IBM Japan Selected by Mitsui Mutual Life as $US1 Billion Technology Partner

Largest Such Deal in History of Japanese Insurance Industry

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Tokyo, Japan - 05 Apr 2000: -- IBM announced today that Mitsui Mutual Life Insurance Co. has selected it as its technology partner in a 10-year agreement worth over $US1 billion, the largest ever within the Japanese insurance industry. For Immediate Release, April 5, 2000.

IBM Japan and Mitsui Life will establish a joint venture company staffed by employees from both Mitsui Life and IBM Japan. The joint venture is expected to begin operations in October.

This is the first case of full outsourcing in the Japanese insurance industry and will cover management and maintenance of Mitsui Life's host system, development and maintenance of new systems utilizing the latest developments in information technology, management of network linking servers and the provision of PCs to some 780 offices throughout Japan.

With Japan's financial deregulation, the financial industry is undergoing changes at a rapidly growing speed and is increasingly utilizing information technology solutions to build a strong business foundation that provides new services to its customers. To respond to these developments swiftly and gain leadership in the industry, Mitsui Life has decided to engage in strategic outsourcing with IBM, with which it has worked closely for the past 45 years.

Mr. Hiroshi Nishimura, executive managing director, said that Mitsui Life's objective in outsourcing to IBM is to increase its competitiveness in the marketplace based on access to a world class IT infrastructure.

"Outsourcing to IBM will take advantage of IBM's information technology leadership in e-business and networking to bolster Mitsui Life's information systems and help us implement information technology solutions that are closely linked to our business strategies, such as new financial products offered electronically 24 hours a day," Mr. Nishimura said.

Mr. Takuma Otoshi, president of IBM Japan, said Mitsui Life is one of the most forward thinking insurance companies in Japan and is taking steps to ensure that it continues to provide exceptional customer service and remains a leading player in the marketplace.

"Mitsui Life and IBM have worked together for over 45 years and IBM's understanding of their business will help with the transition to the joint venture company and to fully outsourced IT operations," Mr. Otoshi said. "This demonstrates that Mitsui Life understands the strategic impact information technology can have on a business and is utilizing that power to achieve real benefits."

Mitsui Life was founded in 1927 and is one of the largest life insurance companies in Japan. Recently, Mitsui Life has been playing an active role in the financial markets both in Japan and overseas as a major institutional investor. At the end of fiscal year 1998, Mitsui Life held a total of US$832 billion life insurance in force, and its total assets amounted to US$83 billion, making the company one of the leading life insurance companies in the world.

The contract will be managed by IBM's services arm, IBM Global Services -- the world's largest information technology services provider, with 1999 revenues of over $32 billion. Services is the fastest growing part of IBM, with more than 140,000 professionals serving customers in 160 countries. IBM Global Services integrates IBM's broad range of 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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