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Mitsui Marine and Fire Insurance Selects IBM for $235 million Outsourcing Contract

Largest Strategic Outsourcing Contract in History of Japanese Insurance Industry

August 24 - 24 Aug 1999: Tokyo, Japan ... IBM and Mitsui Marine and Fire Insurance Co., Ltd. today announced that Mitsui has outsourced its host systems operation and management to IBM, in a $235 million, 10 year contract effective from August 1, 1999. This is the largest outsourcing contract in terms of a contract price in the history of the Japanese insurance industry.

Mitsui Marine CIO, CHO & Executive Vice President, Mr. Takashi Kawahara said he has three clear objectives in outsourcing to IBM.

"Firstly, we want to improve the quality of our system using state-of-the-art systems technologies, " he said. "Secondly,the outsourcing will enable Mitsui Marine to strengthen its competitiveness by shifting resources to its core strategic areas, and thirdly, we expect to reduce the cost of running our Information Technology systems."

"Moreover, this outsourcing arrangement is expected to enable Mitsui Marine to make the most of its IT in a strategic and speedy manner to help Mitsui Marine realize its sales strategy and maximizeits customer satisfaction," he said.

Through these efforts, Mitsui Marine aims to improve the responsiveness of its system, so that it can adapt to rapid changes in its business environment and quickly implement marketing strategies.

"The outsourcing will make it possible to charge a part of information processing costs to income of Mitsui Marine so that it may improve its financial structure," said Mr Kawahara.

"This contract will enable Mitsui Marine to restructure its information systems division and focus its limited management resources on its strategic businesses," said Mr. Takuma Otoshi, General Manager of IBM Global Services, Japan.

"IBM aims to provide a stable operations service, at the highest level in the insurance industry, using state-of-the-art technologies and the know-how IBM has developed as a result of past outsourcing engagements," Mr Otoshi said.

IBM's services arm, IBM Global Services, the world's largest IT services company will undertake the contract, bringing withit years of experience in strategic outsourcing and the insurance industry.

Established in 1918 as Taisho Marine and Fire Insurance Co., Ltd., Mitsui Marine and Fire Insurance Co., Ltd., acquired its current name in April 1991 and has matured into Japan's third largest non-life insurance company. Mitsui Marine is a leading provider of a diverse range of insurance solutions that cover a broad array of personal, industrial, commercial, and retail risks. Ithas a solid reputation in all of the world's leading insurance markets and has total assets of $31.4 billion at March 31, 1999. Mitsui Marine's shares are listed on the Tokyo Stock Exchange as well as on the Luxembourg and Paris stock exchanges.

IBM Global Services is the world's largest information technology services provider, with revenues of approximately $29 billion in 1998. Services is the fastest growing part of IBM's business, with more than 130,000 professionals operating in 160 countries. IBM Global Services integrates all of IBM's capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. For more information visit http://www.ibm.com/services.

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Contact(s) information

Amanda Garland
IBM
61-2-935-44881
amandag@au1.ibm.com

Akira Furuichi
Mitsui Marine and Fire Insurance Co., Ltd.
81-3-3259-3102
akira.furuichi@mitsuimarine.co.jp

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