Citibank Japan Limited Half-Yearly Disclosure Statement September 30, 2007 Contents Company Overview 1

Citibank Japan Limited Half-Yearly Disclosure Statement September 30, 2007 Contents Company overview 1

Corporate philosophy 2 Citi's Corporate Philosophy and "Shared Responsibilities" "Growth" and "Change" Citibank Japan's Business Strategy

Message from management 4

Citibank Japan - Retail Banking Division 5 Citibank's Innovative Service Citibank Japan Products and Services

Citibank Japan - Corporate Banking Division 7

Global Corporate Bank Corporate Finance Global Transaction Services

Citibank Japan in the community 10

List of Citibank Branches 11

Interim financial information 12

1. Matters related to major business 13 Business overview Summary of Major business/financial indicators Major business/financial indicators Indicators for Deposits Indicators for Loans and bills discounted Indicators for Securities

2.Financial statements 30 Balance sheet Income statement Statement of changes in net assets Cash flow statement Status of capital adequacy

3. Market value information 43 Securities Money held in trust Derivatives market value information

4. Major shareholders 47

5. Disclosure items based on Pillar III of Basel II 48 Company overview

As one of Citi's core businesses in Japan, Citibank Japan Ltd. provides banking services through its Retail and Corporate Banking divisions. Citibank Japan is comprised of two business divisions: the Retail Banking division, which provides banking services to a wide range of retail customers and the Corporate Banking division, which is dedicated to institutional clients.

Company name Citibank Japan Ltd. Citibank Japan Ltd. Citigroup Center, Head office address 3-14 Higashi-Shina gawa 2-chome, Shinagawa-ku, Tokyo 140-8639 Head office branch code 730 Telephone Retail Banking Division 0120-039-104 Corporate Banking Division 03-5462-5000 Non-executive director Douglas Peterson - Chairman Representative directors Sunil Kaul - President Robert Snell - Deputy President, Head of Corporate Banking Division Fabio Fontainha - Deputy President, Head of Retail Banking Division Other directors Jun Kadoda - Deputy President, CFO/CAO Japan David Francis - Chief Risk Officer Eunice Kim - Chief Compliance Officer David Bohm - Head of Operations & Technology Division Yoshito Hirata - Head of Legal Division Venkateshwaran Iyer - Head of Central Administration Division Yukio Yoshimura - Head of Government Affairs Hiroaki Nigo - Head of Management Coordination Department, Finance & Planning Division Statutory auditors Takashi Kinoshita (full-time) Mamoru Makino (outside) Junji Matsuoka (outside) Business Banking services

Commencement of Operations July 2007 (International Banking Corporation (a predecessor to Citibank) opened Yokohama branch Oct. 1902) Capital ¥123.1 billion (as of September 30, 2007) Employees 1,655 (as of September 30, 2007) Branches 1 head office, 25 branches and 9 sub-branches

1 Corporate philosophy

Citi's Corporate Philosophy and "Shared Responsibilities"

Citi's goal is to be the most respected global financial services company. Each member of the Citi family has three Shared Responsibilities:

We have a responsibility to OUR CLIENTS

We must put our clients first, provide superior advice, products and services, and always act with the highest level of integrity.

We have a responsibility to EACH OTHER

We must provide outstanding people the best opportunity to realize their potential. We must treat our teammates with respect, champion our remarkable diversity, share the responsibility for our successes, and accept accountability for our failures.

We have a responsibility to OUR FRANCHISE

We must put Citi's long-term interests ahead of each unit's short-term gains, and provide superior results for our shareholders. We must respect the local culture and take an active role in the communities where we work and live. We must honor those who came before us and extend our legacy for those who will come after us. "Growth" and "Change"

Citi, along with promoting the "shared responsibilities" stated above, will continue to pursue "growth" and "change" as our core tasks. We have also set the following goals throughout our global network and areas where we run our business.

Balanced approach to growth

Driven by both organic growth and strategic acquisitions, we will broaden our core business activities. We plan to cultivate and penetrate into new markets around the world as well as further develop existing markets.

One face to the client

We will serve our clients as one company by integrating our products and services and developing common client-facing systems. In so doing, as is obvious, we are committed to strict compliance with related laws and regulations.

Increasingly international

With continued international investments, we will expand our operating and revenue base from the U.S. market to markets outside the U.S. We will also attach more importance to the Japanese market than ever before.

Greater efficiency in business We will further streamline our organization and operations to achieve greater efficiency in business management.

2 Corporate philosophy

Citibank Japan's Business Strategy

We consider Japan as one of the most important business bases in our global strategy and will aggressively develop all the businesses we have currently in Japan. One of the pillars of the development strategy is to expand the scale of banking operations.

Long-Term Outlook and Goals

We will expand our presence in the market for retail and corporate banking operations, and improve the asset and liability balance. In addition, we will play a leadership role in the financial industry by recognizing ever- changing client needs or by offering innovative products and services that create client needs. Also, we will establish optimum standards for business management and internal control structures. We confront in a forceful and resolute manner the undue demands and anti-social forces that threaten the social order and safety. At the same time, we continue to make an effort to be widely recognized as a "company people want to work for."

Retail Banking Division

Recognizing intensifying competition over retail banking services, we will enhance business operations targeted at our core customers, the mass affluent, by expanding our sales network, upgrading the products we offer and enhancing partnerships with our group companies and affiliates. At the same time, we will add new product and service lineups that appeal to various customers― including a wider range of individuals and small and medium sized companies― in an effort to expand our customer base.

Corporate Banking Division

We will expand our corporate banking business by developing the corporate client base as well as reinforcing our operation through strengthened partnerships with our group companies and affiliates. By providing high- quality products/service, comprehending and understanding clients' needs, and leveraging our strength of industry knowledge, we will utilize Citi's global network to become a more competitive financial institution.

3 Message from management

2007 marks a significant milestone in Citibank's long history in Japan, which dates back to when we opened our first branch in Yokohama in 1902. The localization of our banking operations in Japan, through the establishment of Citibank Japan Ltd., is a sign of our continued long-term commitment to the world's second largest economy.

I hope our clients share my excitement about the future of Citibank Japan. We expect the localization to enhance our ability to deliver the full range of high-quality solutions and services to retail and corporate banking customers in Japan. We have plans to expand our retail banking presence in Japan by increasing the number of retail bank branches over the next several years, including five already complete in 2007. We are already pursuing efforts to expand significantly the size of our corporate client base in Japan and will continue to build on this strategy in the coming years.

Citibank Japan will continue to take its responsibilities seriously as these are fundamental to enhancing our position as a respected and trusted financial institution. We will continue to focus relentlessly on our corporate responsibility towards our clients, our communities and our stakeholders. We will also remain focused on promoting a corporate culture that is respectful of Japanese customs and business practices.

We look forward to your continued support in helping build a franchise that consistently exceeds client expectations while embracing the communities in which we are privileged to do business.

Sunil Kaul Representative Director & President Citibank Japan Ltd.

4 Citibank Japan - Retail Banking Division

Citibank Japan's Retail Banking division, with 30 branches and mini branches nationwide (as of September 30, 2007), offers banking services to individual customers. Citibank seeks to provide financial services of global quality wherever, whenever and however customers require.

Citibank's Innovative Services Citibank Japan was the first bank to introduce ATM access 24 hours a day, 365 days a year and telephone banking in Japan, with banking cards that can currently be used at more than one million overseas ATM/CD locations in over 165 countries and regions worldwide1. In addition to joining "BANCS," Japan's major ATM/CD network, Citibank Japan was the first bank to provide joint online access via the Postal Savings ATM network (offering deposit as well as withdrawals). Citibank Japan's affiliation with Seven Bank gives it nationwide access to over 10,000 Seven Bank ATMs, making a total of approximately 96,000 ATMs available throughout the country for its customers.

Citibank Japan offers a variety of services accessible through various channels, including telephones and personal computers. ・ CitiPhone Banking ・ Citibank Online ・ Citibank Mobile ・ Information Services

シティゴールド CITIGOLD is an exclusive program that offers numerous special services and benefits to customers with a long-term investment commitment to Citibank Japan and a total account balance equivalent of 10 million yen or more (inclusive of mutual fund holdings). These include the waiving of overseas remittance fees for customers with an average monthly balance of 10 million yen or more, and reimbursement of domestic remittance fees for customers with an average monthly balance of 20 million yen or more. CITIGOLD members can also take advantage of personalized, members-only consulting services provided by CITIGOLD executives, an exclusive CitiPhone Banking service and access to the CITIGOLD lounge (on the second floor of the Shinjuku Higashiguchi Branch).

5 Citibank Japan - Retail Banking Division

Citibank Japan Products and Services

Citibank Japan offers a variety of accounts to meet the needs of customers and aims to provide financial products and services for each account.

1. Yen Savings Account Offers convenient daily settlement functions such as receipt of funds, cash withdrawals, and bill payments. Citibank Japan customers can use their banking cards to make deposits and withdrawals as well as obtain account balance.

2. MultiMoney Account Offers investment functions such as yen and foreign currency-bases time deposits.

3. Gaika Cash Card US Dollar Savings Account A special account that allows deposits of US dollar funds for use in the U.S. The "Gaika Cash Card" enables US dollars withdrawals from ATMs throughout the U.S.

