Takefuji Comments on the Media Reports Disseminated

Media reports disseminated alleged that the Company paid Mr. Yoshihiko Kokura approximately ¥5.6 billion for bogus financial instruments. The Company's position with regard to these allegations is as follows. 1.      The Facts In May 1997, a money trust fund agreement was established between the Company, a major trust bank, and Tokyo Associated Capital represented by Mr. Yoshihiko Kokura, and an asset management mandate subsequently given by the Company. In October 1998, the above-mentioned agreement was terminated and the Company took possession of the equities in question in November of the same year. The bogus financial instruments mentioned in the above media coverage were part of this transaction. 2.      Latest Loss Estimate As of October 1998, when the agreement was terminated, the Company had investments in the amount of ¥11.2 billion in Japanese equities and foreign equities centering on "Eastview Worldwide Fund," the asset in question. The total loss was estimated at ¥11.8 billion, comprising ¥6.2 billion in commissions and declines in asset value, and a loss of ¥5.6 billion from "Eastview Worldwide Fund." Even so, the unrealized net capital gain amounts to ¥4.7 billion generated from investments in other securities involved. 3.      Effect on Earnings The financial instruments in question was written off on interim accounts on September 30,2000. The Company's consolidated performance estimates for the term to March 31,2000, are not affected by the foregoing, also in light of the continued growth displayed by the Company's loan balance.        Rebuttal of Rumors Concerning the Company We would like to express our deep regret regarding the recent unexpected plunge in Takefuji's share price. The principal cause of this was the irresponsible spreading of unfounded reports and groundless rumors concerning Takefuji in the stock markets and elsewhere. In response, We would here like to present the Company's official comments on this matter. 1.      Regarding reports in the magazine Zaikai Tenbo and         rumors involving Mr. Yoshihiko Kokura. (1) A rumor is making the rounds to the effect that Takefuji has losses on its books - over and above those that we have reported - stemming from the actions of Mr. Kokura. We hereby state categorically that the Company has no losses other than the amount referred to in our previous statement on this matter. In addition to that, we likewise have no losses relating to companies with which Mr. Kokura was involved other than TAC (Tokyo Associated Capital). (2) There is no truth to the rumor that we made use of gangsters (yakuza) in the collection of loan repayments from Mr. Kokura, let alone the monstrous accusation that we threatened to employ professional killers. (3) It is absolutely untrue that Takefuji offered money to Mr. Kokura in exchange for purchasing our shares so as to push up the price. Note: It has been asserted that the Tokyo District Public Prosecutor's Office,which has been investigating Mr. Kokura's affairs, has interrogated the management of Takefuji, but the extent of the truth is merely that we were asked to cooperate in the Office's investigations of fake financial products that we had purchased. We explained everything to the investigators. Takefuji's managing director in charge of this matter visited the Public Prosecutor's Office on five occasions(on two of which he also presented documents verifying his statements) to provide explanations. The investigators professed themselves satisfied with our explanations of all matters on October 27th, and the investigation was therewith concluded. 2.      Regarding other rumors circulating in the market (1) Regarding the rumor that Takefuji bears losses stemming from dealings with Chiyoda Life Insurance, we hereby state that we hold no subordinated loans or equity in the company. (2) The financial publication Dow Report has claimed that Takefuji has hidden losses of ¥280 billion on its Hong Kong operations: this report is completely unfounded. 3.      Regarding request made to the Securities and Exchange         Surveillance Commission for investigation of stock price         plunge (1) On November 21st, we officially requested the Securities and Exchange Surveillance Commission to investigate the recent plunge in our share price, in view of the suspicion of share price manipulation via the circulation of rumors on the market. 4.      Response to the magazine Zaikai Tenbo (1) On November 21st, Takefuji filed an action for libel against the magazine Zaikai Tenbo at the Tokyo District Court demanding compensation in the amount of 100 million yen and the publication of a retraction and apology. We are also preparing to request the Public Prosecutor's Office to bring criminal charges against the magazine. (2) We also plan to take legal action against the publication Bessatsu Takarajima and Dow Report in the near future.             In regard to the recent spate of falsehoods and groundless rumors, Yasuo Takei, Chairman, CEO and President of Takefuji, has solemnly declared that there is no truth whatsoever in these assertions.             The management and the entire staff of Takefuji are confident that the truth will come out, and that the Company will fully regain the trust of all its shareholders and investors in the near future. P.S. Please be informed that Takefuji lodged a strong protest on 6th November 2000 against Zaikai Tenbou regarding the scandalous and misleading articles in their December edition. Subsequently, on 17th November 2000, Takefuji received a letter of apology from Zaikai Tenbou signed by the magazine's chief editor, as follows: To: Takefuji Corporation We would like to express our sincere apologies for the article on page 20 in our December edition containing groundless allegations against Takefuji, which has caused you a great deal of trouble. We hereby retract the allegations in question. Dated 17th November,2000 Toshiyuki Nagano, Chief Editor Zaikai Tenbou Shinsha 12-9 Kanda-Nishiki-cho,Chiyoda-ku, Tokyo,Japan For Reference