Announcement on Change in Subsidiary Status Following New Share Issues by SOFTBANK INVESTMENT CORPORATION

SOFTBANK INVESTMENT CORPORATION (head office: Minato Ward, Tokyo, representative: Yoshitaka Kitao, “SBI”), a subsidiary of SOFTBANK FINANCE CORPORATION (wholly owned subsidiary of SOFTBANK CORP. (the “Company”), head office: Minato Ward, Tokyo, representative: Yoshitaka Kitao, “SBF”), which is the Operating Holding Company for financial business operations in the SOFTBANK Group, has approved at its board meeting a plan to issue new shares and a plan to sell the newly issued shares. The new share issue by SBI will reduce the ratio of SBF’s equity holdings in SBI. As a result, the status of SBI will change from the Company’s subsidiary to the Company’s affiliated company under the equity method. Therefore, consolidated subsidiaries of the Company operating under the wings of SBI will be excluded from the scope of consolidation of the Company.

1. Outline of capital increase planned by SBI

(1) New share issues via public subscription (subscription open to general investors)

Number of shares to be newly issued

common shares: 1,250,000 shares

Issue price

to be determined on a day between March 7 (Monday), 2005 and March 9 (Wednesday), 2005, in accordance with provisions set under 14-7-2 of the fair practice rules of the Japan Securities Dealers Association.

(2) Sale of new shares (sale by over-allotment)

Number of shares for sale

common shares up to 187,500 shares

Sales price

to be determined (Sales price is to be the same as issue price under public subscription as explained in (1).)

(3) New share issue through third-party allotment

(Capital increase through third-party share allotment; shares are to be allotted to third parties in line with new share sales as explained in (2))

Number of shares to be newly issued

common shares 187,500 shares

Issue price

Issue price is to be the same as issue price under public subscription as explained in (1).

2. Change in subsidiary status

(1) Outline of subsidiary whose status is to be changed under new share issue plan

SOFTBANK INVESTMENT CORPORATION (SBI)

(2) Change in the number of voting rights of SBF and voting-rights ratio

Figures shown above include new shares to be issued under public subscription and new shares to be issued through third-party allotment, based on shareholders registered as of September 30, 2004.

(3) Date when SBI’s status is to change from consolidated subsidiary to affiliated company

On a day between March 15, 2005 and March 17, 2005 (planned)

3. Change in sub-subsidiaries status

As SBI’s status changes from the Company’s consolidated subsidiary to an affiliated company under the equity method, the Company’s subsidiaries operating under the wings of SBI will also be excluded from the scope of consolidation. One such subsidiary is described below

E*TRADE SECURITIES CO., LTD.

4. Effects on consolidated earnings of the Company

In line with new share issues, SBI’s status will change from the Company’s consolidated subsidiary to an affiliated company under the equity method. Dilution gain from changes in equity interest is expected to be recognized as a special income of the Company on a consolidated basis in the fourth quarter of fiscal 2005 ending in March 2005.