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August 17, 2007

Kozosushi reports loss

Kozosushi`s interim sales were 1.42 billion Yen this year, a 4.1 decrease from the previous year. The company saw operating loss of 4,150 million Yen and ordinary loss of 3,630 million Yen which resulted in a 3,740 million Yen in interim net loss.
Japan`s biggest "take-out" sushi chain with over 1,000 locations, has been speeding up its restructuring by reopening newly renovated stores and by providing better overall customer satisfaction. Forty-eight stores were reopened last year, sixty-eight in the interim term and another hundred during the second quarter.
Sales at renovated locations experienced some growth, while original locations have their figures dropped.
"We are behind schedule on renovating the remainder of our original locations and as a result, are unable to accurately assess the effect of our renovated locations" stated the company
Kozosushi projects that sales for the fiscal year are down 3.1% to 2.9 billion yen.

Nichirei raises prices in response to higher costs

Nichirei Foods will increase selling prices of frozen foods and subsets of non-refrigerated items 10-15% in response to the increased costs of seafood and pastoral raw material costs.
With escalation gas prices, the company has endured a price hike of their own with respect to packages, trays and overall distribution expenses.
Seafood raw material costs, along with evolving cost of animal feed, have been severely affected by bio-ethanol production and as a result, have opposed day to day business activities.
"We have come to a point where our bottom line has been crossed and we cannot absorb any other unforeseen costs. We will continue to focus on trying to increase our overall productivity with the notion that this current inflation trend may accompany us for the long term. Ultimately we have arrived at the conclusion that this price increase was unavoidable in our minds", stated the company.

Nichimo Int`l explains, "Surimi supply is tight!"

Keiichi Ohmatsuzawa, the CEO of Nichimo International stated that "B" season surimi supply is tight" to The Suisan Times.
"Slump production of Pacific whiting surimi, production stoppage of blue whiting surimi production by Aker Seafoods along with the projection cutting quota for cods next season are all major contributors to the tight supply" said Ohmatzuzawa.
"The production made from pacific whiting this year was unfavorable because manufacturing vessels gave priority to fillet, putting surimi production on the back burner. The catch achieved its limit before the harvest had arrived. As a result, pacific whiting surimi production was only two-third of what was estimated and expected. We are unsure how the merger of Nichiro and Maruha will affect the shortage. The supply is shrinking and that`s certain. We must prepare for soaring prices. "he added.

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