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## 13. RESEARCH AND DEVELOPMENT COSTS 

Research and development costs charged to income were ¥474 million ($3,950 thousand) and ¥388 million for the years ended March 31, 2003 and 2002, respectively. 

## 14. LEASES 

Income from equipment leases held by a subsidiary for the years ended March 31, 2003 and 2002, was ¥139 million ($1,158 thou- sand) and ¥152 million, respectively. 

The Company and a subsidiary lease certain machinery, computer equipment, office space and other assets. Total rental expenses under the above leases were ¥157 million ($1,308 thousand) and 

¥86 million for the years ended March 31, 2003 and 2002, respec- tively. 

Pro forma information for leased property under finance leases that do not transfer ownership of the leased property to the lessee on an "as if capitalized" basis for the years ended March 31, 2003 and 2002, was as follows: 

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