Head Office 9-1, Shinmatsudo-Higashi, Matsudo City, Chiba Phone: +81-47-344-5111

URL http://www.matsukiyo.co.jp/

2000 2001 2002 2003 2004

Sales by division (Unit: millions of yen)

14,96315,504

11,01110,949

12,4237,229

8,702

5,139

6,037

6,763226,724

272,527

10,905

24,311

245,657

9,69917,170

204,202

229,418

252,666209,263

261,940

12,350

31,053

182,448

13,873

33,096

155,357

14,062

34,782

Home centersSupermarketsDrugstores

Ordinary income (Unit: millions of yen) Net income (Unit: millions of yen)

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

648

16

632

Number of stores (Unit: number of stores)

Part-timers (per 8-hours’ working time)Full-time workers OthersDrugstores

Shareholders’ equity (Unit: millions of yen) Number of employees (Unit: persons)

6,212

5,741

5,0094,797

2,239 2,200

2,830

3,266

2,5582,809

2,911

2,946

6,120

3,045

3,075

74,554

82,502

61,99456,956

68,173

588532

447

551

21

567524501

416

273131

1,000 storesTarget:

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 200821

The purposes of business alliances are as follows:1. To mutually supply merchandise, including self-developed

products2. To exchange information about procurement, marketing and

prices of merchandise3. To share logistics-center functions4. To jointly use dispensing systems5. To exchange information about new store opening

Business partnership was formed with the following 12 firms:May 30, 2001 Takada Pharmaceutical Co., Ltd. in

Shizuoka PrefectureJune 20, 2001 Yokohama Pharmacy Co., Ltd. in Aomori

PrefectureJune 20, 2001 Drug Fujii Co., Ltd. in Toyama PrefectureOctober 15, 2001 Sapporo Drug Store Co., Ltd. in Hokkaido

PrefectureOctober 15, 2001 Natural Co., Ltd. in Fukuoka PrefectureFebruary 7, 2002 Shimizu Drug Co., Ltd. in Kyoto PrefectureOctober 16, 2002 Koyo Yakuhin Co., Ltd. in Osaka PrefectureFebruary 13, 2003 Itayamamedico Co., Ltd. in Yamanashi

PrefectureAugust 8, 2003 Powers Drug Co., Ltd. in Hokkaido PrefectureAugust 8, 2003 Komeya Drugstore Co., Ltd. in Ishikawa

PrefectureJanuary 14, 2004 Izumi Co., Ltd. in Hiroshima PrefectureFebruary 10, 2004 Drug Eleven Co., Ltd. in Fukuoka Prefecture

Capital alliance was established with the following two drugstorefirms that became subsidiaries of the Company:

December 25, 2003 Tobu Drug Co., Ltd. in Saitama PrefectureJanuary 7, 2004Kenkou Kazoku Drug Corporation inNagano Prefecture

The Company also announced on March22, 2004 a capital alliance with Itohide ShojiCo., Ltd. in Chiba Prefecture, aiming toestablish business models of thelogistics/retail business that integratesproduction, distribution and sales, as wellas establish an ideal supply chainmanagement system.

The Company opened 80 new stores in fiscal year ended March2004 (suburban-type stores: 33; urban-type stores: 47).

Currently, a total of 648 stores are located in 26 prefectures, ofwhich 11 were added in fiscal year ended March 2004, includingHokkaido, Aomori, Akita, Iwate, Aichi, Nara, Gifu, Mie, Kyoto,Hiroshima and Oita.

It should be noted that, of the newly opened stores in the fiscalyear, 22 are located at shopping complexes in railway stations.The purpose of developing businesses at stations of JapanRailways and other private railways is to invite well-known tenantsthat can attract many customers, thus revitalizing the localeconomy. This coincides with the Company’s idea to open morestores at shopping districts and railway stations with shoppingcomplex, a field Matsumotokiyoshi is specialized, enabling toaccelerate new store opening.

A store in the shopping complex of a railway station usually sellsabout 20,000 items such as cosmetics, pharmaceuticals, healthfoods, supplements and daily sundries on a floor space of 230-330 square meters (70-100 tsubo). In particular, the store’slineup and layout of cosmetics, health foods and supplementsunder the theme of “beauty and health” are devised to satisfyfemale customers. With this concept, the Company isendeavoring to differentiate itself from peers in the sector.

