Press Release: Tokyu Corporation
January 23, 2001
TOKYO -- Reorganization of the Tokyu Group's Hotel Business. At the meetings of the board of directors of Tokyu
Corporation (Headquarters: Shibuya-ku, Tokyo; President: Shinobu Shimizu) and Tokyu Hotel Chain, Co., Ltd. (Headquarters:
Chiyoda-ku, Tokyo; President: Yozo Inagaki) held on December 27, 2000, respectively, a decision was made to make
Tokyu Hotel Chain a wholly owned subsidiary of Tokyu Corporation through a share exchange. As a result, Tokyu Corporation
and Tokyu Hotel Chain executed the share exchange agreement on the same day. Another resolution was also adopted
on the same day at the meeting of the board of directors of Tokyu Corporation, that a new entity, named Tokyu Hotel
Management Co., Ltd., would be created to manage the domestic business activities of the hotel chain of the Tokyu
Group. Tokyu Corporation will effect this share exchange without obtaining the approval of the general meeting
of shareholders for the share exchange agreement. Tokyu Hotel Chain, on the other hand, expects to obtain the approval
on this matter at the annual general meeting of shareholders scheduled for March 27, 2001.
In April 2000, it was announced in ``Tokyu Group Management Policy Implementation'' that the hotel business would
be deemed a part of the Tokyu Group's core businesses in its business strategy. Based on this policy, given the
rapid changes of business environment occurring in the hotel industry such as an increasing number of foreign hotel
chains entering the Japanese market and popularization of internet reservations, both companies believe that immediate
implementation of an efficient management system to take advantage of the characteristics and the strengths of
the both hotel chains of Tokyu Corporation (d/b/a Tokyu Inn Chain) and Tokyu Hotel Chain would be necessary in
order to meet clients' needs on a timely basis, thereby ensuring that each company's current clients remain clients
in the future, and to develop the business so that it will greatly contribute toward promoting positive recognition
of the value of ``Tokyu'' brand.
If any shareholder of Tokyu Hotel Chain would like a complete English translation of the press release issued in
Japan, it is available on Tokyu Corporation's website at www.tokyu.co.jp/guide/news/001227e/1.html
or a copy may be obtained by requesting one directly via international post at the following address: Tokyu Corporation,
Attn: Masahiro Horie, 5-6 Nampeidai-cho, Shibuya-ku, Tokyo 150-8511, Japan, Tel: 81-3-3477-9603 (in English) or
Public Relations Office, Office of the President, Tokyu Corporation, Attn: Nemoto or Hirata, Tokyu Corporation,
5-6 Nampeidai-cho, Shibuya-ku, Tokyo 150-8511, Japan, Tel: 81-3-3477-6086 (in Japanese).
This press release relates to a proposed business combination which involves the securities of a foreign company.
It is subject to disclosure requirements of a foreign country that are different from those in the United States.
Financial statements included in the document, if any, have been prepared in accordance with foreign accounting
standards that may not be comparable to the financial statements of United States companies.
It may be difficult for any U.S. shareholder to enforce his rights and any claim he may have arising under the
federal securities laws, since the issuer is located in a foreign country, and some or all of its officers and
directors may be residents of a foreign country. Such U.S. shareholder may not be able to sue a foreign company
or its officers or directors in a foreign court for violations of the U.S. securities laws. It may be difficult
to compel a foreign company and its affiliates to subject themselves to a U.S. court's judgment.
SOURCE: Tokyu Corporation