4. Mutual Fund Account Enables the purchase and sale of the various mutual fund products offers by Citibank Japan. Citibank Japan investment consultants propose investment products after consulting with customers to determine their asset management goals and considering their investment objectives, permissible risk levels and other pertinent factors.

5. Citibank Advance Money A convenient service that allows customers to borrow funds from ATMs at Citibank as well as its affiliated banks in Japan and overseas and post offices in Japan, at interest rates specially offered by Citibank Japan.

6. e-Savings on-line savings account

Extended Business Hours for Busy Customers

A number of Citibank Japan branches are open for business on weeknights and Saturdays to serve customers unable to visit during the day. The Ginza Branch is open 365 days a year.

Customer Account Protection (CAP) Service for Citibank Japan

Customer Account Protection (CAP) is a security service allowing customers to safely and easily control their assets, in accordance with their preferred lifestyles. Citibank Japan expects to further enhance this service. ・ Limit Control ・ Alert Service ・ Virtual Pad

6 Citibank Japan - Corporate Banking Division

Citibank Japan's Corporate Banking Division, which has branches in Tokyo and Osaka, provides a wide variety of direct and affiliate services to companies and financial institutions with domestic as well as global business interests. Citibank's professionals analyze client needs and provide innovative solutions based on experience, market knowledge, access to a global network and wide range of products and services. Citibank has built a solid domestic business transaction services infrastructure and as an example, is one of only a few foreign banks that are a member of the Zengin system. Citibank is also a premier provider of financing executions, ranking consistently in the top four in Japan for loan syndications and in 2006 received numerous awards for its securitization and export agency finance deals. Citibank, through one or more of the following departments, strives to serve as a trusted financial partner to clients, both in Japan and overseas.

Global Corporate Bank

The Global Corporate Bank group's relationship managers serve as dedicated client specialists responsible for understanding an industry sector, as well as the unique needs and characteristics of each of its large commercial clients. Relationship managers are aligned on a global basis for each industry to tap into Citi's vast global pool of knowledge and skills. They ascertain each client's needs and financial situation as well as analyze industry trends, and then introduce suitable financial product specialists in Japan and around the world. Relationship managers maintain close relationships with their clients. Utilizing Citibank's abundant range of financial products and its global network encompassing more than 100 countries, they work to help clients find the right solutions.

The Business Development group provides a dedicated focus on expanding Citibank's client base and business opportunities through innovation, new product development and specialized analytical support for financing transactions designed to meet our customers' needs and objective. Business Development is also a focal point for implementing senior management strategic initiatives, and seeks to leverage all of Citi's resources in Japan in meeting its objectives.

Business Development is also a key driver in supporting the growth of Citibank's leveraged finance business, in focusing on Financial Sponsors acquisition financing needs, and in development of new products in coordination with Citibank's Corporate Finance teams.

Dealing Room - Foreign Exchange

The Foreign Exchange group makes effective use of Citi's international networks and global resources to deliver real-time information to clients and has earned high regard as a "market maker" both within and outside of Japan. In addition to a high degree of specialization in foreign exchange products, Citibank Japan possesses a solid infrastructure that enables the provision of e-commerce and currency risk analysis by strategists. Citibank Japan was ranked first in Euromoney's 2005 "Global Foreign Exchange Poll" (Japanese version).

7 Citibank Japan - Corporate Banking Division

Corporate Finance The Corporate Finance group proposes and executes optimal financing solutions for the highly diversified financial needs of its clients. The group includes Securitization, including Real Estate Finance; Global Loans; including Leveraged Finance, as well as Export and Agency Finance. The group strives to structure cutting-edge and competitive solutions for their clients, either by leveraging their own specialties or through collaboration across Citibank's broad areas of expertise.

Securitization

The Securitization group was established in 1986 in Japan, long before the term "securitization" became widely known in Japan. Since then, as an innovative leader in the securitization market worldwide, it has continuously developed new products that anticipate clients' needs. The group's core service is a securitization program that utilizes the world's most fluid market, the U.S. asset-backed CP market. The Securitization group is a leader of such securitization programs in Japan. The group develops and implements a diverse range of applications, such as the establishment of commitment lines that are not affected by the financial standing of clients, using securitization, and the creation of alternative capital through risk transfer transactions. The group also provides clients with business line restructuring, using whole business securitization. In addition, through collaboration with securitization teams in the U.S., Europe, and Asia, the group has established a system that can meet the unique financing needs of clients, including on international projects, throughout the world.

Global Loans Capital Markets

Since setting up its first full-fledged loan syndication transaction in Japan in 1998, the Global Loans Capital Markets group has played a leading role in the expanding Japanese loan syndication market. It provides clients with corporate finance advice and contributes to the achievement of finance strategies with a firm understanding of client needs and the core credit market in Japan, the loan market. In particular, Global Loans Japan has built a global framework with the Citigroup loan syndication teams in the U.S., Europe and Asia to respond to the financing requirements of clients, from supporting liquidity needs to international financing as well as mergers and acquisitions. In recent years. Citibank Japan has been an influential force in expanding the market for leveraged finance and innovative structured finance transactions as investors, both domestic and foreign financial institutions have participated in many of its transactions.

Export and Agency Finance

Export and Agency Finance (EAF) arranges structured financings for and provides financing services to clients engaged in global trade, capital projects and investments in developed and emerging market countries, and provides advisory solutions based on knowledge of official agency policy requirements and funding markets. Specially, EAF Japan arranges and supports export/import finance and business development through the financing programs supported by the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).

Real Estate

In 2007, we established our Real Estate department to facilitate the increasing need for real estate investments. We have provided non-recourse loans with property collateralized for real estate acquisition and refinancing of existing long or short-term loans. By collaborating with Citi's affiliates, we can contribute to clients' highly leveraged real estate investment needs. 8 Citibank Japan - Corporate Banking Division

Global Transaction Services

The Global Transaction Services group provides cash management for general businesses and financial institutions worldwide, as well as comprehensive solutions for trade finance and securities and custodial services. The group makes full use of the Citi network, which spans over 100 countries, to provide not only services to meet the everyday needs of clients, but also comprehensive tailor-made settlement solutions.

Cash Management

In Cash Management, Citibank Japan offers a wide range of services in relation to domestic and overseas remittances, collection, liquidity management and clearing. Many of Citibank Japan's products include features tailored to the special requirements of the Japanese settlement market. With a highly secured internet-banking platform that has received awards from major financial magazines, Citibank Japan helps clients build robust internal controls over their payment and treasury activities.

Trade Services

In Trade Services, Citibank Japan provides trade finance and services via a network of Citigroup branches and affiliates in over 100 countries and more than 3,000 correspondent banks. Trade services provides a wide range of solutions for all global trade needs, including industry-leading settlement, effective risk mitigation, and innovative trade finance and information capabilities. These services have earned an excellent reputation in the Asian market. Citibank has been named Best Trade Bank in the Asia in Trade Finance magazine's annual Awards for Excellence 2006

Securities Services

In the Securities Services, Citi possesses the industry's largest scale proprietary network of custodian centers in 45 countries through its branches and affiliates, providing a base to support a diverse range of securities transaction services for major issuers, intermediaries and institutional investors. Among these services, Citibank's clearing and custody service is among the top in the world in terms of transaction frequency (over $1 trillion per day) and balance of assets under custody (over $7.9 trillion). The quality of Citibank's securities services in Japan has been recognized by its clients, resulting in a "Top Rated" ranking from Global Custodian magazine for seven consecutive years.

9 Citibank Japan in the community

Citi strives to embrace the responsibility to make a difference where its employees live and work by building positive relationships with customers, the community and stakeholders. Citi has reinforced its commitment to diversity and continues to build on that progress in Japan, with employees from various backgrounds and nationalities. The company's community activities are carried out primarily through two channels: financial education and support for community activities.

10 List of Citibank Branches

Branch Address

Aoyama Hanae Mori Bldg., 3-6-1 Kita Aoyama, Minato-ku, Tokyo

Akasaka Prudential Plaza, 2-13-10 Nagatacho Chiyoda-ku, Tokyo

Ikebukuro Metropolitan-Plaza, 1-11-1 Nishi-Ikebukuro, Toshima-ku, Tokyo

Ohtemachi Ohte Center Bldg., 1-1-3 Ohtemachi, Chiyoda-ku, Tokyo

Ginza Kurosawa Bldg., 6-9-2 Ginza, Chuo-ku, Tokyo

Gotanda Gotanda Hata Bldg., 2-2-3 Higashi-Gotanda, Shinagawa-ku, Tokyo

Shibuya Dogenzaka Kabuto Bldg., 2-25-12 Dogenzaka, Shibuya-ku, Tokyo

Jiyugaoka Okuzumi Bldg., 1-26-14 Jiyugaoka, Meguro-ku, Tokyo

Shinjuku-East Kawase Bldg., 3-17-5 Shinjuku, Shinjuku-ku, Tokyo

Shinjuku-South Shinjuku Sky Bldg., 1-18-8 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Kichijoji Kichijoji Iwasaki Bldg., 1-15-9 Kichijoji-Honcho, Musashino-shi, Tokyo

