News Releases

October 1, 2009

Notification of downward revision in business performance forecasts accompanying reversal of deferred tax assets

FamilyMart Co., Ltd. has decided to implement a reversal of deferred tax assets for the fiscal year ending February 28, 2010. As a consequence, the business performance forecasts for the current term that were issued on April 9, 2009, have been revised downward as indicated hereunder.

1.Reversal of deferred tax assets

In view of recent business performance trends, the management of the Company decided to implement a reversal of a certain portion of the Company's deferred tax assets in the second quarter of the current term, in order to maintain the financial soundness of the Company. As a result, we recognized deferred income taxes in the amount of \3,755 million (tax expenses) on a non-consolidated basis.

This reversal of deferred tax assets corresponds mainly to reserves for losses on equity investments in subsidiaries and affiliated companies, and the recognized amount is treated as an elimination for the presentation of financial statements on a consolidated basis. Accordingly, the reversal will have no effect on the Company's consolidated performance results.

2. Downward revision of business performance forecasts for fiscal 2009 (ending February 28, 2010)

(1) Revisions in performance forecasts on a consolidated basis

a. For fiscal 2009 first-half period (March 1 to August 31, 2009)

(Millions of yen)

	Total operating revenues	Operating income	Ordinary income	Net income	Earnings Per share
Previous forecast (A) (Released April 9, 2009)	147,100	21,900	23,200	11,600	\121.71
Current estimates (B)	143,350	19,600	20,900	9,850	\103.35
Decrease (B-A)	(3,750)	(2,300)	(2,300)	(1,750)	-
Percentage change	(2.5%)	(10.5%)	(9.9%)	(15.1%)	-
Figure for first half of previous term (to Aug. 31, 2008)	147,020	21,689	23,117	11,745	\123.22

b. For the full term (March 1, 2009 to February 28, 2010)

(Millions of yen)

	Total operating revenues	Operating income	Ordinary income	Net income	Earnings Per share
Previous forecast (A) (Released April 9, 2009)	287,500	36,700	39,500	18,800	\197.26
Current forecast (B)	281,400	32,700	35,100	15,000	\157.39
Decrease (B-A)	(6,100)	(4,000)	(4,400)	(3,800)	-
Percentage change	(2.1%)	(10.9%)	(11.1%)	(20.2%)	-
Figure for previous term (to Feb. 28, 2009)	287,342	36,532	39,478	16,451	\172.59

(2) Revisions in performance forecasts on a non-consolidated basis

a. For fiscal 2009 first-half period (March 1 to August 31, 2009)

(Millions of yen)

	Total operating revenues	Operating income	Ordinary income	Net income	Earnings Per share
Previous forecast (A) (Released April 9, 2009)	124,700	21,000	22,500	11,300	\118.55
Current estimates (B)	121,150	18,250	19,850	6,000	\62.95
Decrease (B-A)	(3,550)	(2,750)	(2,650)	(5,300)	-
Percentage change	(2.8%)	(13.1%)	(11.8%)	(46.9%)	-
Figure for first half of previous term (to Aug. 31, 2008)	120,423	20,282	22,190	10,513	\110.29

b. For the full term (March 1, 2009 to February 28, 2010)

(Millions of yen)

	Total operating revenues	Operating income	Ordinary income	Net income	Earnings Per share
Previous forecast (A) (Released April 9, 2009)	241,400	34,300	36,600	17,600	\184.65
Current forecast (B)	233,800	29,700	32,000	10,300	\108.06
Decrease (B-A)	(7,600)	(4,600)	(4,600)	(7,300)	-
Percentage change	(3.1%)	(13.4%)	(12.6%)	(41.5%)	-
Figure for previous term (to Feb. 28, 2009)	236,133	33,592	36,466	14,265	\149.65

3. Reasons for downward revision of forecasts

Looking at the Company's business performance on a non-consolidated basis for the six-month first-half period of fiscal 2009, sales failed to reach our target, due partly to the general slackness of consumer spending and partly to the relative lack of fine weather in the summer, as a result of which "summer special" items sold poorly. Consequently, business performance figures as a whole fell below our forecasts issued in April. In addition, as noted above, the Company was obliged to implement a reversal of a certain portion of its deferred tax assets.

In view of our expectations that consumer spending will remain sluggish for some time to come, we have revised downward our estimates for business performance for the first half of fiscal 2009 and our forecasts for the full term, both on a non-consolidated basis.

Business performance forecasts on a consolidated basis have also been revised downward, largely as a result of the abovementioned factors affecting the non-consolidated performance.

Note: The above business performance forecasts are based on information available to the Company's management as of the time of writing, and actual figures may differ substantially from these forecasts by reason of a variety of factors.

4. Dividend payment forecasts

No change has been made to the Company's forecasts for dividend payments. The Company plans to pay an interim dividend of \35 per share and a term-end dividend of \35 per share, for an annual dividend of \70 per-share.