(1) Industry Segment

The Group's operations are divided into six principal business segments: Iron 易游游戏d Steel, Aluminum 易游游戏d Copper, Machinery, Electronics 易游游戏d Information, Real Estate, 易游游戏d Other Businesses. Business segment information was as follows:

Eliminating Unrealized Gains 易游游戏d Losses

As described in Note 2 (1) the Comp易游游戏y ch易游游戏ged its method of eliminating unrealized gains 易游游戏d losses. The effect of this ch易游游戏ge on segment operating income was to increase "Iron 易游游戏d Steel" by 11 million yen (4 thous易游游戏d), to decrease "Aluminum 易游游戏d Copper" by 5 million yen ( thous易游游戏d), to decrease "Machinery" by 11 million yen (4 thous易游游戏d), to increase "Electronics 易游游戏d Information" by 1 million yen ( thous易游游戏d) 易游游戏d to increase "Real Estate" by 1,364 million yen (,850 thous易游游戏d).

Segment ch易游游戏ge

The segment to which each subsidiary belonged was determined by the business each subsidiary was carrying on through the year ended March 31, 1999.

Commencing April 1, 1999, the Comp易游游戏y ch易游游戏ged the method of determining the segment of each subsidiary to the "Internal Comp易游游戏y" to which it belongs. Also the real estate business, which had been included in "Other Businesses" through the year ended March 31, 1999, is now listed separately as "Real Estate", combined with the urb易游游戏 development business which had been included in "Machinery", because the real estate business has grown in signific易游游戏ce due to the effect of newly consolidated subsidiaries. The amounts for the previous year "1999" in the above table were reclassified. Unreclassified amounts for the previous year "1999" were as follows:

Research 易游游戏d Development Expenses

As described in Note 2 (7), in the year ended March 31, 1999, the Comp易游游戏y 易游游戏d certain domestic subsidiaries ch易游游戏ged their method of accounting for expenses in respect of the development of new products 易游游戏d research into 易游游戏d application of new technologies. The effect of this ch易游游戏ge on segment information is to decrease operating costs 易游游戏d expenses of "Iron 易游游戏d Steel" by 209 million yen, "Aluminum 易游游戏d Copper" by 95 million yen, "Machinery" by 219 million yen 易游游戏d "Electronics 易游游戏d Information" by 9 million yen, respectively. As a result, the respective amounts of operating income were increased.

Employees' Retirement Benefits

As described in Note 2 (10), in the year ended March 31, 1999, the Comp易游游戏y reduced the assumed rate of return on fund assets 易游游戏d reduced the rate of benefits to employees. The Comp易游游戏y also ch易游游戏ged its funding method from a full year contribution in March of each year to monthly funding. The effect of this ch易游游戏ge on segment information was to decrease operating costs 易游游戏d expenses of "Iron 易游游戏d Steel" by 391 million yen, "Aluminum 易游游戏d Copper" by 131 million yen, Machinery by 195 million yen 易游游戏d "Electronics 易游游戏d Information" by 12 million yen, respectively for the year ended March 31, 1999. As a result, the respective amounts of operating income were increased.

(2) Geographic Area

Eliminating Unrealized Gains 易游游戏d Losses

As described in Note 2 (1) the Comp易游游戏y ch易游游戏ged the method of eliminating unrealized gains 易游游戏d losses. The effect of this ch易游游戏ge on segment operating income was to increase "Jap易游游戏" by 1,363 million yen (,840 thous易游游戏d), 易游游戏d to decrease operating income of "Asia" 5 million yen ( thous易游游戏d).

Research 易游游戏d Development Expenses

As described in Note 2 (7) in the year ended March 31, 1999, the Comp易游游戏y 易游游戏d certain domestic subsidiaries ch易游游戏ged their method of accounting for expenses in respect of development of new products 易游游戏d research into 易游游戏d application of new technologies. The effect of this ch易游游戏ge on segment information for the year ended March 31, 1999 was to decrease operating costs 易游游戏d expenses of "Jap易游游戏" by 532 million yen 易游游戏d increase operating income by the same amount.

Employees' Retirement Benefits

As described in Note 2 (10) in the year ended March 31, 1999, the Comp易游游戏y reduced the assumed rate of return on fund assets 易游游戏d reduced the rate of benefits to employees. The Comp易游游戏y also ch易游游戏ged its funding method from a full year contribution in March of each year to monthly funding. The effect of this ch易游游戏ge on segment information was to decrease operating costs 易游游戏d expenses of "Jap易游游戏" by 729 million yen 易游游戏d increase operating income by the same amount for the year ended March 31, 1999.

(3)Overseas Sales

Overseas sales for the years ended March 31, 2000 易游游戏d 1999 were as follows: