Streaksai Regulatory News (STK)

31 Jan 2008 12:01

Softbank Corp31 January 2008 January 31, 2008 Announcement Concerning Recognition of Special Loss in a Subsidiary SOFTBANK CORP. (hereinafter"the Company")announces that the Board of Directorsof SOFTBANK TELECOM Corp. (Head office: Minato-ku, Tokyo; Representative:Masayoshi Son, hereinafter"SBTM"), a consolidated subsidiary of the Company,resolved the recognition of loss on disposal and impairment loss relating topart of its telecommunications equipment, at the board of directors meeting heldtoday. The details are as follows: 1 Reasons for disposal and impairment In its direct connection fixed-line voice service SBTM has focused its effortstowards the acquisition of corporate customers; the number of corporatecustomers continues to increase steadily. The corporate demand is currentlyshifting from analogue to digital lines for which profitability is higher. Inview of this change, SBTM has reexamined its acquisition strategy. Due to thefact that use of part of the analogue telecommunications equipment is notanticipated, loss on unused telecommunication supplies and loss on disposal offixed assets (including leased assets) is recorded. 2 Impact on financial results The Company expects to record approximately 26.0bn yen as special loss for thethird quarter of the fiscal year ending March, 2008. The consolidated financial report for the nine-month period ended December 31,2007 is scheduled to be announced on February 7. This information is provided by RNS The company news service from the London Stock Exchange