Press Release

Report on the 43rd Annual Meeting of Shareholders

June 24, 2005

Video Research Ltd. (Head Office in Tokyo, President and CEO Tsuyoshi Takeuchi) held the 43rd annual meeting of shareholders today starting from 11:00 AM, and completed all the items on the agenda. Here we would like to report the summary of our business, the settlement of accounts and the appointment of directors for this term.

Summary of business

Under the economic conditions the total domestic advertisement expenditure increased after four years of reduced spending, Video Research Ltd. made continued efforts to achieve profitability by providing communication information services around the axis of media research and market research.
However, the company recorded decreases in both sales and profit for this term. The total sales amounted to 19,162,428,000 yen (decrease by 0.9% from the previous term), operating profit was 2,063,236,000 yen (decrease by 11.7% from the previous term), ordinary profit was 2,114,196,000 (decrease by 11.2% from the previous term) and the net profit for the term was 54,079,000 yen (decrease by 95.9% from the previous term).

As for sales, while the market information service recorded a revenue increase of 9.6% from the previous term, sales related to TV ratings in particular continued to lag, leading to a slight decrease in overall sales from the previous term.
On the expenditure side, equipment investments were made in order to cope with the expansion of the local ratings business and the digitalization of TV ratings measuring devices. In addition, depreciation costs for development and business carried forward during the previous year piled up heavily, being the main reason for the decrease in ordinary profit by more than 10%.
As for extraordinary expense, because Broadcasters Market Research Co.Ltd., one of the group companies, is now under a clearing procedure, equivalent value for the amounts invested in the said company, loss in capital investments, and loss from write-down of investments in other affiliates were recorded on this occasion. The result was an extraordinary expense of 1,990,559,000 yen.

Statement of accounts for the 43rd term (FY 2004)

Summary of the Statements of Profits and Losses
From April 1, 2004 to March 31, 2005
(Unit:thousand yen)
Items
Amount
Ordinary profit and loss
 
  
   Operating profit and loss    
       Operating profit  
19,162,428
       Operating expenses  
17,099,191
     Operating profit  
2,063,236
   Non-operating profit and loss    
       Non-operating income  
51,253
       Non-operating expenses  
293
     Ordinary profit  
2,114,196
Extraordinary profit and loss    
       Extraordinary loss  
1,990,559
     Net profit before income tax  
123,636
       Corporate,inhabitant and enterprise taxes
856,699
  
       Adjustments for income taxes,etc.
-787,142
69,557
     Net profit for the current term  
54,079

Plans for this term

In this last stage of the three-year management plan, Video Research Ltd. had reviewed and modified the original plan. The basic goal of the company for this term will be to become "the 'only' company group that provides information services in the communication field, mainly in the media." The company also plans to set out a new three-year management plan starting from next term, to present a clear and definite picture of the Video Research Group in the future.
Major plans in the future are as follows.

1. Media research business

2. Market research business

3. Preparation of business base for operation

Appointment of directors

Full-time Directors

  President & CEO Tsuyoshi Takeuchi  
<Promoted> Executive Senior Managing Director Hideki Yamamoto （Executive Managing Director）
<Promoted> Executive Managing Director Yoshifumi Oda （Executive Director）
<Promoted> Executive Managing Director Shigeru Kido （Executive Director）
<Promoted> Executive Managing Director Shigeho Hirota （Executive Director）
<Promoted> Executive Managing Director Shuhei Mishima （Executive Director）
<Promoted> Executive Director Yuji Kojima （President& CEO of Video Research Interactive Inc.）
<Promoted> Executive Director Shigeo Ogawa （Director of Technology Development Div.）
<Promoted> Executive Director Morimasa Mizutani （Director of Regional Network Coordination Div.）
<Promoted> Auditor Shigeru Yagi （Director of Market Research Div.）

Outside directors

  Executive Director Tatsuyoshi Takashima (Executive Vice President of Dentsu Inc.)
<Newly appointed> Executive Director Hiroshi Inoue (President of Tokyo Broadcasting System, Inc.)
  Executive Director Seiichiro Ujiie (Representative Director & Chairman of Nippon Television Network Corporation)
  Executive Director Hisashi Hieda (Chairman & CEO of Fuji Television Network, Inc.)
  Executive Director Michisada Hirose (President & CEO of TV Asahi Corporation)
<Newly appointed> Executive Director Sadahiko Sugaya (President of TV TOKYO Corporation)
  Executive Director Hideo Sugimoto (Senior Corporate Officer of Hakuhodo Incorporated)
<Newly appointed> Executive Director Masahiro Yamamoto (President of Mainichi Broadcasting System, Inc.)
<Newly appointed> Executive Director Yoshio Nishimura (President of Asahi Broadcasting Corporation)
<Newly appointed> Executive Director Taizan Ishiguro (President of Tokai Television Broadcasting Co., Ltd.)
<Newly appointed> Executive Director Kazuo Terasaki (Senior Executive Director of Television Nishinippon Corporation)
  Auditor Kanekazu Sufu (Assistant Director of Corporate Auditor Department, Dentsu Inc.)
  Auditor Osamu Naganuma (President of Hokkaido Broadcasting Co., Ltd.)

Retiring directors

Vice President Yuichi Yasutake Assumes the post of Corporate Advisor
Executive Senior Managing Director Kazumasa Keimatsu President and CEO of Video Research Comhouse Ltd.
Executive Managing Director Yoshikazu Yamazaki  
Executive Director Masahiro Ohki  
Executive Director Nagasaburo Miyamoto Assumes the post of Corporate Advisor
Auditor Setsuzo Miyake  
Executive Director Yukio Sunahara (Chairman of Tokyo Broadcasting System, Inc.)
Executive Director Yutaka Ichiki (Advisor of TV TOKYO Corporation)
Executive Director Koji Takada (President of Yomiuri Telecasting Corporation)
Executive Director Haruyoshi Totsukawa (Senior Managing Director of Kansai Telecasting Corporation)
Executive Director Kenichi Yokoyama (Representative Director & Chairman of Chubu-Nippon Broadcasting Co.,Ltd.)
Executive Director Naofumi Sagara (Managing Director of RKB MAINICHI BROADCASTING CORPORATION)

* Titles shown in ( ) for outside directors and retiring directors are the titles as of June 24.