005 (July 1, 2005 to July 31, 2005).

1. Sales volume for July 2005

(Millions of Yen)

July 2005
July 2004
% Change
Monthly Sales Volume
2,939 
3,587 
81.9 
  HS Division
1,715 
2,282 
75.1 
  ES Division
402 
560 
71.8 
  ERD Division
822 
744 
110.4 
(Note)Amounts shown in this preliminary report are not audited.They may differ from the results of the full-year account settlements.

2. Explanation of the business performance in July and forecast of operation results

In the environmental sanitation industry, after the scandalous reports about frauds by wicked housing improvement operators in May, many other similar frauds by other wicked operators were brought to light in June in various places, attracting keen attention of the public. Especially, the arrest of employees of a housing improvement operator in Tokyo at the end of June was intensively reported by media every day. As a result, the market contracted sharply and weakened in July.

Under these circumstances, this gave significant impact on the businesses of the HS and ES Divisions, products and services are sold in the form of door-to-door sales. Monthly sales volume for July decreased 24.9% in the HS Division, decreased 28.2% in the ES Division from the same month of the previous year.

As the mass media coverage of these affairs has calmed down in the end of July, sales began to recover in August, and we expect that they will recover fully by the end of September.

As businesses of a company that has built an unshaken position in the environmental sanitation industry, we will strive to further improve our products and technical abilities, and promote morale of our workers. Bad operators would be driven off from the market as a result of investigation on these scandals. So, catching the current condition as an opportunity to expand our business, we will continue to conduct positive marketing activities.
(Reference)
iMillions of Yenj   iMillions of Yenj  

FY2006 ending March31,2006
% Change
April 
3,657  108.5 
May 
3,826  90.2 
June 
4,145  100.2 
July 
2,939  81.9 
Total 
14,567  95.0 

FY2005 ended March31,2005
% Change
April 
3,371  95.5 
May 
4,240  96.6 
June 
4,136  110.9 
July 
3,587  88.9 
August 
3,435  93.1 
September 
3,978  95.7 
First Half Total
22,748  96.7 
 October 
3,552  96.7 
November 
3,453  93.0 
December 
3,418  94.2 
January 
2,772  92.6 
February 
3,274  108.0 
March 
4,866  142.7 
Full year total 
44,083  100.2 
(Note) Amounts shown in this preliminary report are not audited. They may differ from the results of the full-year account settlements.

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