Seijo Nissei Seijo Bldg., 2-34-13 Seijo, Setagaya-ku, Tokyo

Tachikawa Suzuharu Bldg., 2-7-16 Akebono-cho, Tachikawa-shi, Tokyo

Hiroo Hiroo REEPLEX B's, 5-15-27 Minami-azabu, Minato-ku, Tokyo

Urawa Urawa Nikko Bldg., 2-1-23 Takasago, Urawa-ku, Saitama-shi, Saitama

Chiba SENCITY TOWER, 1000 Shinmachi, Chuo-ku, Chiba-shi, Chiba

Makuhari World Business Garden Marive East, 2-6 Nakase, Mihama-ku, Chiba-shi, Chiba

Yokohama Yokohama First Bldg., 1-6-1 Kita-Saiwai, Nishi-ku, Yokohama-shi, Kanagawa

Aobadai Aobadai Tokyu Square, 1-7-1 Aobadai, Aoba-ku, Yokohama-shi, Kanagawa

Fujisawa K&S Bldg., 2-8, Minami Fujisawa, Fujisawa-shi, Kanagawa

Sapporo Hokkaido Bldg., 1-banchi, Kita 2-jo Nishi 4-chome, Chuo-ku, Sapporo-shi, Hokkaido

Nagoya Sugi Bldg., 3-14-15 Sakae, Naka-ku, Nagoya-shi, Aichi

Nagoya Station Office Tower JR Central Towers, 1-1-4 Meieki, Nakamura-ku, Nagoya-shi, Aichi K・I Shijyo Bldg., 88 Kankoboko-cho, Shijyodori-Muromachi-Higashiiru, Shimogyo-ku, Kyoto Kyoto-shi, Kyoto Umeda AIG Umeda Bldg., 1-27 Chaya machi, Kita-ku, Ohsaka-shi, Osaka

Osaka Ekimae Osaka Dai-ichi Seimei Bldg., 1-8-17, Umeda, Kita-ku, Osaka-shi, Osaka

Shinsaibashi Midousuji Diamond Bldg., 2-1-2 Nishi Shinsaibashi, Chuo-ku, Osaka

Ashiya Hotel Takezono Ashiya 10-1, Ohara-cho, Ashiya-shi, Hyogo

Kobe Imon Kobe Bldg., 95 Edomachi, Chuo-ku, Kobe-shi, Hyogo

Fukuoka Fukuoka Tenjin Dai ichi Seimei Bldg. 2-8-30 Tenjin, Chuo-ku, Fukuoka-shi, Fukuoka

11 Interim Disclosure

Citibank Japan Limited FY2007 Interim Financial Information

Interim Disclosure

1. Matters related to major business ＜ Business overview＞

In order for Citigroup to conduct its banking operations in Japan as a locally incorporated entity, all the businesses of Citibank, N.A., Japan Branches were transferred as of July 1, 2007, to Citibank Japan Ltd. (“CJL”), a newly established corporation, and CJL started its operation on that date. The establishment of a locally incorporated entity is intended to serve a significant future expansion of banking operations for retail and corporate customers, while ensuring an appropriate management control framework in Japan. This interim accounting period covers the time from July 1 to September 30, 2007.

Total assets were ¥6,046.9 billion and net assets totaled ¥246.2 billion. Net assets increased by ¥26.2 billion since operations started on July 1. This increase reflects a combined ¥24.2 billion rise in capital and capital surplus, a ¥3.8 billion increase in retained earnings, and a ¥1.7 decline in valuation difference of available-for-sale securities. As to the balances of important account titles, among asset accounts, deposits totaled ¥4,051.1 billion, due in large part to deposits made with foreign Citibank branches and head office operations. Outstanding loans totaled ¥376.7 billion, securities holdings were ¥871.8 billion, and trading assets were ¥68.7 billion. Among liabilities accounts, deposits totaled ¥5,097.7 billion.

As to operating results, gross operating income totaled ¥22.7 billion. Among gross operating income, net interest income totaled ¥11.5 billion, which was due to higher interest rates and increased interest-bearing assets and interest-bearing liabilities. In fees and commissions, mainly loan related fees and investment trust related commissions totaled ¥7.0 billion. Operating expenses, meanwhile, totaled ¥17.8 billion including a ¥0.7 billion amortization charge related to ¥14.4 billion in goodwill recognized in connection with the assumption of banking operations mentioned above. As a result, operating income totaled ¥5.0 billion, and net income for the interim period was ¥3.8 billion.

Cash flows from operating activities in the period under review totaled ¥11.2 billion. Cash from investment activities was ¥10.1 billion. As a result, cash and cash equivalents as of the end of the period under review totaled ¥21.3 billion. The capital adequacy ratio (National standards) at the end of the period under review was 12.4%.

Interim Disclosure

＜Summary of Major business/financial indicators＞ (Millions of Yen) FY 2007 Interim (Jul1, 2007 – Sep30, 2007) Ordinary income 58,852 Ordinary profit 5,044 Net income 3,829 Common stock 123,100 Total shares issued 244,200,000,001 Total Net assets 246,238 Total assets 6,046,914 Deposits 5,097,709 Loans and bills discounted 376,710 Securities 871,894 Capital adequacy ratio (National standard) 12.42% Number of employees 1,655

(Notes) 1.Citibank,N.A., Japan Branches transferred its businesses to CJL on July 1, 2007 and CJL started its operation on that date. 2. Financial figures are unaudited.

Interim Disclosure

＜Major business/financial indicators＞

Gross operating profit (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Domestic International Total Interest income and expenses Interest income 3,074 42,030 45,105 Interest expenses 1,581 31,969 33,550 Income and expenses on fees and commissions Income on fees and commissions 5,570 2,533 8,104 Expenses on fees and commissions 899 150 1,049 Trading income and expenses Trading income 165 － 165 Trading expenses △240 1,300 1,060 Other operating income and expenses Other operating income 20 5,030 5,051 Other operating expenses －－－ Other ordinary income and expenses Other ordinary income 423 1 424 Other ordinary expenses 333 0 334 Gross operating profit 6,591 16,175 22,766 Gross operating profit ratio 2.03% 1.46% 1.59%

(Notes) 1. Domestic operations are yen-denominated transactions and international operations are foreign currency-denominated transactions conducted by branches in Japan. However, nonresident yen-denominated transactions and special government bond financial trading account, etc. are included in the international operations. 2. Gross operating profit ratio ＝ gross operating profit / average balance of fund management account x 100 ÷ number of days of the term x 365

Interim Disclosure

Average balance of fund management account / funding account (1) Domestic operations (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Average balance Interest Yield (%) Fund management account 1,283,813 3,074 0.95 Loans and bills discounted 210,522 883 1.66 Securities 821,837 1,568 0.75 Call loans 35,472 43 0.48 Receivables under resale agreements 116,677 167 0.56 Monetary claims bought 97,998 404 1.63 Due from banks －－－ Finance account 2,394,056 1,581 0.26 Deposits 2,270,312 1,400 0.24 Negotiable certificates of deposit 60,771 95 0.62 Call money 60,326 74 0.49 Borrowed money 155 00.17 Employees’ deposits 2,489 6 0.95 (Note) Average balance of noninterest-bearing due from banks (31,026 million yen) is not included in fund management account.

(2) International operations (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Average balance Interest Yield (%) Fund management account 4,386,002 42,030 3.80 Loans and bills discounted 138,158 1,399 4.01 Securities 63,374 521 3.26 Call loans 8,833 108 4.86 Receivables under resale agreements －－－ Monetary claims bought 705 10 5.89 Due from banks 4,027,949 38,779 3.81 Finance account 3,258,922 31,969 3.89 Deposits 3,163,367 31,475 3.94 Negotiable certificates of deposit －－－ Call money 942 12 5.08 Borrowed money 993 －－ Employees’ deposits －－－ (Note) Average balance of foreign currency-denominated transactions by branches in Japan, which are classified as international operations, is calculated based on the daily basis.

Interim Disclosure

(3) Total (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Average balance Interest Yield (%) Fund management account 5,669,815 45,105 3.15 Loans and bills discounted 348,681 2,282 2.59 Securities 885,211 2,090 0.93 Call loans 44,306 151 1.35 Receivables under resale 0.56 agreements 116,677 167 Monetary claims bought 98,704 415 1.66 Due from banks 4,027,949 38,779 3.81 Finance account 5,652,979 33,550 2.35 Deposits 5,433,679 32,875 2.40 Negotiable certificates of deposit 60,771 95 0.62 Call money 61,269 86 0.56 Borrowed money 1,149 00.02 Employees’ deposits 2,489 6 0.95 (Notes) 1. Average balance of noninterest-bearing due from banks (31,099million yen) is not included in fund management account. 2. Average balance of and interest accrued from borrowing and lending between domestic and international operations are offset.

Overall profit margin (%) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Domestic International Total Fund management 0.95 3.80 3.15 yield Fund management 1.94 4.81 3.59 cost Overall profit margin △0.99 △1.00 △0.44 (Note) Fund management cost includes Expense.

