MUGEN no more!!!

[AP1 F20c]

It is truly regrettable that our Company and its representative director, Hirotoshi Honda, were indicted for suspicion of the violation of Corporation Tax Law. In spite of understanding of our clients and their guidance and assistance toward our Company's motor sports business, we have caused tremendous troubles and anxiety to our clients. We wish to express our sincere apology from the bottom of our hearts.

Hirotoshi Honda, the representative director, seriously accepted the situation of this case as the chief executive officer and expressed his intention to resign actually from the management of our Company. As a result, it has been decided that our Company is scheduled to assign our entire business as of January 1, 2004 to a new company "Kabushiki Kaisha M-TEC" which will be incorporated on October 1, 2003 and this new company will succeed to and continue the entire business of our Company.

Moreover, in order to avoid absolutely situations of creating troubles and delay in our business or causing inconveniences to our customers or those who are related to the racing business world, we requested the cooperation of our major client, Messrs. Honda Motor Co., Ltd. for continuation of our business. We received a reply from Messrs. Honda Motor Co., Ltd. that our business contracts including the race participation consignment contracts would be assigned to the new company. Therefore, in the future, the new company will continue our business transactions with Messrs. Honda Motor Co., Ltd.

Our Company has already asked outside professionals to participate in our management and commenced the drastic management reform to review the business management in general, without any sanctuary, to prevent recurrence of scandals and to secure transparency in decision making in the company management. Based on the same fundamental understanding, the new company intends continuously to contemplate intensification of compliances by its officers and employees.

We again wish to express our sincere apology for causing tremendous inconveniences toward our customers as a result of this event and request your continuous guidance and support in the future.

<Outline of New Company>
Trade Name: Kabushiki Kaisha M-TEC
Representative: Shin Nagaosa, director of our company
Location of Head Office: 2-15-11, Hizaori-cho, Asaka City, Saitama Prefecture
Capital: 30,000,000yen
Business Assignment:


Generally, the new company succeeds to entire business, all employees, current facilities, contracts, etc. of our company. However, as for MUGEN brands (trademarks), the new company will continuously use them by concluding an exclusive license agreement with our Company.

http://www.mugen-power.com/en/mtec-e.htm

[A'PEXi]

lol so its not really gone :P