Notice regarding Business Alliance betweenOsaka Gas Information System Research InstituteAnd Sakura Information System (1/1)

Sumitomo Mitsui Financial Group, Inc.

Notice regarding Business Alliance between Osaka Gas Information System Research Institute And Sakura Information System

TOKYO, May 23, 2006 --- Sumitomo Mitsui Financial Group, Inc. (SMFG) hereby announces that its consolidated subsidiaries, Sumitomo Mitsui Banking Corporation and Sakura Information System, have published the attached press release today.

Osaka Gas Information System Research Institute Co., Ltd.
Sakura Information System Co., Ltd.
Osaka Gas Co. Ltd.
Sumitomo Mitsui Banking Corporation

Notice regarding Business Alliance between Osaka Gas Information System Research Institute And Sakura Information System

Japan, May 23, 2006--- Osaka Gas Information System Research Institute Co., Ltd. (OGIS-RI, President: Masakazu Kato), Sakura Information System Co., Ltd. (SIS, President: Ryoji Miura), Osaka Gas Co. Ltd. (Osaka Gas, President: Hirofumi Shibano) and Sumitomo Mitsui Banking Corporation (SMBC, President: Masayuki Oku) today agreed to form business and capital alliance between OGIS-RI and SIS in the field of information service business. Hereafter, the four companies will discuss to enter into a basic agreement on the alliance in July 2006.

OGIS-RI, a consolidated subsidiary of Osaka Gas, playing a central role of Osaka Gas Group’s information business, has developed and operated the group’s main system and also accumulated high technology and know-how by forming partnerships with foreign companies. Especially, OGIS-RI has been highly-evaluated in the field of advanced technology and solution such as highly-profitable “Object/UML Modeling.”

SIS, a consolidated subsidiary of SMBC, has supported SMBC group’s banking system and acquired know-how and solution in the field of finance, accounting and system development by addressing needs for system architecture from the viewpoint of clients.

OGIS-RI and SIS aim to offer better services to various kinds of clients thorough the business alliance, by creating synergies between OGIS-RI’s technology and SIS’s know-how and by mutually exploiting each company’s system development capabilities and base.

Outline of business alliance is as follows:

(1) Cooperation in the field of system development

(a) System development, combining SIS’s know-how and OGIS-RI’s technology of “Object/UML (Unified Modeling Language) Modeling”
(b) Mutual exploitation of development base

(2) Cooperation in foreign operation

Mutually utilize the development base in Shanghais, OGIS-RI’s business partner, and SIS’s subsidiary in Singapore.

(3) Mutual exploitation of computer center

Mutually utilize OGIS-RI’s computer center (Nishi-ku, Osaka) and SIS’s center (Shinagawa-ku, Tokyo).

(4) Exchange and development of human resources

OGIS-RI will consider acquiring SIS’s shares (approximately 34%) in order to reinforce the business alliance.

At the same time, Osaka Gas and SMBC will jointly support smooth progress of the alliance.

Appendix

Profile of OGIS-RI

Company name	Osaka Gas Information System Research Institute Co., Ltd.
Head office	Minami 2-37, Chiyozaki 3-chome, Nishi-ku, Osaka-shi, Osaka
Business description	System development, data processing, and sales of computer and software
Date of establishment	June 29, 1983
Capital stock	400 millions of yen (as of March 31, 2006)

Profile of SIS

Company name	Sakura Information System Co., Ltd.
Head office	4-10,Nihonbashihoncho 3-chome,Chuo-ku, Tokyo
Business description	System development and data processing
Date of establishment	November 29, 1972
Capital stock	600 millions of yen (as of March 31, 2006)

Profile of Osaka Gas

Company name	Osaka Gas Co. Ltd.
Head office	1-2, Hiranamachi 4-chome, Chuo-ku, Osaka-shi, Osaka
Business description	Gas and heat supply business
Date of establishment	April 10, 1897
Capital stock	132,166 millions of yen (as of March 31, 2006)

Profile of SMBC

Company name	Sumitomo Mitsui Banking Corporation
Business description	Banking
Date of establishment	June 6, 1996
Head office	1-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo
Capital stock	664,986 millions of yen (as of March 31, 2006)