RNS Number:2316O
Takefuji Corporation
01 August 2003

For release Immediately

Represenative Akira Kiyokawa, President
Contact Investor Relations
Tel 81-3-33658011
Fax 81-3-33658070
Stock Code No. 8564TYOSE

Comment on the administrative sanction imposed by the Kanto Regional Financial
Bureau

Tokyo, Japan August 1, 2003

Takefuji Corporation has today been instructed by the Kanto Regional Financial
Bureau, on the basis of Article 36 of the Law relating to Regulation of the
Money-lending Industry (No. 32 of 1983), to suspend all operations at our
Moriguchi Branch (excluding those related to the receipt of payments and
preservation of assets) for a period of 15 days from August 2nd to August 16th
2003.

We would like to apologise 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 Moriguchi Branch. In
April 2000 an employee of that branch, having been informed that a customer had
applied for arbitration over repayment of a loan, nonetheless continued
repeatedly to call this customer directly to request repayment, and eventually
did in fact receive payment from the customer. It has been pointed out to us
that such an action is in breach of Article 21 of the Law.

The authorities have additionally pointed out to us a number of other cases of
inappropriate activity.

We accept unreservedly the comments we have received from the authorities on
this occasion, and have already taken steps to discipline the individual
employees involved. We will at the first possible opportunity be implementing a
training course in compliance for the employees of the branch in question.

As a specific measure to improve compliance with relevant laws and regulations
we set up a customer consultation group in July 2002 as a result of which we
have been able to hear directly from our customers up and down the country about
their opinions or issues that they have concerning Takefuji Corporation.

Our Compliance Committee - also established in July 2002 - has last month
completed discussion of a detailed paper on compliance procedures, and has
agreed on a number of specific measures to improve our compliance and to prevent
recurrence of such incidents.

We have additionally increased the number of staff working in our internal audit
function, and last fiscal year carried out a total of 2,000 on-site inspections
of our branches. In January 2003 we thoroughly revised our internal audit
process and introduced a new system of evaluation; we continue to strengthen our
ability to supervise and control all aspects of our business.

Takefuji Corporation has right from its beginnings striven to put the customer
first in all its activities. We have established clear and detailed internal
regulations and a thorough program of staff training to ensure that - as they
work day after day to serve our customers - our employees are able to avoid
errors of this kind.

Although it is regrettable that on this occasion the authorities have found us
in breach of a regulation, it provides us with a further opportunity to
strengthen our internal procedures to ensure compliance with the Money Lender
Law and other relevant rules, and to heighten the level of awareness among our
employees about the fundamental importance of these issues. We intend to devote
all our efforts to ensuring that there is no repetition of such incidents.






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