July 28, 2000 Re: Progress Report on Pre-merger Activities Joint investment in a venture capital limited partnership On June 9, 2000, The Sumitomo M&F Insurance and Mitsui M&F Insurance established a venture capital limited partnership, Mitsui Marine & Fire C6, with Mitsui Marine & Fire Capital Co. (President: Yoshiyuki Mabuchi) to serve as the general partner. This partnership will operate for a period of 10 years, with a maximum extension of two years and was formed with the pooling of 1 billion in funds . The partnership will seek high returns primarily by investing in privately held domestic companies. Its goal is to establish a high-quality portfolio and to improve investment performance through a combination of the fostering and support of startup companies by Mitsui M&F Capital and diversified investments through joint financing with other venture capital. The new integrated company has set forth a policy to develop the financial services business, including asset management, venture capital, mutual funds, and defined-contribution pension plans as its third core business after its nonlife insurance and life insurance operations. This newly formed partnership will provide a means by which to quickly share expertise and know-how, which will be essential in developing the business after the integration.