We, Mizuho Financial Group, Inc., hereby notify that the Board of Directors have resolved to repurchase and cancel approximately JPY 240 billion of First and Ninth Series Preferred Shares held by the Resolution and Collection Corporation ("RCC") with the approval by related authorities.
This repurchase of the preferred shares will be executed within the aggregate repurchase limit approved at the annual general meeting of our shareholders on June 2004. We consulted it with related authorities and obtained authorization following "The Temporally Measures to the Requests for the Sale of Preferred Shares Issued to Strengthen the Capital Base or the Prepayment Proposal of Public Fund" released by Deposit Insurance Corporation of Japan.
We will cancel those preferred shares immediately after the repurchase.
As a result of our strenuous efforts to promote management reform and resolve financial issues, we have established stable income base through steady improvements of our financial condition, such as through a significant reduction in credit costs, since last fiscal year. We will further improve our profitability through implementing business plans and pursuing group synergies.
This repurchase and cancellation of the preferred shares reflect both our group's retained earnings over JPY 800 billion accumulated through financial improvements and our current profitability, while securing our financial soundness such as the strength of our capital base. We strive to make early repayment of remaining public funds of preferred shares following related laws and regulations, such as "The Law of Emergency Measures for Early Strengthening of Financial Functions".
Details of repurchase
1. First Series Class I Preferred Shares
| (1) Number of shares to repurchase | 33,000 shares (100% of total shares issued) |
| (2) Price of shares to repurchase | JPY 1,802,700 per share |
| (3) Total amount of acquisition | JPY 59,489,100,000 |
| (4) Repurchase from | RCC |
| (5) Date of repurchase | August 31, 2004 |
2. Ninth Series Class IX Preferred Shares
| (1) Number of shares to repurchase | 107,000 shares (approximately 76.4% of total 140,000 shares issued) |
| (2) Price of shares to repurchase | JPY 1,686,750 per share |
| (3) Total amount of acquisition | JPY 180,482,250,000 |
| (4) Repurchase from | RCC |
| (5) Date of repurchase | August 31, 2004 |
(Reference) Details of preferred shares to repurchase
(1) First Series Class I Preferred Shares
| 1 Original date of issuance | March 31, 1998 |
| 2 Number of shares issued | 33,000 shares |
| 3 Price of shares issued | JPY 3 million per share |
| 4 Total amount issued | JPY 99 billion |
(2) Ninth Series Class IX Preferred Shares
| 1 Original date of issuance | March 31, 1999 |
| 2 Number of shares issued | 140,000 shares |
| 3 Price of shares issued | JPY 1.25 million per share |
| 4 Total amount issued | JPY 175 billion |
In connection with the repurchase and cancellation above, our subsidiary, Mizuho Holdings, Inc., will repurchase and cancel 33,000 shares of its First Series Class I Preferred Shares and 107,000 shares of its Ninth Series Class IX Preferred Shares held by us on the same day of our repurchase and cancellation.
This notice "Announcement Regarding Repurchase and Cancellation of Preferred Shares of Public Funds" has been prepared in order to announce information relating to Mizuho Financial Group's preferred shares of public funds and does not constitute an offer for sale or solicitation for investment or other similar activity in and outside of Japan.