News Release

August 10, 2000
The Sakura Bank, Limited

Establishment of Factoring Company

The Sakura Bank, Ltd. (Akishige Okada, president) has got the approval for the establishment of factoring specialized company by Financial Services Agency.

Outline of the new company

Name: Sakura Factors Co., Ltd.
Capital: JPY 3.0 billion
Shareholders: Sakura Bank(100%)
President Fuminori Yoshitake (General Manager, Middle Market Banking Division, Sakura Bank)
Headquarter Tokyo
Main businesses Guarantee and purchase of sales credit and bills receivable
Middle of August 2000
Late August 2000

Specific Features of new company

1. Risk control based on quantification of the risk
-Quantification of credit risk by the statistical analysis of financial data
-Fulfillment of ROE management through the controlled risk and balance by practical portfolio management
2. Quick response to variety of customers needs through the business process revolution
-Development of specialized system for factoring and reduction of time for loan examination
-Establishment of database covering wide variety of buyers through the quantification model for credit risk as well as the utilization of existing factoring subsidiary.
3. Lower fee realized by the cost reduction in the process and operation system
-Fees depending on the credibility of the buyers (from 1 % to 6%)
-Attractive low fees through the minimum examination and management costs
4. Guarantee of credibility of buyers as main business
-Suitable for outsourcing of management of credit between firms
-Smoothing of trade by the enhancement of buyers' credibility
-Credit enhancement for trade on the Internet
-Attractive low fees through the minimum examination and management costs