Note 2-40

(40) When calculating a tax amount, we have to note that the burden of local tax differs according to in what part of a country the business was conducted. In our calculation, we assumed that the business was conducted in London in the case of the U.K., Paris in the case of France, and California and Tennessee states in the case of the manufacturing industry in the U.S. and California and New York states in the case of the non-manufacturing industry in the U.S. Take notice that a research and development tax credit is available in California and a tax credit on purchase of industrial machinery in Tennessee. The tax systems used in our estimation are as of April 1, 2002.