Shinsei Bank And The Deposit Insurance Corporation Of Japan Settle Lawsuits

Shinsei Bank, Limited, ("Shinsei") announced that Shinsei and the Deposit Insurance Corporation of Japan ("DIC") entered into an in court settlement of three lawsuits between Shinsei and DIC at the Tokyo District Court in which Shinsei previously sought indemnity from

By None

Shinsei Bank, Limited, (“Shinsei”) announced that Shinsei and the Deposit Insurance Corporation of Japan (“DIC”) entered into an in-court settlement of three lawsuits between Shinsei and DIC at the Tokyo District Court in which Shinsei previously sought indemnity from DIC based on the Share Purchase Agreement dated February 9, 2000, among DIC, New LTCB Partners C.V. and the former Long-Term Credit Bank of Japan, Ltd. (“Share Purchase Agreement”).

The amount of claims at the time of the settlement was approximately 15.0 billion yen. Among the three lawsuits is a lawsuit Shinsei brought against DIC under the Share Purchase Agreement seeking indemnity of approximately 13.4 billion yen with respect to losses arising out of litigation with the bankrupt EIE International Corporation and its related parties. Under the settlement, DIC will pay 11.0 billion yen to Shinsei by March 31, 2009. The settlement concluded all the lawsuits pending between Shinsei and DIC.

The earnings forecast for Shinsei for the fiscal year ending March 31, 2009, has not been revised as a result of the above settlement as accounting treatments including reserves have already been recorded.

D.C.

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