July 28, 2000 Re: Progress Report on Pre-merger Activities Expansion of reciprocal usage of claims survey subsidiaries The claims service subsidiaries, The Sumitomo Kaijyo Claims Services (Motor) Co., Ltd. and Mitsui Kaijyo Motor Claims Adjusters & Co., Ltd., have been mutually employed by both companies in Tohoku and Kyushu regions since May of this year, which enables both companies to complement their claims service networks, effect a speedy investigation of damaged vehicles, effect a quick pay-out of claim payment, and otherwise improve claims services to our customers. In view of the positive results in these regions, the reciprocal use of adjusters will be expanded nationwide by September.