The New Year's Message From Chairman Osaka Mercantile Exchange

On behalf of the Osaka Mercantile Exchange (OME), I would like to extend my very best wishes for the prosperous New Year. I would also like to express my deepest appreciation for the valuable support and understanding rendered by the Members of the Exchange and our associates throughout the last year with regard to the management of the Exchange.

Masayoshi Amano, Chairman, Osaka Mercantile Exchange

Looking back on the Japanese economy of the year 2003, despite concerns about the effects of the War in Iraq and SARS in the first half of the year, the second half of the year saw the gradual improvement including the rebounds in economic indicators and stock prices. The autonomous recovery in the year 2004 is awaited.

Amid such a climate, Japanese commodity futures industry achieved another great success and renewed the trading volume of the record level for the 5th consecutive year with the increases in both the amount of assets deposited and the number of customers.

OME is committed to carry out the missions as an Exchange of providing the safe and fair marketplace with enhanced functions for the purpose of responding to the changes and the needs of the times. Our efforts shall be in line with the deliberations at the government's committee for the commodity trading on the development of the industry including the enhancement in the credibility and convenience, protections of customers, internationalization.

As for OME's trading, the year 2003 saw the increase in the volume by some 15% year-on-year surpassing the 6 million lots recording the high since the Exchange was established in 1997 through the merger of Osaka Textile Exchange and the Kobe Rubber Exchange. The rise is largely attributed to the buoyant trading in the rubber markets.

Meanwhile, it was determined that the OME Cotton Yarn market shall be delisted at the end of April having accomplished its mission, but we are proud of the significant contribution it made to the industry through its 110-year history.

The principal agendas of the Exchange for the year 2004 are the further promotion of the existing commodities and the development of new commodities to be launched. As for the promotion, we shall continue making revisions of the trading specifications and public relations activities for the purpose of providing the marketplace possessing high credibility and convenience. Especially pertaining to nickel market which is taking root with some deliveries conducted, we shall address the market to realize the metal's potentialities. As for the development of new commodities to be launched, we intend to continue taking up commodities from a broad perspective that would contribute to the industrial world and commence the preparation for the launch as swiftly as possible.

Despite the harsh environment surrounding the commodity futures industry ahead of the deregulation of the trading fees at the end of this year, OME is committed to pursue the further growth along with the Members of the Exchange.

Lastly, I would like to conclude wishing further success and development of the Members of the Exchange and the commodity futures industry as a whole in the year 2004.