1

April 13, 2007

Non-consolidated Financial Summaries for the Nine Months
of the Fiscal Year Ending May 31, 2007
(June 1, 2006 – February 28, 2007)

Company name: INTER ACTION Corporation
(Stock code: 7725 TSE Mothers Market)
(URL http://www.inter-action.co.jp/Eng)

Contact: Masao Kimura, President, CEO & COO
Tsuyoshi Fukuda, Executive Vice President & CFO
(Tel: +81-45-788-8373)

1.
Significant Accounting Policies in the Preparation of Quarterly Non-consolidated Financial Statements

(1) Accounting standards for the preparation of quarterly non-consolidated financial statements:
The standards for Non-consolidated Interim Financial Statements
(2) Changes in accounting principles from the most recent fiscal year:
None
(3) Auditing process by independent accountants:
Yes
The quarterly non-consolidated financial statements have been through auditing process in accordance with the
supplementary provisions “Standards of Auditors’ Opinion for the Quarterly Financial Statements” of the “Instructions for the Application of the Regulations for Timely Disclosure of Corporate Information by Issuers of Listed Securities” as set by the Tokyo Stock Exchange.

2. Financial Results for the Nine Months Ended February 28, 2007 (June 1, 2006 – February 28, 2007)
(1) Non-consolidated Results of Operations
(All amounts are rounded down to the nearest million yen)

Sales
Operating income
Ordinary income
Million
yen
YoY
change %
Million yen
YoY
change %
Million yen
YoY
change %
Nine months ended Feb. 2007
1,308
22.1
(13)
-
(22)
-
Nine months ended Feb. 2006
1,071
21.0
(52)
-
(50)
-
(Reference) Year ended May 2006
2,089

275

269
Net
income
Net income per share
(basic)
Net income per share
(diluted)
Million
yen
YoY
change %
Yen Yen
Nine months ended Feb. 2007
(13)
-
(217.15)
-
Nine months ended Feb. 2006
(30)
-
(484.37)
-
(Reference) Year ended May 2006
172

2,740.68
2,738.72
Note: The percentages shown for sales, operating income, ordinary income, and net income represent changes from the same period
of the previous fiscal year.

2
(2) Non-consolidated Financial Position
(All amounts are rounded down to the nearest million yen)

Total assets
Net assets
Equity ratio
Net assets per share

Million yen
Million yen
%
Yen
As of February 28, 2007
4,560
2,346
51.4
38,567.58
As of February 28, 2006
4,479
2,456
54.8
39,096.44
(Reference) As of May 31, 2006
4,805
2,656
55.3
42,282.70

3. Non-consolidated Forecasts for the Fiscal Year Ending May 31, 2007 (June 1, 2006 – May 31, 2007)

Sales
Ordinary income
Net income

Million yen
Million yen
Million yen
Full year
1,754
72
49
Reference: Estimated net income per share for the full year: 805.38 yen

4. Dividends
Dividends by cash
Dividend per share (Yen)
Year-end
Annual
Fiscal year ended May 2006
500.00
500.00
Fiscal year ending May 2007 (actual)
-
Fiscal year ending May 2007 (forecast)
600.00
600.00


Note: Forecasts regarding future performance in these materials are based on estimates and judgments of the Company’s management
made in accordance with information available at the time this report was prepared. Forecasts therefore embody risks and uncertainties. Actual results may differ significantly from these forecasts for a number of factors. Please refer to page 3 of the Consolidated Financial Summaries on attached document for precondition and assumption as the basis of the above forecasts.

3
5. Non-consolidated Financial Statements
(1) Non-consolidated Balance Sheets
Yen in thousands

FY5/06 1st – 3rd Qtr.
As of Feb. 28, 2006
FY5/07 1st – 3rd Qtr.
As of Feb. 28, 2007
FY5/06
As of May 31, 2006
Period
Account
Amount % Amount % Amount %

Assets
I Current assets
1. Cash and deposits in banks

2,450,080 2,284,881

2,123,672
2. Trade notes receivable

7,318 46,782

1,560
3. Trade accounts receivable

368,680 329,651

1,013,422
4. Securities

19,966 19,996

19,967
5. Inventories

553,418 585,610

522,606
6. Income taxes refundable

204 46,693

-
7. Other current assets
*5
111,933 167,400

126,580
8. Allowance for doubtful accounts

(502)
(219)
(242)
Total
current
assets

3,511,100 78.4 3,480,797 76.3
3,807,567 79.2
II Fixed assets
1. Tangible fixed assets
* 1 , 2

