Sakura Bank and Fujitsu To Jointly Establish Japan's First Internet/Online Bank

FOR IMMEDIATE RELEASE
The Sakura Bank, Limited
Fujitsu Limited

Sakura Bank and Fujitsu To Jointly Establish Japan's First Internet/Online Bank

-- Will pioneer convenient and efficient "branch-less" network banking --
Tokyo, July 26, 1999 -- The Sakura Bank, Limited and Fujitsu Limited have reached a basic agreement to jointly establish Japan's first online-only network-based bank aimed at the Internet and online-information service users. The new "network" bank will be managed by Sakura Bank, while service will be offered initially through @nifty, Japan's largest service provider, which Fujitsu will begin operating in November of this year. Network banking will offer @nifty's 3.5 million subscribers a new and better way to handle their banking needs. Both companies are moving forward with their plans to begin operation of the new network bank during the first half of fiscal year 2000.
It is anticipated that Japan will have more than twenty million Internet users at the dawn of the millennium. Moreover, recent market surveys indicate that over 50% of Internet users in Japan would like to take advantage of network banking. Recognizing the great potential of this emerging network community, Sakura Bank and Fujitsu concluded that network banking promises to be a high-growth business, and they decided to move quickly to establish the new venture . Both companies believe, furthermore, that the new network bank will become a key part of the infrastructure for the network society.
Breaking completely the banking industry's existing practices and cost structures, the new network bank will provide the growing number of network consumers with highly competitive financial solutions. In addition, @nifty's customers will benefit from the network bank's greater ease of use and access to products and services, particularly account settlement. Within an @nifty shopping mall, for example, an e-commerce transaction will be a simple transfer of funds from one account to another in the new network bank, without the need for a credit card or an inter-bank transfer - resulting in more cost efficient, convenient transactions.
In leading the way to a new era of network banking, this joint venture will bring together the best of both companies and provide highly convenient services for the network consumers.
Outline of the new network bank (Tentative)

Name: To be decided.

Capital: About 20 billion yen. (Sakura Bank: 90%, Fujitsu: 10%)

Management: Planned to be provided by Sakura Bank.

Employees: Initially about 20 in addition to customer support.

Outlets: One main office. The principal sales channels will be through the Internet, online information services and telephone.

Products: Liquid deposits, time deposits, remittances and transfers, small loans, etc.

Transaction: Through @nifty. Also by Internet, online information services, mail, telephone and fax.

Scale of operation: Initially aim for one million accounts.

About Sakura Bank
The Sakura Bank, Limited (TSE: 8314) as one of Japan's leading financial institutions, was formed through the merger of the Mitsui Bank, Limited, and the Taiyo Kobe bank, Limited, in April 1990, and its origins dating back to 1683. Among Japanese banks, Sakura ranks number one in terms of total loans outstanding to individual customers, and is a leader in housing loans, the top consumer lending product. While acting an important role in the Mitsui Group, which is one of the biggest corporate groups, Sakura will focus on commercial banking business as one of its core businesses by fully utilizing its strengths and the latest technology.
With total consolidated assets, as of March 31, 1999, of 49.0 trillion yen ($406billion), deposits of 33.3 trillion yen ($276billion), loans and bills discounted of 32.9 trillion yen ($273billion), Sakura is stepping up its activities to meet a broad range of customer needs with top-quality services. Homepage: http://www.sakura.co.jp/bank/
Fujitsu Limited
Fujitsu Limited (TSE: 6702) is a leading provider of comprehensive information technology and network solutions for the global marketplace. Comprising over 500 group companies and affiliates worldwide -- including ICL, Amdahl and DMR Consulting Group -- the Fujitsu Group had consolidated revenues of 5.24 trillion yen ($43.3 billion) in the fiscal year ended March 31, 1999. With world-class hardware and software technology in computers, telecommunications and microelectronics, and a corps of 55,000 systems and services experts around the world, Fujitsu is uniquely positioned to harness the power of the network to help its customers succeed. Altogether, the Fujitsu Group has 188,000 employees and operations in over 100 countries.
Homepage: http://www.fujitsu.com/
Information about "@nifty":
http://pr.fujitsu.com/jp/news/1999/Jul/8-e.html

Press Contacts:

Hiroshi Kawasaki
The Sakura Bank, Limited, Public Relations Div.
Tel: +81-3-3230-3111 (Tokyo)
Fax: +81-3-3239-1022
Isao Hirano, Bob Pomeroy, Scott Ikeda
Fujitsu Limited, Public Relations
Tel: +81-3-3215-5236 (Tokyo)
Fax: +81-3-3216-9365

Name:	To be decided.
Capital:	About 20 billion yen. (Sakura Bank: 90%, Fujitsu: 10%)
Management:	Planned to be provided by Sakura Bank.
Employees:	Initially about 20 in addition to customer support.
Outlets:	One main office. The principal sales channels will be through the Internet, online information services and telephone.
Products:	Liquid deposits, time deposits, remittances and transfers, small loans, etc.
Transaction:	Through @nifty. Also by Internet, online information services, mail, telephone and fax.
Scale of operation:	Initially aim for one million accounts.