USEN CORPORATION

Dear Ladies and Gentlemen

It is my pleasure to report to you the USEN Group results of operations for the fiscal year ended August 31, 2007 (September 1, 2006 through August 31, 2007).

During the current consolidated USEN Group fiscal year, a perceived deceleration in the economies of Europe and the United States caused apprehension of downward pressure on the economy of Japan. Notwithstanding, there is no doubt that the Japanese economy continues to trace a long-term, stable upward trend. Given these market conditions, the USEN Group has pursued synergies through media capacity, platform capacity, and content capacity, focusing management resources on core business segments under the umbrella vision of the USEN Group as a "Media Content Company."

In the past, the USEN Group had grown entirely grown its business through new ventures and business partnerships. One of the major policies stemming from our medium-term management plan announced at the end of fiscal 2006 was to solidify our business infrastructure. One of the most important policies identified at that time was to reduce net interest-bearing debt by one-half.

During fiscal 2007, the Company converted UCOM from a consolidated subsidiary to an affiliate company accounted for under the equity method, divested non-core business segments, and reduced the number of new M&A projects and major investments. These initiatives and others have contributed to a significant reduction in the USEN Group’s net interest-bearing debt.

Another major initiative for the USEN Group during fiscal 2007 was to inspire better trust of the USEN brand in the market through a complete dedication to reaching our numeric targets. As a result, we experienced significant growth in sales and operating income during the period.

In terms of operational results and financial stability, the USEN Group surpassed the original goals set for fiscal 2007. Based on these results, we have declared a period-end dividend of five yen per share.

We will continue to focus on enhancing corporate value and reducing net interest-bearing debt, striving to bolster share prices and improve our fundamentals.