September 27, 2004 MSI Launching Risk Management Operation in India Mitsui Sumitomo Insurance Co., Ltd. ("MSI") (President and CEO Hiroyuki Uemura) agreed on 25th September to invest in a risk management joint venture under the wings of the Murugappa Group in India and re-establish it as Cholamandalam MS Risk Services Limited. The Murugappa Group ("Murugappa") is the partner in the joint venture of MSI's non-life insurance unit, Cholamandalam MS General Insurance. The new company will start its operation on end of October. This is the only one in operation in India as a risk management firm of an insurer's group in that country. The MSI group is going to offer enhanced and broad-ranging services by combining non-life insurance and risk management functions to customers there. 1. Company profile • Name : Cholamandalam MS Risk Services Limited • Paid-in capital* : 20 million Indian rupees, worth about 50 million yen converted at a rate of 2.5 yen per rupee • Representative : Chairman M. A. Alagappan, who also acts as chairman of Cholamandalam MS General Insurance Company Limited • Head office : Chennai, India, formerly known as Madras • Offices : Chennai and Dehli, India • Stakes in equity* : 50% held by MSI and 50% by Murugappa • Board members : 3 representing MSI and 3 representing Murugappa • Business scope : risk analysis, risk management seminars for corporate clients safety compliance clinic program, etc. • No. of engineers : five • Net sales : fiscal 2003 : 4.42 million Indian rupees (approx. 11.0 million yen) fiscal 2004 (projected)   11.14 million Indian rupees (approx. 28.0 million yen) * The paid capital and stakes in equity represent numbers after taking investment to be made by MSI into account. 2. Background and reasons (1) In India, various natural disasters have taken place such as an earthquake in the northern part and floods caused by cyclones in the Bengal area. Besides, risks tend to grow gigantic and become diversified due to recent years' rapid growth of India's economy. Reflecting this observation, risk management needs are increasing at those corporations which want protection from damage related to such disaster. (2) Liberalization of economy system, adoption of legal systems similar to those in the western nations and introduction of international standards in the safety control and environmental areas are also leading to raising risk management awareness. (3) Risk management should be conducted integrally in a way that preventive measures are taken against accident and resultant damages and liabilities are covered by insurance. Based on this idea, MSI determined to invest in the joint venture, aiming that it will facilitate offering such total solution to clients. (4) This is MSI's third risk management operation, following Inter-Risk Research Institute & Consulting Inc. [in Tokyo] and Interisk Asia Pte., Ltd. in Singapore. • Appendix contains summary of risk-related services in India, company profile of Cholamandalam MS General Insurance, photos of the signing ceremony, etc.