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February 27, 2009

Notice on posting of losses on impairment of investment securities, and revision of business performance forecasts, for fiscal year ending February 2009

FamilyMart Co., Ltd. herewith announces the posting of losses on impairment of investment securities for the business term ending February 28, 2009. Impairment accounting has been applied to those securities holdings (within the classification of available-for-sale securities) whose market value has fallen significantly from the book value, and for which no likelihood of a price recovery is seen.

In line with this, we also announce hereunder revisions to the forecasts for the Company’s business performance for the fiscal 2008 business term (the business year from March 1, 2008 to February 28, 2009) that were announced on January 9, 2009.

1.Breakdown of valuation losses on investment securities for fiscal 2008

(¥ million)

	Non-consolidated	Consolidated
(A) Total securities valuation losses for 4th quarter (Dec. 1, 2008 to Feb. 28, 2009): = (X) minus (Y)	4,020	4,020
(X) Total securities valuation losses for FY2008 (March 1, 2008 to Feb. 28, 2009)	4,060	4,060
(Y) Aggregate securities valuation losses for 1st to 3rd quarters of FY2008 (March 1, 2008 to Nov. 30,2008)	39	39

Note: Investment securities for quarterly accounts settlements are valued at lower of cost or market.

Valuation loss amounts as a percentage of total equity, ordinary income, and net income

(¥ million)

		Non-consolidated	Consolidated
(B) Total equity as of Feb. 29, 2008		182,600	191,281
	(A/B×100)	2.2%	2.1%
	(X/B×100)	2.2%	2.1%
(C) Ordinary income for the term ended Feb. 29, 2008		31,262	33,877
	(A/C×100)	12.9%	11.9%
	(X/C×100)	13.0%	12.0%
(D) Net income for the term ended Feb. 29, 2008		15,900	16,438
	(A/D×100)	25.3%	24.5%
	(X/D×100)	25.3%	24.7%

2. Revised consolidated business performance forecasts for fiscal 2008
(March 1, 2008 to February 28, 2009)

(¥ million)

	Total operating revenues	Operating income	Ordinary income	Net income	EPS
Previous forecast (A)	288,300	36,400	39,300	18,700	¥196.18
Current forecast (B)	288,300	36,400	39,300	16,450	¥172.57
Change (B-A)	-	-	-	(2,250)	-
Percentage change	-	-	-	(12.0%)	-
Figures for FY2007	319,439	31,214	33,877	16,438	¥173.47

3. Revised non-consolidated business performance forecasts for fiscal 2008
(March 1, 2008 to February 28, 2009)

(¥ million)

	Total operating revenues	Operating income	Ordinary income	Net income	EPS
Previous forecast (A)	232,100	33,400	36,300	16,800	¥176.25
Current forecast (B)	232,100	33,400	36,300	14,250	¥149.49
Change (B-A)	-	-	-	(2,550)	-
Percentage change	-	-	-	(15.2%)	-
Figures for FY2007	210,351	28,639	31,262	15,900	¥168.39

4. Reasons for revised forecasts

Business performance has been comparatively steady, with figures at the operating and ordinary income levels roughly in line with our expectations in the consolidated and non-consolidated accounts, both being all-time highs. Operating income is forecast up 16.6% over the previous year on both a consolidated and non-consolidated basis, while ordinary income is forecast to rise 16.0% on a consolidated basis and 16.1% on a non-consolidated basis.

As a result of the posting of losses on impairment of investment securities described in section 1. above, we have revised downward our forecast for net income on both a consolidated and non-consolidated basis.

Note: The above forecasts are based on information known to the management of the Company as of the time of writing, and said forecasts may differ from the actual figures as a result of a large number of unquantifiable factors.

5. Dividends

We have made no revisions to our plans to pay a total dividend of ¥68 per share for fiscal 2008 (the term ending February 28, 2009), consisting of an interim dividend of ¥34 per share and a term-end dividend also of ¥34 per share.