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SUMMARY OF COSOLIDATED FINANCIAL STATEMENTS
For First Quarter of FY 2009 (from July 1, 2008 to June 30, 2009)

November 14, 2008

The English Edition is digested translation of Japanese financial statements, which are prepared in accordance with generally accepted accounting principles in Japan.
Company Name:
Precision System Science Co., Ltd.
Listed on:
Hercules Market at Osaka Securities Exchange
Code Number:
7707
1. Consolidated financial data for the first three months of fiscal year 2009
(From July 1, 2008 to September 30, 2008)
(1) Consolidated operating results

(Million yen, fractional amounts rounded down to the nearest million yen)

Net sales
Operating income
Ordinary income

Million yen %
Million yen %

Million yen %

Three months ended September 30, 2008
1,030 -
142 -
123 -
Three months ended September 30, 2007
626 ( 17.0)
(121) -
(134) -
Net income
Net income per
share
Net income per share
adjusted for full
dilution

Million yen %
Yen
Yen
Three months ended September 30, 2008
108 -
2,530.23

Three months ended September 30, 2007
(142) -
(3,322.53)
-


(2) Consolidated financial condition

Total assets
Net Assets
Equity ratio
Net Assets per share of
common stock

Million yen
Million yen
%
Yen
As of September 30, 2008
3,902
2,471
63.3 57,682.93
As of September 30, 2007
4,224
2,423
57.4 56,573.08


2.

Forecasts for fiscal year ending June 30, 2009 (from July 1, 2008 to June 30, 2009)

Sales Operating
income
Ordinary
income
Net income
Net income per
share

Million yen %
Million yen %
Million yen %
Million yen %
For 6 months
ending December
31, 2008
1,750 18.4
20 -
10 -
0 -
0.00
For fiscal year
ending
June 30, 2009
3,700 8.9
100 -
80 -
40 -
933.71

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3.

Others
(1)

Change in scope of consolidated subsidiaries: None
(2)

Changes in accounting procedures relating to consolidated financial statements:
a)

Changes according to accounting regulations: None
b)

Other than a): Yes
(3) Number of outstanding stocks (common stocks)
a)

Number of outstanding stocks as of September 30, 2008 (including treasury stock)
42,840 (42,840 as of September 30, 2007)
b)

Number of treasury stocks as of September 30, 2008
None (none as of September 30, 2007)

c) Average number of stocks during the three months ending September 30, 2008
42,840 (42,840 during the three months ending September 30, 2007)

* The above forecast contains forward-looking statements based on information currently available.
Consequently the Company’s actual results may differ materially from the projected values due to various future factors.

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Operating results and financial conditions

I. Analysis of operating results
1. Operating results
In the first quarter of FY2009 ended September 30, 2008, net sales increased 64.3% compared to the same
period of previous year to 1,030million yen due to the full scale shipment of DNA extractors for major OEM
clients, Roche Group and QIAGEN Group. As a result, Gross margin improved 57.1% to 465 million yen.

On the hand, selling, general and administrative expenses reduced by 22.8% to 322 million yen as cost
reduction efforts, implementing from last fiscal year, became effective. Therefore, operating income recorded
142 million yen compared to the 121 million yen operating loss in the same period of previous year, while
ordinary income for the three month improved to 123 million yen (123 million yen loss in same period of
previous year) in and net income for the three month became 108 million yen (142 million yen loss in same
period of previous year)

Net sales according to customer are as follows: (Unit: Million yen)

The shipment of upgrade models of DNA extractors to Roche Group and QIAGEN Group contributed to large
sales increase for the period, while sales to Mitsubishi Kagaku Medience, Inc., was slow.
For the sales to other customers, there was increase due to the steady shipment to OEM partners in the US.
Information by business segments is as follows:
(1) Bio-related Business
In bio-related business, the net sales increased 65.0% to 1,023 million yen, while operating income recorded
178 million yen compared to 83 million yen loss in the same period of previous year.