During the year, the Company also set up six prescriptionpharmacies, including one in front of Ashikaga Red Cross Hospitalin Tochigi Prefecture.

For fiscal 2005, ending March 2005, the Company plans toestablish 80 to 90 new stores (suburban-type stores: 50%; urban-type stores: 50%). Of the planned new stores, 10 to 15 will belocated in shopping complexes of railway stations.

Business partnership and M&As

The Company achieved the establishment of 500 stores in fiscalyear ended March 2001. Now, we are aiming at forming theMatsumotokiyoshi Group in Japan by the year through March2008, by which the Company also targets at running 1,000directly managed drugstores. The Company is making its utmostto increase the Group’s net sales to ¥1 trillion by the yearthrough March 2008, a total of ¥500 billion in its own sales and¥500 billion in sales from tie-up operations.

The Company will also implement mergers and acquisitions withother firms through capital alliance to collect regional informationfrom partners and increase the number of stores with thecooperation of its associates.

Matsumotokiyoshi Co., Ltd. (“the Company”) originates from theprivately-run Matsumoto Drugstore founded by KiyoshiMatsumoto in Kogane, Matsudo City, Chiba Prefecture in 1932.The present Matsumotokiyoshi drugstores firmly maintain thefounder’s spirit of good service to constantly seek customersatisfaction with its motto of “providing quality products at lowprices,” without being shackled by stereotypical mind-set. Thisspirit combines the volume purchase system with the chain storetheory earned by the founder in the United States.

In August 1990, the Company listed on the over-the-countermarket.

In August 1999, the Company listed on the First Section of theTokyo Stock Exchange, and subsequently consolidated its statusas Japan’s largest drugstore in terms of sales.

In 1981, the number of the Company’s stores totaled 100.In July 1987, the Company opened its 250th store in Ueno Ame-

yoko, Tokyo, incorporating a totally new concept of urbandrugstore. The success of this store, boosted in part by themorning shampoo boom in Japan, established a basis for furthergrowth of the urban drugstore chain, accelerating the founding ofa series of Matsumotokiyoshi drugstores in the Tokyometropolitan area.

In August 1995, the Company established its 378th outlet ofShibuya Part 1 Store in central Tokyo. At that time, the new storeoften appeared on TV and magazines as the Shibuya district wasbecoming a source of mass-media information. An article inwomen’s weekly magazine introduced the drugstore, referring tothe phrase Matsukiyo suru (go shopping at Matsumotokiyoshi).Since abbreviations were considered trendy at that time,Matsumotokiyoshi became known throughout Japan by word ofmouth with the pet name of Matsukiyo.

In April 1996, the Company began TV commercials so thatpeople throughout the nation would recognize the drugstorebusiness and the presence of Matsumotokiyoshi.

In March 2001, the number of the Company’s chain storesreached 500.

In February 2001, organizational reform was implemented tointegrate the marketing and operational functions of the DrugstoreDivision and the Supermarket Division. Under this new structure,the Company launched a medium-term management plan toincrease the number of stores to 1,000 nationwide by March2008: the number of shops throughout the Kanto region to 900and other regions from Hokkaido to Kyushu to 100, mainly incities with populations of at least 300,000, centering on shoppingdistricts and railway stations with shopping complex.

The Company will strive to become Japan’s No.1 drugstore byestablishing stores and running operations with the purpose ofsatisfying customers, upholding the motto of “friendly stores” andthe founder’s spirit of “sincerity” with affectionate services as itsbasic principle.

Strategy for new store-openings

The Company, which achieved the launch of its 500thMatsumotokiyoshi drugstore in March 2001, now targets atincreasing the number of its stores to 1,000 by March 2008.Many will be opened in the Kanto region, and others at shoppingdistricts and railway stations with shopping complex in cities withpopulations of at least 300,000 in regions from Hokkaido toKyushu. The Company also aims to boost net sales to ¥500billion by March 2008.

