Tokyo Commodity Exchange: Default Of MMG Arrows Co., Ltd

Pursuant to Article 68 (Action against nonpayment) of the Business Method Manual of the Japan Commodity Clearing House Co., Ltd. (JCCH), a notice was issued by JCCH on March 30, 2006 that MMG Arrows Co., Ltd., a broker member of TOCOM, failed to pay mark to market losses (1,358,930 yen) by noon of March 30 to JCCH.

Following the notice, MMG Arrows Co., Ltd was adjudged as a defaulting person in accordance with item 2, Paragraph 2, Article 126 of TOCOM’s Articles of Association.

Pursuant to the TOCOM Market Rules, all open positions (customers' positions) held by MMG Arrows Co., Ltd have been settled without any disturbance to the market at the opening of today's afternoon session.

JCCH will start the necessary procedure to refund each customer's asset (the margin deposited at JCCH), in accordance with the applicable rules.