On June 15, the European Court of First Instance supported the decision by the European Commission made in December 2002, in which the European Commission levied a surcharge on Tokai Carbon Co., Ltd., and ordered to pay a fine of EUR 6.97 million (approx. ¥ 931 million).
Based on consultations with our legal counsel on a possible judgment by the European Court of Justice in the case of appeal and after making management considerations from the viewpoint of economic reasonableness, we have decided not to appeal this case to the Court of Justice.
The loss assocoated with this decision is duly incorporated in the semi-annual financial settlements ended on June 30, 2005, which is announced on August 15, 2005.