Sumitomo Trust & Banking

                The Sumitomo Trust & Banking Co., Ltd.

    Agreement with Related Authorities on Repayment of Public Funds

The Sumitomo Trust and Banking Co., Ltd. ("Sumitomo Trust") announced
today that the public funds are to be fully repaid in accordance with
the transfer agreement of the preferred stocks between the Resolution
and Collection Corporation ("RCC") and the third parties as well as in
accordance with the transfer agreement of the subordinated bonds
between RCC and Sumitomo Trust. The subordinated bonds are to be
redeemed after the transfer to Sumitomo Trust. Sumitomo Trust formerly
announced on October 15, 2003 that it requested the related
authorities to approve its repayment of public funds held by RCC in
line with the "Law of the Emergency Measures for Early Strengthening
of Financial Functions", by the transfer of 100 billion yen of
preferred stocks to third parties and by the redemption of 100 billion
yen of subordinated bonds.

Transfer agreements 

The summary of the terms of the agreements is as follows. For further
details of the preferred stocks and the subordinated bonds, please see
the appendix.

a.  Transfer agreement of the preferred stocks
           Preferred stocks are transferred from RCC to the transferees arranged by Sumitomo Trust.
           1) Transfer price                                      1,104.64 yen for each issue price of 800 yen
                                                                  (138.08% against issue price)
           2) Amount to be transferred                            138,080 million yen
           3) Number of the transferees                           29 companies
           4) Transfer date                                       January 13, 2004

b.  Transfer agreement of the subordinated bonds
           The subordinated bonds are transferred from RCC to Sumitomo Trust.
           1) Transfer price                                      102.366 yen for each issue price of 100 yen
           2) Amount to be transferred                            102,366 million yen
           3) Transfer date                                       January 14, 2004


                      For further information, please contact
                      Koichi Onaka, Head of IR Office, Financial Management Dept.
                      Telephone: +81-3-3286-8354   Facsimile: +81-3-3286-4654

(Appendix)

    1.  Preferred Stocks
         Total amount of issue:         100 billion yen
         Issue price:                   800 yen per share
         Annual dividend:               6.08 yen per share
         Dividend yield:                0.76%
         Residual property per share:   800 yen
         Current conversion price:      481 yen (Adjustment is available with floor conversion price 245 yen)
         Effective date for conversion price adjustment:    October 1 of every year ending October 1, 2008
         Mandatory conversion date:     March 31, 2009

    2.  Subordinated Bonds
         Total amount of issue:         100 billion yen
         Maturity date:                 March 31, 2011 (First call date: March 31, 2006)
         Issue price:                   100 percent
         Interest rate:                 6 month yen LIBOR + 1.53% (April 1, 1999 - March 31, 2006)
                                        6 month yen LIBOR + 2.03% (April 1, 2006 - March 31, 2011)