Notice of Reduction of Capital Reserve
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We hereby notify that at the Board of Director's Meeting
held on May 15, 2006, it was resolved that the following proposal
for reduction of capital reserve will be submitted to the
eighth annual meeting of shareholders to be held on June 28,
2006. |
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1
| Purpose of Reduction of Capital
Reserve |
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To be entitled to a special exemption
of the pro forma standard tax, a measure that the amount of capital
reserve used to compensate the capital deficit be deducted from
the capital in calculating the pro forma standard tax, we will
apply our capital reserve to our capital deficit in accordance
with Article 289(1) of the Commercial Code. By doing this, we
will be able to receive this special measure for two fiscal years
from April 1, 2006 to March 31 2008. |
| 2
| Amount of Capital Reserve being
Reduced |
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The entire amount of the capital reserve,
4,917,755,195 yen, will be used to compensate for 5,383,031,070
yen, the amount of undisposed loss for this term. |
| 3
| Outline of Reduction of Capital
Reserve |
| |
The entire amount of the capital reserve,
4,917,755,195 yen, will be used to compensate for the capital
deficit. (This proposal for loss disposition will be submitted
to the annual shareholders meeting.) |
| 4
| Schedule |
| (1) |
Board of Directors' Meeting |
May 15, 2006 |
| (2) |
Annual shareholders meeting |
June 28, 2006 (planned) |
| (3) |
Effective date |
June 28, 2006 (planned) |
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The content provided above is contingent upon approval
of the proposal for loss disposition at the eighth annual meeting
of shareholders to be held on June 28, 2006.
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