Translation of the Japanese press release

August 29, 2008
Nikko Cordial Securities Inc.

Nikko Cordial Securities to Roll-Out Direct Course(Nickname: Nikko Direct)

Nikko Cordial Securities Inc. (“Nikko Cordial Securities”) will roll out a direct course (nickname:Nikko Direct) from October 6, 2008.
Under “Nikko Direct”, customers will enjoy discounted brokerage fees when transactions arebeing made online (“Nikko EZ Trade”) compared with those transactions made at branches; 70%
discount for cash transactions and 85% discount for margin transactions. In addition, through
Nikko Contact Center and branches, products such as domestic equities, IPO equities, mutualfunds, various bonds and certain products only offered via online, as well as investment
information via internet and mobile phone will be made available to customers.
Nikko Direct aims to respond to diverse needs of investors on securities transactions against
the backdrop of expanding investor base that dare not require investment advices anddiversifying investment styles.
Customers will have options to choose from two courses; “General Course” the conventional
service for transactions with advices and information provisions from NCS representatives and“Nikko Direct”, which centered on Nikko EZ Trade.
Along with the roll out of “Nikko Direct”, Nikko Cordial Securities will offer “Margin TradeCampaign” from September 10, 2008 to December 26, 2008, in which 4,000 yen revenue stamp
charge required for opening Nikko EZ Trade margin trade account will be waived.
“By offering two types of trading courses, we build a structure to quickly respond to diverse
needs and changing investment style of customers. We will keep offering better products andservices for our customers into the future.” , said Eiji Watanabe, President & CEO of Nikko
Cordial Securities.

Media:Citi JapanMedia Relations
81-3-5644-4543

This material is an English translation of a Japanese announcement made on August 29, 2008. Although theThis material is an English translation of a Japanese announcement made on August 29, 2008. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thisCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thistranslation are not guaranteed.
translation are not guaranteed.

[Attachment]
Outline of the Service”Direct Course” (Nickname: Nikko Direct) will be launched on October 6, 2008. The brokeragecharges described below will be applied to the transactions executed on October 6, 2008 andonward. For those customers who have accounts with Nikko Cordial Securities, application tochange the service to “Direct Course” will be accepted starting September 1, 2008.

--Prior to use “Direct Course”, all the following procedures must be completed: Setting up cash management account,setting up foreign securities trading account, filing notice regarding beneficial shareholder (custody at JASDEC), Nikko
card application, Nikko EZ Trade application and bank transfer designation registration. There may be certain cases
where customers may not switch their services to “Direct Course”.
Please note that under “Direct Course”, prior to the execution of transactions, deposit equivalent to the transaction
amount must be made into your account or the transaction amount must be available in your Nikko MRF account.

*1: Customers who have opened account on or before October 3, 2008 will be considered to have selected “GeneralCourse”.
*2: Certain products may not be available under “Direct Course”. Please contact your branch or “Direct Support Dial” of Nikko
Contact Center, or visit our website for details.
*3: For online trade, application to Nikko EZ Trade is required.

This material is an English translation of a Japanese announcement made on August 29, 2008. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thistranslation are not guaranteed.

Nikko EZ Trade Margin Trade Campaign
For those customers who have opened “Nikko EZ Trade Margin Trade” during the campaign
period from September 10, 2008 to December 26, 2008, revenue stamp charge of 4,000 yen
required for “Margin Trade Account Set-up Agreement” will be waived. (paid by Nikko CordialSecurities). When applying for the account, applicants may mail back “Margin Trade AccountSet-up Agreement” to us without placing the revenue stamp.
The eligible customers for this campaign are those who have applied “Nikko EZ Trade Margin
Trade” and Nikko Cordial Securities received “Margin Trade Account Set-up Agreement” during
the campaign period.
Inquiries on Direct Course/Nikko EZ Trade
Nikko Contact Center “Direct Support Dial”
0120-250-987 Hours: 8：00 a.m. - 19：00 p.m. on weekdays###This material is an English translation of a Japanese announcement made on August 29, 2008. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thistranslation are not guaranteed.