Interim Disclosure

Changes in interest received / paid (1) Domestic operations (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Change in Change in Net change balance interest rate Interest received Loans and bills discounted －－－ Trading securities －－－ Securities －－－ Call loans －－－ Bills bought －－－ Due from banks －－－ Interest paid Deposits －－－ Negotiable certificates of deposit －－－ Call money －－－ Bills sold －－－ Borrowed money －－－

(2) International operations (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Change in Changes in Net change balance interest rate Interest received Loans and bills discounted －－－ Trading securities －－－ Securities －－－ Call loans －－－ Bills bought －－－ Due from banks －－－ Interest paid Deposits －－－ Negotiable certificates of deposit －－－ Call money －－－ Bills sold －－－ Borrowed money －－－

Interim Disclosure

(3) Total (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Change in Changes in Net change balance interest rate Interest received Loans and bills discounted －－－ Trading securities －－－ Securities －－－ Call loans －－－ Bills bought －－－ Due from banks －－－ Interest paid Deposits －－－ Negotiable certificates of deposit －－－ Call money －－－ Bills sold －－－ Borrowed money －－－ (Note) Portions of which balance and factors for changes in interest rate are overlapped are calculated by including changes in interest rate.

Fees and commissions (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Domestic International Total Income on fees and commissions 5,570 2,533 8,104 Fees and commissions on domestic and foreign exchange 289 1,030 1,319 Other fees and commissions 5,281 1,503 6,785 Expenses on fees and expenses 899 150 1,049 Fees and commissions on domestic and foreign exchange 86 78 164 Other fees and commissions 813 71 885 Fees and commissions profit 4,671 2,383 7,054

Interim Disclosure

Trading income and expenses (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Domestic International Total Trading income 165 － 165 Income from trading securities and derivatives 165 － 165 Income from securities and derivatives related to trading transactions －－－ Income from trading- related financial derivatives transactions －－－ Other trading income －－－ Trading expenses △240 1,300 1,060 Expenses on trading securities and Derivatives －－－ Expenses on securities and derivatives related to trading transactions 76 180 257 Expenses on trading- related financial derivatives transactions △316 1,119 803 Other trading expenses －－－ Trading profit 406 △1,300 △894

(Note) Trading income and trading expenses are offset. Fair value of the trading is validated by the department where transactions are not done.

Interim Disclosure

Other operating income

(Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Domestic International Total Other operating income 20 5,030 5,051 Gains on foreign exchange transactions － 5,030 5,030 Gains on sales of bonds 1 － 1 Gains on redemption of bonds －－－ Income from derivatives other than for trading or hedging －－－ Others 18 0 19 Other operating expenses －－－ Losses on foreign exchange transactions －－－ Losses on sales of bonds －－－ Losses on redemption of bonds －－－ Losses on devaluation of bonds －－－ Expenses on derivatives other than for trading or hedging －－－ Others －－－ Other operating profit 20 5,030 5,051

Interim Disclosure

General and administrative expenses (Millions of Yen) FY2007 Interim (Jul1, 2007 – Sep30, 2007) Salary 5,445 Accrued pension cost 144 Welfare expense 97 Depreciation 1,191 Rental fees on land, buildings, and machinery 878 Maintenance cost 190 Supplies cost 144 Utilities cost 165 Expense of travel 121 Communication charge 510 Advertising expenses 1,077 Tax and public charge 3,039 Others 4,804 Total 17,812

Profit ratio

FY2007 Interim (Jul1, 2007 – Sep30, 2007) Ordinary income to total assets 0.32% Ordinary income to capital (net assets) 8.58% Interim net income to total assets 0.24% Interim net income to capital (net assets) 6.51%

Ordinary income to total assets = Ordinary income ÷Number of days of the term×365 ×100 Average balance of total assets (excl. customers’ liabilities for acceptances and guarantees)

Ordinary income to capital (net assets) = Ordinary income ÷Number of days of the term×365 ×100 （Beginning net assets + term-end net assets）÷2

Interim net income to total assets = Interim net income ÷Number of days of the term×365 ×100 Average balance of total assets (excl. customers’ liabilities for acceptances and guarantees)

Interim net income to capital (net assets) = Interim net income ÷Number of days of the term×365 ×100 （Beginning net assets + term-end net assets）÷2

Interim Disclosure

Average balance by deposits

(Millions of Yen) FY2007 Interim Domestic International Total Liquid deposits 1,923,102 － 1,923,102 Time and savings deposits 335,966 2,108 338,075 Negotiable certificates of deposit 60,771 － 60,771 Other deposits 11,242 3,161,258 3,172,501 Total 2,331,083 3,163,367 5,494,451

(Notes) 1. Liquid deposits ＝ current deposits ＋ ordinary deposits ＋ saving deposits ＋ deposits at notice 2. Time and savings deposits ＝ time deposits

Time deposits balance by remaining term

(Millions of Yen) FY2007 Interim Less than Over 3 Over 6 Over 1 year, Over 2 Over 3 Total 3 months months, months, less less than 2 years, less years less than 6 than 1 year years than 3 years months Fixed interest time deposits 266,453 17,711 18,278 5,345 1,317 2,187 311,293 Floating interest time deposits － 590 －－－ 460 1,050 Others －－－－－－－ Total 266,453 18,301 18,278 5,345 1,317 2,647 312,343

Balance by loan account type

Balance at the end of period (Millions of Yen) FY2007 Interim Domestic International Total Loans on bills 57,882 3,846 61,728 Loans on deeds 109,988 120,278 230,266 Overdrafts 61,438 22,749 84,188 Bills discounted 527 － 527 Total 229,836 146,874 376,710

Interim Disclosure

Average balance (Millions of Yen) FY2007 Interim Domestic International Total Loans on bills 67,346 9,275 76,622 Loans on deeds 104,230 110,224 214,455 Overdrafts 38,279 18,657 56,937 Bills discounted 666 － 666 Total 210,522 138,158 348,681

Balance of loans and bills discounted by remaining term (Millions of Yen) FY2007 Interim Over 1 year, Over 3 Over 5 Less than 1 Over 7 less than 3 years, less years, less Total year years years than 5 years than 7 years

Fixed interest 131,818 3,555 292 35 10 135,712 Floating interest 97,053 43,421 24,351 12,993 63,177 240,998 Total 228,872 46,977 24,643 13,029 63,188 376,710

Balance of loans and bills discounted by collateral type

(Millions of Yen) FY2007 Interim Type of collateral pledged Loan balance Own deposits 13,458 Securities 14,123 Claims － Commodities 8,041 Real estate 26,778 Foundations － Others － Total 62,401 Guarantees 117,241 Credit 197,067 Total 376,710

Interim Disclosure

Balance of customers’ liabilities for acceptances and guarantees by type of collateral

(Millions of Yen) FY2007 Interim Customers’ liabilities for Type of collateral pledged acceptances and guarantees Own deposits 9,128 Securities 50,597 Claims － Commodities － Real estate － Foundations － Others 359 Total 60,085 Guarantees － Credit 118,156 Total 178,242

Balance of loans and bills discounted by use (Millions of Yen) FY2007 Interim Funds for equipment 92,170 Funds for operations 284,540 Total 376,710

Interim Disclosure

Balance of loans and bills discounted by industry (Millions of Yen) FY2007 Interim Amount (%) Manufacturing 34,595 9.18% Agriculture －－ Forestry －－ Fishery －－ Mining －－ Construction －－ Electric/gas/heat supply/water －－ Information and telecommunications 12,999 3.45% Shipping/transport 68 0.01% Wholesale/retail 50,004 13.27% Finance/insurance 62,138 16.49% Real estate 13,765 3.65% Services 10,822 2.88% Local public authorities －－ Individually-owned/private 56,309 14.94% Others 135,946 36.08% Total 376,710 100%

Balance of loans and bills discounted for small and medium size businesses (Millions of Yen) FY2007 Interim Gross loan balance (A) 376,710 Balance of loans for small and medium size corporations etc. (B) 189,987 (B) / (A) 50.43%

(Note) Small and medium businesses refer to companies or individuals with its capital not more than 300 million yen (100 million yen for wholesale businesses and 50 million yen for retail sale and services businesses) and 300 full-time employees or fewer on the payroll (100 for wholesale, 50 for retail sale and 100 for services).

Balance of specified overseas claims

CJL does not hold specified overseas claims.

Interim Disclosure

Deposit-loan ratio (%) FY2007 Interim Domestic International Total Balance at the end of 10.46% 4.97% 7.31% period Average balance 9.03% 4.36% 6.34%

(Note) Negotiable certificates of deposit and bonds are included in “deposits.”

Reserve for possible loan losses (Millions of Yen) FY2007 Interim Net transfer Transfer Reversal Category (△reversal) Balance amount amount amount General loan loss reserves 914 1,710 △795 914

Individual loan loss reserves 0 32 △32 317 Specified overseas claim reserve account －－－－ Total 914 1,743 △828 1,232

Loan write-offs

None

Risk management Loans (Millions of Yen) FY2007 Interim Bankrupt loans － Past due loans/non-accrual loans 137 Past due loans (3 months or more) 25 Restructured loans 1,186 Total 1,349 (Notes) 1. “Bankrupt loans” are loans on which accrued interest income is not recognized as there is substantial doubt about the ultimate collectability of either principal or interest because they are past due for a considerable period of time or for other reasons (excluding write-offs, hereinafter “non-accrual loans”), and as defined in Article 96-1-3 and 96-1-4 of the Enforcement Ordinance No. 97 of the Japanese Corporate Tax Law. 2. “Past due loans” are "Possibly bankrupt loans" and " Substantially bankrupt loans" 3. “Past due loans (3 months or more)” are loans on which the principal or interest is past due from the next day of prescribed payment date for three months or more, or "need special attention loans", excluding “bankrupt loans” and “past due loans.”

