October 26, 2000 Strategic Alliance by Mitsui Group's Three Financial Companies The Sakura Bank,Ltd. Mitsui Marine & Fire Insurance Co.,Ltd. Mitsui Mutual Life Insurance Co. The Sakura Bank, Ltd. (President, Akishige Okada, "Sakura Bank"), Mitsui Marine & Fire Insurance Co., Ltd. (President, Takeo Inokuchi, "Mitsui Marine"), and Mitsui Mutual Life Insurance Co. (President, Akira Miyake, "Mitsui Life"), Mitsui group's three financial companies, completed a strategic alliance agreement today. Under the agreement, these three companies will strengthen their current close relationships and develop strategic tie-ups to realize more convenient services for their clients towards the 21st century. 1.The background and the purposes of this agreement Under the economic and financial globalization and the Japanese financial Big Bang, many alliances and mergers have been announced in the financial sector and many financial groups have been made beyond the former frames. In addition, in the insurance sector, speed of the environmental changes, such as expanding deregulation of insurance products and premiums, coupled with the entrance of foreign companies and participants from other industries, has been accelerated fiercely. Under such highly competitive circumstances, the three companies think that it is essential to strengthen the customer coverage ability to offer best quality products and services, and business development power. The three companies also think that it is crucial to improve the ability to offer comprehensive insurance products / services as well as composite financial products / services made by the solid tie-up by financial group companies. With such basic concepts, in the insurance sector, Mitsui Life Group and Mitsui Marine Group agreed to strengthen their close relationship and completed tie-up agreement to strengthen their ability to offer comprehensive insurance products / services as Mitsui group companies, by utilizing both companies' resources, know-how, and competitive edge. And, Sakura Bank, Mitsui Marine, and Mitsui Life have agreed that the three companies will strengthen the current good cooperative relationship in the Mitsui group further in order to keep offering best financial and insurance services to the clients. The three companies will start discussing possibilities of joint business development. In addition, Chuo Mitsui Trust & Banking is considering its participation in specific joint projects planned and realized by the Mitsui Group companies. 2.Outline of Business Tie-ups (1)Tie-up by Mitsui Marine and Mitsui Life Both companies will start realizing business in the following fields. (This plan is on the assumption that the authority will give approval to the companies if needed.) 1) Cross Product Supplies / Sales Non-life insurance field · Mitsui Life will sell Mitsui Marine's following products as sales agent ; Risk management type products for corporation (including ART and derivatives) Products / services for large corporations' overseas business such as global insurance programs · Towards the Mitsui Life's sales force, Mitsui Marine together with Mitsui Seimei General Insurance Co., Ltd., a subsidiary of Mitsui Life will offer deregulated type products like new type automobile insurance on a co-insurance basis. Life Insurance field · Mitsui Life will supply following products to Mitsui Marine. Individual variable annuity Group pension plan · In the so-called third sector products - insurance for specific disease like cancer, Mitsui Mirai Life Insurance Co., Ltd., a subsidiary of Mitsui Marine, will supply products to Mitsui Life's internet insurance sales company. The internet insurance sales company, planning to start business early January 2001, will start the sales of the third sector products as the sales agent of Mitsui Mirai Life Insurance at the same time as the deregulation of such products becomes effective. This activity will be the first one in the industry. · Regarding the traditional life insurance products, both companies will consider possible tie-ups like, Mitsui Life's offering of life insurance business know-how, and both companies' joint marketing & product development. 2) Outsourcing of claims survey Outsourcing range of the claims survey from Mitsui Seimei General Insurance to Mitsui Marine will be expanded. 3) Development of joint sales products Both companies will consider joint marketing of jointly developed composite products. (2)Tie-up by Sakura Bank, Mitsui Marine, and Mitsui Life Together with the tie up by Mitsui Marine and Mitsui Life, Mitsui group's three financial companies, the two and Sakura Bank, will consider developing composite financial products and services covering banking sector and insurance sector. Currently, the three companies are planning to start joint development in the following fields; Employee benefit programs The three companies will consider jointly developing comprehensive and value-added corporate welfare acting service business by closely co-working with such services providers. Consumer loans Sakura Bank will set up housing loan centers at Mitsui Life's branch offices, and both companies will expand housing loan business together with related insurance business jointly. Mitsui Life will totally work with Sakura Bank for the new consumer loans to Mitsui Life's clients. Optimal mix of banking products and insurance products Towards Sakura Bank's individual clients, three companies will consider jointly developing new optimal mix products of banking and insurance field. New IT businesses Mitsui Life will join the financial portal site business started by Sakura Bank, Mitsui Marine, and others. Three companies will consider other new IT businesses. Others Three companies will consider various joint business development as following examples. Mitsui Life will join loan syndication arranged by Sakura Bank Mitsui Life's clients will be able to do financial transactions through Sakura's ATM network Sakura Bank and Mitsui Life will jointly propose asset factoring business to Mitsui Life's close medical institutions. 3.Schedule The three companies will form project team for each potential business field in the FY2000 in order to realize business plans.