SUMITOMO DENSETSU CO., LTD. Non-consolidated Financial Statements

SUMITOMO DENSETSU CO., LTD. Non-consolidated Financial Statements

Independent Auditors' Report To the Shareholders and Board of Directors of Sumitomo Densetsu Co., Ltd. We have audited the accompanying non-consolidated balance sheets of Sumitomo Densetsu Co., Ltd. as of March 31, 2008 and 2007, the related non-consolidated statements of income for the years then ended, and the non-consolidated statement of changes in net assets for the year ended March 31, 2008 and 2007 expressed in Japanese yen. These financial statements are the responsibility of the Company s management. Our responsibility is to independently express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the non-consolidated financial statements referred to above present fairly, in all material respects, the non-consolidated financial position of Sumitomo Densetsu Co., Ltd. as of March 31, 2008 and 2007, and the non-consolidated results of its operations, in conformity with accounting principles generally accepted in Japan. Without qualifying our opinion, we draw attention to the following: As discussed in Note 3 to the non-consolidated financial statements, effective April 1, 2006, Sumitomo Densetsu Co., Ltd. adopted new accounting standard for directors' bonus. The U.S. dollar amounts in the accompanying non-consolidated financial statements with respect to the year ended March 31, 2008 are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note 1 to the non-consolidated financial statements. Osaka, Japan June 25, 2008

SUMITOMO DENSETSU CO., LTD. NON-CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2008 AND 2007 (Note 1) ASSETS Current Assets: Cash and cash equivalents 6,085 8,020 $ 60,735 Trade notes and accounts receivable (Note 4) 37,607 38,541 375,357 Other accounts receivable 240 386 2,395 Allowance for doubtful receivables (69) (121) (689) Costs of uncompleted contracts 5,821 4,803 58,100 Advances paid 1,210 1,397 12,077 Deferred tax assets (Note 7) 869 1,105 8,674 Other current assets 1,727 1,714 17,237 Total current assets 53,490 55,845 533,886 Property and Equipment, at Cost: Land 6,371 6,546 63,589 Buildings and structures 3,885 4,414 38,776 Machinery and equipment 3,984 4,956 39,765 14,240 15,916 142,130 Less - accumulated depreciation (5,966) (7,264) (59,547) Net property and equipment 8,274 8,652 82,583 Investments and Other Assets: Intangible assets 1,360 1,503 13,574 Investments in subsidiaries and affiliates 2,243 2,713 22,387 Investments in securities 8,333 13,557 83,172 Long-term loans receivable 888 1,121 8,863 Guarantee deposits 928 1,912 9,262 Insurance reserve 1,486 1,569 14,832 Admission guarantee 751 877 7,496 Other assets 186 273 1,857 Allowance for doubtful receivables (376) (482) (3,753) Total investments and other assets 15,799 23,043 157,690 77,563 87,540 $ 774,159 The accompanying notes to the non-consolidated financial statements are an integral part of these statements.

SUMITOMO DENSETSU CO., LTD. NON-CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2008 AND 2007 LIABILITIES AND SHAREHOLDERS EQUITY (Note 1) Current Liabilities: Short-term borrowings (Note 5) 5,495 7,750 $ 54,846 Current portion of long-term debt (Note 5) 2,903 3,193 28,975 Bonds for redemption within one year 1,500-14,972 Notes and accounts payable (Note 4) 31,138 35,057 310,789 Accrued expenses 2,818 2,160 28,127 Advances received on uncompleted contracts 3,917 3,455 39,096 Accrued income taxes (Note 7) 73 109 729 Accrued bonuses to directors 90 50 898 Provision for losses on construction contracts - 193 - Allowance for compensation for construction damages 31 31 309 Other current liabilities 565 515 5,639 Total current liabilities 48,530 52,513 484,380 Long-term Liabilities: Long-term debt (Note 5) 4,364 8,367 43,557 Accrued pension and severance costs 1,479 1,287 14,762 Retirement allowances for directors, corporate auditors and operating officers 294 174 2,934 Deferred tax liabilities (Note 7) 370 1,214 3,693 Allowance for losses on investment 210 210 2,096 Other long-term liabilities 18 19 180 Total long-term liabilities 6,735 11,271 67,222 Contingent Liabilities (Note 8) Net Assets (Note 6): Shareholders Equity Common stock; Authorized - 73,000,000 shares Outstanding - 35,635,879 shares in 2007 6,440 6,440 64,278 Additional paid-in capital 6,038 6,038 60,265 Retained earnings 8,236 6,318 82,204 Treasury stock at cost - 27,167 shares in 2007 (14) (10) (140) Total shareholders equity 20,700 18,786 206,607 Accumulated Gains from Revaluation and Translation Adjustments Net unrealized holding gains on investments in securities 1,599 4,959 15,960 Unrealized gains on hedging derivatives, net of taxes (1) 11 (10) Total accumulated gains from revaluation and translation adjustments 1,598 4,970 15,950 Total net assets 22,298 23,756 222,557 77,563 87,540 $ 774,159 The accompanying notes to the non-consolidated financial statements are an integral part of these statements.

