Sumitomo Mitsuit Banking

            Revision of Fiscal Year 2003 Earnings Forecast
       by SMFG's Consolidated Subsidiary, Sakura KCS Corporation

Sumitomo Mitsui Financial Group, Inc. ("SMFG") announced today that
its consolidated subsidiary, Sakura KCS Corporation, revised its
earnings forecasts for the fiscal year ending March 31, 2004 and the
six months ended September 30, 2003 initially announced on May 23,
2003. (see Appendix)

(Appendix)

Sakura KCS Corporation Announces
Revision of Earnings Forecast for Fiscal Year 2003

Sakura KCS Corporation ("Sakura KCS") announced today the revision of
its earnings forecast for the fiscal year ending March 31, 2004
initially announced on May 23, 2003.

1.Revision of Earnings Forecast (Six months ended September 30, 2003)

(Consolidated)                                                              (Millions of Yen)


                                                             Revenues       Operating Profit (Loss)  Net Income (Loss)
------------------------------------------------------------------------------------------------------------------------
Previous forecast (A)                                               12,300                      290                 150
------------------------------------------------------------------------------------------------------------------------
Revised forecast (B)                                                11,485                      113                  95
------------------------------------------------------------------------------------------------------------------------
Difference (B)-(A)                                                    (815)                    (177)                (55)
------------------------------------------------------------------------------------------------------------------------
Percentage change                                                    (6.6)%                  (61.0)%             (36.7)%
------------------------------------------------------------------------------------------------------------------------
(Ref.) Previous 1st half                                            12,486                      369                  79
------------------------------------------------------------------------------------------------------------------------


(Non-Consolidated) (Millions of Yen)


                                                           Revenues        Operating Profit (Loss)   Net Income (Loss)
------------------------------------------------------------------------------------------------------------------------
Previous forecast (A)                                             12,000                        280                 145
------------------------------------------------------------------------------------------------------------------------
Revised forecast (B)                                              11,181                         67                  67
------------------------------------------------------------------------------------------------------------------------
Difference (B)-(A)                                                  (819)                      (213)                (78)
------------------------------------------------------------------------------------------------------------------------
Percentage change                                                  (6.8)%                    (76.1)%             (53.8)%
------------------------------------------------------------------------------------------------------------------------
(Ref.) Previous 1st half                                          12,155                        324                  68
------------------------------------------------------------------------------------------------------------------------


2.Revision of Earnings Forecast (Fiscal year 2003 ending March 31, 2004)

(Consolidated)                                                              (Millions of Yen)


                                                                Revenues        Operating Profit (Loss)   Net Income
                                                                                                             (Loss)
------------------------------------------------------------------------------------------------------------------------
Previous forecast (A)                                                   25,000                      730             320
------------------------------------------------------------------------------------------------------------------------
Revised forecast (B)                                                    23,900                      510             260
------------------------------------------------------------------------------------------------------------------------
Difference (B)-(A)                                                      (1,100)                    (220)            (60)
------------------------------------------------------------------------------------------------------------------------
Percentage change                                                        (4.4)%                  (30.1)%         (18.8)%
------------------------------------------------------------------------------------------------------------------------
(Ref.) Previous fiscal year                                             24,948                      731              90
------------------------------------------------------------------------------------------------------------------------


(Non-Consolidated)                                                          (Millions of Yen)


                                                            Revenues        Operating Profit (Loss)   Net Income (Loss)
------------------------------------------------------------------------------------------------------------------------
Previous forecast (A)                                               24,450                       710                310
------------------------------------------------------------------------------------------------------------------------
Revised forecast (B)                                                23,300                       450                225
------------------------------------------------------------------------------------------------------------------------
Difference (B)-(A)                                                  (1,150)                     (260)               (85)
------------------------------------------------------------------------------------------------------------------------
Percentage change                                                    (4.7)%                   (36.6)%            (27.4)%
------------------------------------------------------------------------------------------------------------------------
(Ref.) Previous fiscal year                                         24,322                       649                 93
------------------------------------------------------------------------------------------------------------------------


3. Reason for Revision

Sakura KCS had expected revenues and profits to decline in the six months ended
September 30, 2003 due to weaker real estate registration system business, and
weaker hardware management business due to banks' centralizing their operations.
Though the financial results in the first quarter (April - June) were in line
with the initial forecast, in the second quarter (July - September), business
negotiations were postponed, competition intensified, and prices fell as
customers kept down capital spending on information systems, resulting in much
greater-than-expected reduction in revenues from system consulting and hardware
sales. Consequently, it expects first half revenues, operating profit and net
income to have been lower than initially expected.

Though the postponed business negotiations are back on track and business
related to merger of municipalities and other self-governing entities is
expanding, Sakura KCS expects the second half to show weaker results (about 10%
lower than the initial estimates) given the uncertain demand and price outlook.

Sakura KCS intends to maintain the interim-dividend of 5 yen per share.

[Breakdown of 1st half revenues]                                            (Millions of Yen)


                                                        1st quarter              2nd quarter             1st half
                                                ------------------------------------------------------------------------
                                                   April -     vs estimate July - Sept. vs estimate April -  vs estimate
                                                     June                                            Sept.
------------------------------------------------------------------------------------------------------------------------
Systems consulting                                      1,814           58        3,754       (336)    5,568       (278)
System management service                               1,190           12        1,365       (103)    2,555        (91)
Other services                                            462          (33)         501         38       964          5
Hardware sale                                           1,158           17        1,237       (469)    2,396       (452)
------------------------------------------------------------------------------------------------------------------------
                     Total                              4,626           54        6,859       (870)   11,485       (815)
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