T O P M E S S A G E

Financial Highlights (Fiscal year ended March 31)

Motoyawata Station Store

Canal City Hakata Store

Sapporo Minami Ichijo Store

Kyoto Shijo-dori Store

Fukuyama LOTZ Store

DRUG STORE

4

DRUG STORE Drugstore

The Company operates many Matsumotokiyoshi drugstores in prime locations in the Tokyo metropolitan area, has a wide range of excellent

items that meet consumer needs, and markets them together with the consulting services of expert staff. Through such practice, the Company

has built a relationship of deep trust with customers. Matsumotokiyoshi drugstores deal with many items of medicines, healthcare and beauty

care goods, as well as test products of cosmetics under the community-based marketing, meeting the needs of respective customers in each

region where stores are located. By doing so, each store enhances its capabilities to attract customers.

Establishment of a drugstore chain with the highest sales in Japan

Ginza 5th Store Shibuya Part 2 Store

Ikebukuro Part 2 Store

Shibuya Part 1 Store

3

[Urban type]

NEW

NEW

NEW

NEW

Shinsaibashi Store

Sendai Station Store

Asty Gifu Station Store (JR Tokai)

Nagoya Station Taiko-doriExit Store (JR Tokai)

Toyohashi Station Building Kalmia Store (JR Tokai)

Aomori Station Building Lovina Store (JR East) Perie Inage Store (JR East)

Akita Station Building ALSStore (JR East)

DRUG STOREDRUG STORE Drugstore [in railway station shopping complex]

65

NEW

NEW

NEW

NEW

NEW

NEW

Ebista Nishinomiya Store (Nishinomiya Station of Hankyu Railway)

Crost Osaka Station Store (JR West)

Kintetsu Nara Station Store (Kintetsu Railway)

Okayama Station B-1 Store (JR West)

Niigata Station PatioEast Store (JR East)

Abenobashi Station East Exit Store (Kintetsu Railway)

Pharmacy Ashikaga Honjo

Tokyo BroadcastingSystem (TBS)

Fuji TelevisionNetwork (CX)

TV Tokyo (TX)

Bucchake Ninety-nine (nationwide broadcast)

Super Friday (nationwide broadcast)

Count Down TV

Waratte Iitomo! Zokango

Saturday Special

20:00 - 20:54 (Wednesday)

19:00 - 20:54 (Friday)

24:55 - 25:40 (Saturday)

10:00 - 11:45 (Sunday)

19:00 - 20:54 (Saturday)

TV station Program name Time slot (day of the week)

HOME CENTERHOME CENTER

SUPER MARKETSUPER MARKET Supermarket

DRUG STOREDRUG STORE [Suburban type drugstore / Prescription pharmacy]

87

Matsumotokiyoshi Membership Card

Matsumotokiyoshi Point Card

No registration fee, no annual membership fee for ever. New members receive a Matsumotokiyoshi Voucher worth ¥1,000.When paying by Matsumotokiyoshi Membership Card, the member gets a 10% discount from list prices for Shiseido, Kanebo, Kose, Kao Sofina and Max Factor products (excluding exceptional periods).When paying by Matsumotokiyoshi Membership Card in Japan or abroad, the member gets 1 pointfor every ¥100 purchase, and will receive a Matsumotokiyoshi Voucher when the points exceed 500. When the number of members increases by 100,000, the Company draws a lottery and awardsoverseas trips to 500 pairs or 1,000 persons among the members who have paid more than ¥5,000using the card.The members can use telephone counseling services regardinghealth, medical treatment and nursing care round-the-clock all yearround. The members can easily shop and cash.The members will be informed of various events and presentcampaigns.The members are covered by overseas travel accident insuranceup to ¥20 million.The members are covered by domestic travel accident insurance up to ¥10 million.The members are covered by buckled-up car accident insurance up to ¥2 million.The members are ensured against loss or theft of the card.

One point is added for every shopping worth ¥100.When the points reach 500, the customer gets Matsumotokiyoshi Prepaid Card equivalent to ¥500 or adeduction of ¥500 from the purchase total.The members get additional “Goopon” points as double point privilege with their purchase.

Reinforcement of fresh-food supermarkets

Stable growth by new-concept home centerMatsumotokiyoshi operates home centers using its managerial expertise and store-operating techniques accumulated for years since its foundation.

Equipped with a large parking lot, a full-scale home center Matsumotokiyoshi stocksa wide range of product lineups, including do-it-yourself (DIY) merchandise, exteriorgoods, automotive accessories, items for pets and gardening articles. With “pay less”discount policy, the home centers have succeeded in encouraging consumers to buy.

