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Our Position Regarding Reports By Reuters And Asahi Shimbun

Incidentally, when we conducted an internal investigation in order to examine the validity of each of the above prejudiced reports, a large volume of data was found in the computer used by Takafumi Nakano, a former Administration Devision Manager, Japan branch office of Aruze USA Inc., during his employment.

The data that Nakano had possessed not only included documents that were created without going through the official procedures of our corporate group and documents that contained our group's trade secret, it also contained e-mails where Nakano requested other employees to create non-official documents related to the corporate group. Documents with the same title as the articles by Reuters were found from said documents.

From this, it became clear that the main information source for the articles by Reuters and Asahi Shimbun was Nakano.

Furthermore, internal information of various companies which Nakano was employed by before working for us was found. Its volume extended to 10 gigabytes, and equaled 70,000 in pages.

One of the companies whose information was discovered included internal documents from the internationally famous Ritz-Carlton Hotel, which Nakano had worked with as an accounting manager. The content of the documents included customer information such as data of high-paying clients of the hotel's spa (i.e., name, joining fee, monthly usage fee, security deposits), salary statements of the employees, annual salaries and incentives of manager-class employees. In addition, various pieces of classified information believed to be of particularly high importance among those managed by and stored in a company were also found, including daily, monthly, and annual profits and comparisons to competitor hotels. Similar classified information on two other companies Nakano used to work for was also found. This revealed that Nakano had habitually taken out classified information that companies he used to work for managed and stored after retiring.

Furthermore, it also became clear that Nakano changed the auditing company of Aruze USA Inc to BDO Sanyu & Co without completing the official procedure (being approved during the shareholders meeting) perhaps fearing the discovery of illegal financing that didn't complete our corporate group's official procedures.

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