SUMITOMO DENSETSU CO., LTD. NON-CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED MARCH 31, 2008 AND 2007 (Note 1) Net Sales 105,911 108,741 $ 1,057,102 Cost of Sales (Note 4) 97,157 101,622 969,728 Gross profit 8,754 7,119 87,374 Selling, General and Administrative Expenses 5,135 4,962 51,253 Operating income 3,619 2,157 36,121 Other Income (Expenses): Dividend income 383 289 3,823 Interest expense, net (337) (376) (3,364) Foreign exchange loss (4) (19) (40) Gain on sales of property and equipment, net (67) 27 (669) Gain on sales of investments in securities, net 448 1,012 4,472 Gain on sale of investments in affiliates 173-1,727 Devaluation of memberships - (52) - Property rental income 48 49 479 Devaluation of investments in subsidiaries - (1,446) - Impairment loss (5) - (50) Provision for losses on investment - (210) - Commitment fee (62) (46) (619) Office relocation expenses (104) - (1,038) Losses on disposal of property, plant and equipment (84) - (838) Loss on revaluation of subsidiary s assets after liquidation - (46) - Provision for doubtful receivables - subsidiaries - (36) - Loss on disposal of inventories - (86) - Other, net 116 53 1,158 505 (887) 5,041 Income before Income Taxes 4,124 1,270 41,162 Provision for income taxes (Note 7): Current 150 200 1,497 Deferred 1,700 18 16,968 1,850 218 18,465 Net Income 2,274 1,052 $ 22,697 Per Share of Common Stock Yen (Note 1) Net income 63.8 29.5 0 Cash dividends applicable to the year 10.0 6.0 0 The accompanying notes to the non-consolidated financial statements are an integral part of these statements.

SUMITOMO DENSETSU CO., LTD. NON-CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED MARCH 31, 2007 Thousands Number of shares of common stock Common stock Additional paid-in capital Retained earnings millions of yen Treasury stock Unrealized gains (losses) on securities, net of taxes Unrealized gains (losses) on hedging derivatives, net of taxes Total Balance at March 31, 2006 35,636 6,440 6,038 5,373 (9) 5,983-23,825 Net income 1,052 1,052 Cash dividends paid (107) (107) Acquisition of treasury stock Net changes during the year Balance at March 31, 2007 (1) (1) (1,024) 11 (1,013) 35,636 6,440 6,038 6,318 (10) 4,959 11 23,756 Thousands (Note 1) Unrealized Unrealized gains gains Number of Additional (losses) (losses) on shares of Common Retained Treasury paid-in on hedging common stock earnings stock capital securities, derivatives, stock net of net of taxes taxes Total Balance at March 31, 2006 35,636 $ 54,553 $ 51,148 $ 45,515 $ (77) $ 50,682 $ - $ 201,821 Net income 8,911 8,911 Cash dividends paid (906) (906) Acquisition of treasury stock Net changes during the year Balance at March 31, 2007 (8) (8) (8,674) 93 (8,581) 35,636 $ 54,553 $ 51,148 $ 53,520 $ (85) $ 42,008 $ 93 $ 201,237 The accompanying notes to the non-consolidated financial statements are an integral part of these statements

