News Release

February 5, 2001

Daiwa Securities Group Inc.
The Sakura Bank, Limited
The Sumitomo Bank, Limited
Daiwa Securities SB Capital Markets Co. Ltd.
Sakura Securities Co., Ltd.

The Integration of Daiwa Securities SB Capital Markets Co. Ltd.
and Sakura Securities Co., Ltd. and the Change of Corporate Name

  Daiwa Securities Group Inc. (Yoshinari Hara, President), The Sakura Bank, Limited (Akishige Okada, President), The Sumitomo Bank, Limited (Yoshifumi Nishikawa, President), Daiwa Securities SB Capital Markets Co. Ltd. (Akira Kiyota, President, hereinafter "Daiwa SBCM") and Sakura Securities Co., Ltd. (Mitsutoshi Koyama, President) in principle had agreed upon the integration of Daiwa SBCM and Sakura Securities on November 28, 2000. Today a formal agreement regarding Sakura Securities transfer of its entire business to Daiwa SBCM has been reached. Concurrently, Sakura Bank is considering transfer of certain areas of its wholesale securities business (M&A etc.) to Daiwa SBCM.

  On condition of obtaining the required legal approvals, the transfer of business is scheduled to take place on April 1, 2001.

  After the transfer of business, the corporate name of Daiwa SBCM will change as follows.

New corporate name	Daiwa Securities SMBC Co. Ltd.
New abbreviated form	Daiwa Securities SMBC
Effective	April 1, 2001

Information

[Outline of Daiwa SBCM]

Corporate name	Daiwa Securities SB Capital Markets Co. Ltd.
Representative	Akira Kiyota, President
Address	3-5, Yaesu 1-Chome, Chuo-ku, Tokyo
Business	Wholesale securities business
Capital	¥ 205.6 billion
Equity ownership	Daiwa Securities Group Inc. 60% The Sumitomo Bank, Limited 40%
Employees	1,571 (as of 3/31/2000)
Stockholders' equity	¥ 322,921 million (as of 3/31/2000)
Performance (as of 3/31/2000)	Operating revenues ¥ 172,069 million Ordinary income ¥ 73,010million

[Outline of Sakura Securities]

Corporate name	Sakura Securities Co., Ltd.
Representative	Mitsutoshi Koyama, President
Address	2-5, Kasumigaseki 3-Chome, Chiyoda-ku, Tokyo
Business	Wholesale securities business
Capital	¥ 25 billion
Equity ownership	The Sakura Bank, Limited 100%
Employees	201 (as of 3/31/2000)
Stockholders' equity	¥ 40,190 million (as of 3/31/2000)
Performance (as of 3/31/2000)	Operating revenues ¥ 7,415 million Ordinary income ¥ 760million