November 11, 2008 (Tokyo, Japan)-- Culture Convenience Club Co., Ltd. ("CCC"), has reported its consolidated operating results through the second quarter (six months) for the year ending March 31, 2009 as follows. Greater system-wide retail revenues--generated as a result of TSUTAYA stores opening at a faster pace, membership growth in the Card Operation Business, and the rise of sales completed with loyalty point transactions successfully delivered ordinary income of 8.1 billion yen (up 14.7% over first half of prior year) and net income of 4.3 billion yen (up 74.0%) on net sales of 114 billion yen (down 1.6%). In terms of consolidated, cumulative second-quarter results, both operating income and ordinary income have set records for the highest historical earnings.


􀁊 Membership Base Expansion
Total T Card Members surpassed 30.75 million: 9.18 million T Members added in 12 months, 42.6% more than the previous 12 months
In addition to the existing six alliance partners who maintain T Card issuing locations, Three F Co., Ltd., a convenience store chain, is scheduled to start issuing the T Card in December, and T Card issuance is expected to increase further. Steady growth for Internet-based memberships has continued also. TSUTAYA online members totaled 14.31 million (2.16 million added in 12 months), and TSUTAYA DISCAS members grew to 537,000 (221,000 added in 12 months).


􀁊 Successful TSUTAYA Business
Total retail locations numbered 1,352 as of September 30, 2008 with cumulative store openings of 49 stores (net growth of 25 stores). For the first half, the prior year comp for total system-wide sales tracked firmly at 103.4%. In addition, TSUTAYA DISCAS membership growth contributed to increased earnings of the TSUTAYA business.


􀁊 Successful Card & Point Loyalty Business Operations
Due to the growth in the T Card membership base and increasing T Point transactions resulting from an improved activation rate per member, T-Point associated sales during the second quarter (three months) surpassed 300 billion yen in a dramatic increase, up 84.5% over the same period of the prior year. In addition, T Point alliance partners are expanding to 51partner companies and 31,200 locations by December 31, 2008 and more alliance partners are expected to join in the future.


􀁊 Portion of IMJ shares transferred to Hakuhodo, Inc.
Because CCC has sold a portion of its IMJ shareholdings to Hakuhodo, Inc., IMJ is changing from a consolidated subsidiary to an equity method affiliate beginning in the third quarter. Moreover, CCC Communications, Co., Ltd., which was established as a joint venture with IMJ on September 16, 2005, is expected to become a wholly owned subsidiary of CCC at the end of March 2009 in a bid towards further expansion of the database marketing business that comprises one of the CCC platforms.