May 31, 2000 Update on Preparations for the Merger of Sumitomo Marine and Mitsui Marine Extensive Study of Systems Integration 1. Key Components of Systems Integration Study   (1) IT Integration Committee     * An IT Integration Committee has been set up to oversee the planning,design and execution of company-wide systems, from the pre-mergerstage through to the final integration of our two firms. Owing to the study in the committee, we are now confident in building upthe most efficient IT systems with reasonable investments leading up to the merger, and have been able to conduct a consistent and unifiedstudy into the implementation of seamless, speedy IT systems.     * Under the IT Integration Committee, we have set up about 40 subcommitteeswhich are now actively carrying out this extensive study. These include subcommittees for developing an integrated client data base, an agency network system, and call center.Each is a key element of our new IT strategy and will be closely studied intandem with the ongoing integration of our existing systems.   (2) Joint Development Center for IT Systems     * In order to centralize the development of such integrated systems, we haveopened a joint development center in Chiyoda-ku in Tokyo. From June, a totalof about 100 personnel from both companies will be relocated here to begintackling our new systems development activities. 2. Key Directions in Our Systems Integration Study   With regard to post-merger computer systems, we have agreed on the following key directions and are now conducting in-depth analyses into each of them.   (1) To maximize the effectiveness of our host computers and fully realize the synergyof existing system resources, we will continue to utilize the systems already inplace in both our companies. However, by the second year after our merger, all systems in both companies will be integrated with Mitsui Marine hostcomputers and connected using hub servers as part of the foundation for a 24-hour, 365-day open operating system.   (2) We arebuilding internet support functions into the information networks of bothfirms, utilizing large-capacity ATM lines. Our networks will integrate a widerange of communications, including e-mail, internal phone calls, host onlinebusinesses, and host-computer communications. Moreover, the intranet systemwill deliver integrated contents to both our firms using Sumitomo Marine's SKYNet.   (3) For the agency network, we will build new expanded-function systems byintegrating Agent 21 System, now under development by Mitsui Marine, and Sumitomo Marine's SKY Net.