August 13, 2007
For Immediate Release
Company Name:

GMO Internet Inc.
(TSE First Section, Code: 9449）

Address:

26-1 Sakuragaoka-cho Shibuya-ku Tokyo JAPAN

Representative:

Masatoshi Kumagai, CEO and Representative Director

Contact:

Masashi Yasuda, Managing Director

Telephone:+81 3 5456 2555

URL:

http://www.gmo.jp

Transfer of GMO Internet Securities StockAt a meeting today of the GMO Internet Inc. Board of Directors it was resolved to transfer all shares
held in subsidiary GMO Internet Securities Inc. (95.9%).
Please also refer to An Explanation of Today’s Series of Disclosures and Strategy Regarding Pulloutof Loans and Credit Business – Presentation Materials.
http://ir.gmo.jp/irlibrary/pdf/20070813_en_01.pdf

１．Reasons for the Transfer of StockAs announced today, due to the uncertain outlook in the credit and consumer finance industry,
GMO Internet is transferring all shares held in GMO LOAN-CREDIT HOLDINGS Inc. and completely
withdrawing from the loans and credit business.
In the Internet securities business, growth in accounts and financial performance has been strong
since it was first launched in May 2006. At the end of July 2007 it had achieved a profit.
However, as our withdrawal from the loans and credit business will temporarily damage shareholders’equity and in recognition of the importance of strengthening shareholders’ equity it was resolved toimmediately sell GMO Internet Securities at a fair price to GMO Internet Inc. CEO, Masatoshi
Kumagai.
The Internet Finance segment has been dramatically reduced and we have made the decision tofocus management resources on our Internet Use Support (Infrastructure) and Internet Advertising
Support (Media) business segments.
２．Outline of the Subsidiary that is the Object of the Stock Transfer(at the end of the most recent fiscal year)（１）Company Name

GMO Internet Securities Inc.

（２）Address

26-1 Sakuragaokacho, Shibuya-ku, Tokyo, JAPAN（３）CEOHideyuki Takashima（４）Capital¥2,040,000,000

Copyright (C) 2007 GMO Internet, Inc. All Rights Reserved.

（５）Accounting Term

March（６）Date Established

October, 2005

（７）Total Outstanding Shares

45,276（８）Major Shareholders

GMO Internet Inc.（95.9％）(% ownership)

Securities and Exchange Law based securities business
Financial Futures Transaction Law based（９）Business Description

over-the-counter financial futures transactions（10）Employees

47（11）Financial Performance in theLast Three Fiscal Years
Fiscal Year

March 2005

March 2006

March 2007

Sales (¥millions)

−−

448

Operating Loss

−

106

1,036

−

106

1,046

Net Loss (¥millions)

−

106

1,078

Total Assets (¥millions)−436

17,926

Net Assets (¥millions)

−

373

1,384

(¥millions)
Ordinary Loss(¥millions)

３．Outline of Stock Transferee（１）Name

Masatoshi Kumagai (GMO Internet CEO)

（２）Address

3-18-16 Minami Aoyama, Minato-ku, Tokyo, JAPAN

４．Number of Shares Transferred, Transfer Value and Ownership Before and After the Transfer（１）Number of shares owned before the transfer
47,286(percentage ownership: 95.9%)(no. of voting rights: 47,286)（２）Number of shares transferred
47,286(transfer value: ¥4,799,529,000)(no. of voting rights: 47,286)（３）Ownership after the transfer0(percentage ownership: 0.0%)(no. of voting rights: 0)

Copyright (C) 2007 GMO Internet, Inc. All Rights Reserved.

５．Stock Transfer Schedule
August 13, 2007 (Monday)

Meeting of GMO Internet Inc. Board of Directors

August 13, 2007 (Monday)

Signing of sale of shares contract

August 14, 2007 (Tuesday)

Date of stock transfer

６．Impact of the Stock Transfer on Total Assets, Sales and Profit/Loss in the Current Term
（１）Impact on consolidated total assets, sales and profit/lossi)Consolidated Total

A reduction in total assets equivalent to approximately ¥22 billionAssetsii) Consolidated

In the latter part of the term we expect an initial decrease in forecast sales ofSales

approximately ¥1.5 billioniii) Consolidated

In the latter part of the term we expect a reduction in forecast ordinary loss ofOrdinary Profit/Lossapproximately ¥150 millioniv) Consolidated

An extraordinary profit of ¥2.8 billion will be recorded as a result of the sale of stockExtraordinary

in an affiliated company.

Profit/Loss（２）Impact on Non-consolidated Profit/LossAn extraordinary profit of ¥2 billion will be recorded as a result of the sale of stock in an affiliated company.

Copyright (C) 2007 GMO Internet, Inc. All Rights Reserved.