Chairman Mitarai's comment at his Press Conference

(On the recent scandals caused by its member companies)

It has been decided to suspend membership activities of SUMITOMO MITSUI BANKING CORPORATION and Sompo Japan Insurance Inc. for 3 months starting today.

(Asked on view on the current situation of the Japanese economy)

The news that the 2006 real annual GDP growth rate forecast has been revised up to 3.1% in the latest government statistics is no surprise. The global economy including the Japanese business has been steadily expanding.
The recent sharp fall of stock prices is not a sign of recession. Business performances in general are quite well. Investors have been recently selling part of their stocks to fix their profits. This process must be short.

(Asked on "Murakami Fund scandal")

Greenmailing is malicious. M&As can contribute to adding more value to private companies. I hope reliability and dignity of investment funds that have been determined to do fair and healthy operation will not be ruined just because of this case.

(Asked on Japan-China relationship)

Japanese companies have worked hard to fasten business ties with China. Such close relations between Japan and China should be promoted in a variety of levels.