HAPS USA Inc. Updates Progress of Financial Audits for Fiscal Years 2004 and 2005

HAPS USA Inc. Updates Progress of Financial Audits for Fiscal
Years 2004 and 2005 


HUNTINGTON BEACH, Calif., July 12  /PRNewswire-FirstCall/ -- HAPS USA, Inc.
(OTC:HAPS) (BULLETIN BOARD: HAPS)  today announced that the audit of the HAPS
USA subsidiary's 2004 financial statements for the fiscal year ended March 31,
2004, conducted by Stonefield Josephson, are nearly complete.  Going forward,
the Company felt that to maintain fiscal continuity and the timely release of
financial information, it was prudent to continue to retain the auditor
responsible for the auditing of the public entity.  The Company has engaged
Prichett, Siler and Hardy (PSH) to do its fiscal year 2005 audits.  This will
bring first hand knowledge of the public company to the newly merged
operations.  Since the Company is utilizing different auditing firms for 2004
and 2005, the 2004 audits will be released at the same time the fiscal year
2005 audits are completed.  This will allow both auditing firms the opportunity
to synchronize their audits by reference to the audits of the other firm.  The
complete versions will be filed with the SEC and available on the SEC EDGAR
website: http://www.sec.gov/edgar/searchedgar/webusers.htm.  The due date for
the completion of both audits is August 15, 2005.

Jun-yo Kanemitsu, the CEO of HAPS USA, Inc. said, "We have completed the
accounting changes necessary to make sure that financial statements going
forward as a public company clearly reflect the condition and promise of HAPS.
We made many of these changes to facilitate the branding of HAPS as a premier
provider of pachinko entertainment.  By bringing the chain store concept to
gaming, we plan to facilitate expansion and recognition in order to expedite
the profitability of new locations and add competitive strength to our already
strong Company."

HAPS USA, Inc. operates and manages a portfolio of pachinko parlors throughout
the Chiba Prefecture of Japan with expansion plans throughout Asia. Electronic
gaming generates more than $240 billion annually for Japan's economy and is a
fixture in the daily lives of more than a quarter of Japan's population.  The
Company plans to capitalize on the popularity of the pachinko gaming industry
which is presently larger than Japan's auto industry generating annual net
revenues of $34 billion compared to $28 billion for the entire U.S. casino
industry.  Additional information on the Company is now available online at
http://www.hapsusa.com/ and the Japanese website can be found at
http://www.haps.co.jp/.  The materials online should be updated regularly as
additional information becomes available.

This press release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.  The words "estimate",
"possible" and "seeking" and similar expressions identify forward-looking
statements, which speak only as to the date the statement was made.  The
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether because of new information, future events,
or otherwise.  Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted, or quantified.  Future events
and actual results could differ materially from those set forth in,
contemplated by, or underlying the forward-looking statements.  The risks and
uncertainties to which forward-looking statements are subject include, but are
not limited to the effect of government regulation, competition and other
material risks.

Investor Relations:  Toll free: [phone]    e-mail:  

DATASOURCE: HAPS USA, Inc.



CONTACT:  Investor Relations, [phone], 



Web site:  http://www.hapsusa.com/

http://www.haps.co.jp/ 

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