TAKEFUJI CORPORATION   15-1 Nishi-Shinjuku 8-chome,Shinjuku-ku, Tokyo 163-8654 Japan December,17 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 Comment on the administrative sanction imposed by the Kanto Regional Finance Bureau  On December 17, 2004, Takefuji Corporation has today been instructed by the Kanto Regional Finance Bureau, on the basis of Item 1 of Article 36 of the Money Lending Control Law (No. 32 law of 1983) to suspend all operations at our Kinshicho Branch Office (excluding those related to the receipt of payments) for a period of 5 days from December 20 to December 24, 2004.  We would like to apologize unreservedly for any inconvenience caused in this matter particularly to our customers but also to our shareholders and to any others who may be affected. We take the sanction imposed by the authorities on this occasion with the utmost seriousness, and will make every effort across our company as a whole to ensure that there is no reoccurrence, and that our business operates to the highest standards.  We would like to take this opportunity to explain the infringement of the law that has led to the imposition of this sanction on our Kinshicho Branch Office. The nature of the violation in question is that an employee of the branch failed to enter a statement in a book concerning negotiations in which the branch office claimed the repayment of a loan from a person who was not legally obligated to make repayment, by disclosing information about the borrower on April 2, 2004. It has been pointed out to us that such action is in breach of Article 19 (Provision of books) of the Money Lending Control Law.  The Company has strictly reacted to the comments made by the authorities, and has already taken steps to discipline the individual employees involved in this matter. We will also provide legal training throughout the Company, and call the attention of all employees to recognition of the importance of entering records of negotiations. We will also rapidly establish systems as measures to ensure accuracy, and will further strengthen our compliance structure with the Money Lending Control Law and other related laws and regulations. The Company will work together to endeavor to prevent the recurrence of any such violation. Back by Takefuji co.