(1) Buildings

397,885 384,342

393,883
(2) Land

114,867 114,867

114,867
(3) Other tangible fixed assets

194,730 188,996

204,994

Total tangible fixed assets

707,482 688,206

713,745
2. Intangible assets

15,921 20,204

20,836
3. Investments and other assets
(1) Investment securities

96,326 122,145

86,954
(2) Other investments and other assets

148,366 249,496

176,019

Total investments and other assets

244,692 371,641

262,974

Total fixed assets

968,096 21.6 1,080,052 23.7
997,555 20.8
Total
assets

4,479,197 100.0 4,560,850 100.0
4,805,123 100.0

4
Yen in thousands
FY5/06 1st – 3rd Qtr.
As of Feb. 28, 2006
FY5/07 1st – 3rd Qtr.
As of Feb. 28, 2007
FY5/06
As of May 31, 2006
Period
Account
Amount % Amount % Amount %

Liabilities
I Current liabilities
1. Trade accounts payable

119,564 95,570

168,114
2. Short-term borrowings
*2
340,012 330,012

340,012
3. Current portion of corporate bonds

-
400,000 522,000
4. Other accounts payable

65,681 32,711

104,233
5. Reserve for bonuses

12,070 16,066

-
6. Reserve for product warranty

7,287 14,234

7,567
7. Other current liabilities

244,143 30,756

184,726
Total
current
liabilities
788,759 17.6
919,351 20.2
1,326,652 27.6
II Long-term liabilities
1. Corporate bonds

340,000 540,000

-
2. Long-term borrowings
* 2
889,975 749,963

817,472
3. Reserve for retirement benefits

4,424 5,045

4,630

Total long-term liabilities

1,234,399 27.6 1,295,008 28.4
822,102 17.1
Total
liabilities
2,023,158 45.2 2,214,359 48.6
2,148,754 44.7

Shareholders’ equity
I Common stock

1,101,259 24.6
-
-
-
-
II Capital surplus
1. Additional paid-in capital

1,032,259 -

-
Total
capital
surplus
1,032,259 23.0
-
-
-
-
III Retained earnings
1. Legal reserve

2,600 -

-
2. Unappropriated retained earnings at end of
period

482,973 -

-
Total
retained
earnings

485,573 10.8
-
-
-
-
IV Unrealized holding gain (loss) on other
securities

756 0.0
-
-
-
-
V Treasury stock

(163,811)
(3.6)
-
- -
-
Total
shareholders’
equity
2,456,038 54.8
-
-
-
-
Total liabilities and shareholders’ equity

4,479,197 100.0
-
-
-
-

5
Yen in thousands
FY5/06 1st – 3rd Qtr.
As of Feb. 28, 2006
FY5/07 1st – 3rd Qtr.
As of Feb. 28, 2007
FY5/06
As of May 31, 2006
Period
Account
Amount % Amount % Amount %

Net assets

I Shareholders’ equity

1. Common stock
-
-
1,102,711 24.2
1,101,360 22.9
2. Capital surplus

(1) Additional paid-in capital
-
1,033,711

1,032,360
Total
capital
surplus
-
-
1,033,711 22.7
1,032,360 21.5
3. Retained earnings

(1) Legal reserve
-
2,600

2,600
(2) Other retained earnings
Retained earnings carried forward
-
640,640

685,571
Total
retained
earnings
-
-
643,240
14.1

688,171
14.3
4. Treasury stock
-
-
(435,250)
(9.6)
(163,811)
(3.4)
Total
shareholders’
equity
-
-
2,344,414 51.4
2,658,081 55.3
II Valuation and translation adjustments

1. Unrealized holding gain (loss) on other
securities
-
-
2,075 0.0
(1,712)
(0.0)
Total valuation and translation
adjustments

-
-
2,075 0.0
(1,712)
(0.0)
Total net assets

-
-
2,346,490 51.4
2,656,368 55.3
Total liabilities and net assets

-
-
4,560,850 100.0
4,805,123 100.0