Central Japan Commodity Exchange to Commence U.S. Dollar-Denominated Gold Futures Trading in 2005.

LOS ANGELES & TOKYO -- C-COM responds to needs for currency and gold hedging, as well as overall trends in global gold futures markets

One of the world's largest commodity exchanges, Central Japan Commodity Exchange (C-COM), today announced that it will commence the U.S. dollar-denominated futures trading for gold contracts beginning in Year 2005.

The decision comes as a result of the in-depth analysis conducted by a specially appointed C-COM committee -- the Gold Futures Market Study Committee. Following a thorough evaluation of the Japanese market, Asian and other key global markets, the committee came to the conclusion to initiate the U.S. dollar-denominated gold futures trading to both meet the expanding needs for risk hedging and investment in U.S. dollar-denominated gold futures in Asia, as well as to determine transparent and appropriate prices.

Although there is a yen-denominated gold futures market (precious metal market at the Tokyo Commodity Exchange) in Japan, traders currently are unable to fully hedge the risks due to the fluctuation of the exchange ratio.

The U.S. dollar-denominated trading and inherent hedging is crucial, because high gold prices coupled with depreciated dollars (when compared against the yen), have an inverse correlation, and, therefore, the risk cannot be fully mitigated in a yen-dominated futures market.

Other key trends are also at play. In addition to the need for greater currency and gold futures hedging, the notion of asset management in Japan also is diversifying, as seen in the rapid increase in foreign currency-denominated deposits and other foreign exchange (Forex) (Note 1).

Furthermore, Asian nations, mainly China and India, have strong tendencies to buy and hold gold. In particular, market trends in China are critical to watch.

There is the U.S. dollar-denominated Loco London Market located in Hong Kong, a spot market for gold bullion (delivered in London); however, in Asia, there is currently no U.S. dollar-denominated gold market for futures trading. It is against this backdrop that C-COM will open the market, as an industry leader.

C-COM representatives said that the application for the gold futures contract will be sent immediately to the Ministry of Economy, Trade and Industry (METI) with the expectation of a rapid approval and successful listing.

Draft of Trading (Outline)
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Object of trading:                Gold
Type of trading:                  Futures trading through cash
                                   settlement
Final settlement price (Note 2):  London fixing price
Bid and offer price:              1 troy ounce
Bid and offer unit:               US$0.1
Trading unit:                     10 troy ounces
Contract month:                   Consecutive three contract month
Trading means:                    Continuous session by electronic
                                   trading
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Profile: Central Japan Commodity Exchange

Central Japan Commodity Exchange (C-COM) was established through the merger of three commodity exchanges in Central Japan (Nagoya City, Aichi Prefecture) in 1996.

C-COM currently provides the commodity futures market for oil product contracts (gasoline, kerosene, and gas oil), as well as the shell eggs contract for livestock product sector - a unique market anywhere in the world.

In 2003, C-COM was ranked the 2nd largest among Japanese commodity exchanges in turnover, and No.4 in the energy sector among major commodity exchanges worldwide. Also, the Exchange was positioned No.7 in the world for overall commodity futures trading volume. C-COM is now stepping forward into the limelight internationally.

The Exchange not only provides a vehicle for hedging risks due to price fluctuations, but also aggressively promotes its internationalization, as the Exchange intends to become an increasingly attractive market for overseas and domestic investors alike.

In order to enhance the reliance and the convenience of the markets, the Exchange is preparing for the formation of an outside clearing house (to be opened in May 2005), which will serve as a common platform for all seven commodity exchanges in Japan. This is just a part of the Exchange's strategic effort and objectives to develop new, attractive listings, and to provide premium service at lower cost for the market participants around the globe.

The Gold Futures Market Study Committee

Chairman:     Mikio Kawamura (Professor, Tama University Graduate
                               School)
Committee members:

              Yuichi Ikemizu (Bullion team leader, precious metal
                               sales division, Mitsui & Co., Ltd.)

              Hiroshi Usami (Professor, Aoyama Gakuin University
                              Graduate School)

              Kazumichi Okachi (President, Okachi & Co., Ltd.)

