Financial Services Agency

July 7, 2004 Financial Services Agency Tokai Tokyo Administrative actions against joint-stock companies 1. Tokai Tokyo As a result of the inspection by the Securities and Exchange Surveillance Commission, the following facts of legal violations were recognized, and a recommendation was made for administrative action (opens in a new window on June 30, 2004). Inadequate management of corporate information to prevent unfair trading The company is striving to prevent unfair trade. However, since the manager of the Nagoya Corporate Finance Department (hereinafter referred to as the "employee"), etc., has not reported corporate information regarding the stock split of the issuer of over-the-counter securities to the Market Surveillance Office, etc., The Market Surveillance Office has not taken appropriate measures to manage such information. In addition, the employee leaked this information and corporate information related to the stock split of the issuer of other over-the-counter securities held by the Company to the director and sales manager of Iida Securities Co., Ltd. In this way, the Company has not taken appropriate measures regarding the management of Corporate Information, and is operating under conditions deemed insufficient to prevent unfair dealings related to Corporate Information. The above conduct by the Company is recognized as an act of conducting business that falls under Article 10, Item 4 of the Cabinet Office Ordinance Concerning Act Regulations, etc. of Securities Companies under Article 43, Item 2 of the Securities and Exchange Law. 2. Based on the above, the following administrative actions were taken against the company today. Business Improvement Order (1) Enhancement and strengthening of the internal control system, improvement of understanding of laws and regulations by officers and employees, and thorough compliance with laws and regulations. (2) Formulation and implementation of recurrence prevention measures and clarification of responsibility.