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| April 21, 2005 |
| Mitsubishi Rayon Co., Ltd. |
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Notice of recognition of extraordinary gain regarding
retirement pension plan reform |
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Mitsubishi Rayon has decided to change its system regarding retirement pension plan during the current term ending March 31, 2006, replacing its current tax qualified pension plan by a cash balance pension plan, a contract-type of corporate pension plan.
In preparation by the change, the Company will recognize an extraordinary gain on reversal of reserve for retirement benefits in an amount of ¥7,594 million as of June 30, 2005 (the end of the first quarter of fiscal 2005). Simultaneously, the Company will change the amortization period of actuarial loss from the current 5 years to 1 year and recognize an actuarial loss for prior years in lump-sum. The change will cause the Company to post an extraordinary loss of ¥4,265 million. We intend to improve the financial position of the Company and, we believe, these measures will contribute to giving a more accurate reflection of the conditions of the projected benefit obligation to the Company’s balance sheet.
The said extraordinary gain will mainly be appropriated for business restructuring, regarding the remaining portion after deduction of the amount for the lump-sum amortization mentioned above. |
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| For further inquiries, please contact: |
| Public and Investor Relations Office |
| e-mail:
koho@mrc.co.jp |
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The contents shown herein are accurate as of the time of posting.