Interim Disclosure

4. “Restructured loans” are loans on which terms and conditions have been amended in favor of the borrowers (e.g., reduction of the original interest rate, deferral of interest payments, extension of principal repayments or debt forgiveness) in order to support the borrowers’ recovery from financial difficulties, excluding “bankrupt loans,” “past due loans/non-accrual loans” and “past due loans (3 months or more).”

Claims under the Financial Reconstruction Law (Millions of Yen) FY2007 Interim Bankrupt and quasi-bankrupt credit － Doubtful credit 137 Substandard credit 1,213 Subtotal (A) 1,350 Normal credit 718,832 Total (B) 720,183 (A) / (B) 0.18%

(Notes) 1. “Bankrupt and quasi-bankrupt credit” are credit to bankrupt borrowers in the event of filing for commencement of bankruptcy/corporate reorganization/rehabilitation proceedings and loans pursuant to these proceedings. 2. “Doubtful credit” are credit of which borrowers are not in bankruptcy but their financial status and business performance deteriorate, with a low collectability of principal and interest under the terms and conditions of the contract. 3. “Substandard credit” are past due loans (3 months or more) from “risk-management loans” and restructured loans. 4. “Normal credit” are credit classified as other than the credit listed in 1 to 3 above, with no problems seen with borrowers’ financial status and business performance.

Compensation for losses in loan trusts

None

Average balance of trading securities by category

(Millions of Yen) FY2007 Interim Trading government bonds 127,997 Trading municipal bonds － Trading government-backed bonds － Other trading securities － Loaned trading bonds － Total 127,997

Interim Disclosure

Balance of securities by category/remaining term (Millions of Yen) FY2007 Interim Up to 1 1 – 5 5 – 10 Over 10 Indefinite Grand Category year years years years term total Government 126,421 388,434 79,683 －－ 594,540 bonds Municipal －－－－－－ bonds Corporate 46,231 160,906 － 7,101 － 214,239 bonds Stocks －－－－－－ Foreign 16,177 41,249 5,687 －－ 63,114 bonds Foreign －－－－－－ stocks Other －－－－－－ securities Grand total 188,830 590,590 85,371 7,101 － 871,894

Average balance of securities by category

(Millions of Yen) FY2007 Interim Domestic International Total Government bonds 614,411 － 614,411 Municipal bonds －－－ Corporate bonds 207,425 － 207,425 Stocks －－－ Foreign bonds － 63,374 63,374 Foreign stocks －－－ Other securities －－－ Total 821,837 63,374 885,211

Deposits-securities ratio (%) FY2007 Interim Domestic International Total Balance at the end of 36.82% 2.13% 16.94% period Average balance 35.25% 2.00% 16.11%

(Note) Negotiable certificates of deposit and bonds are included in “deposits.”

Interim Disclosure

2. Financial statements

Balance sheet

FY2007 Interim

As of September 30,2007 (Millions of Yen) Account NameAmount Account Name Amount Cash and due from banks4,069,211 Deposits 5,097,709 Call loans5,600 Negotiable certificates of deposit 49,000 Monetary claims bought 66,550Call money 125,968 Trading assets 68,774Trading liabilities 32,899 Securities 871,894Foreign exchanges 135,622 Loans and bills discounted 376,710Other liabilities 171,851 Foreign exchanges 156,437Reserve for employees’ bonus 3,389 Other assets 197,879 Reserve for bonus for directors and 192 Tangible fixed assets 29,016 corporate auditors Intangible fixed assets 16,413Reserve for employee retirement benefits 2,921 Deferred tax assets 11,414Reserve for directors retirement benefits 1 Customers’ liabilities for acceptances Reserve for others 2,878 178,242 and guarantees Acceptances and guarantees 178,242 Reserve for possible loan losses △ 1,232 Total liabilities 5,800,675 Common stock 123,100 Capital surplus 121,100 Capital surplus reserve 121,100 Retained earnings 3,829 Other retained earnings 3,829 Earned surplus brought forward 3,829 Total owners' equity 248,029 Net unrealized gains (losses) on △ 1,777 securities available for sale, net of taxes Net deferred gains (losses) on hedging △ 13 instruments, net of taxes Total valuation and translation △ 1,791 Total net assets 246,238 Total assets 6,046,914Total liabilities and net assets 6,046,914

Interim Disclosure

Notes: (Notes to Balance Sheet) 1. Amounts less than one million yen have been omitted.

2. Transactions for trading purposes, such as seeking gains arising from short-term changes in interest rates, currency exchange rates, or market prices of securities and other market related indices or from variation among markets (hereinafter referred to as “Specified Trading Purposes”), are included in “Trading assets” or “Trading liabilities” on the balance sheet on a trade date basis. Securities and monetary claims purchased for trading purposes are stated at the fiscal year-end market value, and financial derivatives such as swaps, futures and options are stated at amounts that would be settled if the transactions were terminated at the balance sheet date.

3. Other securities that have market prices are carried at their balance sheet date market prices (cost of securities sold is calculated using primarily the moving-average method). Net unrealized gains/losses on other securities, net of income taxes, are included in “Net assets”.

4. Derivative transactions (excluding those for specified trading purposes) are carried at fair value.

5. Tangible fixed assets are depreciated using the declining-balance method. Plants and buildings (except for accessory equipment attached to the buildings) are depreciated using the straight-line method. The estimated useful lives of major items are as follows: Buildings: 38 years Equipment: 3 to 18 years

6. Capitalized software for internal use is depreciated over its estimated useful life (5 years). Goodwill is depreciated equally over 5 years

7. Assets and liabilities denominated in foreign currencies and accounts overseas branches are translated into Japanese yen at the exchange rate prevailing at the balance sheet date

8. Reserve for possible loan losses is provided as detailed below in accordance with the internal standards for write-offs and provisions. For claims on borrowers that have entered into bankruptcy, special liquidation proceedings or similar legal proceedings (“bankrupt borrowers”) or borrowers that are not legally or formally insolvent but are regarded as substantially in the same situation (“effectively bankrupt borrowers”), a reserve is provided based on the amount of claims, after the write-off stated in the additional paragraph below, net of the expected amount of recoveries from collateral and guarantees. For claims on borrowers that are not currently bankrupt but are perceived to have a high risk of falling into bankruptcy, a reserve is provided in the amount deemed necessary based on an overall solvency assessment of the claims, net of the expected amount of recoveries from collateral and guarantees. For other claims, a reserve is provided based on the historical loan-loss ratio. For claims originated in specific overseas countries, an additional reserve is provided in the amount of expected loss caused by various political and economic conditions. Marketing-related businesses assess all claims in accordance with the internal rules for self- assessment of assets, and the Credit Review Department, independent from these marketing-related businesses, audits their assessment. The reserves are provided based on the results of these assessments.

9. Reserves for bonuses are accounted for in preparation for the payment of bonuses to the employees at the amount estimated for the payment of bonuses to the employees during the fiscal year.

10. The reserves for the bonuses to directors are reported in preparation for the payment of bonuses to directors at the estimated amount to be paid to the directors during the term. (Supplemental information) Citibank,N.A., Japan Branches transferred its businesses to CJL on July 1, 2007 and CJL started its operation on that date. Since then directors and statutory auditors have been newly inaugurated beginning with the period under review, new reserves for the bonuses to directors were reported

Interim Disclosure

beginning with the period under review.

11. Reserves for employee retirement allowance are reported in preparation for the payment of employee retirement allowance in the amount deemed accrued at the fiscal year-end, based on the projected retirement benefit obligation and the fair value of plan assets at the fiscal year-end. The unrecognized prior service cost and the actuarial differences are reported as expenses as follows Actuarial differences: Amortized using the straight-line method, primarily over 7 to 9 years within the employees’ average remaining service period, commencing from the next fiscal year of incurrence.

12. Reserves for director retirement allowance are reported in preparation for the payment of director retirement allowance out of directors’ estimated allowance for the amount allocable to the period under review (Supplemental information) Citibank,N.A., Japan Branches transferred its businesses to CJL on July 1, 2007 and CJL started its operation on that date. Since then directors and statutory auditors have been newly inaugurated beginning with the period under review, newly reserves for the retirement allowance to directors were reported beginning with the period under review.

13. Finance leases, excluding those in which the ownership of the property is transferred to the lessee, are accounted for in the same method as operating leases (or sales transactions).

14. For the hedge accounting method applied to hedging transactions for interest rate risk arising from financial assets, CJL applies the deferred hedge accounting method. As for the portfolio hedges to offset market fluctuation, effectiveness of such hedges is assessed by classifying the hedged items (such as deposits and loans) and the hedging instruments (such as interest rate swaps) by their maturity.

15. National and Local Consumption Taxes are excluded from transaction amounts. Non-deductible portions of Consumption Taxes on the purchases of Tangible fixed assets are included in the other assets and depreciated equally over 5 years.

16. Accumulated depreciation on tangible fixed assets: 32,579 million yen

17. Deferred gain on real property deductible for tax purposes: - million yen

18. There were no Bankrupt loans and Non-accrual loans were 137 million yen, respectively “Bankrupt loans” are loans, after write-off, to legally bankrupt borrowers as defined in Article 96-1-3 (a) through (e) and 96-1-4 of the Enforcement Ordinance No.97 of the Japanese Corporate Tax Law (issued in 1965) and on which accrued interest income is not recognized as there is substantial doubt about the ultimate collectability of either principal or interest because they are past due for a considerable period of time or for other reasons. Non-accrual loans” are loans on which accrued interest income is not recognized, excluding “Bankrupt loans” and loans on which interest payments are deferred in order to support the borrowers’ recovery from financial difficulties.