SUMITOMO DENSETSU CO., LTD. NON-CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED MARCH 31, 2008 Thousands Number of shares of common stock Common stock Additional paid-in capital Retained earnings millions of yen Treasury stock Unrealized gains (losses) on securities, net of taxes Unrealized gains (losses) on hedging derivatives, net of taxes Total Balance at March 31, 2007 35,636 6,440 6,038 6,318 (11) 4,959 11 23,755 Net income 2,274 2,274 Cash dividends paid (356) (356) Acquisition of treasury stock Net changes during the year Balance at March 31, 2008 (3) (3) (3,360) (12) (3,372) 35,636 6,440 6,038 8,236 (14) 1,599 (1) 22,298 Thousands (Note 1) Unrealized Unrealized gains gains Number of Additional (losses) (losses) on shares of Common Retained Treasury paid-in on hedging common stock earnings stock capital securities, derivatives, stock net of net of taxes taxes Total Balance at March 31, 2007 35,636 $ 64,278 $ 60,265 $ 63,060 $ (110) $ 49,496 $ 110 $ 237,099 Net income 22,697 22,697 Cash dividends paid (3,553) (3,553) Acquisition of treasury stock Net changes during the year Balance at March 31, 2008 (30) (30) (33,536) (120) (33,656) 35,636 $ 64,278 $ 60,265 $ 82,204 $ (140) $ 15,960 $ (10) $ 222,557 The accompanying notes to the non-consolidated financial statements are an integral part of these statements

SUMITOMO DENSETSU CO., LTD. NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED MARCH 31, 2008 AND 2007 1. BASIS OF PRESENTING NON-CONSOLIDATED FINANCIAL STATEMENTS The accompanying non-consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese Securities and Exchange Law and its related accounting regulations and in conformity with accounting principles generally accepted in Japan ( Japanese GAAP ), which are different in certain respects as to application and disclosure requirements from International Financial Reporting Standards. The accompanying non-consolidated financial statements have been restructured and translated into English, with some expanded descriptions and the inclusion of non-consolidated statements of shareholders' equity, from the non-consolidated financial statements of the Company prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance Bureau of the Ministry of Finance as required by the Securities and Exchange Law. Some supplementary information included in the statutory Japanese language non-consolidated financial statements, but not required for fair presentation, is not presented in the accompanying non-consolidated financial statements. The non-consolidated balance sheet as of March 31, 2007, which was prepared in accordance with the new accounting standard as discussed in Note 2(v), is presented with the non-consolidated balance sheet as of March 31, 2006, prepared in accordance with the previous presentation rules. Also, as discussed in Note 2(u), the non-consolidated statement of changes in net assets for the year ended March 31, 2007 was prepared in accordance with the new accounting standard. The accompanying non-consolidated statement of shareholders equity for the year ended March 31, 2006 was voluntarily prepared for the purpose of inclusion in the non-consolidated financial statements although such statements were not required to be filed with the Local Finance Bureau. The translations of the Japanese yen amounts into U.S. dollar amounts were included solely for the convenience of readers outside Japan, using the prevailing exchange rate at March 31, 2008, which was 100.19 to U.S. $1.00. The translations should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be converted into at this or any other rate of exchange.

2. SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (a) Cash Equivalents In preparing the statements of cash flows, cash on hand, readily available deposits and short-term highly liquid investments with a maturity not exceeding three months at the time of purchase are considered to be cash and cash equivalents. (b) Securities Equity securities issued by subsidiaries and affiliates are stated at cost. Available-for-sale securities with quoted market values are stated at fair market value. Unrealized gains and losses on these securities are reported, net of related income taxes, as a separate component of net assets. Realized gains and losses on the sale of such securities are computed using average cost. Available-for-sale securities with no available fair market value are stated at average cost. Available-for-sale securities maturing within one year from the balance sheet date and highly liquid investment funds are included in current assets, and other securities are included in investments in securities. (c) Derivative and Hedging Transactions Derivative financial instruments are stated at fair value. Certain accounts denominated in foreign currencies for which foreign exchange forward contracts are used to hedge foreign currency fluctuations are translated at the contracted rate if the forward contracts qualify for hedge accounting. If interest rate swap contracts are used as hedges and meet certain hedging criteria, the net amount to be paid or received under the interest rate swap contract is added to or deducted from the interest on the liabilities for which the swap contract was executed. If derivative financial instruments meet hedging criteria, the Company defers recognition of gain or loss until the hedged transaction occurs. The Company utilizes hedge accounting for foreign currency forward exchange contracts hedging foreign currency monetary assets and interest rate swap contracts hedging interest on borrowings. The Company utilizes hedging instruments to hedge future risks of foreign exchange rate and interest rate in accordance with respective internal policies and procedures on risk control. The Company assesses the effectiveness of each hedge contract by comparing the total cash flow fluctuation of the hedging instrument and the hedged item. (d) Inventories Costs on uncompleted contracts are stated at cost, which is determined by the individual cost method. And other inventories are stated at cost, calculated by the aggregate average method. (e) Allowance for Doubtful Receivables The allowance for doubtful receivables is provided based upon the estimated uncollectible amounts of individually identified doubtful receivables and historical loss experience for the other receivables. (f) Allowance for Compensation for Construction Damages Allowance for compensation for construction damages is provided at the amount calculated based on the estimated compensation for damages related to the completed construction for which the Company is responsible.

