At the meeting of the CCS Inc. Board of Directors held September 17, 2004, the Board decided to establish a subsidiary in Belgium as summarized below.

1. Overview of subsidiary:
(1) Company name: CCS Europe NV
(2) Date established: November 1, 2004 (planned)
(3) Location: Bergensesteenweg 423, ATA Business Park, Gebouw 4, 1600 Sint-Pieters-Leeuw
(4) Representative: Kenji Yoneda
(5) Capital: 230,000 euros (equivalent to 30,891,000 Japanese yen at the exchange rate of September 15, 2004)
(6) Number of employees: three
(7) Major shareholder: CCS Inc. (100% of shares)
(8) Purpose of company: Sale of LED lighting for machine vision
(9) Overview of capital, personnel, and transaction relationships with CCS Inc.:
(9-1)apital relationship: This subsidiary shall be established entirely with funds invested by CCS Inc.
(9-2) Personnel relationships: All three future directors of this subsidiary serve concurrently as directors of CCS Inc.
(9-3) Transaction relationship: This subsidiary shall sell CCS Inc. products

2. Reasons for establishing this subsidiary:
Use of the LED lighting for machine vision manufactured and sold by CCS Inc. is spreading rapidly, not only in Japan but also in the FA field worldwide, since such products meet market needs for improvement of product quality and improved efficiency through automation of inspection operations. CCS Inc. aims to construct a foundation as a global company in the market for LED lighting for machine vision. For this reason, it has decided to establish, on November 1, 2004, CCS Europe (Belgium) as a subsidiary to oversee the European market. This subsidiary will join CCS America, which oversees the North American market, and RDV (made a subsidiary September 30, 2004), which oversees Asian markets, as primary elements of these efforts.

Through establishment of this subsidiary, CCS Inc. seeks to further expand sales in the European market by creating an environment in which it can provide customers in Europe with its strength, lighting solutions, in the same manner currently implemented for Japanese customers. In addition, the establishment of this subsidiary is planned to lead to acquisition of new customers by making it possible to ascertain the needs of the European FA and machine-vision lighting industries swiftly and accurately.

3. Sales targets:
FY 2005 ending in July (nine months): 310 million yen

4. Effects on future business performance:
The establishment of this subsidiary will not require revision of projections of consolidated business performance for FY 2005 ending in July.