Main

Mitsui & Co. announces Strategic Alliance with Central Finance, Sumitomo Mitsui Financial Group in Consumer Finance Business

Apr. 27, 2007


Main Contents

Today, Mitsui & Co. Ltd. ("Mitsui") agreed to enter into a strategic alliance in consumer finance business with Central Finance Co., Ltd. ("CF", TSE 8588), Sumitomo Mitsui Financial Group ("SMFG", TSE 8316), and related subsidiary and affiliated companies (Sumitomo Mitsui Banking Corporation ("SMBC"); Sumitomo Mitsui Card Co., Ltd. ("Sumitomo Mitsui Card") and Quoq, Inc. ("Quoq").
Under this agreement, each of the companies will collaborate to develop high-quality products and services to fulfill the needs of customers, utilizing knowledge and expertise that each company has established.
At the same time, CF will issue new shares and convertible bonds to SMFG, SMBC and Mitsui amounting approximately 7.7 billion yen, 11.7 billion yen and 19.3 billion yen respectively. After the transaction, Mitsui will own 10% of CF’s total issued shares and retain an option to increase its share to 20% on a fully diluted basis.

Conditions of acquisition

Common stock to be issued by CF

(1)Number of Shares 31,638,000 shares (common stock)
(2)Price 607 yen per share
(3)Total amount 19,204,266,000 yen
(4)Payment date May 14, 2007
(5)Number of shares currently held by Mitsui Nil
(6)Number of shares Mitsui will hold after acquisition 12,706,000 shares
(10% of total issued shares as of May 14, 2007)

Convertible bond to be issued by CF

(1)Total amount 19,500,000,000yen
(2)Amount payable by Mitsui 11,600,000,000 yen
(3)Payment date May 14, 2007

Mitsui recognizes that the business environment surrounding consumer finance business, including installment finance and credit card business, is experiencing significant change. However, with the domestic consumer spending amounting to approximately 300 trillion-yen expected to continue growing, Mitsui views the consumer finance business as a potentially promising area.
Through this strategic alliance, Mitsui intends to strengthen its financial capabilities and explore further expansion and new opportunities in consumer-related business, utilizing credit card as a part of its financial platform.

Summary

Outline of allied companies

(1)Name Central Finance Co., Ltd.
(2)Location Nagoya, Japan
(3)Main business Credit card, Installment finance, Guarantee service, Collection agency service
(4)Date of establishment Jan 28, 1960
(5)Paid-in capital 9,686 million yen (consolidate basis as of Sep 30, 2006)
(6)Stock exchange listing Tokyo (8588)
(1)Name Sumitomo Mitsui Financial Group
(2)Location Tokyo, Japan
(3)Main business Business administration of subsidiaries and related duties
(4)Date of establishment Dec 2, 2002
(5)Paid-in capital 1,420,877 million yen (consolidate basis as of Sep 30, 2006)
(6)Stock exchange listing Tokyo (8316)
(1)Name Sumitomo Mitsui Banking Corporation
(2)Location Tokyo, Japan
(3)Main business Consumer banking, Corporate banking, treasury markets, Investment banking
(4)Date of establishment Jan 6, 1996
(5)Paid-in capital 664,986 million yen (as of Sep 30, 2006)
(6)Stock exchange listing -
(1)Name Sumitomo Mitsui Card Co., Ltd.
(2)Location Tokyo, Japan
(3)Main business Credit card
(4)Date of establishment Dec 26, 1967
(5)Paid-in capital 34,000 million yen (as of Sep 30, 2006)
(6)Stock exchange listing -
(1)Name Quoq, Inc.
(2)Location Tokyo, Japan
(3)Main business Installment finance, Guarantee service, Collection agency service, Credit card
(4)Date of establishment Apr 5, 1978
(5)Paid-in capital 1,000 million yen (as of Sep 30, 2006)
(6)Stock exchange listing -

Notice:
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9819
infoTKADZ@mitsui.com
Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7562
Facsimile: +81-3-3285-9819