(g) Accrued Bonuses to Directors The Company provides the allowance for directors bonuses based on the estimated amounts of payments for the fiscal year. (h) Allowance for losses on investment Allowance for losses on investment is provided for based on the evaluation of individual financial and other conditions of subsidiaries. (i) Property and Equipment The Company principally uses the straight-line method for depreciation of buildings and the declining-balance method for other properties over the estimated useful lives. (j) Intangibles The Company includes internal use software in intangible fixed assets and amortizes it by the straight-line method over the estimated useful life. (k) Leases Finance leases that do not transfer ownership or have bargain purchase option provisions are accounted for in the same manner as operating leases. (l) Provision for Loss on Construction Contracts The Company provides a provision for loss on construction contracts when estimated costs will exceed contract revenue. This provision relates to certain large construction projects which are unlikely to be profitable due to changes in the environment. (m) Revenue Recognition Revenue on construction contracts is recognized by the percentage-of-completion method for long-term construction contracts exceeding 12 months. Revenue on other contracts is recognized by the completed-contract method. Revenue recognized by the percentage-of-completion method was 15,316 million (US$152,870 thousand) and 17,550 million for the years ended March 31, 2008 and 2007, respectively. Revenue from insurance agency is recognized when the insurance contracts are made and technical guidance royalties are recognized in accordance with the contracts on technical guidance. (n) Research and development Expenses related to research and development are charged to selling, general and administrative expenses and cost of sales as incurred and amounted to 397 million (US$3,962 thousand) and 358 million for the years ended March 31, 2008 and 2007, respectively. (o) Pension and Severance Costs The Company has pension, retirement and termination allowance plans to provide benefits for employees. The benefits of the plans are, in general, determined by length of service and compensation at the time of termination or retirement. Payments of benefits are made under an unfunded termination and retirement allowance plan and

contributory and non-contributory funded plans. Under the plans, employees are entitled to lump-sum payments at the time of termination of their employment or to pension payments. The Company provides for employees pension and severance costs based on the estimated amounts of projected benefit obligation and the fair value of pension plan assets at the fiscal year-end. Prior service costs of pension plans are amortized by the straight-line method over 3 years, which is less than the estimated average remaining service years of the employees. Actuarial gains and losses are amortized over 15 years, which is less than the estimated average remaining service years of the employees, from the next fiscal year. Accrued lump-sum retirement benefits for executive officers are determined based on the Company s internal regulations and are included in Accrued pension and severance costs. (p) Retirement Allowances for Directors, Corporate Auditors and Operating Officers Directors, corporate auditors and operating officers of the Company receive lump-sum payments upon termination of their services under unfunded termination plans. The payments are subject to shareholders approval. The amount required based on length of service and remuneration to date under these plans is fully accrued. (q) Bond Issue Costs Bond issue costs are charged to income when incurred. (r) Income Taxes The provision for income taxes is based on income for financial statement purposes. The asset and liability approach is used to recognize deferred tax assets and liabilities for operating loss carryforwards and the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. (s) Translation of Foreign Currencies Foreign currency monetary assets and liabilities are translated into Japanese yen at the exchange rate in effect at each fiscal year-end and the resulting translation gains or losses are included in net loss. Investments in foreign subsidiaries and affiliates denominated in foreign currencies are translated at the exchange rate in effect at the time of the transaction. (t) Use of Estimates Management of the Company has made a number of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities, in preparing these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. (u) Net Income per Share Net income per share is based on the weighted average number of shares of common stock outstanding during the year. The Company did not present diluted earnings per share because no common stock equivalents were outstanding.

