ORIX Announces Interim (April 1-September 30) Net Income Up 97% Year on Year.

Tokyo, Japan, Nov 8, 2005 - (JCN Newswire) - ORIX Corporation (TSE: 8591; NYSE: IX), a leading integrated financial services group, today announced results for the interim period (April 1-September 30) of the fiscal year ending March 31, 2006.

Revenues were up 6% year on year to 442,927 million yen. Although revenues from "real estate sales" decreased year on year, revenues from "direct financing leases", "operating leases", "interest on loans and investment securities", "brokerage commissions and net gains on investment securities", "life insurance premiums and related investment income", "gains on sales of real estate under operating leases" and "other operating revenues" were up compared to the same period of the previous fiscal year.

Expenses were down 9% year on year to 327,225 million yen. Although "interest expense", "costs of operating leases", "other operating expenses", and "selling, general and administrative expenses" increased, "life insurance costs", "costs of real estate sales", "provision for doubtful receivables and probable loan losses", "write-downs of long-lived assets", and "write-downs of securities" were down year on year.

Operating income was up 106% to 115,702 million yen, income before income taxes* rose 93% to 133,109 million yen thanks in part to the contribution from "equity in net income of affiliates" and "gains on sales of subsidiaries and affiliates and liquidation loss", and net income grew 97% to 83,954 million yen with a contribution from "discontinued operations, net of applicable tax effect".

                                                            (Millions of yen)
                            2005.4-9 US$  2005.4-9  2004.4-9  Change %
Total Revenues                         3,913   442,927   415,931    Up  6%
Income before Income Taxes*            1,176   133,109    68,860    Up 93%
Net Income                               742       83,954    42,688    Up 97%
Earnings Per Share (Basic) (US$/Yen)    8.46       957.87    509.74    Up 88%
Earnings Per Share (Diluted) (US$/Yen)  8.02       907.93    469.19    Up 94%

                                   2005.9 US$     2005.9     2005.3  Change %
Shareholders' Equity                   7,257      821,42    727,333    Up 13%
Total Assets                          55,951   6,333,055  6,068,953    UP  4%
Shrhders' Equity Per Share (US$/Yen)   82.46    9,333.32   8,322.96    Up 12%

* "Income before income taxes" refers to "income before discontinued operations and income taxes" in the consolidated statements of income.

**U.S. dollar amounts have been calculated at 113.19 Yen to $1.00, the approximate exchange rate prevailing at September 30, 2005. Unless otherwise stated, all amounts shown are in millions of Japanese yen or millions of U.S. dollars, except for per share data, which are in single yen or dollars.

Segment profits were up year on year for all nine segments that include the "Corporate Financial Services", "Rental Operations", "Automobile Operations", "Real Estate-Related Finance", "Real Estate", "Life Insurance", and "Other" segments in Japan and "The Americas" and "Asia, Oceania and Europe" segments overseas.

Operating assets were up 3% to 5,262,765 million yen and total assets were up 4% to 6,333,055 million yen on March 31, 2005. Shareholders' equity increased 13% to 821,420 million yen on March 31, 2005 and the shareholders' equity ratio was 13.0% compared to 12.0% at March 31, 2005. ROE (annualized) rose from 14.4% to 21.7% and ROA (annualized) improved from 1.50% to 2.71% compared to the same period of the previous fiscal year.

For the fiscal year ending March 31, 2006, we have revised up our forecasts as follows. "Revenues" of 890,000 million yen (down 3% compared with the fiscal year ended March 31, 2005), "income before income taxes" of 230,000 million yen (up 50%), and "net income" of 140,000 million yen (up 53%).

<pre>

Millions of Yen

Revenues IBIT* Net Income

Previous Forecast (A) 880,000 162,000 96,000

New Forecast (B) 890,000 230,000 140,000

Change (B-A) 10,000 68,000 44,000

Change (%) 1.1 42.0 45.8

(Reference)Fiscal 2005 results 913,719 153,549 91,496

</pre>

* "IBIT" refers to "income before discontinued operations and income taxes" in the consolidated statements of income.

For details on the interim earnings announcement please access "Interim Results 2005/9" and "Interim Results Supplementary Information 2005/9" from ORIX's website at: www.orix.co.jp/grp/ir_e/data/report/index.htm

ORIX will also hold a conference call in English on Wednesday, November 9, 2005 at 10:30 PM (Tokyo)/8:30 AM (EST)/1:30 PM (London)/2:30 PM (Continent) to discuss the earnings announcement. For details on how to participate please access: http://www.orix.co.jp/grp/ir_e/ir_pdf/050930_ConfCallE.pdf

Copyright [c] 2005 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K.