TAKEFUJI CORPORATION   15-1 Nishi-Shinjuku 8-chome,Shinjuku-ku, Tokyo 163-8654 Japan November 10, 2004 For release    Immediately Representative Megumu Motohisa, President Contact Investor Relations Tel: 81-3-3365-8011 Fax: 81-3-3365-8070 Stock Code No. 8564 TYOSE Re: Shares held by the Principal Shareholders Takefuji Corporation has worked for the past several months to optimize the ownership structure under the circumstances surrounding Takefuji, including the large block held by our leading shareholder and related parties (the "Principal Shareholders"). We have been officially advised by the Principal Shareholders as follows: 1. Arrangements have been made for 25 million shares (representing approximately 18% of all of the outstanding voting rights) of the shares held by the Principal Shareholders to be sold to third-party investors, and such shares are being entrusted to a trust bank. Under the trust agreement, the Principal Shareholders are not entitled to instruct the trustee on the exercise of the voting rights, and the prospective purchasers (the third-party investors) hold the right to do so. 2. 8 million shares (representing approximately 6% of all of the outstanding voting rights), previously held by the Principal Shareholders have been sold in the market prior to today, including all of the shares previously held by the founder individually (representing approximately 2% of the voting rights). 3. With regard to 16.89 million shares (representing approximately 12% of all of the outstanding the voting rights) held by the Principal Shareholders, new securities trust accounts are expected to be set up. The structure of the trust will be such that the voting rights on the shares in trust are to be exercised, and such shares are to be disposed of, at the sole discretion of the trustee, and the Principal Shareholders will have no right to provide instructions to the trustee on such matters. 4. In principle, none of the above-mentioned trust agreements may not be terminated unless all of the shares in the respective trusts have been disposed of. Based on the above, if the trust mentioned in the paragraph 3 is set up as planned, it is expected that the voting rights that the Principal Shareholders will be entitled to exercise will be limited to approximately 24.8% of all of the outstanding voting rights in Takefuji Corporation. Back by Takefuji co.