19th July, 2012
To whom it may concern
Mizuho Securities Co., Ltd.

Mizuho Securities USA Inc. reaches Settlement Agreement with the U.S. Securities and Exchange Commission

Mizuho Securities USA Inc. ("MSUSA"), the U.S. broker-dealer subsidiary of Mizuho Securities Co., Ltd ("MHSC"), has entered into a Settlement Agreement with the U.S. Securities and Exchange Commission ("SEC") in relation to a collateralized debt obligation ("CDO") which was structured and marketed by a unit within MSUSA five years ago. MSUSA and the SEC filed the settlement document with the U.S. federal district court on July 18 (NY time), and the settlement will be effective upon court approval.
The SEC's investigation in relation to a CDO called Delphinus 2007-1 focused on whether certain former employees of MSUSA provided inaccurate information to a rating agency, Standard & Poor's. MSUSA cooperated fully throughout this process and now has agreed to the settlement to avoid protracted litigation and distraction.
Under the terms of the settlement, MSUSA was not charged with acting with fraudulent intent or engaging in intentional misconduct and the firm did not admit wrongdoing. Settlement payment would amount to $127.5 million. MHSC reserved for most of the settlement amount in its consolidated account in the fiscal year ended March 31, 2012, and thus the payment will not have a material adverse effect on MHSC's consolidated financial statements for the fiscal year ending March 31, 2013.
MSUSA terminated its CDO structuring unit in 2007, and the firm is no longer engaged in the CDO
business. MSUSA is not under investigation by the SEC for any other transaction.
MHSC and its affiliates (domestic and overseas) are committed to conducting their businesses in strict compliance with all applicable laws and regulations.

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