RNS Number:3840P
Autobacs Seven Co.Ld
04 September 2003

(Translation)

September 4, 2003

To Whom It May Concern:



Koichi Sumino
Chief Executive Officer and Representative Director
Autobacs Seven Co., Ltd.
13-16, Mita 3-chome, Minato-ku, Tokyo
(Code No. 9832 of the First Section of the Tokyo Stock Exchange and the Osaka
Securities Exchange. The London Stock Exchange)
Person to Contact:
Takashi Matsuo
Director
Telephone No: 03-3454-0062


Announcement on determination of terms and conditions of Euro Yen Zero Coupon
Convertible Bonds due 2023


AUTOBACS SEVEN CO., LTD. (the "Company") has determined at a meeting of the
Board of Directors held today the following terms and conditions of the Euro Yen
Zero Coupon Convertible Bonds due 2023 (bonds with stock acquisition rights,
tenkanshasaigata shinkabu yoyakuken-tsuki shasai) (hereinafter referred to as
the "Bonds with Stock Acquisition Rights", of which the Bonds and the Stock
Acquisition Rights are to be hereinafter referred to as the "Bonds" and the
"Stock Acquisition Rights", respectively), issuance of which was resolved by the
Board on September 3, 2003.



Description


1. Matters Regarding the Stock Acquisition Rights
(1) Base Conversion Rate                                                                        1,552.79
(Reference)
       a. Base Conversion Price*                                                               JPY 3,220
       b. Share Price (Closing) on September 3, 2003                                           JPY 2,300
on the Osaka Securities Exchange
       c. Premium (((Base Conversion Price) / (Share                                               40.0%
Price (Closing)) -1)*100)

(2) Incremental Share Factor                                                                    2,173.91

(3) Maximum Conversion Rate                                                                     1,976.28

(4) Rationale for establishing the The issue price of the Stock Acquisition Rights has been determined
issue price of the Stock           as zero, taking into consideration that the Bonds and the Stock
Acquisition Rights and the amount  Acquisition Rights have a close interrelation on the grounds that the
to be paid upon exercise thereof   Stock Acquisition Rights are incorporated in the bonds with stock
                                   acquisition rights of a convertible bonds type (tenkanshasaigata) and
                                   shall not be transferable separately from the Bonds and that all the
                                   Bonds shall cease to exist upon exercise of the related Stock
                                   Acquisition Rights due to substitute payment; and also taking into
                                   consideration the value of the Stock Acquisition Rights and the
                                   economic value obtainable from the interest rate, the issue price and
                                   other terms and conditions of the issue of the Bonds.  The amount to
                                   be paid upon exercise of each Stock Acquisition Right has been
                                   determined as the amount equal to the issue price of each Bond since
                                   the Bond with Stock Acquisition Right is bond with stock acquisition
                                   rights of a convertible bonds type (tenkanshasaigata).  The initial
                                   Base Conversion Rate has been determined as 1,552.79 (the initial
                                   Base Conversion Price corresponding thereto is the closing price
                                   (regular way) of the shares of common stock of the Company on the
                                   Osaka Securities Exchange Co., Ltd. on September 3, 2003 plus 40.0%).

       * Base Conversion Price is the amount in yen computed by dividing the
principal amount of each Bond, JPY 5,000,000, by the Base Conversion Rate
(amounts less than one yen are omitted), and is equal to the amount calculated
using from the above premium based on the above share price (rounded down to the
nearest yen).


 (Reference-1)


  1. Calculation of Conversion Rate

         The Stock Acquisition Rights are designed to change the conversion rate
according to the level of stock price at exercise (the Applicable Stock Price).

         Specifically, the conversion rate determined by the Stock Acquisition
Rights is calculated by the following formula:
 Conversion   =      Base      +    Applicable   -  Base Conversion Price  *   Incremental
    Rate          Conversion       Stock Price                                Share Factor
                     Rate         Applicable Stock Price


         In any event, however, the Conversion Rate shall not exceed the Maximum
Conversion Rate of 1,976.28 provided in 1.(3) above.



  2. Calculation of Conversion Price

         The amount to be paid per share upon exercise of the Stock Acquisition
Rights (the "Conversion Price") shall be the amount in yen obtained by dividing
the principal amount of each Bond, JPY 5,000,000, by the Conversion Rate
calculated based on the above 1 (amounts less than one yen are omitted).



