10 March 2014
To whom it may concern
Showa Holdings Co., Ltd.
Mamoru Shigeta,
Representative Executive Officer and President(Code 5103 Tokyo Stock Exchange)
Contact: Tomohiko Shoji, Executive Officer(Tel: 04－7131－0181)

Judgement of the Administrative Lawsuit(Prevailing in the Appeal Court)

Regarding the judgments of administrative lawsuit reported on 16 December
2013 concerning the partial acknowledgement of claims and cancellation ofdetained properties by our shareholder, APF Holdings Co., Ltd., we would like toannounce that the government has appealed the judgment but claims by APF
Holdings Co., Ltd. was also acknowledged by the appeal court and the appeal
made by the government was dismissed.
Wining against the government in an administrative lawsuit is almost
impossible for plaintiffs which are private entities or individuals. Amongst them,continued rulings in our favor in several appeal trials prove the illegality ofdetention procedures made by the Securities Exchange Surveillance Commission(SESC) and the legality of our claims.
We believe that the results of these judgments have enforced our confidence
towards our legality and the legitimacy of our claims.
We assume that the government (defendant) will bring a final appeal to theSupreme Court, but APF Holdings Co., Ltd. commented that they could not forgive
the actions of the SESC for trying to justify investigations which neglects the law
and human rights and will correspondence with every effort not only to reclaim
the innocence and trust of themselves, but also for the troubles and worriescaused to our concerned parties.

Description
１．Judicial Decision
１．The appeal is to be rejected.
２．Appeal costs shall be borne by the appellant.
２．Details of the appeal
Appellant

Japanese Government

Executing

Securities

Administrative Agency

Commission,andExchange

Securities

SurveillanceandExchange

Special Investigator.
Judgment Date

5 March 2014

Court

Tokyo High Court

Details

Regarding the investigation by Executing
Administrative

Agency,cancellation

ofdetention cancellation in the first ruling etc.

３．Future prospects
The judgment of this lawsuit is a case related to our shareholders anddoes not have any effect on our business results whatsoever.
Nevertheless, details of the judgment after the first hearing provesillegality of the investigation made by the SESC.
It has been 3.5 years since the investigation on our company but wehave not received any accusation or any notice for cooperation on theinvestigation with the statutes of limitations of penalties passed. We
believe that this further proves the legality of the capital increase
implemented in June 2008.
From our company’s point of view, the Japanese capital markets are notnormal since the regulator itself, the SESC, is implementing illegal
procedures. We are trying to set the capital market in japan back to a little
more normal and proper order with these court cases, including theNational Lawsuit. (Please refer to the following URL for details on theNational Lawsuit.
http://www.showa-holdings.co.jp/news/doc/news20130606e.pdf ）From now on also, we will work towards earning growth andimprovement of our corporate value by accomplishment of our mid-termbusiness plan, and we would like to ask for your understanding on thismatter.
Thank you