Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Banking Corporation

 

Sumitomo Mitsui Banking Corporation to Acquire ブックメーカーおすすめ Card StocksShares

 

TOKYO, July 27, 2007 – Sumitomo Mitsui Banking Corporation (SMBC, President: Masayuki Oku), today resolved to acquire StocksSharesof ブックメーカーおすすめ Card, Inc. (ブックメーカーおすすめ, President and COO: Shinji Ebata) from Daiei, Inc. (Daiei, President and CEO: Toru Nishimi) and Japan Distribution Leasing Corporation (JDL, President: Shigeru Uesugi).

1. Method of Purchase

SMBC will acquire stakes inshares of ブックメーカーおすすめ through purchase of purchases of 1) Stocks Sharesand 2) trust beneficiary interests.

(1) Stock Purchase

SMBC will purchase ブックメーカーおすすめ StocksSharesfrom Daiei and JDL as the followingsfollows:

         i)     Number ofStocksSharesto be purchased from:
                 Daiei:      8,367,000 shares
                 JDL:        1,000,000 shares
                 Total:       9,367,000 shares (4.43% voting rights)

         ii)     Purchase amount*: JPY 10,303,700,000 in total or JPY 1,100 per share
                 * The purchase amount has beenwasdeterminedby considering upontaking into account expected synergiesfrom outofcollaborations
                    betweentheSMFG group companies and ブックメーカーおすすめ, andbased on the stock pricetrend          performanceandtheoutcome of

the due diligence.

(2) Purchase of Trust Beneficiary Interests

Given the necessity to adapt ブックメーカーおすすめ’s operations to the bbanking llaw(the “banklawAdaptation”), SMBC will purchase from Daiei, trust beneficiary interests (the “TBI”) primarily for 58,633 thousand shares of ブックメーカーおすすめ stocks(the “Stockssharesin Trust”) entrusted by means of comprehensive securities and money trust (the “CSMT”).

The CSMT designates Daiei to give directionsinstructions for voting,etc. in relation to the SharesStocks in Trust, and SMBC to give directionsinstructions for rights other than voting. As soon as the bbanking llawAAdaptation at ブックメーカーおすすめ is completed, such directioninstruction rights for voting, etc will be automatically transferred to SMBC, and with the CSMT terminating, SMBC will acquire the ブックメーカーおすすめ StocksShares.

         i)     Number ofStocksShares to be entrusted:
                 58,633,000 shares (27.72% voting rights)

         ii)     Purchase amount: JPY 64,496,300,000 (excluding portion for the money trust)

2. Status of SMBC’s Holding of ブックメーカーおすすめ StocksShares

(1) Number ofStocksSharesBefore the Acquisition             999,400 shares    (0.47% voting rights)
(2) Number ofStocksSharesto be Acquired                      9,367,000 shares    (4.43% voting rights)
(3) Number ofStocksSahresin Trust                              58,633,000 shares (27.72% voting rights)
(4) Number ofStocksSharesAfter the Acquisition (2)      10,366,400 shares    (4.90% voting rights)
      Number ofStocksSharesAfter Termination of the CSMT 68,999,400 shares (32.62% voting rights)

Since Daiei will continue to hold voting rights at ブックメーカーおすすめ (including those to be executed in the form of directioninstruction rights under the CSMT) of 48.53% and has a majority on the ブックメーカーおすすめboard with Daiei’s affiliates even after the purchase of the ブックメーカーおすすめ StocksSharesandtheTBI as stated in the first section (Method of Purchase), ブックメーカーおすすめ will remain Daiei’s consolidated subsidiary. However, after the completion of the bankingBank LlawAAdaptation and SMBC’s acquisition of the ブックメーカーおすすめ StocksSharesin Trust, ブックメーカーおすすめ will become an equity method affiliate of SMBC.

3. Schedule

July 27, 2007              BoardRResolution
July 27, 2007              Execution of sstockPPurchaseAAgreement, CSMT DDeed
                                 andttrustbbeneficiaryIInterestPPurchaseAAgreement
August 2, 2007           Delivery of sstockCCertificatesandttrustbbeneficiaryIInterest
February 8, 2008*       Termination of the CSMT and DDelivery ofCCertificate of Stockssharesinttrust

* CSMT will terminate as soon as ブックメーカーおすすめ completes the Bankbanking llawAAdaptation, which could be earlier than February 8, 2008

4. Others

In view of the WithSMBC’s acquisition of ブックメーカーおすすめ StocksShares, Sumitomo Mitsui Financial Group, Inc., SMBC, Sumitomo Mitsui Card Co., Ltd. and ブックメーカーおすすめ today executed “Memorandum of Understanding regarding Strategic Alliance” and agreed to commence studies toward establishing a strategic alliance in the credit card business.

 

[For Reference]

Description of Issuer of the Stocks to be Acquired

(1)   Company Name:          ブックメーカーおすすめ Card, Inc.
(2)   Representative:            Shinji Ebata, President and COO
(3)   Head Office:                2-16-4 Konan, Minato-ku, TOKYO
(4)   Founded:                      September 11, 1950
(5)   Principal Businesses:    Credit Card Business, etc.