Under these extraordinary circumstances, we endeavored to keep our agility to improve the given condition.

I would like to express my thanks to our shareholders for your understanding and support to our company.

 The year of 2008 was epoch making,at first energies,all natural resources prices reached in their historical high in many field,symbolized as WTI crude oil index reached its historical high of US $147/barel.after that we experienced rapid shirk of world economy and we are still in it.

The domestic market also had large impacts of high energies/material cost raise in first half. In the latter half, global demand drastically decreased and financial crisis waves have come here as you know. In Indonesia, textile and apparel industry exported US $10 billion of products to North America, Europe, Middle East and Asia, however such export is terribly in slump.

Under these extraordinary circumstances, we endeavored to keep our agility to improve the given condition, however market change was so dramatic that we could not achieve the goal of our REVIVAL PLAN formulated in 2006 unfortunately.

Loss from Operation became US $ -23.8 million, US$9.0 million down compared with the previous year. Net toss increased by US $ 25.7 million, to US $ -57.8 million including impairment loss of US $ 23.3 million. I believe our running struggles prevent the worst result even though it is not enough.

In the crisis, we keep focusing at first Cash Flow, with checking profitability in each activity. We continuously reform our business structure to secure sustainability with keeping quality and productivity improvement.

We appreciate your support and encouragement to over come such critical circumstances.

Yoshio Fukuda

President Director