The Company’s supermarket sector operates food supermarkets centering onperishables, with “foods” as the essentials of everyday life. With the motto of“providing quality products at low prices,” our supermarkets stock a great number ofhigh quality merchandise, market them at prices that please the customers and offerthem conscientious services to customers, as the Company strives to win the heartsof local customers by precisely identifying their needs. The sector is making itsutmost to further grow by, for example, establishing its own logistics system tostabilize prices and distribution operations.

Business Topics

Members of popular Matsumotokiyoshi Membership Card on the rise

Matsumotokiyoshi-sponsored TV programs

NEW NEW

Nippon Television(NTV)

Bakusho Mondai no SusumeToshio Kakei & Da Pump’s Shonen ChampleShingata TVDoshirotoSugao ga IchibanDowntown’s Gaki no Tsukaiya Arahende!NNN Document ‘04

24:10 - 24:40 (Monday)24:10 - 24:40 (Tuesday)24:10 - 24:40 (Wednesday)24:14 - 24:44 (Friday)10:00 - 10:30 (Saturday)22:56 - 23:26 (Sunday)24:25 - 24:55 (Sunday)

TV station Program name Time slot (day of the week)

Lineups of private brand products on the rise

(As of April 30, 2004)

Drugstore Urayasu Higashino

Drugstore Chiba Sakusabe Pharmacy Kitamatsudo

Prescription counter

Supermarket Yakuendai

Futatsugi Home Center Store

Pharmacists Education Center

Cosmetics Education Center

109

Patients

Administration

Input of prescription medicines(prescription pharmacy)

Preparation of medicines (prescription pharmacy)

Screening(prescription medicine storage center)

Distributing(distribution center)

Delivering(prescription pharmacy)

Online ordering(prescription medicine storage center)

Picking medicines(prescription medicine storage center)

Automatic ordering of prescription medicines by needed amount

The Company has proactively established and improved infrastructuresfor prescription, information and distribution to speedily providepatients with needed medicines anytime at any prescription pharmacy.In 2002, the Company opened a storage center for prescriptionmedicines in Yoshikawa, Saitama Prefecture, and introduced the EOSas a pioneer in the industry. With this system, the storage centerautomatically receives orders for prescription medicines administered

to patients from Matsumotokiyoshi prescription pharmacies, andreplenishes the medicines to the stores. Equipped with this efficientsupply system, the center can optimize its inventory, and make full useof the knowledge and technologies acquired at the MatsumotokiyoshiPharmacists Education Center, thereby offering the optimal advice onhealthcare and life to patients.

The center holds beautification courses by counseling experts with the topic“beauty and health” for employees and customers with counseling experts.

Matsumotokiyoshi introduced an electronic ordering system (EOS) ahead of peers in the sector to quickly deliver necessaryprescription medicines to Matsumotokiyoshi pharmacies and patients.Practice

In-service Training

Lecture

General Training

Medical Office Work

Medical Clerical WorkPC Training

Drug Information

Medicines InformationManagement Office

Program Contents

As the Company recommends self-medication, nursing care items arelined in the store shelves to support beauty and health, as well as theaging society.

Genki CLUB Life Support “Raku”

Progressive System by EOS

Capital Partnership

1211

The drugstore business is now facing the harshest-ever management issues, including intensifyingcompetition for new store opening, entrants into the industry from different sectors and lowering profitabilitydue to fierce price competition.

Facing such business conditions, the Company has formed business partnership with other firms to developfuture businesses and improve operational efficiency, through information exchanges, mutual supply ofproducts and cooperation in the planning and development of private brand products.

Takada Pharmaceutical Co., Ltd. Headquarters: Shizuoka, Shizuoka Prefecture

Yokohama Pharmacy Co., Ltd. (Super Drug Asahi)Headquarters: Itayanagi-machi, Aomori Prefecture

Natural Co., Ltd. (Drugstore Mori) Headquarters: Amagi, Fukuoka Prefecture

Drug Fujii Co., Ltd. Headquarters: Takaoka, Toyama Prefecture

Sapporo Drug Store Co., Ltd. Headquarters: Sapporo, Hokkaido Prefecture

Koyo Yakuhin Co., Ltd. (Koyo)Headquarters: Osaka, Osaka Prefecture

Itayamamedico Co., Ltd. Headquarters: Kofu, Yamanashi Prefecture

Tobu Drug Co., Ltd. Headquarters: Koshigaya, Saitama Prefecture

Powers Drug Co., Ltd. Headquarters: Sapporo, Hokkaido Prefecture

Kenkou Kazoku Drug Corporation (Family Drugstore)Headquarters: Okaya, Nagano Prefecture

