SNK filed for court-mandated rehabilitation on April 2nd.

SNK was established in 1978 as Shin Nihon Kikaku, and changed its name to SNK
in April 1986. It was known as a middle-upper class arcade game and amusument
facility manufacturer. It released NEO-GEO consumer console in 1990. "Samurai
Sprits" won the Gamest Aword in 1993. After that, it grew steadily with "Garou
Densetsu" series, "Ultra Denryu Ira Ira Bou" and etc, marked yearly sales of 49
billion Yen in 1995. 

However, the sales of the sequel geme consoles for next generation named "Hyper
NEO-GEO 64" and "NEO-GEO Pocket" were sluggish under heavy competition. In
addition, arcade dived in sales. In Augst 1999, SNK failed the launch of
"NEO-GEO Pocket" in US and carried great deal of iventory. As the result of
that, cash-flow disimproved and it has 8,540 million yen losses for this term.

Aruze, Ltd. which is listed company acquired an interest of SNK, went ahead
with closing brach offices, divestiture and lightening inventories. In March
2001, SNK applied for debtor exemption under the Conciliation Act, but before
the negotiation, it took the action.

The amount of debt is 38,000,000,000 yen.