Financial Services Agency

July 2, 2003 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 to seek administrative action (opens in a new window on June 23, 2003). The act of conducting a series of trading transactions of securities to form an artificial market price that does not reflect the prevailing market price. A series of limit buy or sell orders without intention to be executed with the intention of moving the stock price of the stock in its own favor by soliciting orders from other market participants. gone. The above acts by the Company and its employees are deemed to fall under Article 4, Item 3 of the Cabinet Office Ordinance on Act Regulations, etc. of Securities Companies based on Article 42, Paragraph 1, Item 9 of the Securities and Exchange Law. 2. Based on the above, the following administrative actions were taken against the company today. (1) Business suspension order During the period from July 7, 2003 to July 18, 2003 (10 days), stock trading business on own account (performance of existing contracts before July 4, 2003) (excluding trading associated with). (2) Business improvement order ○Enhancement and strengthening of the internal control system, thorough legal compliance by officers and employees, and clarification of where responsibilities lie. ○ Fundamental review of the trading management system, formulation of specific measures, and formulation and thorough implementation of measures to prevent recurrence.