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dateFebruary 17, 2005
Notice to Reduce Capital Reserves

On February 17, 2005, Rakuten announced the plan for a reduction in capital reserves as voted upon and agreed to at the Board of Directors meeting on February 17, 2005. A resolution to approve the capital reserves reduction will be put forth for a vote at the 8th Annual General Shareholders Meeting on March 30, 2005. Current capital reserves are 25,135,769,677 yen. Capital reserves reduction will be 10,000,000,000 yen. (For full release, please refer to Japanese IR release.)

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