As a result of Nippon Television Network Corporation submitting revised versions of its financial statement report and semi-annual report to the Tokyo Stock Exchange (TSE), we have received notice that NTV has been listed to the supervision post. We deeply apologize to our shareholders regarding this recent development.

We would like to announce that although our shares are listed to a supervision post, transactions will continue unaffected.


In order to fully comprehend the complexity of this situation, a brief explanation may be necessary. The NTV holdings by Yomiuri Shimbun were divided into those held in the name of Yomiuri Shimbun and those held in the name of successive chairmen/presidents of Yomiuri Shimbun. In 1970, then Yomiuri Shimbun Vice-president Mr. Yosoji Kobayashi assumed the position of NTV President. Those close to the president felt it would be more appropriate for someone of his status to have possession of NTV shares. Therefore, beginning in 1971, a portion of NTV shares held by Yomiuri Shimbun was allocated in the president's name.


To symbolize the close relationship of the two companies, NTV had continued the practice of using two separate methods of listing: one for Yomiuri Shimbun's holdings of NTV shares and one for shares in the names of successive chairmen/presidents. These holdings, in essence, belong to Yomiuri Shimbun.


In 1990, due to the implementation of the 5% rule (disclosure of shareholders with more than 5% stake in common shares of the issuance company), Yomiuri Shimbun, upon consultation with financial authorities, acted in good faith that shares in the name of the chairmen/presidents and shares in the name of the company be reported as one total holding of NTV shares.


As a result, the two documents continued to be inconsistent for many years. NTV felt the situation was not suitable and therefore, took the initiative to correct the financial statement report on November 5, 2004. While NTV has been in the midst of re-evaluating its various business practices based on its Compliance Charter effective July 1, 2004, the TSE requested on October 29 that all companies provide open and full disclosure of its company information to investors, to which NTV promptly responded with a revision report.


NTV is surprised and disappointed that the revision of its financial statement report led to NTV shares being listed to the supervision post. Upon discussing this situation with our lawyers and certified public accountants, we plan to make the utmost effort to obtain the understanding of the TSE.


It is our understanding that the listing of NTV shares to the supervision post is a temporary measure for the purpose of TSE's examination. It was previously thought that shares being listed to the supervision post led to the possibility of delisting, however, we now know that this action is a precaution taken by TSE to warn investors. According to our lawyers, there have been two listed companies who were moved to the supervision post this year, but were removed from supervision within an extremely short period of time.


NTV feels there is no factor which warrants NTV to fall under any of TSE's Delisting Criteria, and therefore, will continue to explain its situation to TSE while making every effort to take the necessary steps to quickly return to ordinary trading. NTV invites those interested parties to browse our homepage, where timely information will be disclosed regarding the measures NTV plans to make.


NTV is a component of the Nikkei 500 Stock Average. Furthermore, NTV has earned worldwide recognition for four consecutive years as the only company from the Japanese media sector to be selected for the Dow Jones Sustainability Indexes. We realize that we have caused concern among our shareholders. Therefore, everyone associated with NTV will come together to work toward improvement. At this time, we ask for your support and understanding.

Kohei Manabe Representative Director & President