News Room 2005 (The former Furukawa-Sky)

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Change in Our Shareholder Composition

December 2, 2005

We announce the details of changes in our shareholder composition which occurred on December 1 and 2, 2005 below.

1.Background to the change
This change is due to the decrease in the number and ratio of shares owned by the major shareholders resulting from the increased public offering of 22,100,000 shares paid for on December 1, 2005, and the transfer of 27,100,000 shares on December 2, 2005, accompanying our listing on the First Section of the Tokyo Stock Exchange.
2.Shareholders concerned
  1. (1) Showa Denko Co., Ltd.
  2. (2) Nippon Steel Corporation
3.Voting rights ownership relative to total share voting rights.
  1. (1) Show Denko Co., Ltd.
      Voting rights Percent of
    total voting rights    		 Shareholder ownership rank
    Prior to issue
    (December 1, 2005)    		 22,236
    (22,236,000 shares)    		 11.12% 2nd largest holder
    After issue
    (December 2, 2005)    		 19,215
    (19,215,000 shares)    		 8.65% 2nd largest holder
  2. (2) Nippon Steel Corporation

    		Voting rights Percent of
    total voting rights    		 Shareholder ownership rank
    Prior to issue
    (December 1, 2005)    		 21,638
    (21,638,000 shares)    		 10.82% 3rd largest holder
    After issue
    (December 2, 2005)    		 21,638
    (21,638,000 shares)    		 9.74% 3rd largest holder

(Note) Total number of voting rights as of the issue date are 222,100.

4.Future outlook
We do not anticipate any changes in our business transactions or other operations resulting from the change in shareholder composition.