SBI Holdings Statement of Clarification.TOKYO -- SBI SBI Special Background Investigation SBI Subsidiary Body for Implementation SBI State Bank of India SBI Secure Border Initiative SBI Small Business Institute SBI Stockholm Brain Institute SBI Serious Bacterial Infection SBI Society of Breast Imaging Holdings, Inc. (SBI) submits the following clarifications regarding certain reports in the media issued today on various news wires. #1: INACCURATE MEDIA REPORTS CONCERNING SBI's CORPORATE TAX PAYMENTS On May 8th of this year, SBI announced through its corporate website that after undergoing an examination by the tax authorities during the March 2006 period, in line with directions from the authorities, SBI, despite differences in opinion with the tax authorities, filed an amended return Amended Return A return filed in order to make corrections to a tax return from a previous year. It can be used to correct errors and claim a more advantageous filing. Notes: An amended return is filed using Form 1040X. and paid the taxes due. And since this time no additional taxes have been levied at SBI by the tax authorities. At no time has SBI ever been accused by the tax authorities of "hiding income." With regards to reports concerning stock transactions between an SBI fund and an SBI subsidiary, in reality the party involved in the stock transaction was not an SBI subsidiary, but an unrelated real estate company. Further, the stock in question, originally held by a fund managed by SBI, involved a small company which had, since the fund's initial investment, grown significantly due in part to its merger with another company. Therefore, as a matter of course, in the time between the SBI fund's first and second investment, not only did the value of the small company grow, but there was a change in this company's stock price as well. The SBI fund and the real estate company each obtained their own objective stock price evaluations conducted by independent third party appraisers, after which the parties then conducted the stock transaction. Therefore, as the determination of the stock price was fair and appropriate, SBI does not believe the transaction can be construed to be a donation. #2: INACCURATE REPORTS CONCERNING STOCK TRANSACTIONS Further, in the reports issued today by certain news media organizations alleging SBI's hiding of taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. , those reports that suggest SBI's stock transactions with a real estate subsidiary were designed to create profit were totally wrong. The real estate company involved was not an SBI subsidiary company, and SBI has also never received any directives from the tax authorities concerning these stock transactions. Therefore any suggestion that SBI engaged in stock transactions "to support its subsidiary company" or to "make donations to its subsidiary company" are inaccurate. # 3. INCORRECT REPORT BY TOKYO SHIMBUN The Tokyo Shimbun (東京新聞, Tōkyō Shinbun, literally Tokyo newspaper) is a Japanese newspaper published by The Chunichi Shimbun Company. DATED OCTOBER 27, 2006 The Tokyo Shimbun newspaper implied that SBI Holdings, Inc ("SBI"), using a group investment fund, intended to provide funds to a Liberal Democratic Party (LDP LDP - Linux Documentation Project ) politician by purchasing shares in a politician's Internet business company. This allegation The assertion, claim, declaration, or statement of a party to an action, setting out what he or she expects to prove. If the allegations in a plaintiff's complaint are insufficient to establish that the person's legal rights have been violated, the defendant can make a is completely false. The company referred to in the news release (the "Company") was established in April 2000 with the goal of operating businesses that utilize computer network and internet services. The Company, involved in the so-called "Millennium Project A parallel computing project at the University of California at Berkeley. Using nearly a thousand computers donated by Intel, its focus is on developing a multi-level "system of systems" that uses local clusters of SMP machines called a "CLUMP. " initiated by the Japan Chamber of Commerce and Industry (JCCI JCCI Jeddah Chamber of Commerce and Industry JCCI Joint Conference on Communications and Information JCCI Jamjoom Corporation for Commerce and Industry ), was to pursue its business goals through the application of U.S. business methodologies with the aid and support of the JCCI. In September 2000, a fund managed by SBI acquired a percentage of shares in the Company due to the Company's allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of shares to the third party. At the same time, the fund entered into an option contract with the Company to purchase additional Company shares from its president in December 2000. Consequently, contrary to what the newspaper reported in its article, the fund's investment into the Company has no connection whatsoever with the President's subsequent candidacy for the Japan House of Councilors. Indeed, as of September 2000, neither the fund nor SBI was aware of the Company president's intention to run for a seat in the House of Councilors the following year. SBI has never made donations to any political parties and/or politicians. Considering the nature of SBI's businesses, SBI does not see any necessity for political donations Noun 1. political donation - a contribution made to a politician or a political campaign or a political party political contribution donation, contribution - a voluntary gift (as of money or service or ideas) made to some worthwhile cause and has no plans to make such donations now or in the future. Some of today's news reports may detrimentally det·ri·men·tal adj. Causing damage or harm; injurious. det  ri·men damage SBI's reputation. SBI plans to immediately file formal protests with the news organizations responsible for the news reports. SBI will also begin reviewing its legal options and potential remedies.
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