ブックメーカーサッカー and Reduction in БgCapital ReserveБh (Transfer to БgOther Capital SurplusБh)(1/1)

Sumitomo Mitsui Financial Group, Inc.

ブックメーカーサッカー (Establishment of Limit for Acquiring Own Stock pursuant to the Provisions of Item 3, Article 155 and Paragraph 1, Article 156 of the Japanese Corporate Law) and Reduction in БgCapital ReserveБh (Transfer to БgOther Capital SurplusБh)

TOKYO, May 23, 2006 --- Sumitomo Mitsui Financial Group, Inc. (ブックメーカーサッカー, President: Teisuke Kitayama) hereby announces that ブックメーカーサッカーБfs Board of Directors resolved at a meeting today to propose establishment of a limit for acquiring its own stock pursuant to the Provisions of Item 3, Article 155 and Paragraph 1, Article 156 of the Japanese Corporate Law and reduction in БgCapital reserveБh at ブックメーカーサッカーБfs 4th annual general shareholdersБf meeting to be held on June 29, 2006.

1.Establishment of the limit for acquiring ブックメーカーサッカーБfs own stock

(1) Reason for establishment of the limit

In order to have flexibility to repay public funds in a timely and appropriate manner under changing business environment, ブックメーカーサッカー will establish a limit for acquiring its own stock pursuant to the provisions of Item 3, Article 155 and Paragraph 1, Article 156 of the Japanese Corporate Law. ブックメーカーサッカー will take its financial condition and other factors into account, confer with the relevant authorities about acquisition of stock and consider using the limit to acquire its own stock, so that the acquisition will be consistent with the intent of the Law Concerning Emergency Measures for Early Strengthening of the Functions of the Financial System (Early Strengthening Law).а With regard to the outstanding public funds, ブックメーカーサッカー aims to repay them in full by the end of fiscal 2006, subject to approval of the relevant authorities, taking into consideration such factors as its financial condition, stock market and macro-economy.

(2) Details of the limit to be proposed

ブックメーカーサッカー intends to establish the limit for acquiring the types of stocks and the number of shares as shown below in exchange for cash up to JPY 1.2 trillion.

695,000 shares

(Type of stock that may be acquired)	(Number of shares that mayаbe acquired)		(Cash amount to be given in exchange for the stock acquired)
Common Stock	Upper limit	1,000,000 shares	Upper limit	JPY 1.2 trillion
Type 2 Preferred Stock	Upper limit	67,000 shares	Upper limit	JPY 1.2 trillion
Type 3 Preferred Stock	Upper limit	Upper limit	JPY 1.2 trillion
Total	Aggregate upper limit	1,762,000 shares	Aggregate upper limit	JPY 1.2 trillion

(3) Acquisition Period

From August 11, 2006 to May 31, 2007

The establishment of the acquisition limit will become effective subject to approval of shareholders at ブックメーカーサッカーБfs 4th annual general shareholdersБf meeting scheduled on June 29, 2006 and to the proposal on reduction in БgCapital reserveБh described in 2 below coming into effect.

(Reference 1) Number of shares held as treasury stock as of March 31, 2006

Number of outstanding common shares (excluding treasury stock)	: 7,417,865.62 shares
Number of common shares held as treasury stock	:а6,307.15 shares

2.Reduction in БgCapital reserveブックメーカーサッカー (Transfer to БgOther capital surplusブックメーカーサッカー)

(1) Reason for reduction

In order to ensure more flexibility and speed in implementing its financial strategy,а ブックメーカーサッカー, ブックメーカーサッカー will reduce its БgCapital reserveБh for transfer to БgOther capital surplusБh pursuant to the provisions of Paragraph 1, Article 448 of the Japanese Corporate Law.

(2) Amount of БgCapital reserveブックメーカーサッカー to be reduced

JPY 1.0 trillion
(There will be no change in the amount of total shareholdersБf equity because the amount of БgCapital reserveブックメーカーサッカー to be reduced will be transferred to БgOther capital surplusブックメーカーサッカー, which is also a component of the shareholdersБf equity.)

(3) Effective date of reduction in БgCapital reserveブックメーカーサッカー

August 11, 2006
(The reduction in БgCapital reserveブックメーカーサッカー will become effective upon expiration of the creditor demurral period.)

(Reference 2) In connection with ブックメーカーサッカーБfs establishment of the limit for acquiring its own stock as described above, Sumitomo Mitsui Banking Corporation (SMBC), a consolidated subsidiary of ブックメーカーサッカー, is expected to establish a limit (upper limit of cash amount to be given in exchange for the stock acquired: JPY 400 billion) for acquiring its own stock from ブックメーカーサッカー.

This БgNotice regarding Establishment of Limit for Acquiring Own Stock (Establishment of Limit for Acquiring Own Stock pursuant to the Provisions of Item 3, Article 155 and Paragraph 1, Article 156 of the Japanese Corporate Law) and Reduction in БgCapital Reserveブックメーカーサッカー (Transfer to БgOther Capital Surplusブックメーカーサッカー)ブックメーカーサッカー is published in order to publicly announce the facts herein described, not to solicit anyone into making any investment in or outside of Japan, nor for any other similar purposes.