March 24, 2008
Nikko Cordial Securities Inc.

Summary of Remarks by Mikio Kitabayashi (President & CEO)at the Spring 2008 General Managers’ Meeting, Nikko Cordial Securities Inc.
(March 22, 2008)

With Japanese securities market which is in the midst of “Globalization and Expansion”, Japanese
government and stock exchanges have begun to take further steps to strengthen competitive edge ofJapanese financial and capital markets since last year.
Japanese securities markets will further develop going forward although the shift from savers toinvestors has been stagnant recently.
While Japanese individual investors are expected to be more sophisticated along with the growth ofsecurities markets, Japanese corporations are adopting and executing management strategies forsurvival with an eye on global perspective.

In such circumstances, through consolidation of the securities functions of Nikko Cordial Securities
and Nikko Citigroup Limited in a single company in around 12 months, we will improve operational
efficiency and create a new securities company that will be more easy-to-understand for clients. It will
create the securities company that is most Japanese and most global, in which Nikko’s domestic
sales platform and Citi’s global network function in optimum balance.

New Medium-term Management Plan¾

Management Policy
Aim to be a No. 1 financial services firm in Japan¾

Establish an unyielding position in Japan for the goal of creating a No. 1 financial services firmin Japan by realizing ”Quality No. 1” in the areas of “People”, “Financial Products”,“Services” ,and “Management Efficiency”•People＝The best talents in the industry and in respective regions(Win utmost trusts from our clients)

This material is an English translation of a Japanese announcement made on March 24, 2008. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thistranslation are not guaranteed.

•Financial Products＝ Consistent commitment to Best Product Policy

Offering financial products that can meet all sorts of investment needs of our clients•

Services＝Offering services that are valuable for clients(Timely and cordial service)•Management Efficiency ＝Cost control and risk management(Pursue further management efficiency)

Sales Strategy¾

Retail Function : To be a No. 1 in respective regions•Strengthen and expand client-facing points through 5-division structure•

Drive growth in wealth management business by improving abilities to propose bestproducts and services for each client¾

Institutional Function : Reinforce collaboration with Citibank and Nikko Citigroup
Limited¾•

Full use of full-coverage and full-line service structure•

Quickly respond to diversifying needs of our clients while capturing changes

Headquarters : Pursue even higher management efficiency•

Reinforce management practices through continuous cost control and risk management

Our Actions¾ Client First & Dedication to the job•Abilities to explain markets and products, commitment to accomplish objectives. Inaddition, “SMILE” is also important•Work as attractive employees with “dream”, “curiosity”, honesty” and “sense of gratitude”
in mind•

Ensure sense of assurance to our clients and provide services that will boost trust onNikko•

Meet clients’ high-level expectations###This material is an English translation of a Japanese announcement made on March 24, 2008. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thistranslation are not guaranteed.