The Group is fully aware of the importance of corporate governance and the necessity of stringent compliance in the process of maximizing corporate and shareholder value. On August 1, 2004, RADIA HOLDINGS, INC. became a pure holding company with management and control functions over the whole Group. The structure enables RADIA HOLDINGS, INC. to manage the Group companies and to make necessary adjustments within such companies. While respecting individual expertise and independence, the Company aims to accelerate business growth of the overall Group, particularly focusing on the reinforcement of Group governance led by the Company's Board of Directors.

In terms of the Board of Directors, the Company, which never had an outside director in the past, selected one outside director at the extraordinary general shareholders meeting held in June 2004. The said director will provide the Company valuable management advice based on prefessional expertise and from an objective standpoint.

As of the date of this filing, all four of the Company's current auditors are outside auditors, and among them, two are full-time auditors. The full-time auditors are primarily responsible for auditing the operations of the branches, for making statements at the Board of Directors Meetings and for supervising the proper execution of responsibilities by the directors.

With regard to compliance, in addition to the staff in charge of legal issues stationed in the human resource and general affairs division, the Company newly hired an in-house lawyer for the purpose of reinforcing legal checks. A compliance committe meeting is also held on a monthly basis to evaluate legal issues and to promote strict adherence to pertinent laws and regulations. Furthermore, as a means to prevent and breach of law, the Company has streamlined the "internal reporting lines" so as to put in place specific case-by-case communication routes to responsible and pertinent departments, thereby establishing a structure where officers in charge take leadership to achieve a timely resolution to problems.

In terms of corporate communications and IR, the Company is fully aware of the responsibility as a public company to actively disclose information to investors and other concerned parties in a timely and fair manner. As such, the Company established a Corporate Communications and IR Department responsible for the dissemination of company information. In addition to the routine disclosure of quarterly information, the said department discloses through its IR website such items as explanatory materials used at presentations on term-end results and business performances. Through such efforts, information is equally made available to investors without time lag, and concurrently, the Company is able to promote its business operations to a wider audience. The website, accessible around the clock, not only provides financial information, explanatory materials, and press releases, but also releases messages from the chairman as well as IR schedules. The Company also proactively discloses its business strategies and management information to financial analysts and institutional investors, including domestic and overseas fund managers, through scheduled meetings. Additionally, going forward, the Company will be implementing measures to promote understanding of the Group's businesses among individual investors.