May 31, 2000 Update on Preparations for the Merger of Sumitomo Marine and Mitsui Marine Integration of Subsidiaries and Affiliates 1. Early Integration of Investment Management Subsidiaries In advance of the actual integration of the two mother companies, we aim to integrate by April 2001 two wholly-owned subsidiaries, Sumitomo Marine Asset Management Co., Ltd. and Mitsui Marine Asset Management Co., Ltd., which will focus on the strategic development of financial services businesses, including mutual funds management and investment advisory services. The new subsidiary is expected to be a top performer in managing the assets of their mother insurance companies while also strengthening our capabilities in the area of asset management, including the management of mutual funds and pension plans. Economy of scale generated from managing assets of nearly Yen 3 trillion, together with the combined high quality and expertise of our two companies in fund management, are expected to help enhance our presence in this market. 2. Early Integration of Long-term Care Service Affiliates Pending shareholder approval, three affiliated companies will be integrated in March 2000: Sumitomo Marine Sawayaka Net, Co., Ltd., Mitsui Marine's affiliate, Life Service Network Co., Ltd., and Well Life Service, Co., Ltd. The consolidation of these operations is intended to expand service to policy holders and also reinforce our position in long-term care services, which are projected to be a major high-growth industry. 3. In addition to the above mentioned subsidiaries, our life insurance and other subsidiaries will start conducting joint businesses as soon as possible to realize increased synergy in all areas. Plans call for the full integration of these subsidiaries in October 2001 to coincide with the scheduled merger of the mother companies.