19. Past due loans (3 months or more) totaled 25 million yen. “Past due loans (3 months or more)” are loans on which the principal or interest is past due for three months or more, excluding “Bankrupt loans” and “Non-accrual loans.”

20. Restructured loans totaled 1,186 million yen. “Restructured loans” are loans on which terms and conditions have been amended in favor of the borrowers (e.g. reduction of the original interest rate, deferral of interest payments, extension of principal repayments or debt forgiveness) in order to support the borrowers’ recovery from financial difficulties, excluding “Bankrupt loans,” “Non-accrual loans” and Past due loans (3 months or more).”

21. The total amount of bankrupt loans, non-accrual loans, past due loans (3 months or more) and

Interim Disclosure

restructured loans was 1,349 million yen. Credit amounts shown from 18 to 21 are the amounts before the appropriate loan reserve.

22. In accordance with JICPA Accounting System Committee Report No.3 dated June 1, 1995 regarding Loan Participation: The amount of participation principal reported to the balance sheet , which was accounted for as the money borrowed by the original obligator, was 63,014 million yen.

23. Bills discounted are accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No.24. CJL has rights to sell or pledge bank acceptance bought, commercial bills discounted, documentary bills and foreign exchanges bought without restrictions. The total face value was 74,152 million yen.

24. Assets pledged as collateral are as follows: Assets pledged as collateral: Securities 19,935 million yen Liabilities corresponding to assets pledged as collateral: Call money 18,987 million yen In addition, Securities of 606,227 million yen and Trading securities of 37,058 million yen are pledged as collateral for exchange settlements. Other assets include margin of future markets of 580 million yen and guarantee deposits of 4,129 million yen. Rediscount of bills rediscounted are accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No.24 and the face value of the bank acceptance, commercial bills, documentary bills and foreign exchanges bought without restrictions delivered is 1,501 million yen.

25. Net assets per share was 1.00 yen.

26. The following are the issues related to the market value of securities and the valuation gains/losses. Other securities with market value Acquisition cost Balance sheet Valuations (mil. Yen) amount (mil. Yen) gains/losses (mil. Yen) Bonds Japanese 596,632 594,540 △2,092 government bond Bonds 214,526 214,239 △286 Others 63,384 63,114 △269 Total 874,542 871,894 △2,648

The amount (△1,439 million yen) obtained by adding deferred tax assets of 1,208 million yen to the valuations losses above is included in the Other Securities Valuation Gains/Losses.

27. As for the unsecured borrowed securities, which provide the right to sell or pledge and the securities which were purchased under resale agreements (bond loan transactions), that are permitted to be sold or pledged without restrictions, 25,900 million yen of securities are pledged and there were no securities that were held in hand as of the balance sheet date.

28. Commitment line contracts on overdrafts and loans are agreements to lend to customers up to a prescribed amount, as long as there is no violation of any condition established in the contracts. The amount of unused commitments was 835,527 million yen and the amount of those with remaining period within one year was 748,054 million yen. Since many of these commitments are expected to expire without being drawn upon, the total amount of unused commitments does not necessarily represent actual future cash flow requirements. Many of these commitments include clauses under which we can reject an application from customers or reduce the contract amounts in the event that economic conditions change, we need to secure claims, or other 33

Interim Disclosure

events occur. In addition, we may request the customers to pledge collateral such as premises and securities at the time of the contracts, and take necessary measures such as monitoring customers’ financial positions, revising contracts when need arises and securing claims after contracts are made on a periodic basis.

29. The main causes for the deferred tax assets and deferred tax liabilities are as follows: Deferred tax assets Goodwill 9,683Million Yen Buildings 1,765 Denied accrual expenses 1,318 Reserve for others 1,229 Reserve for employees’ bonus 953 Others 2,225 Deferred tax assets total 17,175 Deferred tax liabilities Unrealized gain/loss on securities available for sale 2,067 Reserve for employee retirement plan 1,907 Land 1,784 Deferred tax liabilities total 5,760 Net deferred tax assets 11,414Million Yen

30. Regulations concerning the scope of marketable securities such as in the Accounting Standards for Financial Instruments (Financial Accounting Standard No. 10) and the Practical Guidelines for Accounting for Financial Instruments (Report No. 14 of the Accounting System Committee at the Japanese Institute of Certified Public Accountants) have been partly revised (respectively dated June 15 and July 4, 2007). Along with the coming into force of these revisions for fiscal years and interim accounting periods ending after the enactment date of the Financial Instruments and Exchange Law, CJL applies the revised standards and implementation guidelines beginning with the period under review.

31. Matters concerning business combinations stipulated in Article 5-12 of the Regulations regarding Terminology, Format and Method of Preparation of Interim Financial Statements, etc. are as follows. (1)Corporate name and business line at the time of the business combination, legal form of the business combination, corporate name after the combination, and outline and purpose of the transaction ①Corporate name and business line at the time of the business combination Combining corporation: Citibank Japan Ltd. Business line: Banking operations Combined corporation: Citibank, N.A., Japan Branches Business line: Banking operations ②Legal form of the business combination Assignment of operations ③Corporate name after the combination Citibank Japan Ltd. ④Outline and purpose of the transaction In order for Citigroup to conduct its banking operations in Japan as a locally incorporated entity, the banking operations of Citibank, N.A., Japan Branches were transferred as of July 1, 2007, to CJL, a newly established corporation. The establishment of a locally incorporated entity is intended to serve a significant future expansion of banking operations for retail and corporate customers while ensuring an appropriate management control framework in Japan. As consideration for the business transfer, CJL issued 24,200 million shares of CJL (worth 24,200 million Yen) to Citibank, N.A.. (2) Implemented accounting treatment The business combination was accounted for as stipulated in “Accounting Standards for Business Combinations; III. Accounting Standards for Business Combinations; 4. Accounting for Transactions under Joint Control.”

Interim Disclosure

Income statement

FY2007 Interim (Jul1, 2007 – Sep30, 2007)

For the Three Months ended September 30,2007 (Millions of Yen) Account Name Amount Operating income 58,852 Interest income 45,105 （Interest on loans and discounts）（2,282）（Interest and dividends on securities）（2,090） Fees and commissions 8,104 Trading income 165 Other operating income 5,051 Other income 424 Operating expenses 53,807 Interest expenses 33,550 （Interest on deposits）（32,875） Fees and commissions 1,049 Trading expenses 1,060 Other operating expenses - General and administrative expenses 17,812 Other expenses 334 Operating profits 5,044 Extraordinary profits 831 Extraordinary losses 44 Income before income taxes and others 5,831 Provision for income taxes and others 2,001 Net income 3,829

Interim Disclosure

Notes: (Notes to Statement of Income) 1. Less than one million yen have been omitted.

2. Net income per share (or net loss) 0.01yen

3. Profits and losses on trading-purpose transactions are recognized on a trading date basis, and recorded as “Trading profits” and “Trading losses.” Both accounts include interest received or paid during the fiscal year. The year-on-year valuation differences of securities and money claims are also recorded in the above-mentioned accounts. As for the derivatives, assuming that the settlement will be made in cash, the year-on-year valuation differences are also recorded in the above-mentioned accounts.

4. Concerning the cost of adjustments to net deferred income tax in the period under review, since CJL applies the simplified method of tax effect accounting, adjustments are included in current income taxes.

Interim Disclosure

Statement of changes in net assets

FY2007 Interim (Jul1, 2007 – Sep30, 2007)

For the Three Months ended September 30,2007 (Millions of Yen) Shareholders' equity Capital surplus Retained earnings Other retained Total Capital Capital Other Total Earned Total Treasury earnings shareholder stock surplus capital Capital surplus Earned Retained stock s' equity reserve surplus surplus reserve surplus earnings brought forward

Beginning Balance 111,000 109,000 - 109,000 ----220,000

Changes of items during the interim period

Issuance of new shares 12,100 12,100 12,100 24,200

Net income 3,829 3,829 3,829

Net changes of items other than owners’ equity Total changes of items 12,100 12,100 - 12,100 - 3,829 3,829 - 28,029 during the interim period

Balance at the end of the 123,100 121,100 - 121,100 - 3,829 3,829 - 248,029 current interim period

Valuation and translation adjustments Net Net deferred unrealized Total gains Land Subscription gains valuation Total net (losses) on revaluation rights to (losses) on and assets hedging excess, net shares other translation instruments, of taxes securities, adjustments net of taxes net of taxes

- - - - - 220,000

24,200

3,829

△ 1,777 △ 13 △ 1,791 △ 1,791

△ 1,777 △ 13 - △ 1,791 - 26,238

△ 1,777 △ 13 - △ 1,791 - 246,238

Interim Disclosure

Notes: (Notes to Statement of Changes in Net Assets) 1. The types and number of our shares outstanding are as follows: (Unit : Thousands of shares) No. of stocks at No. of stocks No. of No. of stocks at Memo the Beginning of increased stocks the end of the the current FY during the decreased current FY current FY during the current FY Common 220,000,000 24,200,000 － 244,200,000 Note 1 stock Classified －－－－ stock Total 220,000,000 24,200,000 － 244,200,000

Note 1: CJL. Issued new shares to be paid as an in-kind consideration for the business transfer.