(V) Reclassifications Certain reclassifications of previously reported amounts were made to conform with current classifications.

3. CHANGE IN ACCOUNTING POLICIES Effective April 1, 2006, the Company adopted the new accounting standard "Accounting Standard for Directors' Bonus" (Statement No. 4 issued by the Accounting Standards Board of Japan on November 29, 2005). As a result of this change, operating income and income before income taxes for this fiscal year were 50 million ($424 thousand) less than what they would have been if the previous standard had been applied. From the fiscal year ended March 31, 2008, in accordance with revisions to the Corporate Tax Code (Act on Partial Revision, etc. of the Income Tax Act, etc., March 30 2007, No.6, and Decree Law on Partial Revision, etc. of the Corporate Tax Code Enforcement Ordinance, March 30, 2007, No. 83.),tangible assets acquired on and after April 1, 2007, are accounted for the straight-line method and the declining-balance method, as stipulated by the revised Corporate Tax Code. The impact of this revision was to reduce ordinary income and surplus before income taxes and minority interests by 2 million ($20 thousand). The residual book value of tangible assets acquired on or before March 31,2007, that have been depreciated down to their final depreciation limit is depreciated in equal amounts over a five-year period. The impact of this revision was to reduce ordinary income and surplus before income taxes and minority interests by 35 million ($349 thousand). 4. RELATED PARTY TRANSACTIONS Significant transactions and outstanding accounts of the Company with related party were as follows: Notes and accounts receivable 1,290 1,369 $ 12,876 Notes and accounts payable 4,681 5,054 46,721 Short-term loans 1,250 991 12,476 Short-term borrowings 1,200-11,977 Cost of sales 18,890 20,411 188,542 Other income 310-3,094 5. SHORT-TERM BORROWINGS AND LONG-TERM DEBT Short-term borrowings are primarily from banks and are represented by overdrafts and short-term notes, principally of 90 days maturity and bearing interest at an average annual rate of approximately 1.33% and 1.88% at March 31, 2007 and 2006, respectively. The Company has had no difficulty in renewing such notes upon maturity.

Long-term debt at March 31, 2008 and 2007 consisted of the following: Unsecured bonds, payable in yen, due in 2009, with interest at 1.66% 1,500 1,500 $ 14,971 Unsecured loans from banks, insurance companies and other financial institutions, due from 2006 to 2013, with interest at 0.87% - 2.18% 7,267 10,060 72,532 8,767 11,560 87,503 Less: current portion of long-term debt (2,903) (3,193) (28,975) 5,864 8,367 $ 58,528 Substantially all of the loans from banks are made under basic agreements that are customary in Japan. These agreements provide that with respect to all present and future liabilities to the banks the Company shall provide collateral or a third-party guarantee at the request of any such bank, that any collateral provided under any agreement will be applicable to all indebtedness to the bank and that lending banks have the right to offset deposits with them against any debt or obligation that becomes due and, in case of default or certain other specified events, against all debts payable to the banks. The aggregate annual maturities of long-term debt outstanding at March 31, 2008, were as follows: March 31, 2009 4,403 $ 43,947 2010 1,612 16,089 2011 1,059 10,570 2012 1,058 10,560 2013 635 6,338 8,767 $ 87,504 The following assets were pledged as collateral for dept of the investing customer, at March 31, 2008 and 2007. Investments in securities 20 20 $ 200 6. NET ASSETS According to the Accounting Standard for Presentation of Net Assets in the Balance sheet, net assets comprises four subsections, which are the shareholders equity, accumulated gains (losses) from revaluation and translation adjustments, subscription rights to shares and minority interests. Japanese Corporate Law ( the Law ) became effective on May 1, 2006, replacing the Japanese Commercial Code ( the Code ). Under the Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock. However, a company may, by a resolution of the Board of Directors, designate an amount not

