Press Conference by the Minister for Financial Services

(Excerpt)

December 16 , 2003

In accordance with the Article 114 of the Deposit Insurance Law, a new management team of the Ashikaga Bank is to be appointed by the Deposit Insurance Corporation based on the nomination by the Financial Services Agency (FSA). While consulting with the Prime Minister, the FSA has carefully examined appropriate persons, and today, we nominated and appointed the new president of the bank.

Considering the importance of the bank's business as a special public management bank, we selected Mr. Norito Ikeda as the new president, who is a former part-time director of the Yokohama Bank and has great insights into regional financing and business revitalization.

I met Mr. Ikeda and was impressed by his excellent personality and knowledge. Now, I believe we have selected the most suitable person as the president.

Besides Mr. Ikeda, we are considering to choose some people for the new management team from outside, for example, people who are familiar with the region and legal specialists, while referring to the new president's idea as well.

In addition to the invitation of board members from outside, we will also promote a few board members from inside of the bank. They will be selected by the new president at the right time. Basically, current board members will resign, but they are expected to work tentatively as the management, excluding the current and former presidents.

From now on, under the new management team, the bank will try to promote management reforms, maintain and improve the corporate value, and transfer itself to a new bank smoothly. Even during the period until transition, we hope that the bank positively conducts smooth financing in the region, mainly in Tochigi prefecture and revitalizes small- and medium-sized enterprises.

As I announced at the press conference on November 29th, the new management team will create a management plan.

In the process of management reforms, drastic rationalization of management will be required. Taking into account the situation toward the commencement of the special public management, it is required for the bank to be restructured as well as the Resona Bank, or more drastic restructuring is needed. For this purpose, we hope that the management plan includes further restructuring than the current business revitalization plan, such as the drastic reduction of employees and personnel costs, the cut-off of operating costs and the further streamlining of management.

Moreover, in order to pursue managerial responsibilities, we would like to request the bank to establish an ''Internal Investigation Committee'' consisting of lawyers and others under the direct control of the management as an independent research organization.