Tokyo Stock Exchange Requested Tsubasa Securities Co., Ltd. To Submit Business Improvement Report

TSE requested Tsubasa to submit business improvement report as to internal control, compliance, the action to deter law violation, and clarification of responsibility pursuant to the TSE's Trading Participant Rule.

From April 2000 to September 2001, Tsubasa sold foreign shares and foreign bonds to many individual investors.

Selling those foreign securities, Tsubasa distributed explanatory notes, as sales material, which contained misstatements or omitted material information: for instance, annual net income per share or rating of bond-issuers.

Those actions above are deemed as violation of Article 4 (1) of the Ministerial Ordinance (Code of Conduct for Securities Companies) 1965 and Article 42 (1) (ix) of the Securities & Exchange Law 1948.