At the Board of Directors Meeting on May 28, 2008, Sanix Incorporated (Ticker: 4651, TSE/OSE/FSE, President & CEO: Shin-ichi Munemasa) resolved to put a resolution for the following reduction of legal capital surplus and surplus appropriation to the SANIX’s 30th general shareholders’ meeting to be held on June 27, 2008.
 

1. Reasons for and Summary of the Reduction in Amount of Legal Capital Surplus

In order to ensure flexibility and versatility in implementing its financial policy, the Company will reduce all the amount of “legal capital surplus” (4,425,946,429 yen) and transfer the amount of the reduction to “other capital surplus” pursuant to Paragraph 1, Article 448 of the Company Act.

　(1) Item and amount by which surplus is to be reduced:
　　　Legal Capital Surplus: 4,425,946,429 yen
　(2) Item and amount by which surplus is to be increased:
　　　Other Capital Surplus: 4,425,946,429 yen

2. Reasons for and Summary of the Appropriation of Surplus

In conformity with Article 452 of the Company Act, the Company will thereupon make the appropriation of this surplus to the disposition of Loss Carried Forward.

　(1) Item and amount by which surplus is to be reduced:
　　　Other Capital Surplus: 2,667,105,056 yen
　(2) Item and amount by which surplus is to be increased:
　　　Retained Earnings Brought Forward: 2,667,105,056 yen

3. Schedule

　(1) Resolution by the Board of Directors: May 28, 2008
　(2) Resolution by the General Shareholders’ Meeting: June 27, 2008 (planned)
　(3) Announcement to the creditors: July 31, 2008 (planned)
　(4) Deadline for creditors’ objection: August 31, 2008 (planned)
　(5) Effective date: September 1, 2008 (planned)

4. The matter described above will not have any effect on the business results of the Company.

 

For more information, please contact:
Masahiro Shimojo, Management and Planning Division