Announcement regarding Extraordinary Loss
@Tokyo, November 16, 2005 -- Impress Holdings, Inc. (TSE: 9479) announces that it has incurred the following extraordinary loss.
1. Reasons for and Details of Loss
@Impress Holdingsf policy is to invest funds in a safe and stable manner, by investing in bonds issued by issuers with a high credit rating and holding those bonds to maturity. However, there has recently been a case in which the credit ratings of the issuers of a portion our bond holdings have fallen drastically within a short period of time, resulting in a significant increase in the credit risk related to the receipt of those funds in the future. The Company has therefore sold its entire \1,800 million holdings in those bonds (the amount shown on the balance sheet as of September 30, 2005) for \1,667 million in order to collect those funds. This has resulted in an extraordinary loss of \133 million.
2. Effect on Business Results
@The Company will record an extraordinary gain from the sale of equity holdings in an amount roughly equivalent to the extraordinary loss, and therefore expects the extraordinary loss to have no effect on the parent and consolidated results forecasts for the full year to March 31, 2005, announced on November 8, 2005.
