W SCOPE : Notice of non-operating and extraordinary gains and losses

Company Name:

W-Scope Corporation

Stock Exchange Listing:

Tokyo Stock Exchange Section 1

Representative:

Won-Kun Choi, President & CEO

Contact:

Hideo Ouchi, Director of Corporate Strategy & Planning

TEL:

+81-(0)3-5436-7155

Notice of non-operating and extraordinary gains and losses

Items

Amount (¥mil)

Reasons for Gain/Loss

Non-operating profit

Foreign Exchange Gains

403

Gains arising from the effect of exchange rate changes (USD, KRW, EUR)

on operating and financial transactions in foreign currencies.

This is due to the receipt of subsidies for the ongoing development of a

Subsidy Income

129

number of subsidy-eligible development projects and subsidies for

employment at two Korean subsidiaries.

Non-operating expenses

This represents interest expenses incurred on long-term loans from

Interest Expense

1,220

financial institutions and on convertible bonds issued by a consolidated

subsidiary

Valuation Loss on Options

3,104

This is a valuation loss arising from an increase in the value of the option

liability on convertible bonds issued by a consolidated subsidiary.

Extraordinary losses

This is due to the difference between the issue price and the acquisition

Loss on Redemption of CB

456

price arising from a consolidated subsidiary's own acquisition of

convertible bonds with stock acquisition rights.