Press Releases 2006

Partial sale of shares held in SBI Holdings, Inc.

Aug. 1, 2006

SOFTBANK CORP. (“SOFTBANK”) announced that its wholly-owned subsidiary, SOFTBANK AM CORPORATION (Head office: Minato-ku, Tokyo; Representative: Takashi Okubo; hereinafter “SBAM”), sold a portion of its shares held in SBI Holdings, Inc. (Head office: Minato-ku, Tokyo; Representative: Yoshitaka Kitao; hereinafter “SBI”) as follows:

1. Outline of the sale

(1) Shares sold 1,111,000 common shares of SBI
(2) Sold to SBI and others (sold through ToSTNet-2)
(3) Proceeds of the sale approximately 50 billion yen (45,000 yen per share)
(4) Use of proceeds to be appropriated to repayment for borrowings

2. Change in the SOFTBANK Group’s shareholdings following the sale

The ratio of SBI shares held by the SOFTBANK Group prior to and following the sale of relevant shares is shown below. As a result of the sale, SBI will no longer be accounted for under the equity method.

  Equity interest ratio Number of shares held Total number of outstanding shares
Prior to the sale
(as of June 30, 2006)
26.7% 3,245,811.21 shares 12,162,650.64 shares
Following the sale
(as of August 1, 2006)
19.2% 2,134,811.21 shares 11,114,750.64 shares
  • *1Equity interest ratio does not include shares held by SBI itself (including SBI shares held by affiliates of SBI).
  • *2The number of shares held represents the indirect share interest held by SBAM.
  • *3The total number of outstanding shares excludes shares held by SBI itself (including SBI shares held by affiliates of SBI). Besides, the total number of outstanding shares following the sale is calculated by subtracting shares purchased by SBI on the basis of the total number of outstanding shares before the sale.

3. Impact on the consolidated financial results

As a result of the sale of shares, SOFTBANK expects to record a gain on sales of investment securities of approximately 29 billion yen as special income for the second quarter in the fiscal year ending March 2007.

4. Others

The SBI shares were sold in connection with SOFTBANK’s financial strategy. SOFTBANK will continue to maintain its good relations with SBI through business partnerships and work on developing a broadband society.

In addition, the shares sold are a portion of the 1.8 million shares lent to Nikko Citigroup Limited (“Nikko Citi”) in accordance with the “Share Lending Framework Agreement” concluded between Nikko Citi and SOFTBANK on April 17, 2006. A part of the proceeds from the sale will be used to repay borrowings from Nikko Citi.

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