Drug Eleven Co., Ltd. Headquarters: Onojo, Fukuoka Prefecture

Itohide Shoji Co., Ltd.Headquarters: Matsudo,Chiba Prefecture

Komeya Drugstore Co., Ltd. Headquarters: Tsurugi-machi, Ishikawa Prefecture

Izumi Co., Ltd. Headquarters: Hiroshima, Hiroshima Prefecture

Shimizu Drug Co., Ltd. Headquarters: Kyoto, Kyoto Prefecture

Business Partnership

Omihachiman Distribution Center

Ishikari Distribution Center

Yoshikawa Distribution Center

Yokohama Distribution Center

Yoshikawa Distribution Center

Yokohama Distribution Center

Numberofstores

Division Number of stores Number of stores by prefecture

Drugstore

SupermarketHome center

Total

632 (17)

11 (-)5 (-)

648 (17)

1 drugstore

1 drugstore

2 drugstores

3 drugstores

4 drugstores 102 drugstores1 home center

4 drugstores

1 drugstore

1 drugstore

51 drugstores

63 drugstores

186 drugstores11 supermarkets3 home centers

1 drugstore

(As of March 31, 2004)

Drugstores: 632Supermarkets: 11Home centers: 5

Fukuoka

1 drugstoreOita

Okayama

Hiroshima

Osaka

Nara

1 drugstoreMie

3 drugstoresAichi

Miyagi

8 drugstoresFukushima

Ibaraki

Chiba

27 drugstoresTochigi

Niigata

22 drugstoresGunma

Saitama

144 drugstores1 home center

Tokyo

Kanagawa

Shizuoka

Gifu

1 drugstore

1 drugstore

Akita

Hokkaido

1 drugstore

1 drugstore

Aomori

1 drugstoreIwate

Hyogo

1 drugstoreKyoto

ChibaTokyoSaitamaKanagawa

186 (6) 144 (2) 102 (9)

63 (-)

IbarakiTochigiGunmaFukushima

51 (-) 27 (-)22 (-) 8 (-)

Tokyo 1 (-)

4 (-) 1 (-)1 (-) 1 (-)

1 (-)1 (-) 2 (-) 1 (-)

1 (-)3 (-)1 (-)1 (-)

MiyagiAkitaIwateAomori

1 (-)Saitama

HokkaidoNiigataShizuokaGifu

4 (-) 1 (-)1 (-) 1 (-)

OsakaHyogoOkayamaHiroshima

MieAichiNaraKyoto

1 (-)3 (-)

OitaFukuoka

ChibaTokyoSaitamaKanagawa

200 (6) 145 (2)103 (9)

63 (-)

IbarakiTochigiGunmaFukushima

51 (-)27 (-)22 (-)8 (-)

4 (-)1 (-)1 (-)1 (-)

1 (-)1 (-)2 (-)1 (-)

1 (-) 3 (-)1 (-) 1 (-)

MiyagiAkitaIwateAomori

HokkaidoNiigataShizuokaGifu

4 (-)1 (-)1 (-)1 (-)

OsakaHyogoOkayamaHiroshima

MieAichiNaraKyoto

1 (-)3 (-)

OitaFukuoka

Chiba 11 (-)

Chiba 3 (-)

Stores Location

As of March 31, 2004

Note: The figures in parentheses are the number of franchises. The nine franchises in Saitama Prefecture are stores of Yano Co., Ltd.

1413

Corporate Data Corporate History

Organization Chart

Store Promotion Dept. I

Store Development Div. I

Store Development Div. II

Store Promotion Div.

Pharmacy Div.

Drugstore Div.

Prescription Drug & Pharmaceutical Div.

Business Alliance Administration Div.

Merchandise Div. I

Merchandise Div. II

Merchandise Development Div.

Merchandise Operation Div.

Finance & Accounting Div.

General Affairs Div.

Personnel Div.

Information Technology Div.