(Reference-2)

1. Total Amount of Issue of the Bonds:                The aggregate of JPY8,500,000,000, plus an aggregate
                                                      principal amount of the Bonds in respect of the Bonds
                                                      with Stock Acquisition Rights to be additionally
                                                      issued upon exercise of the option granted to the
                                                      Manager as set forth in terms and conditions of the
                                                      Bonds, and an aggregate principal amount of
                                                      replacement Bond Certificates that may be issued
                                                      against appropriate evidence and indemnity in case of
                                                      loss, theft or destruction of any Bond Certificate.

2. Date of Resolution of Issuance:                    September 3, 2003

3. Subscription Period:                               Not applicable.

4. Date of Payment and Date of Issuance:              September 22, 2003

5. Exercise period of the Stock Acquisition Rights    From and including October 22, 2003, up to, and
                                                      including September 15, 2023 when the Exercise Agent
                                                      closes its business (hereinafter referred to as the
                                                      "Exercise Period").

                                                      Provided, however, that the Stock Acquisition Rights
                                                      shall not be exercised in each case (i); if the
                                                      relevant Bond shall have been called for redemption at
                                                      the Company's option, then up to the close of business
                                                      on the 15th business day in Tokyo prior to the date
                                                      fixed for redemption thereof, or (ii); if such Bond
                                                      shall become due to be redeemed at the option of the
                                                      holder of the Bonds with Stock Acquisition Rights,
                                                      then up to the time when the relevant notice of
                                                      redemption is deposited at the specified office of an
                                                      Agent of the Bonds, or (iii); if the Bonds shall
                                                      become due and repayable before their maturity, then
                                                      up to the time when such Bonds shall become so due and
                                                      repayable; provided, however, that the relevant
                                                      Deposit Date falls during the Exercise Period above,
                                                      and provided further that in no event shall the Stock
                                                      Acquisition Rights be exercised after September 15,
                                                      2023.

6. Other conditions for the exercise of the Stock     (A)      No Stock Acquisition Right may be exercised
Acquisition Rights                                    in part only.

                                                      (B)      A holder of the Bonds with Stock Acquisition
                                                      Rights may exercise the Stock Acquisition Rights on
                                                      and after the first day of any calendar quarter until
                                                      the end of such quarter; provided that the relevant
                                                      Deposit Date falls during the Exercise Period only if
                                                      the closing price of the shares of common stock of the
                                                      Company for any twenty (20) trading days in a period
                                                      of thirty (30) consecutive trading days ending on the
                                                      last trading day of the immediately preceding calendar
                                                      quarter is more than 110% of the Base Conversion
                                                      Price; provided, however, that, conditions regarding
                                                      the exercise of the Bonds with Stock Acquisition
                                                      Rights set forth in this clause will not apply during
                                                      the period set forth in (a) through (c) below.

                                                      (a)       During any period in which the credit rating
                                                      assigned to the senior long-term debt of the Company,
                                                      or to the Bonds by Standard & Poor's Ratings Services
                                                      or its successors (together, "Standard & Poor's") is
                                                      BBB- or lower, the Bonds are no longer rated by
                                                      Standard & Poor's, or the credit rating assigned to
                                                      the Bonds has been suspended or withdrawn by Standard
                                                      & Poor's.

                                                      (b)       During any period after the Company gives
                                                      notice concerning the redemption prior to maturity on
                                                      the Company's option to the holder of the Bonds with
                                                      Stock Acquisition Rights.

                                                      (c)       In case of consolidation in which the
                                                      Company will not be a surviving company, assignment of
                                                      all or substantially all assets of the Company, split
                                                      of the business of the Company (in which obligation of
                                                      the Company under the Bonds with Stock Acquisition
                                                      Rights is transferred to the Company to which the
                                                      business is transferred) or share exchange
                                                      (kabushiki-kokan) or share transfer (kabushiki-iten)
                                                      by which the Company becomes a wholly-owned subsidiary
                                                      of another corporation is performed, the period from
                                                      and after the date which is thirty (30) days prior to
                                                      the effective date thereof until one day prior to the
                                                      relevant effective day; provided, however, that such
                                                      effective date shall be set forth in a notice given by
                                                      the Company to the Trustee and the holder of the Bonds
                                                      with Stock Acquisition Rights.


7. Maturity Date:                                     September 30, 2023




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