exceeding one-half of the price of the new shares as additional paid-in capital, which is included in capital surplus. Under the Law, in cases where dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividend and the excess, if any, of 25% of common stock over the total of additional paid-in capital and legal earnings reserve must be set aside as additional paid-in capital or legal earnings reserve. Legal earnings reserve is included in retained earnings in the accompanying non-consolidated balance sheets. Under the Code, companies were required to set aside an amount equal to at least 10% of cash dividends and other cash appropriations as legal earnings reserve until the total of legal earnings reserve and additional paid-in capital equaled 25% of common stock. Under the Code, legal earnings reserve and additional paid-in capital could be used to eliminate or reduce a deficit by a resolution of the shareholders meeting or could be capitalized by a resolution of the Board of Directors. Under the Law, both of these appropriations generally require a resolution of the shareholders meeting. Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Code, however, additional paid-in capital and legal earnings reserve may be transferred to retained earnings by the resolution of the shareholders meeting as long as the total amount of legal earnings reserve and additional paid-in capital remains equal to or greater than 25% of common stock. Under the Law, all additional paid-in capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings, respectively, which are potentially available for dividends. The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial statements of the Company in accordance with the law. On June 25, 2008, the Company s shareholders approved the payment of year-end cash dividends totaling 214 million (US$2,136 thousand) to the Company s shareholders of record at March 31, 2008. 7. INCOME TAXES The following table summarizes the significant differences between the aggregate statutory income tax rate and the effective income tax rate for financial statement purposes for the years ended March 31, 2008 and 2007: 2008 2007 Statutory income tax rate 40.6% 40.6% Permanent nondeductible expenses 2.4 9.3 Permanent nontaxable income (2.5) (6.6) Per capita inhabitants tax 1.6 5.7 Valuation allowance 0.4 (39.7) Other 2.4 7.9 Effective income tax rate 44.9 % 17.2 %

Significant components of deferred tax assets and liabilities at March 31, 2008 and 2007 were as follows: Deferred tax assets: Accured expenses 646 460 $ 6,448 Accrued pension and severance costs 601 523 5,999 Devaluation of costs of uncompleted contracts 171 170 1,707 Allowance for doubtful receivables 139 191 1,387 Devaluation of investments in subsidiaries 85 85 848 Devaluation of golf memberships 75 83 748 Impairment loss 53 159 529 Net operating loss carryforwards 14 199 140 Devaluation of investments in subsidiaries - 1,169 - Loss on construction contracts on the percentage-of-completion method - 328 - Allowance for loss on construction contracts - 78 - Other 171 271 1,707 Subtotal 1,955 3,716 19,513 Less - valuation allowance (328) (382) (3,274) Total deferred tax assets 1,627 3,334 16,239 Deferred tax liabilities: Unrealized holding gains on investments in securities (1,095) (3,395) (10,929) Reserve for deferred gains on sales of fixed assets (33) (39) (329) Unrealized holding gains and losses on investment securities - (9) - Total deferred tax liabilities (1,128) (3,443) (11,258) Net deferred tax liabilities 499 (109) $ 4,981

Net deferred tax assets at March 2008 and 2007, respectively, were included in the non-consolidated balance sheets as follows: Deferred tax assets (Current Assets) 869 1,105 $ 8,674 Deferred tax assets (Investments and Other Assets) - - - Deferred tax liabilities (Current Liabilities) (370) (1,214) (3,693) 499 (109) $ 4,981 8. CONTINGENT LIABILITIES The Company was contingently liable as of March 31, 2008 as guarantor for borrowings of 2,733 million (US$27,278 thousand) by certain employees, subsidiaries and the others. 9. LEASES (a) Finance leases Information relating to finance leases, except those for which the ownership of the leased assets is considered to be transferred to lessee, was as follows: Original lease obligations* 537 479 5,360 Payments made 304 244 3,034 Payments remaining* 233 235 2,326 *Including assumed future interest Payments due within one year 108 86 1,078 Payments due after one year 125 149 1,248 233 235 2,326 Lease payments under such leases for the years ended March 31, 2008 and 2007 were 102 million (US$1,018 thousand) and 101 million, respectively. (b) Operating leases Future minimum lease payments subsequent to March 31, 2008 for operating leases are summarized as follows: Payments due within one year 8 8 $ 80 Payments due after one year 15 23 150 23 31 $ 230 Since there is no impairment loss on leases, this information is not disclosed.