July 28, 2000 Re:Progress Report on Pre-merger Activities The Sumitomo Marine & Fire Insurance Co., Ltd. Mitsui Marine & Fire Insurance Co., Ltd. Following their announcement to merge in October 2001, The Sumitomo Marine & Fire Insurance Co., Ltd (President: Hiroyuki Uemura) and Mitsui Marine & Fire Insurance Co., Ltd (President and CEO: Takeo Inokuchi) have been actively engaged in integration arrangements and in forming early phase business alliances as below, provided, however, that any act and thing to implement any item listed below shall be performed only to the extent that any activities in connection with subsidiaries comply with any and all antitrust and other applicable laws and regulations in Japan, the United States and other jurisdictions. 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 1billion yen 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. 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. Examination of Corporate Identity Strategy 1.Examining structure The new company will emphasize a corporate identity strategy by which to strengthen the worth of the new company's brand name. As a first step towards developing such a strategy, a project team reporting directly to the Integration Committee has been established. The task of the team will be to develop a fresh brand name for the new company, as well as a corporate logo, corporate colors, and company slogan. 2.Appointment of advisor for corporate identity and brand strategy The Sumitomo M&F and Mitsui M&F jointly appointed an advisor for the development of a corporate identity and brand strategy with its comprehensive advice as to the overall public relations strategy, development of a basic corporate design, and the design of printed material, forms, signboards, and other advertising and public relations items. The basic corporate design will be selected by competition; specifically, the leading graphic design companies will be invited to submit samples. The goal is to have the best design selected before the end of the year. Setup of a common Web site on intranets of both companies A speedy disclosure of information related to the integration, such as the state of integration arrangements and a timetable of pre-merger alliances and other undertakings will enable both companies to derive synergetic benefits at an early stage. Toward this end, a common Web site is to be set up on the intranets of both companies in October of this year. This Web site will start with such information as progress reports and schedule on the preparations for integration from the Integration Committee, the nationwide friendship activities, the history, organization, management performance of the two companies and exchange of business expertise. The contents of the site will be expanded to the both companies' agency networks. End.