Store Promotion Dept. II

Pharmacy Dept. I

Pharmacy Dept. II

Drugstore Dept. I

Drugstore Dept. II

Drugstore Dept. III

Pharmaceutical Dept.

Prescription Drug Promotion Dept.

Business Alliance Administration Dept. I

Business Alliance Administration Dept. II

Pharmaceutical Products Team

Beauty Products Team

Household & Miscellaneous Goods Team

Food Products Team

DIY Team

Perishables Team

Merchandise Development Dept.

Sales Promotion Dept.

Operation & Planning Dept.

Advertising Dept.

Finance Dept.

Budget Dept.

Accounting Dept.

Financial Planning Dept.

Legal Dept.

General Affairs Dept. I

General Affairs Dept. II

Personnel Dept. II

Education and Training Dept.

Product Data Management System Dept.

Information Technology Dept.

Store Development GroupDirector

Store Operation GroupDirector

Merchandise GroupDirector

Administration GroupDirector

Senior Management Director

Auditing Department I

Auditing Department II

Claims Call Center

Board of Auditors

Executive Vice President

Corporate Communications Div.

Office of the President

Internal Auditing Div.

President

General Shareholders’ Meeting

Board of Directors

Managing Director

Director

Stores

Personnel Dept. I

Matsumotokiyoshi Co., Ltd.9-1, Shinmatsudo-Higashi, Matsudo-shi,Chiba 270-8501+81-47-344-5111 (switchboard)December 26, 1932 January 8, 1954¥15.861 billionMarch 31President: Namio MatsumotoExecutive Vice President: Kiyoshi KuniyukiSenior Managing Director: Masashi YoshidaManaging Director: Katsuhiko TeradaDirector: Tetsuo MatsumotoDirector: Toshio HayataDirector: Takao WatanabeDirector: Yukihiko OhkuboDirector: Kazuaki KarahiDirector: Kazumi MatsumotoStanding Corporate Auditor: Jun SagaCorporate Auditor: Yoshinori IchiharaCorporate Auditor: Masato Taimura

Corporate name: Address:

Phone: Established: Incorporate: Common stock: Book closing date: Board of Directors:

Medicines, cosmetics, perishable foods, sundries,DIY articles, etc.¥272.5 billion (Year ended March 2004) Full-time employees: 3,075Part-timers: 3,045 (per 8-hours’ working time)Total: 6,120

Products:

Net sales: Number of employees:

Head office

Dec.1932

Jan. 1954

May 1973 Apr. 1975

Mar.1977 Sep.1978

Oct. 1978 Jul. 1987 Nov.1988Aug.1990

Jul. 1992 Oct. 1993

Mar.1994

Aug.1994 Aug.1995 Apr. 1996

Nov.1996

Jan. 1997 Nov.1998

Dec.1998 May 1999

Jul. 1999

Aug.1999

Mar.2000

Aug.2000 Feb. 2001 Mar.2001 May 2001

Jun. 2001

Jul. 2001

Aug.2001

Oct. 2001

Feb. 2002

Apr. 2002 Jun. 2002

Jul. 2002

Oct. 2002

Nov.2002

Dec.2002

Jan. 2003

Feb. 2003

Mar.2003

Apr. 2003

May 2003

Aug.2003

Oct. 2003

Nov.2003

Dec.2003

Jan. 2004

Feb. 2004

Mar.2004

(As of March 31, 2004)Outline of the Company

Founded on Dec. 26 as an independent businessoperator Matsumoto Drugstore at 44 Kogane, Matsudocity, Chiba Prefecture.

