Corporate Governance

Basic Views on Corporate Governance

The Company is committed to enhancing corporate governance on an ongoing basis for the purpose of seeking sustainable growth and increased corporate value over the mid- to long-term, based on the Press Kogyo Group's "Principles of Management."

The Company formulated "Corporate Governance Guidelines," and "Corporate Governance Report," which provides for the Company's concept and system of corporate governance, progress of the establishment thereof and operating policies there for, etc.

Overview of Current Corporate Governance System

The Company is a company with Audit & Supervisory Committee and makes efforts to increase the effectiveness of corporate governance, ensuring the Board of Directors makes important decisions and supervises the execution of operations or promoting efficient management and accelerated execution of operations by introducing the Managing Officers System, as well as enhancing the internal auditing system for the purpose of strengthening the functions of the Audit & Supervisory Committee. The operations by, functions of and activities of each organization, etc. are as follows:

1. Managing Officers System

The Company has introduced the Executive Officers System and promotes efficiency and acceleration of management decision-making and execution of operations, separating management functions from operation execution functions as well as ensuring the small size of the Board of Directors.

2. Management Meeting

Executive Officers responsible for executing operations attend the management meeting (twice a month) and report and discuss matters of significance with respect to each of departments which such Executive Officers are in charge of, as needed. Full-time Audit & Supervisory Board Committee attend the management meetings and express their opinions, as needed.

3. Board of Directors

The Board of Directors consists of twelve (12) Directors and holds a meeting once a month in principle and supervises the execution of operations and makes important decisions. The Director's term of office is one (1) year for the purpose of annually ensuring the most appropriate management system with the change of the managerial environment.

4. Internal Auditing System

The Company established the Internal Control Dept. in October 2005 for the purpose of ensuring thorough compliance and strengthening internal control. The Internal Control Dept. conducts an audit targeted at principle departments and works to increase the effectiveness of internal control, including pointing out and giving guidance on matters to be improved to an audited department in collaboration with the Audit & Supervisory Committee. The Company established the Internal Control Committee consisting of all Directors and all Audit & Supervisory Committee Members (Observers) in May 2006 and is formulating internal control as well as supervising compliance of the execution of operations with laws and regulations and the Company's Articles of Incorporation.

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