Deposit Insurance Corporation of Japan-Disposal of preferred stocks of Hokuhoku Financial Group, Inc.

Date: July 2, 2009

Statement by the Governor
Disposal of preferred stocks of Hokuhoku Financial Group, Inc.

Hokuhoku Financial Group, Inc. made a request for the disposal regarding preferred stocks subscribed by the Resolution and Collection Corporation (RCC) in accordance with the Law concerning Emergency Measures for Early Strengthening of Financial Functions (“Early Strengthening Law”), through the RCC to Deposit Insurance Corporation of Japan (DICJ).

DICJ considered the request based on “Immediate Guideline for Disposal of Preferred Stocks, etc. Acquired through Capital Injection with Public Funds” announced in October, 2005, and found it appropriate to give its approval to the request for the redemption in view of the followings:

Soundness of management of the financial institution
Avoiding public costs
Financial system stability

Therefore, the DICJ approved today the privilege of acquisition claim and disposal which are to be exercised by the RCC as DICJ considered the transaction was in line with the policy of early disposal under the Early Strengthening Law.
The details are as follows:

• Outline of preferred stocks
Name of stock	Preferred (Type 1)	Preferred (Type 4)
Amount issued	¥75 billion	¥45.03 billion
Number of shares issued	150,000,000 shares	79,000,000 shares
Issue price	¥500 per share	¥570 per share
Value possessed	¥25 billion	¥34.998 billion
Number of shares possessed	50,000,000 shares	61,400,000 shares

• Outline of the disposal
Name of stock	Preferred (Type 1)	Preferred (Type 4)
Disposed book value	¥25 billion	¥15.048 billion
Number of shares disposed	50,000,000 shares	26,400,000 shares
Disposal price	¥596.10 per share	¥685.89 per share
Total amount of disposal	¥29,805,000,000	¥18,107,496,000
Date scheduled for disposal	July 7, 2009

• Outstanding of each preferred stocks after disposal
Preferred (Type 1)	Preferred (Type 4)	Total
¥0 billion (¥75 billion)	¥19.95 billion (¥45.03 billion)	¥19.95 billion (¥120.03 billion)

Note:

Each bracket shows amount of initial injection.