Became incorporated. Trade name was renamed toMatsumotokiyoshi Drugstore.Founder Kiyoshi Matsumoto died at 64.Matsumotokiyoshi Drugstore was reorganized into joint-stock company Matsumotokiyoshi Co., Ltd.Kazuna Matsumoto took office as president.Opened supermarket Hikarigaoka Store.Established three business divisions: Drugstore,Supermarket and Convenience Store.Launched Benri Shinmatsudo Store (convenience store).Opened Ueno Ame-yoko Store.Opened Minami-Masuo Home Center Store.Became listed on the over-the-counter market. (TheCompany received approval from the Japan SecuritiesDealers Association to register its shares on the over-the-counter market.)Opened Ikebukuro Higashiguchi Store.Relocated the head office to 9-1, Shinmatsudo-Higashi,Matsudo city, Chiba Prefecture.Opened drugstore Kashiwa Kaga Store (1st roadsidestore).Opened prescription pharmacy Kita-Matsudo Store.Opened Shibuya Part 1 Store.Launched TV commercials. Number of stores totaled232.Integrated Convenience Store Division into DrugstoreDivision.Opened drugstore Ota Takara-chou Store (1st store inGunma Prefecture).Opened drugstore Ashikaga Asakura Store (1st store inTochigi Prefecture).Opened Roppongi Store.Opened Sendai Jujiya Store (1st store in MiyagiPrefecture).Opened Harajuku Takeshita-dori Store.Opened Ginza 5th Store.Opened Shinjuku 3-chome Store.Opened Sendai Chuo-dori Store.Opened drugstore Niigata Station Patio East Store (1ststore in Niigata Prefecture). Listed on the First Section of the Tokyo Stock Exchange.Opened Shibuya Part 2 Store.Opened Crost Osaka Station Store (1st store in OsakaPrefecture).Opened Tokorozawa Part 2 Store.Namio Matsumoto took office as president.Opened Ikebukuro Part 2 Store.Formed business partnership with TakadaPharmaceutical Co., Ltd. in Shizuoka Prefecture.Formed business partnership with Yokohama PharmacyCo., Ltd. in Aomori Prefecture.Formed business partnership with Drug Fujii Co., Ltd. inToyama Prefecture.Opened Abenobashi Station East Exit Store (2nd store inOsaka Prefecture).

Opened Tenjin Matsuya-Ladies Store (1st store in Fukuoka Prefecture and Kyushu as well).Formed business partnership with Sapporo Drug StoreCo., Ltd. in Hokkaido Prefecture.Formed business partnership with Natural Co., Ltd. inFukuoka Prefecture.

Formed business partnership with Shimizu Drug Co.,Ltd. in Kyoto Prefecture.Launched a point card service.Opened Canal City Hakata Store (2nd store in FukuokaPrefecture).Opened Okayama Station B-1 Store (1st store inOkayama Prefecture).Formed business partnership with Koyo Yakuhin Co.,Ltd. in Osaka Prefecture.Opened Hamamatsu Part 1 Store (1st store in ShizuokaPrefecture).Opened Shinsaibashi Store (3rd store in OsakaPrefecture).Established Pharmacists Education Center andCosmetics Education Center.Formed business partnership with Itayamamedico Co.,Ltd. in Yamanashi Prefecture.Opened Ebista Nishinomiya Store (1st store in HyogoPrefecture).Opened Fukuyama LOTZ Store (1st store in HiroshimaPrefecture).Opened Kintetsu Nara Station Store (1st store in NaraPrefecture).Adviser Toshiko Matsumoto (wife of the late KiyoshiMatsumoto) died.Opened Akita Station ALS Store (1st store in AkitaPrefecture).Formed business partnership with Powers Drug Co.,Ltd. in Hokkaido Prefecture.Formed business partnership with Komeya DrugstoreCo., Ltd. in Ishikawa Prefecture.Opened Aomori Station Building Lovina Store (1st storein Aomori Prefecture).Opened Sapporo Minami Ichijo Store (1st store inHokkaido Prefecture).Opened Park Place Oita Store (1st store in OitaPrefecture).Opened Asty Gifu Station Store (1st store in GifuPrefecture).Opened Tsu Station Cham Store (1st store in MiePrefecture).Opened Kyoto Shijo-dori Store (1st store in KyotoPrefecture).Formed business partnership with Tobu Drug Co., Ltd.in Saitama Prefecture.Executed a 2-for-1 stock split for shareholders listed onshareholders register as of Dec. 31.Formed business partnership with Kenkou Kazoku DrugCorporation in Nagano Prefecture.Formed business partnership with Izumi Co., Ltd. inHiroshima Prefecture.Formed business partnership with Drug Eleven Co., Ltd.in Fukuoka Prefecture.Formed business partnership with Itohide Shoji Co., Ltd.in Chiba Prefecture.

Founder Kiyoshi Matsumoto Matsumoto Drugstore at time of foundation.

Commemorative ceremonyfor the 70th anniversary ofMatsumotokiyoshi’sfoundation