Shinsei Bank Partially Repurchased USD Tier I Preferred Securities

Shinsei Bank, Limited, ("Shinsei") had completed a partial repurchase (using available cash) and cancellation of U.S. dollar denominated non cumulative perpetual preferred securities, issued by two of its wholly owned Cayman Islands finance subsidiaries, in the aggregate issue amount of

By None

Shinsei Bank, Limited, (“Shinsei”) had completed a partial repurchase (using available cash) and cancellation of U.S. dollar-denominated non-cumulative perpetual preferred securities, issued by two of its wholly owned Cayman Islands finance subsidiaries, in the aggregate issue amount of USD 221 million.

The two issues of Tier I preferred securities repurchased in part by Shinsei related to this transaction have recently been trading at a significant discount to their original issue price. The completion of this transaction resulted in an increase in retained earnings.

The repurchased preferred securities include:

•USD 100 million of step-up non-cumulative perpetual preferred securities, issued in February 2006 at 6.418%, issue price USD 1,000 per preferred security, of Shinsei Finance (Cayman) Limited; and

•USD 121 million of non-cumulative perpetual preferred securities, issued in March 2006 at 7.160%, issue price USD 1,000 per preferred security, of Shinsei Finance II (Cayman) Limited.

The repurchased preferred securities listed on the Singapore Exchange were purchased in open-market transactions.

D.C.

«