Interim Disclosure

Cash flow statement

FY2007 Interim (Jul1, 2007 – Sep30, 2007) For the Three Months ended September 30,2007 (Millions of Yen) Account Name Amount Ⅰ Cash flows from operating activities: Income before income taxes and others 5,831 Depreciation 471 Impairment losses 720 Increase (decrease) in allowance for loan losses △ 828 Increase (decrease) in reserve for bonus 1,226 Increase (decrease) in employee retirement △ 40 Interest income recognized on statements of operations △ 45,105 Interest expenses recognized on statements of operations 33,550 Losses (gains) on foreign exchange 2,473 Losses (gains) on dispositions of fixed assets 290 Net increase (decrease) in trading asset 172,357 Net increase (decrease) in trading liability △ 7,797 Net decrease (increase) in loans and bills discounted △ 25,294 Net increase (decrease) in deposits △ 487,821 Net increase (decrease) in negotiable certificates of deposits △ 1,000 Net increase (decrease) in due from banks (excluding from Bank of Japan) 343,935 Net increase (decrease) in call loan 15,678 Net increase (decrease) in call money 59,190 Net increase (decrease) in borrowed money △ 4,185 Net increase (decrease) in foreign exchanges asset 8,916 Net increase (decrease) in foreign exchanges liability △ 70,114 Interest income (cash basis) 43,688 Interest expenses (cash basis) △ 36,127 Other, net 1,210 Sub-total 11,223 Income taxes 0 Net cash (used in) provided by operating activities 11,223 Ⅱ Cash flows from investing activities: Purchases of investment securities △ 103,561 Proceeds from sales of investment securities 56,160 Proceeds from sales of redemption of investment securities 34,100 Purchases of tangible fixed assets △ 1,024 Proceeds from sales of tangible fixed assets 0 Purchases of intangible fixed assets △ 116 Proceeds from business transfer 24,597 Net cash used in investing activities 10,155 Ⅲ Cash flows from financing activities: Net cash provided by financing activities - Ⅳ Effect of foreign exchange rate changes on cash and cash equivalents △ 24 Ⅴ Net increase (decrease) in cash and cash equivalents 21,355 Ⅵ Cash and cash equivalents at the beginning of the fiscal year - Ⅶ Cash and cash equivalents at the end of the fiscal year 21,355

Interim Disclosure

Notes: (Notes to Statement of Cash Flows) 1. Cash and Cash Equivalents consist of cash and due from central banks included in Cash and Due from Banks on the balance sheet. As of September 30,2007 Cash and Due from Banks 4,069,211 million yen Due from Banks excluding central banks △4,047,856 million yen Cash and Cash Equivalents 21,355 million yen 2. Assets and Liabilities that are increased due to the business combination Relations among the amount of assets, liabilities, and revenues increased by business transfer from the Japan branches of Citibank, N.A. Assets 6,373,832 million yen Liabilities △6,369,460 million yen Goodwill 14,404 million yen Net unrealized gains on securities available for sale 5,407 million yen Net deferred gains on hedging instruments 16 million yen Purchasing price 24,200 million yen Cash and Cash Equivalents 24,597 million yen Accounts payable △24,200 million yen Remain: Gain from business transfer 24,597 million yen

Interim Disclosure

Status of capital adequacy 〔National Standards〕 Credit risks of banks adopting Standard approach (Millions of Yen)

September 30, September 30, 2007 2007 Capital123,100 Short-term junior debt Non-cumulative Exclusion from Tier 3 capital perpetual preferred stock Paid-in advance [Tier 3 capital] total(C) －

Capital reserve121,100 Total equity capital（A+B+C） 232,746 （D） Other capital surplus

Earned reserve Equivalent of intentionally retained Other accumulated earnings 3,829 amount of capital instruments by Others other financial institutes Treasury stock Advance on treasury stock Liabilities funding subscription

Estimated distributed income Fixed term subordinated Estimate loss on revelauation of debts △ 2,514 other securities Share warrant Short-term junior debt Trade rights equivalent △ 13,684 and equivalents Goodwill equivalent Deducted amount associated with Intangible fixed assets equivalent asynchronous settlements and the reported by business combination deducted amount related to the exempted amount of warranty used Equity capital equivalent increased as credit risk reducing method or by securitization transaction credit derivative 50% equivalent of expected loss in 50% equivalent of expected loss in excess of the qualified reserve of excess of the qualified reserve of the bank adopting internal rating the bank adopting internal rating method method Total of [Tier 1 capital] of deferred Expected loss of exposures such tax assets before deduction(total of as shares to which PD/LGD above items) parameters are applied Deduction from deferred tax assets Securitization exposures subject to deduction from equity capital and [Tier 1 capital] total(A) 231,831 I/O STRIPS with credit Shares with probability of enhancement function excluding redemption the deduction from Tier 1 capital 45% equivalent of the difference Exclusion from deductions between the revaluated amount of the land and the book value (Deduction) total(E) － immediately prior to revaluation

General bad debt reserve 914

Interim Disclosure

Amount of qualified reserve in Equity capital(D)-(E) (F) 232,746 excess of the expected loss of the bank adopting internal rating method Assets(on balance) 1,346,953 Debt capital instruments etc. Off balance sheet transaction 297,952 Liabilities funding Market risk equivalent devided by 67,499 Fixed term subordinated 8% debts Operational risk equivalent devided 161,344 by 8% The amount derived by multiplying the formerly required equity capital by the percentage prescribed in the Announcement in excess of the new required capital multiplied by 25.0 Risk assets（G） 1,873,751 Tier I ratio (National Standards) Exclusion from Tier 2 capital (A)/(G) 12.3% Capital adequacy ratio (National [Tier 2 capital] total(B) 914 Standards) (F)/(G) 12.4%

(Note) Calculation for capital adequacy was audited by external auditor.

Interim Disclosure

3. Market value information

Securities Matters concerning securities market value, valuation difference, etc. are as follows. As well as “government bonds,” “municipal bonds,” “corporate bonds” and “other securities,” “trading securities” are included in securities.

(1) Trading securities Balance sheet amount 37,058 million yen Net unrealized gains (losses) included in current P/L △25 millions yen

(2) Other securities with market value

Balance Net changes Acquisition sheet in valuation (Gains) (Losses) cost amount (gains/losses) Bonds Govenrment 596,632 594,540 △2,092 1,230 △3,322 Municipal －－－－－ Corporate 214,526 214,239 △286 316 △603 Others 63,384 63,114 △269 226 △495 Total 874,542 871,894 △2,648 1,773 △4,422

(Notes) △1,439 million yen, which is obtained by deducting 1,208 million yen of deferred tax assets from the amount of net gains/losses above has been included in “net changes in valuation of available for sale securities”

(3) Other securities sold during the current term Sales value Gains on sales Losses on sales 9,532 million yen 1 million yen 0 million yen

(4) Bond redemption estimated amount with maturities

Over 1 year, Over 5 year, Less than 1 less than 5 less than 10 Over 10 years year years years Bonds Government 126,421 388,434 79,683 － Municipal －－－－ Corporate 46,231 160,906 －－ Others 16,177 41,249 5,687 7,101 Total 188,830 590,59085,371 7,101

Money held in trust None

Interim Disclosure

Derivatives market value information (1) Interest rate-related transactions （Millions of Yen） FY2007 Interim Net changes Contract Over 1 year in Type Market value (gains/losses) gory Cate amount contract amount in valuation Interest-rate futures 146,936 57,698 7 7 Sell 136,936 57,698 7 7 Buy 10,000 － 0 0 Options 106,165 － 76 63 Sell －－－－

Exchange-traded Buy 106,165 － 76 63 Forward rate agreements －－－－ Sell －－－－ Buy －－－－ Interest rate swaps 2,082,488 1,202,424 △1,223 △1,223 Receive fixed pay floating swaps 881,174 521,141 7,857 7,857 Receive floating pay fixed swaps 1,142,402 622,370 △9,493 △9,493 Receive floating pay floating swaps 46,689 46,689 －－ Over-the -counter Receive fixed pay fixed swaps 12,223 12,223 411 411 Options 40,733 40,733 2 2 Sell 20,366 20,366 △25 △25 Buy 20,366 20,366 28 28 Total －－ △1,137 △1,150

(Notes) 1. These transactions were marked to market before net changes in valuation are accounted for in the statement of income. In accordance with “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in Banking Industry” (JICPA Industry Audit Committee Report No. 24), derivatives transactions to which the hedge accounting method is applied are excluded. 2. Calculation of market value Market value is calculated based on closing/final price of the Tokyo International Financial Futures Exchange (TIFFE) etc. for exchange-traded transactions, and on discounted cash flow method or option price calculation models for over-the-counter (OTC) transactions.

