Thailand Financial News

Shinsei Bank, Limited (“Shinsei Bank”) today received a Business Improvement Order (“Order”) from the Financial Services Agency (“FSA”) based on Article 20, Section 2 of “The Law concerning Emergency Measures for Strengthening of Financial Functions” and Article 26, Section 1 of the “Banking Law”.

As we reported on May 9, 2007, our financial results for Fiscal Year 2006 were significantly impacted by the measures that we took in response to legislative and market changes affecting our consumer finance business.

More specifically, we recorded a non-consolidated net loss of 41.9 billion yen due to significant charges arising from the impairment and valuation allowances relating to our investments in APLUS and Shinki. Consequently, we failed to meet the non-consolidated net income target set in the Revitalization Plan agreed with the Japanese Government, and as a result, the FSA issued the Order, details of which are as follows: 1.Details of the Order

(1) To submit to the FSA by July 27th, 2007, a Business Improvement Plan (“Plan”) that incorporates measures to strengthen Shinsei Bank’s profitability. 2.Reason for issuance of the Order

The financial performance of Shinsei Bank for Fiscal Year 2006 was substantially below the targets set in the Revitalization Plan. As a result of this underperformance, it was considered necessary to issue an order, based on Article 20, Section 2 of “The Law concerning Emergency Measures for Strengthening of Financial Functions” in order to ensure that the Revitalization Plan is being properly executed. We take this Order seriously and will further strive to strengthen our business franchise and profitability to enable us to complete our Revitalization Plan and repay all outstanding public funds.

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