              Masafusa Okamoto (Senior manager, Institute for Market
                                 Economic Research)

              Masakazu Kato (President, Okato Shoji Co., Ltd.)

              Hiroyuki Takai (General Manager, commodity business
                               division, Sumitomo Corporation)

              Jitsuo Tatara (President, Yutaka Shoji Co., Ltd.)

              Toshiya Hanawa (Professor emeritus, Hitotsubashi
                               University)

              Hisahiro Murakami (Vice chairman, Sanki Shoji Co., Ltd.)

Note 1. Forex transactions (Foreign exchange margin transactions)

While one trading unit in the inter-bank market (the trading market among banks) is US$1 million (in the case of dollars), Forex transactions (foreign exchange margin transactions) enable one trading unit as a small lot of US$10,000, so that individual investors can easily participate in margin transactions (margin).

Note 2. Final settlement price

Final settlement price means the prices to be used for settling margin purchases at the end of the month during the final session in cash settlement futures trading. Central Japan Commodity Exchange has obtained an approval of the Board of Directors of the London Gold Market Fixing Ltd. dated July 5, 2004 for the use of London fixing price as the final settlement price.

Volumes of Worldwide Commodity Trading by Exchange in 2003

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Rank Acronym             Exchange                           Volumes
----------------------------------------------------------------------

 1   NYMEX    New York Mercantile Exchange                 133,123,205
 2   TOCOM    Tokyo Commodity Exchange                      87,252,219
 3   CBOT     Chicago Board of Trade                        72,769,957
 4   LME      London Metal Exchange                         72,308,327
 5   SHFE     Shanghai Futures Exchange                     40,079,750
 6   IPE      International Petroleum Exchange              33,341,244
 7   C-COM    Central Japan Commodity Exchange              31,538,530
 8   NYBOT    New York Board of Trade                       22,171,252
 9   TGE      The Tokyo Grain Exchange                      21,120,468
10   CME      Chicago Mercantile Exchange                    8,971,584
11   Euronext Euronext (France, UK, Netherlands, Belgium,
               Portugal)                                     6,642,609
12   OME      Osaka Mercantile Exchange                      6,162,589
13   KANEX    Kansai Commodities Exchange                    3,444,296
14   KCBT     Kansas City Board of Trade                     3,099,805
15   FFE      Fukuoka Futures Exchange                       2,739,383
16   Y-COM    Yokohama Commodity Exchange                    1,852,158
17   WPGCE    The Winnipeg Commodity Exchange                1,842,791
18   MDEX     Malaysia Derivatives Exchange Berhad           1,429,959
19   MGE      Minneapolis Grain Exchange                     1,133,731
20   BM&F     Bolsa De Mercadorias & Futuros                 1,108,803
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NOTE: Commodity futures and Options only



  Volumes of Energy Commodity Futures Trading in Year 2003 Worldwide

----------------------------------------------------------------------
 Rank     Exchange                                 Volumes
----------------------------------------------------------------------
  1        NYMEX                                 93,277,668
  2        TOCOM                                 41,068,117
  3        IPE                                   33,310,460
  4        C-COM                                 30,690,378
  5        SFE                                       12,835
  6        SGX                                        2,590
----  ----------------------------------------------------------------


            Volume by Exchange: Japan (Calendar Year 2003)

----------------------------------------------------------------------
Rank         Exchange                                 Volumes    Share
----------------------------------------------------------------------
 1    Tokyo Commodity Exchange                      87,252,219   56.6%
 2    Central Japan Commodity Exchange              31,538,530   20.5%
 3    The Tokyo Grain Exchange                      21,120,468   13.7%
 4    Osaka Mercantile Exchange                      6,162,589    4.0%
 5    Kansai Commodities Exchange                    3,444,296    2.2%
 6    Fukuoka Futures Exchange                       2,739,383    1.8%
 7    Yokohama Commodity Exchange                    1,852,158    1.2%
-- ----------------------------------------------- ------------ ------
                        Total                      154,109,643  100.0%
-- ----------------------------------------------- ------------ ------