Three months
ended
Sep. 30, 2007

Three months ended
Sep. 30, 2008

Year on
year
increase

FY2008 ended
June 30, 2008
amount
ratio
amount
ratio
%
amount
ratio
Roche Group
319
51.0
404
39.2
26.5
1,324
39.0
QIAGEN Group
159
25.4
432
42.0
171.3
910
26.8
Mitsubishi Kagaku Medience Group
53
8.5
32
3.1
(39.8)
402
11.8
Others
94
15.1
161
15.7
70.4
760
22.4
Total
626
100.0
1,030
100.0
64.3
3,397
100.0

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The sales of bio-related business by each product category: (Unit: Million yen)


a) DNA auto-extractors
This category consists of automated systems utilizing the Company’s internationally patented Magtration
Ⓡ

Technology. In addition to DNA auto-extractors, this category includes immunochemical luminescent
measuring system, an OEM product for Mitsubishi Kagaku Medience, Inc. and Purelumn, auto protein
purification system, for which we have had exclusive sales agreement with GE Healthcare Bio Science Inc.

During the three months ended September 30, 2008, the sales on this category increased 196.3 % to 623
million yen thanks to brisk sales of new models to Roche Group and QIAGEN Group.

Quarterly sales of automated systems are shown in below charts.
(Unit: Thousand yen)

Fiscal year ended June 30, 2007

First quarter
Second quarter
Third quarter
Fourth quarter
Units sold
190
231
191
258
Amount
389,197 486,681
421,369
507,934
Unit price
2,048
2,106
2,206
1,968
Fiscal year ended June 30, 2008
Current quarter

First quarter
Second quarter
Third quarter
Fourth quarter
First quarter
Units sold
113
220
209
216
238
Amount
210,315 383,145
384,498
546,934 623,139
Unit price
1,861
1,741
1,839
2,532
2,618


Three months ended
Sep. 30, 2007

Three months ended
Sep. 30, 2008

Year on
year
increase

FY2008 ended
June 30, 2008

amount
ratio
amount
ratio % amount
ratio
DNA auto extractors
210
33.9
623
60.9
196.3
1,524
45.2
Other laboratory equipment
21
3.5
3
0.3
(85.0)
191
5.7
Other products
88
14.3
161
15.7
81.4
510
15.1
Merchandise
(plastic consumables)
299
48.3
236
23.1
(21.1)
1,145
34.0
Total
620
100.0
1,023
100.0
65.0
3,372
100.0

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b) Other laboratory equipment This category consists of automated instruments used in institutions such as research facilities, as well as
developmental projects commissioned by governmental ministries, agencies and affiliated organizations.

During the three months period ended September 30, 2008, the sales of this category decreased 85.0% year on
year to 3 million yen as system sales to clinical test centers became weak. The sales in this category tend to be
significantly impacted by the number of orders received for specially ordered systems.

c) Other products
This category includes sales generated from spare parts (replacement) and maintenance of equipment, pre-
packaged reagents for the extraction and purification of nucleic acid used in the Company’s DNA auto-
extractors, and software development.

During the three months period ended September 30, 2008,
sales in this category amounted to 161 million
yen (81.4% increase compared to the previous year). Since sales derived from spare parts and equipment
maintenance tends to increase in direct proportion to the cumulative number of systems sold, steady
growth in the sales of this category is expected.

d) Merchandise (plastic consumables)
This category consists of disposable plastic parts such as tips and cartridges consumed in the use of systems.
Consumables designed exclusively for use in the PSS manufactured DNA auto-extractors comprise the major
part of this category.

During the three months period ended September 30, 2008,
sales in this category decreased 21.1% to 236
million yen due to the slow sales of DNA extractors, sales recognition modification, etc. The sales derived
from plastic consumables tend to increase in direct proportion to the cumulative number of systems sold,
steady growth in the sales of this category is expected in the future. For the first quarter, it was relatively
slow due to the week shipment to Roche Group although it would be improved in 2
nd
and successive period as
shipments of upgraded model have started.

(2) Investment business
In investment business, the net sales were 6 million yen and operating income was 3 million yen,
respectively as PSS Capital Co., Ltd. received management fee from Bio-Contents Fund LLP.

Due to the tightened economic and financial circumstances, there were fewer IPOs in the period. While many
bio-ventures felt difficulty to secure necessary fund, our investment activities had to be conservative. For the
three months period, there was no investment made by Bio-Contents Fund LLP.