Correction of Excess Capitalization at a Hong Kong Subsidiary and Procedures for Reducing Stated Capital

「This represents a foreign exchange loss arising mainly from the revaluation of the "accounts payable" recorded by the Company as consideration for the securities and other assets, in connection with procedures to correct the excess capitalization of the Company's Hong Kong subsidiary, NIPPO (HONG KONG) LTD. The procedures involve transferring ownership of securities and other assets held by the subsidiary from the subsidiary to the Company, its parent, and reducing the subsidiary's capital using the proceeds from that transfer.」