Acquisition of Common Shares of Shinsei Bank by Requesting the Bank to Acquire Series 2 Class-A Preferred Shares

Date: March 31, 2008

This is to announce that the Deposit Insurance Corporation of Japan ("DICJ") has acquired common shares of Shinsei Bank by requesting the bank to acquire Series 2 Class-A Preferred Shares held by DICJ pursuant to the Law concerning Emergency Measures for the Revitalization of the Financial Functions. The details of the acquisition are as follows:

Name of shares requested to be acquired Shinsei Bank Series2 Class-A
Preferred Shares
  Amount held by DICJ (Note 1) ¥96,886,400,000
Number of shares held by DICJ (Note 1) 74,528,000shares
paid-up value per share ¥1,300
Current exchange price per preferred share (Note 2) ¥360
Name of shares acquired by DICJ Shinsei Bank common shares
  Number of shares acquired by DICJ (Note 3) 269,128,888 shares
Note 1: DICJ subscribed ¥130 billion (100 million shares) of these preferred shares for capital injection pursuant to the Financial Function Stabilization Law. However, as a result of completion of special public management, Shinsei Bank's capital was reduced on March 31, 2000, and the amount and the number of shares held by DICJ were reduced accordingly as shown above.
Note 2: The bank's Articles of Incorporation and the resolution of the board of directors held when the preferred shares were issued provide adjustments of the exchange price as follows: "The exchange price may be adjusted only downward, based on the market price on September 16 every year; however, when the market price is lower than the lower limit of exchange price (¥360), the exchange price should be ¥360". Current exchange price is ¥360, the lower limit.
Note 3: Number of shares acquired by DICJ = Amount held by DICJ / Current exchange price per Preferred share
Note 4: DICJ executed a right to request the bank to acquire preferred shares in accordance with its "1. Basic concept" in "Immediate Guideline" (released in October 2005), in light of property management. If DICJ did not execute the right, the number of common shares to be issued on the mandatory conversion date would be 149,056,000 shares (= ¥96,886.4 million <amount held by DICJ> / ¥650 <exchange price on the mandatory conversion>).

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