FOR IMMEDIATE RELEASE
Citibank Securities (Japan) Limited
Nikko Cordial Securities Inc.

Announcement of Proposed Integration ofRetail Securities Businesses of Citi and Nikko Cordial
Citibank Securities Japan and Nikko Cordial Securities Start Preparation for
Business Consolidation

Tokyo, October 9, 2007 - Citibank Securities (Japan) Limited (“Citibank Securities Japan”) and Nikko
Cordial Securities Inc. (“Nikko Cordial Securities”)today announced that Citibank Securities Japan, a100%-owned securities subsidiary of Citigroup Inc. (“Citigroup”), and Nikko Cordial Securities, a100%-owned securities subsidiary of Nikko Cordial Corporation, have agreed to start preparations forconsolidating the retail business operations of Citibank Securities Japan with those of Nikko CordialSecurities (“Integration”) as part of the comprehensive strategic alliance announced by Citigroup andNikko Cordial Corporation on March 6, 2007.

１. Objectives of the Integration
Citigroup and Nikko Cordial Corporation have been examining various collaborative initiatives
designed to expand their respective business opportunities in Japan and to create one of Japan’s
leading comprehensive financial services groups, while giving due respect to Japanese culture andbusiness practices. One such collaborative initiative is the proposed consolidation of the retailsecurities operations of the two companies in Japan.
Citibank Securities Japan and Nikko Cordial Securities believe that the Integration will enable Nikko
Cordial Securities to offer its wide range of products and services to customers of Citibank Securities
Japan as well as to introduce new products and services offered by Citigroup’s global network to its
existing customers. In the areas of wealth management services and the securities intermediarybusiness, Nikko Cordial Securities intends to promote business growth by capitalizing on thecomplementary strengths of Citibank Securities Japan and Nikko Cordial Securities.

2. Target Date of the Integration
The target date of the Integration is early May 2008.

3. Details of the Integration
Citibank Securities Japan and Nikko Cordial Securities are currently discussing the Integration planand the services to be provided after the Integration. They are also discussing the form of thetransaction to be used to effect the Integration, which as currently anticipated would involve a mergerof Citibank Securities Japan with and into Nikko Cordial Securities in exchange for cash consideration,
all conducted on an arm’s-length basis.

4. Overview of the Integrated Companies
As of end of September 2007 unless otherwise specifically described(1)

Trade name

Nikko Cordial Securities Inc.

Citibank Securities (Japan)
Limited(2)

Business

Financial instruments tradingbusiness

Financial instruments tradingbusiness(3)

Date of incorporation

March 29, 2001

May 30, 2006(4)

Location of head office3-3-1, Marunouchi, Chiyoda-ku,
Tokyo, Japan

1-3-1, Marunouchi, Chiyoda-ku,
Tokyo, Japan(5)

Representative

Mikio Kitabayashi
President and CEO

Masaaki Mizuno
Representative Director
Raul Paredes
Representative Director(6)

Amount of stated capital

100 billion yen

6,388,270,776 yen(7)Outstanding shares

2,000,000 shares

66,778,541,549 shares

Net assets

410,072 million yen

6,089 million yen

1,371,539 million yen

20,476 million yen

(8)
(9)

(as of June 30, 2007)
Total assets(as of June 30, 2007)(10)

End of fiscal year

March 31

March 31

(11)

Employees

7,266

105

(12)

Branch offices

110 branches

2 branches(13)

Major shareholders andtheirpercentageofshareholdings

Nikko Cordial Corporation:
100.00%CJP Holdings Inc.
100.00%###