Press Release

January 8, 2004

Recommendation based on the inspection results of Mizuho Investors Securities Co., Ltd.

1. Recommendation Issued       The Securities and Exchange Surveillance Commission (SESC) today issued a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency (FSA) take administrative disciplinary action and other appropriate measures pursuant to Paragraph 1 of Article 20 of the FSA Establishment Act based upon the results of the inspection of Mizuho Investors Securities Co., Ltd. (hereinafter referred to as ''the company'') (located in Nihonbashi, Chuo-ku, Tokyo; Taira Hosaka as President; with equity capital of approximately 80 billion yen; staffed with approximately 2,100 employees including directors) that ascertained the following facts constituting violation of laws and regulations by the company and its employee. 2. Facts Found A series of transactions for the sale or purchase of a security to create an artificial market without any reflection of the actual state of the market       On February 4, 2003, an Executive Staff at the Dealing Group of the Equity Department of the company placed, in the course of the business, a series of buy orders of a certain listed company's stock at the Tokyo Stock Exchange (TSE), which caused the stock price to fall, with the aim to make the stock price fall intentionally avoiding temporary suspensions of the stock trade due to the indication of the special quote, and thereby, to make it possible that buy orders for the company's own account could be immediately executed with sell orders by the customer of the company at a considerably lower price (259yen) than the recent execution price in the TSE (275yen).       The foregoing acts of the company and its employee are acknowledged to fall under the ''act of making a series of transactions for the sale or purchase of a security to create an artificial market without any reflection of the actual state of the market'' provided for in Item (3), Article 4 of the Ordinance of Cabinet Office Concerning Regulation, etc. of Conducts of Securities Company based upon Item (9), Paragraph 1 of Article 42 under the Securities and Exchange Law.

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