Interim Disclosure

(2) Currency-related transactions （Millions of Yen） FY2007 Interim Net changes Over 1 year in Type Contract amount Market value (gains/losses) in gory Cate contract amount valuation Futures －－－－－－－－

ge- Sell traded Exchan Buy －－－－ Currency Swaps 878,541 878,541 －－ Forward contracts 14,288,945 903,866 15,282 15,282 Sell 7,318,022 389,817 △37,993 △37,993 Buy 6,970,923 514,048 53,276 53,276 Options 2,553,456 306,028 1 103 Sell 1,271,776 153,123 △11,279 4,436 Over-the-counter Buy 1,281,679 152,905 11,281 △4,432 Total －－ 15,284 15,386

Interim Disclosure

(3) Stock-related transactions

None

(4) Bond-related transactions (Millions of Yen) FY2007 Interim Over 1 year in Net changes Contract Category Type contract Market value (gains/losses) amount amount in valuation Bond futures 116,857 － 45 45 Sell 37,571 － 9 9 Exchang Buy 79,285 － 36 36 e-traded Bond future options 60,023 － 6 △21 Sell 23 －－－ Buy 60,000 － 6 △21 Bond OTC options －－－－ Over-the -counter Sell －－－－ Buy －－－－ Total －－ 51 24

(5) Commodity-related transactions

None

(6) Credit derivatives transactions

None

Interim Disclosure

4. Major shareholders

Major shareholders (as of September 30, 2007) Name of shareholder Numbers of shares Shareholding ratio CJP Holdings Inc. 244,200,000,001 shares 100 ％

Total 244,200,000,001 shares 100 ％

Interim Disclosure

5. Disclosure items based on Pillar III of Basel II

(1) Outline of means of raising equity capital (Millions of Yen) as of Sep. 30, 2007 Tier I Capital 123,100 Surplus capital 121,100 Retained earnings 3,829 (Estimated distributed income) - (Valuation loss of other securities) 2,514 New share reservation rights - (Trade rights equivalent) 13,684 (Goodwill equivalent) - (Intangible fixed asset equivalent reported by business combination) - (Equity capital equivalents increased due to securitization transaction) - Tier 1 capital before the deductions for deferred tax assets (subtotal of above) - (Deductions for deferred tax assets) - Subtotal （A） 231,831 Preferred securities with step-up interest rate clauses - Tier 2 Amount equivalent to 45% of the land revaluation excess - General allowance for loan losses 914 Eligible provision in excess of expected loss - Debt capital instruments etc. - Perpetual subordinated debt - Fixed-term perpetual subordinated debt and fixed-term preferred stocks - Exclusion from Tier 2 capital ( ) - Total 914 of which included in Capital （B） 914 Deductable item （C） - Caital （A)＋（B）－（C）（D） 232,746

Interim Disclosure

(2) Capital adequacy

Amount of required capital for Credit Risk (Millions of Yen) as of Sep. 30, 2007

Risk weighted exposure Required Capital On balance sheet asset items Cash 0 0 Exposures to Japanese government and central bank 0 0 Exposures to foreign government and central bank 722 29 Exposures to the Bank for International Settlements - - Exposures to Local Authorities - - Exposures to overseas public sectors other than central government 4,521 181 Exposures to the International Bank for Reconstruction and Development 0 0 Exposures to Japan Government-affiliated organization 43,672 1,747 Exposures to land development corporation, local housing corporations, Local Public Road Corporations - - Exposures to financial institutions and securities companies 838,424 33,537 Corporate exposures 379,931 15,197 Exposures to small and medium size enterprises and individuals - - Residential Mortgage Exposures 4,061 162 Retail Exposures related to real-estate acquisition - - Exposures three months or more in arrears 50 2 Bills before collection 2,393 96 Exposures to the Credit Guarantee Association - - Exposures guaranteed by Industrial Revitalization Corporation of Japan - - Exposures to Investment - - Securitization exposures (originator) - - Securitization exposures (other than the originator) - - Assets backed up with several assets (so-called funds) which individual asset is ungraspable - -

Others 73,174 2,927 On-balance sheet asset items total 1,346,953 53,878 Off-balance sheet asset items Derivative transactions 105,561 4,222 Others 192,390 7,696 Off-balance sheet asset items total 297,952 11,918 Total 1,644,907 65,796

Interim Disclosure

Amount of required capital for Market Risk (Millions of Yen) as of Sep. 30, 2007 General Market Required Standarized method Specific Risk Risk Capital of which Interest Rate Risk - 61,184 2,447 Equity Risk - - - Foreign Exchange Risk - 6,315 253 Commodity Risk - - - Total - 67,499 2,700

Amount of required capital for Operational Risk (Millions of Yen) as of Sep.30,2007 Operational Risk Required Capital Basic Indicator Approach 161,344 6,454

Total Capital Adequacy Ratio and Tier I Capital Ratio (Million of Yen, %) as of Sep. 30, 2007 Tier 1 （A） 231,831 Tier 2 （B） 914 Deductible item （C） - Total Capital （A)＋（B）－（C）（D） 232,746 Risk assets On balance sheet transaction 1,346,953 Off-balance sheet transaction 297,952 Credit Risk exposure 1,644,907 Market Risk exposure divided by 8% 161,344 Operational Risk exposure divided by 8% 67,499 Total （E） 1,873,751 Tier 1 Capital Ratio （A）／（E）×100 12.3 Total Capital Adequacy Ratio（D）／（E）×100 12.4 Total required Capital (Domestic Criteria) （E）×4％ 74,950

Interim Disclosure

(3) Credit Exposure

（by Geography, Industry, or Counterparty) (Millions of Yen) as of Sep. 30, 2007 Loans etc. Securities Derivatives Total Domestic Manufacturing 82,052 - 10,927 92,980 Mining - - - - Contraction 521 - 42 563 Electric power, gas, water supply 800 - - 800 Information and communication 14,439 - - 14,439 Transportation 1,509 - 2,386 3,895 Wholesale and retail 123,140 - 1,238 124,379 Financial Institutions and Insurance 117,201 42,842 41,928 201,972 Real estate 74,198 - 146 74,344 Services 13,206 - 3,899 17,105 Government - - - - Individuals 34,328 - 2,356 36,684 Others 75,568 - - 75,568 Overseas Sovereign 1,560 1,302 - 2,862 Financial Institutions 873,046 - 30,533 903,580 Others 83,626 - 12,102 95,728 Total 1,495,200 44,144 105,561 1,644,907

(by Maturity) (Millions of Yen) as of Sep. 30, 2007 Loans etc. Securities Derivatives Total To 1 year 945,918 9,248 75,745 1,030,911 1 to 3 years 356,885 16,161 14,987 388,034 3 to 5 years 61,087 16,219 3,979 81,286 Over 5 years 34,706 2,514 10,848 48,070 Undefined 96,602 - - 96,602 Total 1,495,200 44,144 105,561 1,644,907

Interim Disclosure

Past-due over 3 months or default exposure

（by Geography, Industry, or Counterparty) (Millions of Yen) as of Sep. 30, 2007 Domestic Corporate - Individuals 163 Overseas - Total 163

Loan loss reserve

(Millions of Yen) as of Sep. 30, 2007 Beginning Change Ending Specific Reserve Corporate - - - Individuals 123 0 123 Otehrs 227 (32) 195 Generatl Reserve 1,710 (796) 915 Loan loss reserve for restructuring country None

Credit Risk exposure after Credit Risk Mitigation by Risk weight under Standardized approach

(Millions of Yen) as of Sep. 30, 2007 0% 0 20% 913,572 35% 4,061 50% 54,573 75% - 100% 661,092 150% 11,608 Deduction from Capital - Total 1,644,907

Interim Disclosure

(4) Credit Risk Mitigation (Millions of Yen) as of Sep. 30, 2007 Eligible Financial Collateral Cash 20,128 Bonds 36,786 Stocks 2,229 Others - Guarantee and Credit Derivatives Guarantee 94,842 Credit Derivatives - Total 153,987

(5) Counterparty Credit Risk of Derivatives i．Measurement of Credit exposure Current Exposure Method

(Millions of Yen) as of Sep. 30, 2007 ii．Total amount of gross positive fair value 160,746 iii．Credit exposure before Credit Risk Mitigation FX related 194,168 Interest rate related 6, 725 Total 200,893 iv．The amount deducting iii from sum of ii and gross add-on (Reduction by Netting agreements) 200,893 v. Collateral type None vi. Credit exposure after Credit Risk Mitigation Same as iii vii. Notional amount of credit derivatives which have counterparty risk None viii. Notional amount of credit derivatives which cover exposures by Credit Risk Mitigation None

Interim Disclosure

(6) Securitization

Securitization exposure originated by the Bank None

Securitization exposure in which the Bank invests None

(7) Market Risk (under Internal Model Approach)

None

(8) Equity Exposure in Banking Book

Book value and Fair value

(1) Listed Equity Exposure None

(2) Unlisted Equity Exposure None

Gains/losses on sale or depreciation of equity exposure None

Unrealized gains/losses which is recognized on balance Sheet but not recognized on Income Statement. None

Unrealized gains/losses which is not recognized on balance Sheet nor recognized on Income Statement. None

Amount of equity exposure under grandfathering rule subject to the Accord Supplementary Provision 13 None

(9) Amount in regarded exposure under the Accord article 167

None

Interim Disclosure

(10) Interest Rate Risk in the Banking Book - the increase/decrease in economic value for upward/ downward rate shocks according to internal management's method

(Millions of Yen) as of Sep. 30, 2007 Japanese Yen 4,789 US Dollar 561 Euro 162 Others 101 Total 5,613