April 4, 2003 MS Quarterly News We are pleased to announce our report for the fourth quarter ended March 2003 as follows. Performance   (Preliminary basis for the fourth quarter of fiscal 2002(Jan-Mar 2003))   4Q fiscal 2002(Jan-Mar, 2003) From April 1, 2002 to March 31, 2003 Lines of insurance Premiums (sales basis)(in million yen) increased ratio(%) Premiums (sales basis)(in million yen) increased ratio(%) Voluntary Automobile 137,056 -0.1 583,485 0.0 Compulsory Automobile Liability 40,903 2.5 151,138 0.4 Fire 43,116 7.5 175,582 4.0 Personal Accident 23,126 2.8 99,916 2.4 Miscellaneous 32,372 -5.6 152,530 1.1 Cargo and transit 13,082 3.0 53,116 4.6 Hull 2,994 -7.0 19,348 -4.3 Total 292,649 0.9 1,235,115 1.0 *"increase ratio" stands for comparison of the 4Q of 2002/2001. Selected News Releases(Jan-Mar 2003) note: each released on the date in parenthesis • Products & Services * New Whole Life Insurances, "MS Shushin" and "MS Shushin" launched by our life insurance subsidiary (Jan 14) Mitsui Sumitomo Kirameki Life Insurance (subsidiary of Mitsui Sumitomo Insurance) developed and released a new whole life insurance to offer more payout or cancellation repayment than conventional one by linking its rate of return to fluctuation of interest rate. There are two types; "MS Shushin," whole life insurance with market-sensitive interest rate, and "MS Shushin," whole life insurance with market-sensitive interest rate (lapse-supported), with lower cancellation to be repaid. * Spring rain-linked derivatives, "Haru-same Yohjin" released (Jan 17) Developed to cover possible decrease in sales due to spring rainy days, this derivative application was offered for outdoor leisure businesses, retailers and restaurants to receive indemnity easily. * "Personal Accident Insurance for Overseas Travel Online Services" enhanced (Feb 5) The revision was made for broader services, with new functions added to, such as notifying a customer of our help contacts in case of accident to his/her mobile phone. The services started February at our agents` websites. * Automobile Insurance application form revised in customer-oriented way (Feb 10) Reflecting voices heard among our customers and agents, the revised application form is "conversational" in Q&A way in a "simplified" "guiding layout" for a new individual policyholder only to follow the lines. This format has been applied for utility model registry. * Japan's first type special condition in Fire Insurance released (Feb 12) We made an innovative provision on fire insurance policy called "Special Condition concerning consent to release pledge,". By substituting for not a few paper works among the involved parties, introduction of the special condition facilitates a smooth procedure of the right of pledge. Consequently not only the policyholder but the financial institution as pledgee and the insurer will be relieved from such troublesome works. For that purpose, we will proactively suggest adoption of the rider to the financial institutions nationwide. * Comprehensive compensation program for nursing business starts (Mar 7) In reaction to the subsidy system to be introduced in April, the package will be launched for nursing and welfare businesses. Besides comprehensive liability insurance for welfare business, the package will include risk management service extended jointly by InterRisk Research Institute & Consulting, one of our group members, as well as management support and other general services. * Errors and Omissions Liability Insurance for private school released (Mar 10) Released was "School E&O," errors and omissions liability insurance for private school, which covers financial loss caused by a school due to a third party's claim against a school, if such an event occurs in an operation conducted by a school as business so that it is legally liable. * New Long-term Care Insurance "V-Care" launched (Mar 24) "V-Care," long-term care insurance with a new coverage was developed to compensate not only the insured but his/her family taking care of the insured in case of lingering nursing care. It has been on the market since April 1, and we will promote its sales as well as "VIV," individual accident and medical insurance already released. • New Business and Overseas * Entry into Indian market through joint venture with local conglomerate (Jan 8) We acquired some portion of equity in Cholamandalam General Insurance under the wing of a local conglomerate, Murugappa Group, and started underwriting non-life insurance contracts April 1 in India at the joint venture with Murugappa. In the joint venture, Japan & Korea Division has been set up for direct deals with and better services to Japanese and Korean corporations there. * Representative office opens in Suzhou, China (Feb 25) China Insurance Regulatory Commission, Chinese national insurance authority, granted us permission to open a representative office in Suzhou, Jiangsu Province, China. * Venture capital subsidiary funded by governmental incubator invests in emerging ventures (Feb 27) MITSUI SUMITOMO INSURANCE Venture Capital will invest total sum of 2.2 billion yen in ventures for their incubation, including funds of 1 billion yen provided by Japan Small and Medium Enterprise Corporation. This will be the first attempt by a venture capital subsidiary of insurance company in Japan. • Others * Group system ware upgraded (Feb 7) The group system ware for employees was extended to the agents as mailing system between agents and the Company under solid security. It enables agents and the Company to communicate and exchange important information and customer data. * "Environmental and Social Activities Report 2002 - 2003 issued (Feb 25) This report contains our initiatives in environmental protections and philanthropy made from April to December 2002. Particularly in the year, all the offices obtained ISO 14001 certificates, and besides, we disclose in the booklet CO2 emission, electricity, gas and heat consumptions, final waste and introduction of low-emission vehicle by figures, aiming to lessen environmental loads in our business activities. * Group foundation awards for treatises on road safety and elderly welfare Mitsui Sumitomo Insurance Welfare Foundation set up its new award to honor the excellent writings and treatises on traffic safety and elderly welfare. Its first ceremony was held March 12 to award six works commended by the examiners among those applicants which were published during April 2001 to September 2002. * Real time reference system for automobile accidents claims handling built (Mar 25) For the agents which use Internet-based next generation agent system, "Agent MS1," a new system was developed to monitor the real time situation of claims handling of car accidents on a real time base, and will be introduced to our 40,000 agents. * "New Information Sharing System" built for entire employees (Mar 27) On the in-house intranet, "MS1," new information sharing system was mounted to activate two-way communication among employees, and will be cut off in April. Real stories such as successful or failed experiences, know-how or tips will be reported and shared among the entire employees, and it will help our customer satisfaction improve and sales capability strengthen. * Variable annuity from joint venture with Citigroup sees robust sales Mitsui Sumitomo CitiInsurance Life Insurance enjoyed robust sales of variable annuity through the channels of securities companies, commercial banks, trust banks and "shinkin" credit banks. For six months ended March 2003, it reports about 41 billion yen in sales. Amateur Sports * Women's Track and Field "Yokohama International Women's 'Ekiden' Road Relay" on Feb 23 in Kanagawa Prefecture, Japan Ms Miki Ohyama of Team Japan ran the third leg of the relay to be the leg winners, helping Team Japan win the bronze medals. "Sendai Half Marathon" on Mar 9 in Miyagi Prefecture, Japan Ms Naomi Sakashita won the race with her time of 1h 12m 10s. Ms Miki Ohira also finished up with the third prize by her time of 1h 13m 32s. * Women's Judo "2003 Paris Ile-de France International Tournament" on Feb 8-9 in Paris, France Ms Norie Ueno won the silver medal in 63kg-class while Ms Tomoe Makabe the bronze in 48kg-class. "36th International Judo Tournament of Prague Noris Cup 2003" on Mar 15-16 in Prague, Czech Ms Hitomi Kaiyama won the gold medal in 70kg-class, and Ms Hitomi Tokuhisa the bronze in 63kg-class as well.