September 25, 2007
Nikko Cordial Securities Inc.

Summary of Remarks by Mikio Kitabayashi (President & CEO)at the Fall General Managers’ Meeting, Nikko Cordial Securities Inc.
(September 22, 2007)

We are now in the midst of rapidly progressing globalization in financial and capital markets and thelegal framework, as demonstrated by some of the movements as the enactment of the new company
law, implementation of financial instruments and exchange law, global collaboration of stock
exchanges, and convergence of accounting standards. Meanwhile, in Japan, broad-based schemes
aimed at boosting Japan’s competitive edge are driven under the framework of administrative andfiscal reforms including privatization of Japan Post and review on regional system. Furthermore,
Japan has taken a step forward to be a nation leveraged on investments.

The pre-eminent comprehensive financial solutions have been made available before us, as a resultof the capital and business alliances between Nikko Cordial Corporation and Citigroup. We aredetermined to make contributions to the development of Japan’s financial and capital markets byproactively responding to a full range of clients’ investment needs combining Nikko and Citi’s
strength and executing growth strategy of “Challenging the New Era”.

Business Performances-Both introduction of client assets and revenues have made outstanding recoveries in the first halfof this fiscal year.

-In retail, we will pursue growth in sales base by capturing wide-ranging investors, so that we canfurther capitalize on the shift from “savers to investors”. In wholesale, we will focus ondiversification of revenue types and increase in revenues so as to boost earnings.

This material is an English translation of a Japanese announcement made on September 25, 2007. Although the Company intended
to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.

“Challenging the New Era”
We will execute the following 5 actions to be the most Japanese and most global pre-eminent
financial services firm in Japan.

1. Strengthen governance
To help establish fair and transparent securities markets, proactively drive sophisticated business
management and risk control as well as rigid compliance structure, and enhance self-discipline as anintermediary of markets.
2. Global Collaboration
Boost complementary functions by combining our domestic sales franchises and Citigroup’s globalnetwork.
3. Leverage full range of financial services functions
Promote expansion of our platform through reinforced collaboration among Nikko Cordial Securities,
Nikko Citigroup Limited, and Citibank.
4. Focus on Personnel Development
Focus on nurturing client-centric experts with diverse capabilities in responding to a full range ofinvestment needs of clients through training programs for junior staff and exchange with people atCitigroup and so on.
5. Widen of sales platformStudy ways for driving growth of sales platform so as to capture new investors and quality assets.

###This material is an English translation of a Japanese announcement made on September 25, 2007. Although the Company intended
to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.

Reference:
Summary of Remarks at the Fall 2007 General Managers’ Meeting of Nikko Cordial Securities Inc.

Douglas Peterson
CEO, Citigroup Japan Holdings
Chairman, Nikko Cordial Corporation

Vision for JapanAs we have been saying since Nikko Cordial and Citi agreed on the comprehensive strategic alliancein March, the alliance is based on our highly complementary capabilities and common view of theopportunities in the market in both the retail and institutional sectors.

Key to achieving this vision is to:•

Be completely Client-focused•

Drive the vision by efficient business & functional platforms and create centers ofexcellence within the group•

Maintain a Foundation of Governance, Compliance & Control•

Link seamlessly with the Citi global franchise.

•Respect Japanese culture and business practices

A few months ago, we set up a process to get the best value out of the unique opportunities available
to the newly combined group. Over 200 senior and middle-level business, functional and support
managers across Nikko and Citi are displaying terrific teamwork in building business plans toachieve the vision.

I challenge you to help us become the preeminent banking and securities group in Japan.
We have a very bright future ahead of us and I look forward to our continued teamwork to achieve
our vision.

This material is an English translation of a Japanese announcement made on September 25, 2007. Although the Company intended
to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.

Reference:
Summary of Remarks at the Fall 2007 General Managers’ Meeting of Nikko Cordial Securities Inc.
Shoji Kuwashima
President & CEO, Nikko Cordial Corporation
We expect to achieve increases both in consolidated ordinary income and net income byapproximately 4 billion yen and 5 billion yen respectively year-over-year based on the recently
announced second quarter earnings forecasts for this fiscal year. Additionally, the ratings of Nikko
Cordial Corporation, which had been on the fall since the end of last year, have been reviewed andawarded quite high ratings compared with our competition, - for instance, Moody’s upgraded ourrating by 7 notches. This is the testament of trust upon us as a financial services firm.
“Build a Pre-eminent Comprehensive Financial Services Group in Japan”
Citigroup and Nikko Cordial Corporation share the same vision for Japan. We provide excellent
quality products and services to our clients while sharing the identical objectives.
Nikko Cordial Corporation’s Vision:- Client-centric- Provide employees with opportunities for growth and success, which, I believe the mostimportant factor for us to be the No. 1 financial group in Japan. We will further enhance ourtraining programs so that our people will be even more successful in the future.
- Deploy businesses leveraged on the optimum combinations from various businesses andfunctions- Unify oversight based on a foundation of governance, compliance & control.
- Gain trusts in the society by making decisions locally while collaborating globally.
- Build a new business model which respects Japanese culture and business practices andembedded in Japan so as to realize an entity that will be widely accepted in Japan.
In order to realize our vision, one of the essential elements is the common philosophy/principle
among executives and employees. Accordingly, we have prepared the Code of Conduct which
embodies the management principle. This Code of Conduct is positioned as our common norm
among group companies along with the management principle. The executives and employees ofNikko group, as one, shall make sustained efforts to build a compliance-focused corporate culture
based on the spirits of Code of Conduct and thereby contribute to the society through creation ofcorporate values, in an effort to bear our social responsibility.
To make our vision a reality, we will examine and re-build our businesses and pursue synergy withCitigroup to the fullest in accordance with our comprehensive strategic alliance.
To enhance synergy, we ensure flexibility in our businesses so as to respond to any changes inbusiness environment and allocate management resources efficiently.
The key to the success of our group lies in the each one of Nikko Cordial Securities employee whoplays a pivotal role in our business operation. Let us achieve our vision of becoming the No.1
financial services firm while paying careful attention to what are required in the current era so that
we can further spread the Nikko brand in Japan.

This material is an English translation of a Japanese announcement made on September 25, 2007. Although the Company intended
to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.