Notification of Extraordinary Losses Arising from Restructuring of "Otoku Line" sales formations

August 10, 2005

SOFTBANK CORP. announces that the company is obliged to book certain losses arising out as extraordinary losses incurred by wholly-owned subsidiary, JAPAN TELECOM CO., LTD (Head office: Minato-ku, Tokyo; President and CEO :Hideki Kurashige, hereinafter “Japan Telecom”), as a result of restructuring of sales formations concerning the direct connection voice service (hereinafter “Otoku Line”).

1. Background

So far Japan Telecom has been promoting sales of “Otoku Line” mainly through its sales agency network. Sales of “Otoku Line,” which was launched in December 2004, have not been progressing as smoothly as originally planned and the number of new contracts for the “Otoku Line” are still under-running the originally expected level.

Under such circumstances, the company and Japan Telecom have jointly conducted a thorough review of "Otoku Line" sales formation, which has culminated in the recognition of extraordinary losses.

2. Effect on the Consolidated Financial Statement

During the 2nd quarter of the March 2006 Fiscal Year, the company will book an amount of approximately 7 billion yen as being the extraordinary losses.

Releases, announcements, presentations and other information available from this page and elsewhere on this website were prepared based on information available and views held at the time of preparation and speak only as of the respective dates on which they are filed or used by SoftBank Group Corp. or the applicable group company, as the case may be. Such information is subject to change and may become out-of-date. Such information may also contain forward-looking statements which are by their nature subject to various risks and uncertainties that may cause actual results and future developments to differ materially from those expressed or implied by such statements. Please read legal notices in its entirety prior to viewing any information available on this website.